to manufacturing and high - tech industries and private enterprises 3 / 4 bis central bankers'speeches rebounded significantly, relieving the difficulties that smbs face in accessing affordable financing. by end - may, inclusive financial loans issued by the five major banks to smbs grew 23. 7 % compared to the end of last year, fulfilling the majority of their full - year plan. the average interest rate was 4. 79 %, reporting a decline of 0. 65 percentage point compared to the full year rate for last year. meanwhile, the banking and insurance sectors have been fully cooperating with local governments on the issuance of general bonds and special bonds, earnestly implementing decisions and plans made by the state to provide financing support for projects launched to bolster weak spots in infrastructure construction. we believe that, through the deepening supplyside structural reform to expand effective domestic demand, the effects of various impediments will be offset for certain. the chinese economy and financial sector is surely to achieve sustained, healthy, and steady growth! these ideas are only presented for your reference. to conclude, i wish this forum a complete success. thank you! 4 / 4 bis central bankers'speeches

the real economy and to continuously clean up funds which circulate solely within the financial sector. for more than two years, we have remained committed to rectification of market irregularities and dismantled shadow banks, achieving a net reduction of rmb13. 74 trillion of high - risk assets, consequently shortening the financing chain and lowering financing costs. currently, there are signs of relaxed regulation in the world that promote resurgence of shadow banks, which requires us to be ever vigilant. the diversion of investment out of the real economy and multi - layer nested investment in china ’ s financial sector had been among the most severe of the kind, so we must prevent a replay of the past. eighth, we must face up to the problem of the financialization of real estate in some parts of china. in recent years, the leverage ratios of the household sector in some chinese cities have risen rapidly, and the debt ratios of a considerable proportion of households have reached an unsustainable level. more seriously, around half of the new savings resources are invested into the real estate sector. the excessive financing of the real estate sector not only crowds out credit resources of other industries, but also encourages investment speculation in the sector and causes a bigger bubble. when you buy a house to live in, it means you will have an income of market rent and an equal amount of expenditure each month, which also means that your house generates the equal amount of added value ; when you buy another house to rent out, you will also have income and output ; however, when you buy a house solely for investment or speculation, rather than for rental income, it will be just a pile of unused cement, bars, and bricks. real estate is marked by regional differentials, and it is normal that housing prices rise and fall in different regions. nevertheless, “ housing is for living in, not for speculation. ” history has proved that every country relying excessively on real estate for economic prosperity would eventually pay a heavy price. all residents and enterprises relying on blind investment and speculation in real estate to manage money will eventually find that it is really not cost - efficient. at present, the chinese economy is at a crucial stage of transformation and upgrading and structural reform, and the transition from old to new drivers of growth keeps accelerating. as continuous improvement has been made to the financial sector ’ s capability in serving the real economy, funds injected by the banking and insurance sector into businesses grew rapidly, and, in particular, loans issued