while china remains a developing country with quite low per capita income, we stand ready to do everything in our capacity to contribute to the debt reduction of the hipcs. not only has the chinese government made loans and contributed to the imf ’ s poverty reduction and growth facility and enhanced structural adjustment facility, it also has reduced debt for certain heavily indebted poor african countries on a bilateral basis by rmb10 billion. in 2002, china also promised to waive debt for certain of asia ’ s least developed countries and decided to donate funds to the east african regional technical assistance center recently established by the imf. v. anti - money laundering ( aml ) and combating the financing of terrorism ( cft ) the chinese government is paying close attention to aml - cft and is actively engaged with the international community in this area. in early 2003, the people ’ s bank of china announced three new aml regulations. we call on the pertinent aml organizations to create the conditions for the expansion of their representation as soon as possible. in particular, they should include developing country members to enhance the rationality and authority of their proposals. in our opinion, the first priority of aml work should be the financial centers of certain developed countries where money - laundering activities are now relatively rampant and the amounts of money being laundered relatively larger. since the imf does not have the required expertise in the aml area, particularly in the law enforcement arena, and since this work is not its core business, the imf should not overemphasize it. in the course of the pilot program and promotion of proposals, the imf should always adhere to the principles of voluntary and cooperative participation and respect the sovereignty and national conditions of the governments of all countries. vi. the chinese economy in recent years, while expanding its domestic demand, china has also been steadily opening up to the outside world and participating in global economic cooperation and integration, and preserving its sustained and sound economic growth momentum. the communist party of china held its th 16 national congress in october 2002 and achieved a smooth succession to the leadership. the new chinese government, which took office in march 2003, will continue the policy of stimulating domestic demand through pursuing a proactive fiscal policy and robust monetary policy to promote the sustained, rapid, and sound development of the national economy and overall progress in social causes. for the first two months of 2003, industrial output grew 17. 5 percent, and fixed capital investment grew 32

risks, but may add to the complexity of financial risk prevention. therefore, efforts should be made to improve the financial risk prevention system to catch up with the progress of openness. since 2018, significant progress has been made in the prevention of financial risks in china. firstly, the financial regulatory system has been reformed. the state council financial stability and development committee have enhanced the coordination in the financial sector. the pbc serves as the committee ’ s secretariat to support its day - to - day operation. mandates of the pbc have been strengthened with more coordination responsibility. allocation of the regulatory resources has been improved. secondly, macro leverage ratio stabilized. as the supply - side structural reform deepens, macro leverage ratio fell by 1. 5 percentage points from end - 2017 to 249. 4 percent at end - 2018. going forward, as china ’ s financial market evolves and the share of direct financing rises, part of the debt financing will be converted into equity financing, which will 3 / 5 bis central bankers'speeches facilitate stabilization of macro leverage ratio. third, the shadow banking sector has been better regulated. we introduced new regulations and supporting measures to address the irregular and unlawful activities in the financial markets, effectively containing the disorderly development of shadow banking system. fourth, macro - prudential management has improved, with measures to strengthen regulation of the systemically important financial institutions ( sifis ), to improve the macro - prudential management of cross - border capital flow, resulting in stronger resilience to withstand the impact of cross - border capital flows. in addition, we have made important progress in the resolution of high - risk institutions in a smooth and orderly manner, so as to maintain the order in the financial market. going forward, we will continue to improve the financial risk prevention and management system to keep pace with further opening - up. first, the coordinating role of the state council financial stability development committee should be fully utilized, to make better overall plans in rolling out policy measures with proper strength and paces to generate synergy. second, the two - pillar framework of monetary and macro - prudential policies should be enhanced. we will strengthen the counter - cyclical role of monetary policy to ensure that the economy operates within a reasonable range. we will constantly improve the macro - prudential policy framework and strengthen regulation of financial holding companies and sifis. we will also add new instrument to the policy toolkit, enhance the real - time monitoring of the financial market,