Market News International:

How should banks optimize their credit structure and revitalize existing loans? And is there currently arbitrage trading in the banking system, and if so, what are the policies needed to address these issues? Thank you.

Liu Zhiqing:

Thank you for your questions. Over previous years, the credit structure of China's banking industry has continued to optimize, and financial support for the real economy has become more targeted and robust. Financial resources have been delivered in more key areas and weak links, such as sci-tech innovation, advanced manufacturing, green development, inclusive finance support for small and micro-businesses, and infrastructure. Our focus is on promoting high-quality economic development. My colleagues have talked about the statistics on how the financial sector supports the real economy. Through the efforts of financial regulatory authorities, banking institutions have increased their disposal and recovery of non-performing assets over the years. Since 2017, a total of 18 trillion yuan of non-performing bank assets have been disposed of. A significant amount of financial resources that were occupied were put into more efficient use and allocated to sectors that are more promising and in need. In terms of the use of funds, the vast majority of the funds are used for the real economy to meet the financing needs of enterprises, residents, and other market entities, thereby supporting the recovery of the economy and boosting effective demand.

Going forward, the NFRA will continue to guide and support the banking institutions in increasing credit support and optimizing the structure. We will focus on five key areas: techfin, green finance, inclusive finance, elderly care finance, and digital finance. Our goal is to remove obstacles to the flow of funds into the real economy and increase the efficiency of capital use so that the real economy can be better served by financial resources. Thank you.