the cpc central committee has made it clear that local government special bonds are allowed to be used for idle existing land buyback, new land acquisition and reserve, and for - profit housing purchasing. this will further accelerate the de - stocking of the real estate market and enable the real estate market to stop declining and stabilize. the fourth is to lay emphasis on the internal and external equilibria in the economic growth. in recent years, the external equilibrium of the chinese economy has been effectively improved. the current account surplus - to - gdp ratio dropped from around 10 percent in 2007 to around 2 percent in 2011, and remains within the range of 1 to 2 percent in recent years, which is generally considered as reasonable by the international community. the current geopolitical tensions have led to economic deglobalization as well as politicalization and instrumentalization of international trade, which hampers sustained growth of the world economy and the increase in the global welfare. we will firmly follow the path of reform and opening up and the path of multilateralism, advocate free trade and fair competition, and make better use of both international and domestic markets and resources, so as to accelerate the building of a new development paradigm. recently, the us dollar index has remained high, and most non - usd currencies have depreciated. the rmb has also depreciated moderately against the usd, but overall shows strong resilience. after years of endeavor, china's foreign exchange market has achieved remarkable development. market participants are more mature and the 3 / 6 bis - central bankers'speeches trading activities are more rational. the rmb cross - border payments and receipts have reached 30 percent in goods trade, lowering the exchange risk exposure faced by enterprises in production and operation. as the regulators of the foreign exchange market, the people's bank of china ( pboc ) and the state administration of foreign exchange ( safe ) are now more composed and experienced in the face of market changes. we are confident and capable of maintaining stable functioning of the foreign exchange market. we will pursue the principle of letting the market play a decisive role in exchange rate formation, and leverage the role of exchange rate as an auto stabilizer in macroeconomic management and for the balance of payments. meanwhile, we will firmly correct pro - cyclical behaviours, fight against conduct that disrupts market order, and prevent the risk of exchange rate overshooting, so as to keep the rmb exchange rate basically

own purposes and the chinese government shall not levy taxes in hong kong. moreover, china will not draw on or resort to hong kong ’ s exchange fund or other assets in any way and for any reason. all financial transactions between the mainland and hong kong will be conducted in accordance with the rules and practices of international financial activities. claims and liabilities between institutions from the mainland and those from hong kong will continue to be regarded as external claims and liabilities. when participating in the hong kong market, chinese entities will have equal treatment as other international and local market participants. apart from the above, it is also important for hong kong as an international financial centre to continue to develop its international monetary relations and participate in the activities of international and regional financial institutions. there are therefore provisions in the joint declaration and the basic law that hong kong may, on its own, maintain and develop financial relations with other countries, regions and relevant international organisations after 1997. the 1997 world bank / imf annual meeting will be held in hong kong just a few months after china resumes the exercise of sovereignty over hong kong. this is a magnificent financial event and i am confident that it will be successful. iii the strengthening of financial co - operation and the promotion of economic prosperity and stability between the mainland and hong kong mainland china and hong kong have close financial links with each other. since the implementation of financial reforms and the open - door policy, such links have been strengthened further. it is necessary to further enhance such a mutually beneficial relationship between the two places. first of all, the mainland and hong kong should work together for the prosperity, stability and smooth transition of hong kong. china ’ s commitment to the implementation of the “ one country, two systems ” principle is increasingly accepted and appreciated by the people of hong kong and the international community. worries and doubts about the future of hong kong which emerged in the early 1980 ’ s have largely subsided. we are pleased to note that the financial situation in hong kong is heading towards a smooth transition. we are confident that hong kong will enjoy financial stability before and after 1997. even though there may be some fluctuations in hong kong ’ s financial market, we believe that the hkma is fully capable of handling these situations satisfactorily. if necessary, the people ’ s bank of china will, at the request of the hkma and in accordance with the basic law and market practices, offer support to the hkma. financial stability in hong kong before and after 1997 is not