is 57 percent. that means a lot of farmers are still in the process of moving into cities. some of them may have already found a job, but they have not moved their family or found a residence or apartment in the cities. thus, urbanization is still going on rapidly and continues to generate strong demand for steel and cement. the chinese government intends to promote structural reform and optimization, and attaches great importance to environmental protection. therefore, the government has voluntarily undertaken to cut steel and cement capacity by ten percent. up till now, progress has been made in removing excess capacity. we expect the goal can be achieved. on the shift of comparative advantage. the chinese manufacturing sector has shifted a lot of labor - intensive capacity into asean countries. more and more chinese investors are investing in africa and moving some capacity there. therefore, service industry is accounting for an increasingly larger share in the chinese economy, which is a very good phenomenon. but the service industry is not competitive. we have some strong sectors but still need to strengthen the relatively weak sectors, such as education and medical services. on financial stability. this july, a decision was made in the national financial work conference to set up a financial stability and development committee. in the future, the focus will be on four areas. one is the shadow banking issue. we started to deal with it two years ago and have made positive progress. many shadow banking activities have returned to the banking sector and are included in the balance sheet of commercial banks. the second is asset management sector. this is relatively complicated. the cbrc, csrc and circ may have different rules regarding the same asset management activity. we agree with fsb ’ s guidance for streamlining regulation of the asset management sector. the third is internet finance. a lot of it companies are providing financial services. some have been granted licenses. but some do not have any license, yet provide lending and payment services, and sell insurance products. this may cause competition and financial stability problems. the fourth is financial holding companies. we have observed that some large private - owned companies have got various financial service licenses through m & a. but in the real sense, they are not financial holding companies. they may have engaged in illegal activities, including connected transactions. yet, we do not have the necessary regulatory policies to deal with such cross - sector transactions. going forward, we will further deepen reform, gradually push forward the deleveraging process, and strengthen regulatory coordination to promote healthy development of

su ning : keep good credit records and endeavor to aim for a harmonious society speech by mr su ning, deputy governor of the people ’ s bank of china, at the launch ceremony of the national credit information education month, beijing, 31 may 2008. * * * vice mayor mr. gou zhongwen, ladies and gentlemen, good morning! welcome to the launch ceremony of the national credit information education month. i appreciate your care and support to the building of china ’ s credit information system. enterprises and individuals, as the subjects of a credit information system, comprise an important force pushing ahead the building of a credit information system. improved awareness of enterprises and individuals of the credit information system and expanded outreach can help protect the rights and interests of enterprises and individuals and promote the healthy development of the credit industry. it remains a priority in the pbc ’ s credit information work to popularize the knowledge about credit information, help enterprises and individuals to understand and use credit information to create more transaction and development opportunities. in recent years, under the guidance of the central publicity department and with the support of the ministry of education and other central government authorities and local governments, the pbc has undertaken various credit information educational campaigns and achieved some good results. credit information is no longer a strange word, but has penetrated into the daily life and economic and financial activities of the public, starting to influence behaviors of enterprises and individuals in its unique manner and propelling the building of a social credit system. in order to improve understanding of credit information system and expand its use, the pbc has decided to launch the national credit information education month, in a bid to generate synergy and magnify the results. credit is not something that you are endowed with. if default is not recorded or punished, people will not have the motive or discipline to value creditworthiness, and it is possible that honest enterprises and individuals will turn their back to credit and honesty. as such, the building of social credit is not only to be held up by moral standards, but also be regulated by legal and institutional systems. the credit information system, as an institutional guarantee regulating credit - related behaviors of enterprises and individuals, is the foundation for the social credit system and the cornerstone for the stable performance of a modern financial system. in recent years, the pbc has implemented policy measures of the state council on social credit system building, organized commercial banks to establish a national database covering credit information of both enterprises and individuals, namely the