Li Chao:

The third is the guideline on enhancing the supervision of securities firms and public offering funds. This document concentrates on rectifying the positioning of industry institutions, promoting their functional performance, improving their professional services, and enhancing oversight effectiveness. According to the 25 measures outlined in the guideline, industry institutions will be urged to rectify their operational ethos, prioritize their functions, and effectively fulfill their fiduciary duty. Efforts will be made to refine the mechanism for preventing conflicts of interest and rigorously crack down on illegal acts by shareholders and actual controllers compromising the interests of institutions and investors. Determined efforts will be made to combat misconduct such as the pursuit of money, extravagance, seeking quick profits, and flaunting wealth. Personnel management and supervision will be strengthened to maintain integrity within the industry. Cooperation will be provided to competent departments to continue improving the remuneration management system for industry institutions. The guideline also proposes vigorously developing equity funds and fortifying the core investment and research capacities of public offering funds to improve services for investors. Additionally, the access management of shareholders and businesses will be reinforced, and the qualification criteria and associated systems for senior executives will be upgraded. At the same time, the document places equal emphasis on penalizing both institutions and individuals, imposing both economic and disqualification punishments, and ensuring regulatory accountability and self-discipline, thereby encouraging industry institutions to enhance their own capabilities.

The fourth document focuses on enhancing the self-improvement of the CSRC. Strengthening self-improvement is organizationally crucial for the CSRC to comprehensively fulfill its primary regulatory responsibilities and to promote the high-quality development of the capital market. This document emphasizes a commitment to strictness, facing issues head-on, being strict with the CSRC itself, and leading self-development through self-reform. It advocates for further promoting the exercise of full and rigorous Party self-governance, improving Party conduct and building integrity, and combating corruption. It outlines measures in three respects. First, it emphasizes political integrity, upholding and strengthening the Party's overall leadership in the capital market and implementing the requirements of political and people-oriented specific regulatory tasks, effectively safeguarding the legitimate rights and interests of the vast number of small- and medium-sized investors. Second, it highlights capability development, striving to cultivate a team of regulatory officials capable of shouldering significant responsibilities. Additionally, policies incentivizing officials to take on responsibility, be proactive in their work, and strictly enforce accountability will be refined. Third, it underscores disciplined conduct, ensuring the strict tone, measures, and atmosphere are consistently upheld. Furthermore, rigorous actions will be taken to address the issue of officials entering the business sector after leaving government or vice versa and to rectify pointless formalities, bureaucratism, hedonism, and extravagance. A tough stance will be continuously maintained against corruption.

Following the release of the four documents, we will expedite the introduction of supporting rules and institutional measures. Through these policies and measures, we aim to promote the establishment of institutional mechanisms conducive to the long-term stability and development of the capital market, thus advancing its progress with Chinese characteristics more effectively.

That's all for my introduction. Thank you!