The Second Session of the 14th National People's Congress held a press conference at 3 pm on March 6th at the Medea Center, inviting Zheng Zhajie, Director of the National Development and Reform Commission, Lan Fo'an, Minister of Finance, Wang Wentao, Minister of Commerce, Pan Gongsheng, President of the People's Bank of China, and Wu Qing, Chairman of the China Securities Regulatory Commission, to answer questions from Chinese and foreign journalists on development and reform, fiscal budget, commerce, financial securities, and other related issues. What important messages were conveyed at the meeting?

01 | Protecting the legitimate rights and interests of investors, especially small and medium-sized investors. Regarding the protection of investors, Chairman Wu Qing of the China Securities Regulatory Commission stated that investors are the foundation of the market, and listed companies are the foundation of the market. Both investors and listed companies are the source of the development of the capital market. We must treat investors with sincerity and kindness, better serve them, and further strengthen the protection of investors from legal, institutional, regulatory, and law enforcement aspects. Wu Qing further pointed out that regulators should pay special attention to fairness issues and make openness, fairness, and impartiality the most important market principles. Protecting the legitimate rights and interests of investors, especially small and medium-sized investors, is the most important core task of the China Securities Regulatory Commission's work. We need to further strengthen the protection of investors, enhance their confidence and trust in the market, and attract more funds, especially long-term funds, to participate in this market. Both long and short money are needed in the market, but what is even more scarce is long money. Regarding the strict regulation of the market, Wu Qing stated that a comprehensive inspection of various sectors, entities, and links in the stock market, bond market, and other fields will be conducted, and efforts will be made to address some of the shortcomings and weaknesses in regulation. Keep your eyes wide open, strengthen early correction for problematic institutions and enterprises, handle various risks early, and crack down on any violations. Wu Qing stated that he will accelerate the filling of regulatory shortcomings and weaknesses, strengthen early correction of problematic institutions and enterprises, handle various risks early, crack down on various violations when they appear, and focus on cracking down on key areas and major illegal activities, such as fraud and fraud, market manipulation, and insider trading. We will also turn the blade inward and build a truly strong regulatory force that is politically, professionally, professionally, and with integrity. Wu Qing also pointed out that for behaviors such as technical divorce, securities lending and selling, and conversion to financing, relevant institutional loopholes will be further blocked. Strict crackdowns and legal crackdowns should be imposed on major shareholders, actual controllers, and other illegal reduction of holdings.

02 | Corporate IPO listing must not be aimed at "raising money". Wu Qing stated that corporate IPO listing must not be aimed at raising money, let alone fraudulent listing. Therefore, all stages of registration and review must be in accordance with laws and regulations, and the issuer must be strictly supervised to truly disclose information accurately and completely. Efforts should be made to block counterfeiters from the capital market. Wu Qing stated that currently, the China Securities Regulatory Commission conducts on-site inspections on companies under review, and the exchange also conducts on-site inspections. However, the coverage of on-site inspections and inspections is still very limited. The next step is to significantly increase the coverage of on-site inspections, and further increase the intensity of investigation and punishment for illegal and irregular clues discovered, in order to force the issuer to further improve the quality of declaration and to force intermediary agencies to fulfill their responsibilities. At the same time, Wu Qing stated at a press conference that a stricter delisting system should be established to ensure that all companies that need to be delisted are fully retired, and also encouraged some companies to actively delist.

03 | Improving the systems of issuance and listing, mergers and acquisitions, and restructuring. Wu Qing stated that in order to improve the quality of listed companies, enterprises must shoulder the primary responsibility, and controlling shareholders, actual controllers, and directors, supervisors, and senior executives, as the "key minority" of enterprises, must take the lead; Regulatory authorities, industry regulatory authorities, local governments, intermediary service agencies, and intermediary agencies should each bear their respective responsibilities. When it comes to the regulation of listed companies, Wu Qing stated that systems such as issuance and listing, mergers and acquisitions, and equity incentives need to keep up with the times, further adapt to the development needs of new productive forces, make necessary adjustments and improvements to institutional policies, enhance inclusiveness and adaptability, and enable truly promising enterprises to grow and grow with the support of the capital market, continuously improve the structure of listed companies, and enable our investors to better share the fruits of high-quality economic development.

04 | There is still room for reserve requirement reduction in the future. When answering questions from reporters, Pan Gongsheng, the President of the People's Bank of China, stated that although China's economy is recovering and high-quality development is solidly advancing, the domestic and international situation is still complex and ever-changing. We need to leverage the joint efforts of policies and increase the strength of macroeconomic regulation. China's monetary policy toolbox is still abundant, and there is still enough room for monetary policy. In the regulation of monetary policy, we will pay more attention to balancing short-term and long-term, stabilizing growth and risk prevention, internal and external balance, strengthening countercyclical and cross cyclical regulation, focusing on boosting confidence, stabilizing expectations, stabilizing prices, and creating a good monetary environment for economic operation and development. Maintaining reasonable growth in total volume, the People's Bank of China lowered the reserve requirement ratio twice last year, each time by 0.25 percentage points. On February 5th of this year, we also lowered the reserve requirement ratio by 0.5%, releasing long-term liquidity at once to 1 trillion yuan. At present, the average reserve requirement ratio of the entire Chinese banking industry is 7%, and there is still room for further reserve requirement reduction. We will comprehensively use various monetary policy tools to increase the intensity of countercyclical regulation, maintain reasonable and sufficient liquidity, support the stable growth of social financing scale and total monetary credit, balance investment, and achieve the matching of social financing scale, broad money supply, and economic goals.

05 | The issuance and use of ultra long term special treasury bond is a major policy initiative. Zheng Jiejie, director of the National Development and Reform Commission, said that this year he would further strengthen the regulation of macro policies, strengthen the coordination of fiscal, monetary, employment, industrial, regional and other policies, and form a joint force through comprehensive measures to continue to make efforts in strengthening entities, promoting consumption, expanding investment, and stabilizing foreign trade. This year, we have incremental policies such as promoting large-scale equipment renewal, replacing old consumer goods with new ones, and issuing extra long term special treasury bond. In addition, we have implemented the effect of issuing additional treasury bond, reducing interest rates and reserve requirements, and reducing taxes and fees. These policies continue to play a role, so they will provide a strong supply of macro-control policies for steady economic development. The first quarter is expected to achieve a good start, but we also know that there are still many difficulties in achieving this goal. For example, there are still prominent problems in the construction of a unified national market, some industries are exceptionally competitive, some enterprises are facing difficulties in production and operation, and there are still risks and hidden dangers in some areas. Objectively speaking, there are problems in the development of any country or region, and for China, these problems are all problems in progress that can be solved through development. The issuance and use of ultra long term special treasury bond is a major policy measure, and expanding effective investment is an important task for us. Starting this year, we will issue extra long term special treasury bond in the next few years, specifically for the implementation of the country's major strategies and the construction of security capabilities in key areas, referred to as "dual". This is a major strategic decision and deployment made by the Central Committee of the Communist Party of China and the State Council with a focus on the overall strategic situation of building a strong country and national rejuvenation. It benefits both the present and the future. There are several keywords, the first is treasury bond, the second is super long term, the third is special, and the fourth is consecutive years. That is to say, it can not only drive current investment and consumption, but also lay the foundation for long-term high-quality development. The ultra long term special treasury bond will focus on supporting scientific and technological innovation, integrated urban and rural development, coordinated regional development, food and energy, and high-quality population development. The potential construction needs in these areas are huge, the investment cycle is long, and the existing funding channels are difficult to fully meet, so we need to increase our support. This year, we will expand profitable and beneficial investments, and leverage the amplification effect of government investment. Most of the additional treasury bond issued last year will be used this year, and the government investment scale has increased significantly compared with last year. Better leverage the guiding and driving role of government investment, leverage the linkage between investment and lending, and guide financial institutions to increase financing support. In the field of special bond investment, expand the scope of available project capital and further amplify the driving effect of special bonds.