The central bank: will implement a moderately loose monetary policy well by 2025.

On January 14th, the State Council Information Office held a series of press conferences on the "achievements of China's high-quality economic development", introducing the relevant information on financial support for high-quality economic development. Deputy Governor of the People's Bank of China, Xuan Changneng, stated at the press conference that the People's Bank of China will implement a moderately loose monetary policy by 2025. In the next stage, macroeconomic policies will further strengthen countercyclical adjustments. The People's Bank will adjust and optimize policy intensity and pace according to domestic and international economic and financial conditions and financial market operations, to support the achievement of annual economic and social development goals. By comprehensively using various monetary policy tools such as interest rates and reserve requirements, the People's Bank will maintain ample liquidity and ensure a loose social financing environment. It will strengthen interest rate policy implementation, further reduce the comprehensive social financing cost while maintaining the sound operation of the financial industry. They will scientifically use structural monetary policy tools to effectively utilize the dual functions of both quantity and structure of monetary policy tools. They will continue to take comprehensive measures to maintain the stability of the RMB exchange rate at a reasonable and balanced level. Xuan Changneng also stated that the People's Bank's exchange rate policy position is clear and consistent, and the goal of maintaining the basic stability of the RMB exchange rate will not change. Over the years, they have accumulated rich experience in responding to external shocks. They are confident, prepared, and capable of resolutely achieving their goals. In the next stage, they will continue to take comprehensive measures to enhance the resilience of the forex market, stabilize market expectations, strengthen market management, rectify pro-cyclical behaviors in the market, deal with actions that disrupt market order, and guard against exchange rate overshooting risks to maintain the basic stability of the RMB exchange rate at a reasonable and balanced level. At the press conference, Zou Lan, Director of the Monetary Policy Department of the People's Bank of China, stated that the two capital market support tools introduced by the People's Bank follow market-oriented and legal principles. Listed companies and industry institutions can independently decide on the timing and scale of stock purchases according to market conditions, which is conducive to fully utilizing the market's selection function, correcting capital market overreactions. When stock market values are significantly underestimated, listed companies, major shareholders, and securities institutions will have sufficient willingness to use the low-cost incremental funding provided by the two tools to repurchase or increase stock holdings based on their own interests, creating an inherent stabilization mechanism that can effectively play a stabilizing role in the market and curb negative market cycles. The People's Bank will further improve tool design and institutional arrangements based on previous practices, continuously enhance the convenience of tool usage, and relevant enterprises and institutions can obtain sufficient funds as needed to increase investments.The credit structure continues to be optimized, with long-term loans in the manufacturing industry increasing by 11.9% year-on-year, loans to specialized and innovative enterprises increasing by 13.0% year-on-year, and inclusive small and micro loans increasing by 14.6% year-on-year, continuing to grow faster than overall loans during the same period. The RMB exchange rate remains basically stable at a reasonable and balanced level, with the exchange rate against a basket of currencies stable at around 100, balancing internal and external factors. Come, especially since September last year, a package of incremental support policies will continue to take effect. The Central Economic Work Conference deployed a more proactive fiscal policy and moderately loose monetary policy to be implemented by 2025, which will further consolidate the positive trend of China's economic recovery. Second, the current account has maintained a surplus for several consecutive years. In the first 11 months of 2024, the trade surplus reached 884.6 billion US dollars, an increase of 18.4% year-on-year, providing strong support for balancing foreign exchange supply and demand. Third, cross-border capital flows are in balance. The financial market is steadily opening up, and the facilitation of cross-border investment and financing continues to improve, attracting stable inflows of foreign medium- to long-term capital. Fourth, the overall foreign exchange reserves remain stable, effectively playing a pivotal role in maintaining the stability of the country's economy and finance. Fifth, the foreign exchange market is more resilient. Market participants are more mature, trading behaviors are more rational, and the concept of exchange rate risk neutrality is continuously strengthening. More hedging tools are being used, providing a very important micro foundation for the stable operation of the foreign exchange market and the balance of foreign exchange supply and demand. Currently, the proportion of RMB in cross-border receipts and payments in goods trade is about 30%, and the proportion of enterprise foreign exchange hedging is 27%. All of these are very good micro foundations for the foreign exchange market.2024473821.3% ? In order to continuously strengthen and enhance the resilience of the foreign exchange market, cross-border two-way investment is expected to remain stable and orderly. China is deepening the reform of the system and mechanism to promote foreign investment, steadily improving the level of cross-border investment and financing facilitation, which is conducive to foreign investment in China and the development of businesses. The financial market opening also benefits foreign capital allocation of RMB assets. The depth of China's foreign exchange market continues to expand, the market-oriented mechanism of RMB exchange rate is gradually improving, enterprises' awareness and ability of exchange rate hedging are increasing, the use of RMB in cross-border transactions is also increasing, which helps to make market transactions more rational and orderly. In 2024, the corporate foreign exchange hedging ratio is 27%, and the proportion of RMB transactions under goods trade is close to 30%, both at historical highs.In addition, we always pay high attention to external risk challenges. The State Administration of Foreign Exchange will continue to deepen reforms and opening up in the foreign exchange field to better serve foreign trade and foreign investment development. We will improve the long-term mechanism for enterprise exchange rate risk management to better support enterprise currency hedging. At the same time, we will strengthen foreign exchange market management, timely take macro-prudent countercyclical adjustment measures, resolutely correct pro-cyclical behavior in the foreign exchange market, maintain the stability of the renminbi exchange rate at a reasonable equilibrium level, and maintain the basic balance of international payments. Thank you. Bloomberg News Journalist: I have some questions about the government bond market. Does the central bank believe that the current government bond yields accurately and fairly reflect the economic fundamentals? What measures will the central bank take to manage the risks in the government bond market? Also, we noticed that the central bank recently stopped purchasing government bonds. Why did they stop and how long might this pause last? Will the central bank increase the trading volume of government bonds this year? Xuan Changneng: I will let Director Zou Lan continue to answer this question. Zou Lan: Thank you for your question. Recently, the long-term government bond yields have been declining rapidly, attracting attention from various parties. After years of development, the yield curve of government bonds in China has basically become a benchmark for pricing in the financial market. The level of government bond yields not only relates to the cost of national financing, but also to the stable development of the entire financial market. In general, long-term government bond yields not only reflect market expectations of future long-term economic growth but are also influenced by market supply and demand. Since 2024, the Chinese economy has been trending positively amid fluctuations, especially since September, with market expectations and social confidence significantly improving, and it is expected to achieve the annual growth target of around 5%. The recent Central Economic Work Conference also explicitly stated the need to implement more proactive macro policies to maintain stable economic growth. The positive economic outlook will eventually be reflected in the level of government bond yields. Thank you. Cover News Journalist: In early December last year, the central bank announced a revision to the M1 calculation, could you please explain the considerations behind this adjustment and its impact on financial data statistics and monetary policy control for 2025? Thank you. Xuan Changneng: This question will be answered by Zhang Wenhong, Director of the Statistics Department. Zhang Wenhong, Director of the Statistics Department of the People's Bank of China: Thank you for your question. The money supply is the sum of financial instruments serving as a means of circulation and payment at a certain point in time, and is an important indicator for financial statistics and analysis. The People's Bank of China has always attached great importance to adjusting the calculation of the money supply based on the development of the economy and changes in the liquidity of financial instruments. The money supply statistics in China have undergone four major adjustments since its establishment. In recent years, with the rapid development of China's financial markets and financial innovation, the liquidity of financial instruments has changed significantly, and the scope of financial instruments that meet the M1 statistical definition has also changed, necessitating dynamic optimization of the M1 statistical calculation. This time, the optimization of the M1 statistical calculation further includes personal demand deposits and customers' reserve funds in non-bank payment institutions on the existing basis of M1. As for personal demand deposits, when the M1 statistics were established, the country did not have personal bank cards, let alone a mobile payment system, so personal demand deposits could not be used for immediate transfers and payments and were not included in the M1 statistical calculation at that time. With the rapid development of payment methods, personal demand deposits now have transfer and payment functions and can be used for payment at any time without the need for cash withdrawal, similar to the liquidity of corporate demand deposits, hence they should be included in M1. Concerning customers' reserve funds in non-bank payment institutions, such as WeChat wallets and Alipay balances, they can be directly used for payment or transactions, have high liquidity and should also be included in M1. Internationally, the M1 statistical calculation of major economies mainly includes personal demand deposits and other highly liquid payment tools.Je suis en train de dner.Financial statistical data is an objective reflection of the financial situation, and the determination of statistical indicators should be based on scientificity and effectiveness to provide information support for policy decision-making. Through our analysis of historical data, we found that the revised M1 data has strengthened its correlation with economic growth indicators and improved stability. The People's Bank of China will continue to maintain the transparency of statistical data, and we will start compiling M1 data according to the revised criteria starting from January this year, with plans to announce it to the public in early February. Along with the initial announcement, we will also disclose the revised M1 balance and growth rate since January last year. Thank you. Reporter from the Financial Times: My question is, in recent years, interest rates have been continuously declining and are currently at a relatively low level. The central bank mentioned improving the transmission and implementation of interest rate policies to expand the interest rate policy space. What considerations are there for the next phase? Thank you. Xuan Changneng: I will answer this question. The interest rate system in our country can be divided into three levels: the first level is the central bank's policy rate, which is currently the 7-day reverse repurchase rate of open market operations, which is often referred to as the rate cut. The second level is the market benchmark interest rate, as Director Zou Lan mentioned earlier, the government bond yield curve, which is an important benchmark interest rate in the market and plays a crucial role in pricing bonds and many financial assets. The third level is market interest rates such as deposit and loan rates, where the final effect of the downward trend in funding costs is reflected in these rates. In recent years, the guidance effect of policy rates has been further demonstrated. Last year, policy rates were cumulatively reduced by 0.3 percentage points, guiding a 0.35 percentage point reduction in the 1-year loan market quoted interest rate and a 0.6 percentage point reduction in the quoted interest rate for loans with a term of more than 5 years, leading to a greater decrease in loan rates. In order to achieve the goal of reducing the overall social financing cost, we will take comprehensive measures to expand the interest rate policy space. First, we will continue to strengthen interest rate policy implementation. Last year, the People's Bank of China focused on rectifying high-interest attracting deposits through unauthorized "manual interest supplementation" and optimized the self-discipline management of corporate deposits and interbank current deposits, maintaining market order and creating conditions for banks to reduce social financing costs. This year, we will continue to strengthen this work, further lowering the overall liability costs of banks, easing the pressure on their net interest margin, and better balancing the health of their balance sheets and the reduction in financing costs for the real economy. Second, striking a balance between internal and external factors. The stability of the RMB exchange rate is solid, as I mentioned earlier. In response to possible adverse effects from changes in the external environment, we will take various measures to resolutely prevent the risk of exchange rate overshooting, maintain the basic stability of the RMB exchange rate at a reasonable equilibrium level, and lay a good foundation for regulation based on the needs of the domestic economic and financial situation. Third, accelerating the supplementation of bank capital. Recently, the Ministry of Finance has clearly stated that it will support the issuance of special government bonds to supplement the capital of large commercial banks, and local special bonds are also an important channel for capital supplementation for small and medium-sized banks. This is an important embodiment of the collaboration between fiscal policy and monetary policy. As we all know, capital is the foundation for banks to serve economic growth, promote economic structural adjustments, and guard against various risks. The measures taken by the national treasury to supplement bank capital can enhance the bank's sound operational capabilities, effectively serve the real economy and withstand risks, and to some extent, compensate for the impact of the decline in financing costs for the real economy on the internal capital supplementation of banks. Thank you. Reporter from Economic Daily: The National Foreign Exchange Management Conference in 2025 mentioned the implementation of a more proactive foreign exchange management policy, as Deputy Director Li Bin also mentioned in his opening remarks. What specific ideas and measures are there next? Thank you. Li Bin: Thank you for your question, I will answer this question. In 2025, the State Administration of Foreign Exchange will better coordinate high-quality development and high-level security, build a foreign exchange management system that is "more convenient, more open, and more secure", adhere to reform and opening up in a complex environment, and prevent financial risks in reform and opening up, thereby better supporting stable foreign trade and foreign investment, and helping the economy to continue to recover and improve. The focus will be on the following four areas: First, introducing more foreign exchange facilitation policies. We will continue to promote the facilitation of trade foreign exchange receipts and payments for high-quality enterprises, with a focus on expanding to regions and small and medium-sized banks that have previously received little benefits, enabling more high-quality small and medium-sized enterprises to enjoy the convenience of reducing documentation and simplifying procedures. In accordance with the characteristics of new trade formats such as e-commerce platforms and comprehensive foreign trade service enterprises, better support the return of export proceeds, simplify foreign exchange payment procedures such as logistics, warehousing, returns, etc., and enhance the level of convenience in foreign exchange settlement. We will also actively respond to the demands of some contracting enterprises, support them in centrally managing and autonomously allocating funds for cross-border and cross-regional engineering projects, thus improving the efficiency of fund management. Second, advancing reforms in foreign investment foreign exchange management. Currently, China's cross-border direct investment has achieved basic convertibility. We are studying the cancellation of registration for pre-investment expenses for foreign direct investment, domestic reinvestment, further improving the convenience of foreign direct investment fund exchange, and creating a more favorable environment for foreign-funded enterprises to expand their business in China. Third, promoting openness in the foreign exchange field. We will optimize the capital management of domestic companies that are listed overseas, simplify foreign exchange registration for companies listed overseas. We will adjust the facilitation financing quota for technology-based enterprises at the appropriate time to help reduce financing costs for sci-tech innovation enterprises. We will continue to improve cross-border corporate treasury policies, facilitate the allocation and management of funds between domestic and foreign member enterprises of multinational companies, improve the efficiency of cross-border fund utilization, significantly reducing corporate financial costs. We support the enhancement of strategies in free trade pilot zones, support foreign exchange management innovation in Hainan Free Trade Port, and the Guangdong-Hong Kong-Macao Greater Bay Area, support Shanghai and Hong Kong as international financial centers. Fourth, focus on enhancing regulatory capabilities and risk prevention in an open environment. On one hand, improve the monitoring and early warning system for cross-border capital flows, we will work together with the People's Bank of China to strengthen the counter-cyclical regulation and expectation management of the foreign exchange market, resolutely rectify pro-cyclical behavior, resolutely address behaviors that disrupt market order, resolutely prevent the risk of exchange rate overshooting, and maintain the RMB exchange rate at a reasonable equilibrium level.The basic situation is stable, maintaining the basic balance of international payments. On the other hand, we will build a more complete and effective foreign exchange supervision system, maintain high-pressure crackdown on foreign exchange illegal activities, and maintain the healthy order of the foreign exchange market. Thank you.Xinhua News Agency Xinhua Financial Journalist: The Central Financial Work Conference proposed to do a good job in the "Five Major Articles" of finance. What are the highlights of the work of the People's Bank of China in this area in 2024? What policies are being considered for 2025? Thank you. Xuan Changneng: Please let Director Zou Lan answer this question. Zou Lan: Thank you for your question. I will answer this question. Doing a good job in the "Five Major Articles" of technology finance, green finance, inclusive finance, pension finance, and digital finance is an important focus for supporting the high-quality development of the real economy with financial services. Since the Central Financial Work Conference, the People's Bank of China, together with relevant departments, has formulated and issued guiding documents in various areas, detailed work measures, accelerated policy transmission, and made positive progress. Among the "Five Major Articles," technology finance holds a prominent position. As mentioned earlier, the People's Bank of China established a 500 billion yuan loan for technology innovation and technological transformation last year, continuously increasing the intensity and level of financial support for technological innovation, deepening the construction of the technology and innovation finance reform pilot zone, optimizing the cross-border financing system for technology enterprises, and building a diversified and relay-type technology finance system. In terms of green finance, the support tools for carbon emission reduction have been optimized. In Shanghai, the support range has been expanded to include low-carbon transformation, guiding more credit resources to invest in green and low-carbon development. In terms of inclusive finance, the interest rate for the loan to support agriculture and small businesses has been reduced from 2% to 1.75%, with an additional 100 billion yuan in funding. Organizing and implementing five major special actions to support the comprehensive revitalization of rural areas. In terms of pension finance and digital finance, efforts continue to be made to strengthen institutional and market construction. Currently, the policy framework in various areas is basically sound, and structural monetary policy tools have achieved full coverage in all five aspects, showing continuous effectiveness. The level of financial support continues to increase. By the end of 2024, loans to specialized, innovative, and new enterprises increased by 13% year-on-year, inclusive small and micro loans increased by 14.6%, and agricultural loans increased by 9.8%. As of the end of the third quarter of 2024, green loans increased by 25.1% year-on-year. These loan growth rates were significantly higher than those of other loans during the same period, indicating that the credit structure is optimizing at an accelerated pace. Financing availability has significantly improved. The number of inclusive small and micro credit clients exceeded 60 million, covering approximately 1/3 of business entities; the loan approval rate for technology-based small and medium enterprises is close to 50%. Financing costs have remained low. In December 2024, the weighted average interest rate for new corporate loans was around 3.43%. Next, the People's Bank of China will further improve the top-level institutional design, formulate guiding opinions on doing a good job in the "Five Major Articles" of finance, focus on key areas and weak links to refine policy measures, and comprehensively improve the quality and efficiency of financial services for the real economy. First, strengthen positive incentives, give full play to the guiding role of structural monetary policy tools and macro prudential credit policy, strengthen coordination with fiscal policy, guide financial institutions to increase credit resources and optimize credit structure. Second, enhance the service capabilities of financial institutions, improve the internal incentive and constraint mechanisms of financial institutions, further enrich the spectrum of financial products, enhance risk assessment capabilities and financial service technology levels. Third, expand financing channels, support companies through bond issuance, equity, and other market financing, and increase the proportion of direct financing. That's my answer. Thank you! 21st Century Business Reporter: My question is, what are the considerations for the People's Bank of China in further enhancing the international currency functions of the Renminbi in cross-border payments, investment, and financing? Xuan Changneng: Thank you for your question. I will answer this question. In recent years, as the pace of diversification of the international monetary system has accelerated, the internal demand for using Renminbi for trade settlements and investment and financing by economic entities has continued to strengthen. Especially since the international financial crisis, this demand has been continuously increasing. The People's Bank of China has responded to market demand by taking a series of measures to enhance the convenience of using Renminbi in cross-border transactions, providing more currency options for economic entities in cross-border trade and investment settlements, and better serving the real economy. There are several characteristics: First, the policies are more "favorable." Together with the State Administration of Foreign Exchange, we have continuously optimized policies such as the domestic and foreign currency fund pool, overseas lending and loans by domestic enterprises, and overseas listings of domestic enterprises, to increase the convenience of using Renminbi across borders. Second, the level of openness is "higher." We have successively launched the "Cross-Border Wealth Management Connect" in the Guangdong-Hong Kong-Macao Greater Bay Area and established a multi-functional free trade account system in Hainan and Hengqin, improving the fund management policies for qualified overseas investors and actively promoting institutional opening. Third, the operations are more "convenient." We have continued to guide and promote commercial banks to optimize the processes of cross-border Renminbi business, improve business processing efficiency, and service levels. Fourth, the network is more "sound." We continue to expand the Renminbi clearing bank network, increase the participants and coverage areas of the Cross-Border Renminbi Payment System (CIPS), and provide a solid foundation for economic entities to use Renminbi across borders. Overall, with the joint efforts of all parties, the various indicators of the international use of the Renminbi have steadily increased, and the ability of cross-border Renminbi business to serve the real economy has continued to strengthen. In terms of payment functions, the Renminbi has now become the fourth-largest payment currency globally. Last year, the cross-border payment and receipt amount of Renminbi was approximately 64 trillion yuan, an increase of 23% year-on-year. In terms of financing functions, the Renminbi has become one of the top three trade financing currencies globally. In 2024, foreign financial institutions and companies issued Panda bonds in China totaling nearly 200 billion yuan, a year-on-year increase of 32%, and the issuance of offshore Renminbi bonds increased by 150% year-on-year. In terms of reserves functions, more than 80 central banks or monetary authorities outside China have included Renminbi in their foreign exchange reserves. In terms of the offshore Renminbi market, the balance of Renminbi deposits in Hong Kong has exceeded 1 trillion yuan, and the balance of Renminbi loans is close to 700 billion yuan, reaching historically high levels. In the next stage, the People's Bank of China will continue to adhere to the principles of market-driven and mutually beneficial development, coordinate development and security, and create a better environment for both domestic and foreign entities to hold and use Renminbi. First, strengthen the coordination of domestic and foreign currencies, further improve policies on the use of Renminbi in cross-border transactions, and enhance the convenience of cross-border Renminbi business processing. Second, support investment and liquidity management in Renminbi, increase risk hedging tools, support Shanghai in building a Renminbi financial asset allocation center and a risk management center. Third, facilitate economic entities to carry out cross-border financing activities in Renminbi, support Renminbi trade financing, overseas loans, and Renminbi bond issuance, and other businesses. Fourth, improve the regulatory coordination mechanisms for cross-border Renminbi business, promote the development of Renminbi offshore markets, and enhance the internationalization level and safety of Renminbi use. This is my answer. Thank you!Enhance the supply mechanism of offshore Renminbi liquidity to support the healthy development of the offshore Renminbi market, consolidate and enhance the status of Hong Kong as an international financial center and a hub of offshore Renminbi business. Fifth, improve the infrastructure arrangements for cross-border Renminbi usage, establish new Renminbi clearing banks, and continuously enhance the functionality and services of the Renminbi cross-border payment system.I will answer just this much. Thank you, everyone. Shou Xiaoli: There are two more reporters raising their hands, the last two questions. Phoenix TV reporter: The People's Bank of China website just released the financial statistics for 2024. How do you view the scale and structural characteristics of social financing in 2024? Thank you. Zhang Wenhong: Thank you for your question. I will answer this question. At the end of 2024, the balance of social financing in China was 40.834 trillion yuan, an 8% year-on-year increase, with a growth rate 0.2 percentage points higher than the previous month. The total social financing increment for the year was 3.226 trillion yuan, reaching a historically high level. In terms of structure, some key features of the social financing increment include: First, financial institutions maintained reasonable growth in loans to the real economy. Throughout the year, financial institutions increased their RMB loans to the real economy by 1.705 trillion yuan. Second, the financial system continued to cooperate with fiscal policies, leading to a significant increase in government bond financing, reaching a historical high. In 2024, the net financing of government bonds was 1.13 trillion yuan, the highest in history for the same period, an increase of 169 billion yuan compared to the previous year. Specifically, net financing for national bonds was 450 billion yuan, an increase of 35.74 billion yuan; net financing for local government bonds was 679 billion yuan, an increase of 133 billion yuan. Third, corporate bond financing was higher than in the same period last year. In 2024, net corporate bond financing was 191 billion yuan, an increase of 283.9 billion yuan. Fourth, trust loans in off-balance financing increased significantly. In 2024, trust loans increased by 397.6 billion yuan, an increase of 240 billion yuan. In addition, entrusted loans and undiscounted bank acceptance bills decreased by 57.7 billion yuan and 329.5 billion yuan, respectively. Overall, the scale of social financing in 2024 maintained reasonable growth, providing strong support for the recovery and improvement of the real economy. Thank you. Shou Xiaoli: One last question. Securities Times reporter: My question is about the reform of bank foreign exchange business, which has been introduced for a year now. Recently, regulations on due diligence exemption for bank foreign exchange business and supplementary regulations on foreign exchange risk trading reports have also been released. I would like to ask about the current progress and what arrangements will be made next. Thank you. Li Bin: Thank you for your attention to the bank foreign exchange business. The so-called bank foreign exchange business generally refers to the activities banks conduct in identifying customers, reviewing documents, and monitoring risks during the process of handling foreign exchange transactions. In order to promote high-level opening-up to the outside world and optimize cross-border financial services, the State Administration of Foreign Exchange promoted the reform of bank foreign exchange business in 2023. The reform places more emphasis on identifying enterprises and strengthens post-risk monitoring, changing the previous practice of reviewing individual documents for each foreign exchange transaction. This allows premium clients to be exempted from document review and banks can handle their foreign exchange transactions based on their instructions, achieving a better combination of efficiency improvement and risk control, bringing real convenience to enterprises. A year after the implementation of the reform, banks actively participated, and the response from all sectors of society was positive. Currently, the number of participating banks has increased from 4 at the beginning to 16, with coverage expanding nationwide. From market feedback and operational effects, the reform has initially achieved the goals of reducing pressure on banks and burden on enterprises. Firstly, the reform significantly reduced the pressure on banks' mid-process verification. Banks no longer need to conduct the tedious document-by-document review for premium enterprise clients, resulting in a significant reduction in document review pressure and an average processing time reduction of more than 50%. By identifying and classifying risks for customers, banks can also innovate and customize various convenient service products for different clients, better meeting their needs. Secondly, the reform further expands the coverage of convenient policies for enterprises. Currently, 18,000 premium customers, including small and medium-sized enterprises, private enterprises, and foreign-funded enterprises, have been included, and the amount of cross-border payment transactions handled based on instructions has exceeded $260 billion, further optimizing the efficiency of enterprise fund turnover. Thirdly, the reform effectively enhances the quality and efficiency of risk prevention and control. After the reform, banks can rely on more solid customer identification and classification to concentrate more on high-risk clients and businesses. Meanwhile, the post-monitoring system can comprehensively and timely track cross-border transactions, enabling early identification, early warning, and early disposal of abnormal transactions. The reform of bank foreign exchange business is a fundamental and systematic work that we have been focusing on in recent years. Recently, we have issued three supporting regulations, including due diligence exemption regulations for bank foreign exchange business and management methods for foreign exchange risk trading reports, and guided the national foreign exchange market self-regulatory mechanism to release three industry guidelines, further refining guidance on bank operation processes and promoting the orderly and efficient implementation of the reform. In the next stage, the State Administration of Foreign Exchange will continue to seek progress while maintaining stability by steadily promoting the reform of bank foreign exchange business to improve quality and expand coverage. Firstly, we will organize the expansion in an orderly manner. We will guide banks voluntarily participating in the reform to accelerate their launch when conditions are ripe and gradually include more branches of banks that have implemented the reform to benefit more enterprises. Secondly, we will support banks in establishing a sound post-monitoring system, tapping into the potential of technological empowerment, utilizing banks as the "probe" for identifying risks early, and safeguarding the risk bottom line. Thirdly, we will enhance the publicity, interpretation, and training of the newly issued supporting regulations, especially promoting the smooth and steady implementation of due diligence exemption regulations for bank foreign exchange business, ensuring the success of the reform. Thank you. Shou Xiaoli: Thank you to all the presenters, thank you to all the participating reporters. That's all for today's press conference. Goodbye. This article was selected from "China.com"; GMTEight Editor: Xu Wenqiang.