half of the global end products for a very long time, without raising the export price, hence setting a solid foundation for pandemic containment and global economic recovery. if money printing by the most developed country has triggered global inflation, then the goods made by hundreds of millions of workers in china are the “ key anchor ” in taming it. why is our central bank able to keep its balance sheet unchanged although the chinese government has extended considerable fiscal and financial support? first of all, it is attributed to big - picture - oriented, well - coordinated, scientific and reasonable macroeconomic decisions by the cpc central committee and practical, well - targeted and effective planning and directions by the state council as well as its financial stability and development committee. secondly, it is attributed to the commitment of the financial sector to containing outflow of funds from the real economy to the virtual economy and lowering internal leverage ratios, which contributed to scaling - back of interbank wealth management, interbank investment, entrusted loans, and trust channeling activities and contraction of high - risk shadow banking. thirdly, it is also attributed to a unique advantage of our central bank ’ s balance sheet : reserve ratio maintained at a high level through sustained sound monetary policy and legacy burdens relieved thanks to interest rate liberalization. therefore, unlike developed countries where the central banks have purchased assets to expand their balance sheets, china has encouraged banks to extend more loans to the real economy by cutting the reserve requirement ratio and appropriately increasing targeted refinancing. at the same time, china also guided the channeling of private savings into direct and securities investments, thereby significantly enhancing its capacity to produce and supply products urgently needed by china and the rest of world. the transition to a green economy has also been boosted as a result. china has entered a new stage of development and we will fully implement the new development philosophy, actively advance supply - side structural reform, and constantly foster the pattern of mutually - reinforcing domestic and international circulations. as for the financial sector, we must promote greater opening - up, improve corporate governance, accelerate market - based mergers and acquisitions, regulate online platforms, and ensure fair competition. efforts are required to step up digital transformation of conventional financial services to enable more targeted financial services to the real economy and prevent and tackle financial risks with more precision. financial inclusion should be promoted with a view to strengthening financial services to micro and small businesses and vulnerable groups so as to effectively achieve common prosperity. green finance should be developed to secure

not an issue for non - state enterprises. recently, more people have come to realize it needs to be introduced in the non - state sectors as well. enterprise reforms actually have much in common. these are the twelve issues about corporate governance on which i wish to hear your views. i also hope the participants, in particular those from china, could take notice of the major achievements of the revised principles on corporate governance issued by the oecd in 2004. 2. major achievements of the revised principles on corporate governance issued by the oecd in 2004 the five principles on corporate governance issued by the oecd in 1999 has attracted widespread attention from policy makers, investors, companies and stakeholders. with the development of the macro environment and emergence of new events associated with corporate governance, new challenges have arisen to the principles. in this case, the oecd has since 2002 conducted survey and consultations worldwide on how to guarantee an effective implementation of the principles of corporate governance such as the strengthening of the independence of the board in decision making, enhancing the information rights of the shareholders, improving the independence of auditing and the transparency of ownership structure, etc. finally, the revised principles on corporate governance was issued in april 2004. compared with the version of 1999, the revised principles of 2004 is advanced in the following five aspects : first, a new chapter titled “ the foundation for an effective framework of corporate governance ” was introduced. the chapter elaborates the role of government in establishing the overall institutional and legal framework for corporate governance. it lays out the principles the government should follow in advocating and establishing the framework of corporate governance, including the enforcement mechanism of formulating corporate governance principles, the protection mechanism for the parties involved in corporate governance, and the approach to avoiding rising cost incurred by excess supervision, etc. hence, the principles of 2004 was expanded to six chapters. second, the 2004 version strengthened protection for shareholders ’ rights. the voice of shareholders is raised in four aspects : ( 1 ) salaries of the executives are determined by the board on the basis of their long - term performance. shareholders have rights to get access to information on the compensation policy of executives and board members. all equity remuneration must be approved by shareholders. ( 2 ) shareholders have rights to change members of the board and participate in the nomination and vote. ( 3 ) institutional investors as fiduciaries shall publish their own corporate governance policy, procedures of voting and the way to fulfill voting rights in case of interest conflicts. (