formulate and implement broader international standards. today, thanks to an imf initiative, we gather to discuss macro prudential framework based on lessons learned in crisis, to analyze macro prudential policy tools and their effects, to reflect the changing roles of central banks in macro prudential management. we need to reexamine the relationship between monetary policy, financial stability and macro prudential management, and its policy implications. these are very challenging topics and deserve thorough discussion. i wish this seminar a great success! thank you!

the absence of market - based pricing mechanism. as a result, some fund - consuming and over - productive sectors cannot be driven out of market in time, and the ineffective allocation of resources exacerbates economic imbalances. an improved and integrated financial market system is the precondition and basis of effective financial resource allocation. unless fund flows orderly in different markets, interest rates cannot reflect real market supply and demand, and energy saving, efficient industries cannot be cultivated. various financial markets including money market, capital market exist in china, but the small number of market participants, the inadequate products, and the excessive restriction all hinder the free movement of fund among different market, and therefore affect the effective fund allocation. we need to have the development of financial markets, analyze the relationship between them so as to enhance the balanced development between basic financial product market, derivative market, money market, capital market, foreign exchange market and home currency market. fourth, promote the development of regional financial industry in a harmonious way. financial development is an important force driving regional development. sufficient fund injects vigor into the regional development, while the lack of it harms regional development. a comparatively sound and strong financial system and financing system have been set up in eastern china, but lending of stateowned commercial banks is still the dominant financing method in the middle and western region. in some less developed rural areas, the financial system, instead of supporting economic development, has become a major channel for fund outflow and prevented capital formation. so, regional financial development must be harmonized to promote balanced economic development. to achieve this goal, the following aspects must be emphasized. first, regional financial institutions should be encouraged to facilitate balanced economic development. special emphasis should go to the cultivation of rural financial service system to improve the insufficient, weak financial service in rural area. second, regional financial cooperation should also be highlighted. the influence of financial sector in developed regions should be extended, and the conflict between various regional financial development should be coordinated. fiscal support should also be balanced with financial support to increase the multiplier effect of the latter. fifth, blueprint the harmonious reform, development and opening - up of financial industry. the development of china ’ s financial industry benefits from its opening up. during the opening - up process, we have learned how to employ financial instruments and international capital to serve economic development, and domestic financial institutions have improved their management amid market competition. so it has always been china ’ s basic policy