launched in three batches and have been gradually put in place. the two monetary policy tools that enable direct support for the real economy, namely one for provisional deferment of loan repayments by micro, small and medium - sized enterprises ( msmes ) and the other for supporting unsecured inclusive loans to micro and small businesses ( msbs ), have been carried out at a faster pace, which further boosted direct support for msbs. fourth, banks have been urged to reduce fees and cut profits. measures have been taken to regulate the collection of fees in the course of credit granting, assistance for loan acquisition, credit enhancement and appraisal, and to urge the banks to implement policies on reducing fees and cutting profits and take the initiative in easing the burden on the real economy. fifth, support has been extended to enterprises ’ restructuring and debt - for - equity swaps. a considerable number of large - sized enterprises and conglomerates have negotiated with banks, insurers and trust institutions on the delay, extension or restructuring of their debts, or on the deferment, reduction or exemption of part of their loan principal and interest repayments, and some enterprises with special difficulties have been under bankruptcy reorganization. overall, the measures have produced remarkable results, with the quality and efficiency of the financial sector in serving the real economy continuously improving, and money and credit growing reasonably. as of end - september, broad money supply ( m2 ) and aggregate financing to the real economy ( afre ) grew by 10. 9 percent and 13. 5 percent year on year respectively, up 2. 5 percentage points and 2. 8 percentage points from the same period of a year earlier 1 / 2 bis central bankers'speeches respectively, representing a significant acceleration of year - on - year growth rates. financing costs have been lowered noticeably. in september, lending rates for enterprises stood at 4. 63 percent, decreasing by 0. 61 percentage points year on year, a relatively low level in history. the goal of “ increasing volume, expanding coverage and lowering price ” for msb financing has been achieved. as of end - september, msb financing increased by rmb3 trillion, rmb1. 2 trillion more than the increase in the same period last year ; the financing covered a total of 31. 28 million msbs, up 21. 8 percent year on year ; the interest rates of new inclusive msb loans in september averaged 4. 92 percent, 0. 96 percentage points lower than that in december

wu xiaoling : strengthening china ’ s financial industry in the process of opening up speech by ms wu xiaoling, deputy governor of the people ’ s bank of china, at the sino - us economy and trade forum, beijing, 14 february 2006. * * * ladies and gentlemen, it is a great pleasure to join such a distinguished audience to discuss about issues related to trade and economic cooperation between china and the united states. as two large countries in the world, china and the united states maintains a friendly cooperative relationship between each other not only fits in with their respective fundamental interests, but also helps to create a favorable environment for world development. it is an independent choice of the chinese people to embark on the way transiting to the market economy and it is an internally generated force that pushes china to open to the outside world and actively integrate into the world economy. opening up has not only brought china vitality, but also deepened the reform process which helped to create a better platform for the chinese economy to integrate into the world economy. china is developing in the process of opening up while the rest of the world is benefiting from china ’ s development. china ’ s financial industry has also benefited from the opening up process. in october 1979, mr. deng xiaoping, the late architect and mastermind of china ’ s reform and opening up, asked mr. rong yiren to establish the china international trust and investment corporation ( citic ), a holding company with its business spreading from the financial sector to various other industries. the incorporation of citic has opened for china a window to the outside world in terms of external financing. after that, china began to introduce foreign financial institutions in the country by allowing them to set up representative offices, operational entities and even joint - equity institutions in china, turning a new chapter in the reform and opening up of the chinese financial industry. it is the financial reform and opening up that has brought china out of the rigid doctrine that confined the country to a self - pride fallacy of “ a nation of no domestic and external debt ”, and helped china to learn to use financial instruments and foreign capital to develop the chinese economy. in conventional chinese wisdom, borrowing debt becomes a feasible choice only when other options are exhausted. in the past, a chinese usually needs to save several months or even years before he or she could offer to buy some relatively expensive goods, and borrowing money is considered to be something shameful and reflecting one ’ s incapability. under