yi gang : building new development patterns and expanding the opening up of the financial sector keynote speech by mr yi gang, governor of the people's bank of china, at the 2nd bund summit, shanghai, 29 october 2020. * * * ladies and gentlemen, dear guests, it gives me great pleasure to come to the bund summit and share with you china ’ s progress in opening its financial sector in recent years and the prospects of financial opening - up in the new development pattern. 1. financial opening - up in the new development pattern china ’ s economy has shifted from high - speed growth to high - quality development. president xi jinping ’ s strategic decision to build a new development pattern is made on the basis of the changes in the stage, environment and conditions of china ’ s development. the new pattern does not mean minding our own business behind a closed door, but making better use of both international and domestic markets and resources for a more robust and sustainable development. building a new development pattern caters for the major background that the chinese economy has deeply integrated into the global economic and trade system. as a key participant in the global economic and trade system, china is now the largest trader and second biggest direct investment destination, as well as one of the key hubs and manufacturing centers of the global value chain. from 2002 to 2019, china ’ s annual contribution to the global economic growth approached 30 percent on average. building a new development pattern implies that a new regime for economic openingup at a higher level should be established. it requires us to make better use of both international and domestic markets and resources. we should improve the quality and efficiency of economic development not only by facilitating the flow of goods and factors, but also by promoting opening - up based on rules and systems to enhance the institutional competitiveness. it is beneficial to both china ’ s and the world economy. building a new development pattern requires the financial sector to be opened up further. financial opening - up has not only brought institutions, businesses and products into china and thus increased the supply of financial factors, but has also promoted the improvement of rules and systems and thus increased the supply of financial regimes. it helps enhance the efficiency and capability of the financial sector in serving the real economy, and fuel high - quality development of chinese economy. 2. progress in financial opening - up in recent years in the past two years, china has made strides of milestone significance in financial opening - up, rolling out more than 50 opening -

the financial sector. under the negative list regime, the market access and business operations of financial institutions must also meet the qualification requirements and be conducted with licenses. there is no contradiction between the negative list management and the strengthening of interim and ex - post oversight, either. under the negative list mode, regulators can shift more resources from access management to interim and ex - post oversight to improve regulatory efficiency. second, we will coordinate and promote the opening - up of the financial service sector, the reform of the rmb exchange rate formation mechanism and rmb internationalization. the reform of the rmb exchange rate formation mechanism should aim at enhancing the flexibility of the rmb exchange rate and allowing the exchange rate to act as an “ automatic stabilizer ” in macroeconomic stability and balance of payments. the internationalization of rmb should be market - oriented. regulatory authorities should reduce the restrictions on the cross - border use of rmb. besides the market - based principle, we should also improve the support system for the use of domestic currency, which will in turn create more favorable environment and conditions for the market to play its due role. third, we will prevent risks while accelerating opening - up. we should intensify macroprudential management, implement more professional and effective financial regulation, establish sound “ firewalls ”, improve the capability of forestalling and defusing major risks, and align our regulatory competence with the level of opening - up. 2 / 3 bis central bankers'speeches in the new situation, based on our weaknesses and the demand for higher - level opening - up, we will further financial opening - up toward greater progress and provide strong support to the building of a new development pattern and high - quality economic development. thank you. 3 / 3 bis central bankers'speeches