China to strengthen economic globalization
Maintaining financial stability and keeping to a prudent monetary policy does not mean that no anticipatory adjustments or fine-tuning will be made when necessary. The fact is, over the past years, we have lowered the required reserve ratio several times as necessary and intensified targeted cuts in the required reserve ratio. More recent measures include using some medium and long-term financing instruments to support small and medium-sized banks in lending to small and medium-sized enterprises and private companies, and reducing real interest rates. Further opening China's financial sector to foreign investors not only generates opportunities for them to enter the Chinese market, but also helps the Chinese financial sector to upgrade and run at a higher standard on a level playing field.
While adjusting policies and measures as appropriate, we are also intensifying financial regulation. As we make the financial sector more open, we will see to it that the rights and interests of consumers are effectively protected. A fundamental principle that applies here is to conduct regulation and supervision in accordance with the law. A clear line must be drawn between what is lawful and what is not. And the government should then exercise effective regulation accordingly and leave no gaps in such regulation. We must exercise effective oversight over properly licensed financial institutions and step up regulation against unlawful operations which are like driving without a license.
Over a period of time, we have been taking measures to tackle shadow banking and illegal fundraising to effectively protect the rights and interests of consumers and opportunities for lawful investors. We have put in place a deposit insurance regime which has played its role in handling risks associated with small and medium-sized banks that have run into difficulties. This regime has worked effectively in protecting, first and foremost, the lawful rights and interests of depositors, namely consumers. Going forward, we will further open China's financial sector in a step-by-step manner and enhance the quality and effectiveness of financial regulation. This way, we will ensure the long-term steady growth of the Chinese economy and its financial sector.
