tap their potentials. reporter : some people describe you as a scholar - styled leader. your have academic background in many areas including finance, economics, audit and laws. it is said that you are also interested in writing tv plays in your spare time. how will such academic background and the experiences in auditing benefit your work in the shanghai head office? and what implications will the establishment of the shanghai head office, a new play that has just started, have on china ’ s entire financial industry? xiang : i must admit that i am still a new hand in the financial sector. although the knowledge i learned in the university on finance and western economics is relevant to the work i currently do, i still need to make efforts to recharge myself with new knowledge and to adapt to the new environment. i will try my best to shorten this break - in period. of course, diversified academic background enables me to look upon issues from different perspectives. and in the formulation of macroeconomic policies, i will benefit from my front - line working experiences. i will seek to make great contributions to the work of the pbc shanghai head office. as writing a tv play, managing the financial system is also an art. with the establishment and further development of the pbc shanghai head office, we will be able to fully take the advantage of the first - hand contacts with the financial markets and to more effectively make use of financial resources. establishing and strengthening the shanghai head office is a new task for us. as china ’ s socialist market economic system further improves, we need to make breakthroughs in the financial sector, and bring the performance of china ’ s financial industry up to high international standards. to achieve these goals, i and all staff in the pbc shanghai head office will make our best efforts to contribute to the work of shanghai head office and to the development of china ’ s financial industry. 4 / 4

xiang junbo : exclusive interview with the people ’ s daily xiang junbo, deputy governor of the people ’ s bank of china, in a recent interview with a reporter of the people ’ s daily. * * * reporter : the establishment of the people ’ s bank of china ( pbc ) shanghai head office has drawn broad attention from the financial circle and the media. thank you for having this interview with us to answer questions of common concern. xiang : thank you. as you said, the establishment of the pbc shanghai head office has been widely covered by the media. i have read the relevant reports and commentaries. i would like to thank the press for their concern and support for the pbc shanghai head office. reporter : since china adopted the reform and opening - up policy, the central bank has undergone several institutional changes. in 1984, the state council decided to have the pbc act solely as a central bank. in 1995, the law of the people ’ s republic of china on the people ’ s bank of china legally confirmed the central bank status of the pbc. in 1998, the pbc dismantled its provincial branches and set up regional branches. in 2003, the banking supervisory function was transferred from the pbc to a separate regulatory institution. does the establishment of the pbc shanghai head office constitute another important institutional reform of the pbc? and what impact it will have on china ’ s financial sector? xiang : since the reform and opening up and with the gradual improvement of the socialist market economy, the central bank has been undergoing institutional changes. the establishment of the pbc shanghai head office is an important step to improve the central bank system and to strengthen the role of the central bank in macroeconomic management. with the shanghai head office established, the pbc will enhance its macro - adjustment and service capability by facilitating the development of the financial markets and financial center. as governor zhou xiaochuan pointed out at the inauguration ceremony of the pbc shanghai head office, as the economy gets increasingly market - oriented and transportation and communication further improve, cross - regional economic activities will increase, and financial markets and financial services will increasingly benefit from economy of scale. the development of financial center indicates strong international competitiveness and significant improvement in the efficiency of financial services. the financial sector including the central bank needs to improve their functions by focusing on the development of financial markets and financial centers. shanghai has become the hub to various financial institutions. the national unified inter - bank lending market, bond market