yi gang : building new development patterns and expanding the opening up of the financial sector keynote speech by mr yi gang, governor of the people's bank of china, at the 2nd bund summit, shanghai, 29 october 2020. * * * ladies and gentlemen, dear guests, it gives me great pleasure to come to the bund summit and share with you china ’ s progress in opening its financial sector in recent years and the prospects of financial opening - up in the new development pattern. 1. financial opening - up in the new development pattern china ’ s economy has shifted from high - speed growth to high - quality development. president xi jinping ’ s strategic decision to build a new development pattern is made on the basis of the changes in the stage, environment and conditions of china ’ s development. the new pattern does not mean minding our own business behind a closed door, but making better use of both international and domestic markets and resources for a more robust and sustainable development. building a new development pattern caters for the major background that the chinese economy has deeply integrated into the global economic and trade system. as a key participant in the global economic and trade system, china is now the largest trader and second biggest direct investment destination, as well as one of the key hubs and manufacturing centers of the global value chain. from 2002 to 2019, china ’ s annual contribution to the global economic growth approached 30 percent on average. building a new development pattern implies that a new regime for economic openingup at a higher level should be established. it requires us to make better use of both international and domestic markets and resources. we should improve the quality and efficiency of economic development not only by facilitating the flow of goods and factors, but also by promoting opening - up based on rules and systems to enhance the institutional competitiveness. it is beneficial to both china ’ s and the world economy. building a new development pattern requires the financial sector to be opened up further. financial opening - up has not only brought institutions, businesses and products into china and thus increased the supply of financial factors, but has also promoted the improvement of rules and systems and thus increased the supply of financial regimes. it helps enhance the efficiency and capability of the financial sector in serving the real economy, and fuel high - quality development of chinese economy. 2. progress in financial opening - up in recent years in the past two years, china has made strides of milestone significance in financial opening - up, rolling out more than 50 opening -

businesses can enhance their competitiveness via reducing cost and improving product mix. it can be said with a high degree of certainty that prospects for the country ’ s exports this year will remain favourable. i would like to reaffirm our commitment to hold the yuan exchange rate steady with no consideration for depreciation and to stand ready for the test of the market. this commitment can be seen as our contribution to financial stability in asia. over 8 % gdp growth in 1998 the financial crisis in some south - east asian countries will have some impact on the growth rate for china, for example trade between china and south korea. however, china largely depends on its domestic market for growth. in 1998, china will continue to expand its export market and increase its domestic investment. with continued price stability, gdp is expected to grow over 8 % in 1998. the slowdown of the gdp growth to 8. 8 % last year is attributed to international factors and the sluggish growth of township and village enterprises. we believe that supported by the vigorous measurers to address the adverse influence, we will be able to maintain gdp growth over 8 % in 1998. to be specific, first of all we shall continue to pursue a moderately tight monetary policy and make timely adjustment as necessary. broad money will be expected to grow by 16 - 18 %, narrow money by 17 % and injection of cash by yuan 140 billion. more discount and rediscount activities will be expected for commercial papers. second, banks will be expected to improve their services in support of new growth areas. the financing service for residential houses will be improved so as to strongly support the growth of the market for residential houses, to expand the scope of residential lending and remove the lending quotas imposed on public housing projects for less privileged people. loans denominated in foreign exchange will be actively developed on the domestic market with a projected increase of 10 - 15 % of foreign currency denominated lending. the input for agriculture, railway, highway and high - tech industry will be increased under the precondition of ensuring the service of loans. finally, the interest rate instrument will be used appropriately to adjust the money supply, but at this moment the central bank has no intention to lower interest rates. toward the establishment of a modern financial system and a regulatory / supervisory system in 1997 the financial sector functioned in a sound manner and contributed in a significant way to economic development and social stability. in 1998 we will continue to pursue a moderately tight monetary policy and make strong