at the end of this year will be 26 % higher than the previous year. this growth rate is 3. 7 % lower than the average annual growth rate during the period under the “ eighth fiveyear plan ”. secondly, price increases have slackened noticeably. during the period from january to october, retail prices have risen by 6. 4 % as compared to the same period last year. it is expected that the growth rate for the whole year will be around 6. 5 %. thirdly, the economy continues to grow at a relatively high rate. during the period from january to september, gdp rose by 9. 6 %. it is anticipated that the annual growth rate will exceed 9. 5 %. fourthly, our foreign reserves continue to grow. as at the end of october, our foreign reserves reached us $ 98. 8 billion. we are certain that our reserves will exceed us $ 100 billion by the end of the year. the trade surplus is estimated to be over us $ 100 billion this year. there is also us $ 40 billion of foreign direct investment. the supply of foreign exchange exceeds demand and the exchange rate of the renminbi remains stable. moreover, the renminbi has become fully convertible in the current account. our experience proves that we are right in adopting an appropriately tight financial and economic policy. our ability in performing macro - economic operations has improved greatly and our achievements are recognised internationally. despite the foregoing, several major problems remain to be solved. the percentage of financial revenues in gdp is still falling. the asset quality of banks still needs to be improved. the basic elements of the agricultural sector remain relatively weak and it is unlikely to have any improvement in the operational efficiency of state - owned enterprises in the short run. in view of the current economic situation, the focus of economic and financial reforms in the coming year will be placed on promoting the reform of the economic system and changing the pattern of economic growth. we will continue to adopt an appropriately tight financial and monetary policy. further efforts will be made to adjust the structure of the economy so as to foster new areas of economic growth. in order to ensure steady growth of the national economy, efforts will also be made to develop domestic as well as overseas markets. based on the above considerations, it is desirable that next year ’ s target annual gnp growth rate should be set at 8 - 9 % while the retail price increase be contained at a level below 6 %. in order to achieve these targets, the

, account for 80 % of china ’ s energy consumption. by 2060, this ratio is expected to fall below 20 %. china ’ s financial institutions have invested heavily in carbon - intensive assets, and the risk of asset price adjustment caused by the green transition must be closely monitored. ladies and gentlemen, friends, looking forward, i believe we have to make progress in the following areas. first, we must mobilize public and private funds to support the green economy in line with market principles. it is estimated that by 2030, china will need to invest 2. 2 trillion yuan per year to reduce carbon emissions, and this amount will further grow to 3. 9 trillion yuan from 2030 to 2060. government funding alone is far from enough. we need to encourage more private capital 1 / 2 bis central bankers'speeches participation. to do this, we need to lay the groundwork on two fronts. one is about information disclosure. the pbc plans to set up a mandatory disclosure system with uniform standards, and promote greater information sharing between financial institutions and companies. we will also strengthen international coordination under the g20 framework. the other is about green finance taxonomy. the pbc is about to finish revising the green bond catalogue by removing fossil fuel projects. we are also working with international counterparts to harmonize taxonomies. central banks have a role to play in providing policy incentives. the pbc plans to launch a support toolkit to provide low - cost funds for carbon emission reduction. the pbc will also support green finance through a host of measures ranging from commercial credit ratings, deposit insurance rates to collaterals for open market operations. second, we must evaluate the potential impact of climate change on financial stability. it will take 70 years for the eu, 45 years for the us, and about 30 years for china to move from carbon peak to net zero. the time is shorter and the curve is much steeper for china. it means our financial institutions are faced with grave risks and should begin their green transition right away. the pbc is looking at the possibility of including climate factors in financial stress tests, and gradually incorporating climate risks into the macro - prudential policy framework. the pbc is reviewing green loan and green bond performance of financial institutions on a quarterly basis. the financial institutions are encouraged to evaluate and manage their environmental and climate risks. third, we must let the carbon market play its role of price discovery. china ’ s national emissions trading system will be