Lyu Jiajin
Serving the real economy constitutes the fundamental duty of finance. China's Industrial Bank rigorously implements General Secretary Xi Jinping's important directives on financial work and the spirit of the Third Plenary Session of the 20th CPC Central Committee. Aligned with the Central Economic Work Conference's guidelines, we adopt a systemic approach anchored in national priorities, heighten our sense of responsibility and urgency, and intensify policy execution for both existing and new initiatives. By deploying integrated measures, we are channeling financial resources to bolster the sustained economic recovery and ensure the accomplishment of all socioeconomic development objectives.
Persist in Further Deepening Financial Reforms
General Secretary Xi Jinping emphasized: "The deepening of supply-side structural reform in the financial sector necessitates full implementation of the new development philosophy, enhancement of financial service functions, precise targeting of key service areas, and fundamental commitment to serving the real economy and improving people's livelihoods."
The Third Plenary Session of the 20th CPC Central Committee has laid out major strategic plans for advancing financial system reform, charting a clear course for implementation. We will closely align with the requirements of Chinese-style modernization and high-quality development, translating the "master plan" for financial reform into CIB's actionable "blueprint," thereby delivering higher-quality and more efficient financial services to support socioeconomic progress.
Focusing on upholding and strengthening the Party's comprehensive leadership over financial operations, we will enhance institutional mechanisms for Party building, refine corporate governance systems, deepen talent development reforms, and establish a modern financial enterprise system with Chinese characteristics.
Focusing on enabling high-quality economic and social development, we will center efforts on executing the "Five Major Topics," advance supply-side structural reform in finance, strengthen support for critical national strategies, key sectors, and underdeveloped areas, and better serve the growth of new productive forces while meeting evolving public needs.
Focusing on innovation-driven development, we will deepen reforms in the scientific and technological innovation system, amplify the guiding role of technological advancement, accelerate the development of a digital operation and management framework, and promote deep integration between the real economy and the digital economy.
Focusing on the Beautiful China construction, we will refine green finance mechanisms, establish management systems aligned with green and low-carbon economic development, prioritize carbon account services, enhance comprehensive carbon financial solutions, and vigorously support the green transformation of socioeconomic development.
Focusing on driving high-standard openness, we will align with the Belt and Road Initiative's quality development goals, prudently expand global operations, strengthen international service networks, optimize cross-border business mechanisms, and actively contribute to building new development paradigms.
Focusing on the creation of a Safer China, we will reform risk management frameworks, improve accountability and supervisory mechanisms, fortify safeguards in cybersecurity, data security, anti-money laundering, and fraud prevention to resolutely maintain systemic risk containment.
Support Comprehensive Expansion of Domestic Demand
China's current economic performance still faces multiple difficulties and challenges, with insufficient domestic demand being a key concern. We should maintain a comprehensive, objective, and pragmatic assessment of economic conditions, strengthen confidence, prioritize key initiatives, take proactive measures, and enhance the precision and effectiveness of financial services.
In order to intensify counter-cyclical credit provision, we will leverage commercial banks' dual role as primary conduits for monetary policy transmission and key supporters of the real economy, execute counter-cyclical adjustments and cross-cycle credit management with proactive and targeted measures, prioritize consumption revitalization by expanding financing for national priorities like "dual-critical" and "dual-new" projects, appropriately increase consumer credit, optimize service ecosystems, facilitate urban renewal initiatives, unlock consumption potential, and drive productive investments.
In order to stimulate the vitality of market entities, we will uphold and implement the "Two Unwavering" principle, optimize the use of the integrated service platform for private economic development, fully implement and refine the financing coordination mechanism for small and micro enterprises, accelerate the establishment of a dedicated service system for private SMEs, strengthen the role of private enterprises and SMEs as primary drivers of employment, and facilitate the "employment-income-consumption" cycle.
In order to promote stabilization and recovery in the real estate market, we will swiftly implement real estate financial policies such as batch reductions in existing mortgage rates and unified minimum down payment ratios, accelerate the expansion and effectiveness of urban real estate financing coordination mechanisms, vigorously support residents' essential and upgraded housing needs, and increase support for the "Three Major Projects" including affordable housing to foster a new model for real estate development.
Serve Development of New Quality Productive Forces
New quality productive forces have emerged in practice, and demonstrated robust momentum in driving and sustaining high-quality development. The key to advancing new quality productive forces through financial services lies in executing the "Five Major Topics."
In terms of technology finance, we will continuously refine institutional mechanisms, prioritize industrial parks as key hubs, innovate the "technology-driven" credit approval model, and establish diversified financial services covering the entire innovation chain and enterprise lifecycle. We will also collaborate with governments, universities, research institutes, and venture capital firms to build a robust ecosystem, deepen the integration of "industry-academia-research-application-finance," and foster synergies between technological and industrial innovation.
In terms of green finance, we will coordinate efforts to reduce carbon emissions, curb pollution, and expand green growth. We will enhance the group-wide diversified green finance system, accelerate the integration of transition finance with green finance, and holistically support green upgrades in traditional industries and green emerging industries. We will also actively participate in national carbon market development, innovate carbon finance services, advance zero-carbon industrial parks, and reinforce initiatives to safeguard blue skies, clean waters, and unpolluted land, solidifying the green foundation of new quality productive forces.
In terms of inclusive finance, we will accelerate the digital transformation of inclusive finance, eliminate information asymmetry barriers, and channel financial resources from large enterprises to SMEs. We will pilot the "Chain Leader System" to integrate upstream-downstream operations and unify large and small enterprises within strategic emerging industry chains, elevating the modernization of industrial and supply chains.
In terms of pension finance, we will strengthen the integrated pension finance service system encompassing pension fund management, senior care industry financing, and elderly service finance. We will support the development of a multi-tiered, multi-pillar pension insurance framework, catalyze growth in the silver economy, and unlock new growth drivers for new quality productive forces.
In terms of digital finance, we will adhere to technology as the primary productivity driver, data as a key production factor, and platforms as core operational models. We will establish the "digital industrial development" service framework to overcome traditional finance's limitations in coverage, efficiency, security, and cost, drive deep integration between the real economy and digital economy, and foster new industries, business models, and growth engines.
Safeguard Against Occurrence of Systemic Financial Risks
General Secretary Xi Jinping emphasized that "risk prevention must remain the eternal theme of financial work" and stressed the need to "focus on preventing and defusing financial risks, particularly systemic risks."
Amid numerous uncertainties in China's financial development, we must enhance our awareness of potential challenges, adhere to bottom-line thinking, and uphold sound operational, performance, and risk management philosophies to ensure high-quality development underpinned by robust security.
In order to balance the relationship between stabilizing growth and preventing risks, we will maintain asset growth commensurate with economic expansion, continuously optimize our business structure, and enhance alignment with the national economic framework to effectively meet the financing needs of the real economy. While remaining committed to supporting economic growth without compromising risk management, we will avoid herd-like financing surges or excessive credit allocation to emerging industries that could trigger irrational exuberance and financial risks.
In order to coordinate the management of both traditional and emerging risks, we will rigorously implement the comprehensive package of incremental policies to steadily address risks in key areas such as real estate and local government debt, while enhancing capabilities to tackle emerging risks including sanctions exposure, climate-related risks, data vulnerabilities, and model risks. Leveraging our interbank platform, we will facilitate risk technology and capability sharing to collectively safeguard financial stability.
In order to coordinate asset-liability management and capital management, we will pursue a capital-light and asset-light strategy, optimize liabilities and assets, expand intermediate income to counter "low interest rates and narrow spreads," and diversify capital replenishment channels to bolster risk resilience.