period in the past, the injection was passive through funds 5 / 7 bis - central bankers'speeches outstanding for foreign exchange. since 2014, as such funds declined in amount, we have acted proactively to inject base money through open market operations and mlf, among other tools. in recent years, the size and depth of china's bond market enhanced with the rapid development of its financial market. so the conditions have been mature for the central bank to inject base money through the purchase and sale of china government bonds on the secondary market. it was noted at last year's central financial work conference that we should enrich our monetary policy toolkit and gradually include china government bond buying and selling in open market operations. the pboc is now increasing communication with the ministry of finance to promote joint research on the implementation. the whole process is gradual, and the research on how to improve the issuance pace, term structure, and depository system for china government bonds is to be conducted at the same time. it should be noted that including china government bond buying and selling in the monetary policy toolkit does not mean quantitative easing. instead, it is meant to be a channel for base money injection and a tool for liquidity management. the china government bond transaction, both sale and purchase, will play its role together with other tools and create a suitable liquidity environment. rapid development of the financial market poses new challenges to the central banks. the failure of silicon valley bank reveals that central banks need to observe and evaluate the financial market situations from a macro - prudential perspective, and correct and intercept the accumulation of market risks in a timely manner. at present, central banks should give special attention to maturity mismatch and interest rate risks arising from the large holding of medium - and long - term bonds by non - banking institutions, aiming to maintain an upward sloping yield curve and to help the market provide positive incentives for investment. fourth, we will improve the structural monetary policy instrument system which is precise and moderate. traditionally speaking, the monetary policy adjusts aggregate. however, many problems and challenges in china's economic development are structural. if they are not properly solved, the effectiveness of aggregate adjustment will be restricted. around the world, since the global financial crisis, especially in response to covid - 19 in 2020, central banks in the major economies, such as the us and the euro zone have launched a series of structural monetary policy instruments targeted for specific areas, entities and

such as m2 and social financing. they have been replaced by qualitative descriptions such as " being basically aligned with nominal economic growth ". the monetary and credit growth as needed by the real economy is also changing with high - quality economic development and structural transformation. the changes in the growth rates of monetary and credit aggregates essentially reflect the structural changes in china's economy and the associated supply - side structural changes in china's financial sector. when we look at aggregates from a mathematical perspective, the growth rate is the ratio of the current increase to the total existing amount, with the former being the numerator and the latter the denominator. currently, as the outstanding amount of social financing in china has exceeded rmb390 trillion and m2 stands at over rmb300 trillion, china's macro financial aggregates are huge. however, we should be aware that many of the existing loans are being used with low efficiency, mobilizing such loans is essentially as significant to economic growth as issuing new loans. in terms of the changes in the credit structure, of the outstanding loans totaling almost rmb250 trillion, real estate loans and local financing vehicle loans account for a large share, which is declining rather than expanding. only after having offset the decline, can the increase in other loans be reflected. as a result, it is quite difficult to maintain an overall credit growth of over 10 percent as seen in the past. the measurement of money supply should also be improved constantly to adapt to the changing situation. china's statistical coverage for m1 was set 30 years ago. with the facilitation of financial services and the rapid development of financial markets and financial innovations such as mobile payment, major changes have taken place to the range of financial products that meet the statistical definition of money supply, particularly that of m1, entailing dynamic improvements to the statistical coverage of 4 / 7 bis - central bankers'speeches money supply. judging by the functions of money, we should work on incorporating in m1 statistics personal demand deposits and some highly liquid financial products, which can be even used to make direct payments, so as to better present a true picture of money supply. we can also continue to refine intermediate variables for monetary policy, and gradually weaken our focus on quantitative targets. when the growth of money and credit has pivoted from supply constraints to demand constraints, it obviously runs against the law of economic performance if the emphasis remains on quantitative growth, or even " the obsession