trust to real property trust. at present a lot of so - called property trust are executed in line with relevant provisions of bank lending, serving as the proxies of bank lending to a large extent. while trust companies are at a disadvantage to banks in terms of capabilities of monitoring and managing trust loans, operations and experiences, hardly playing the role in effectively diversifying and managing risks. therefore, as supervision over real estate trust is strengthened, trust financing should be standardized and developed to improve the real estate financial market and to offer comprehensive financial services to each activity of the real estate sector including development, acquisition, purchase and sale, leasing and management. fourth, actively advancing real estate finance innovation and developing various real estate financial products for which conditions are ripe. in particular, study on effective means to develop real estate loans securitization shall be made a priority at present. so far the discussions on mortgage securitization are dominated by on balance sheet practice of china construction bank and off balance sheet practice of the china development bank. some questions like whether to conduct asset securitization within the financial institution or to establish a separate specialized agency can be explored further based on china ’ s reality. all in all, experimental action shall be taken actively rather than hanging around theoretical debates. 2. accelerating the development of the primary real estate financial market and steadily pushing ahead with the development of the secondary market. first, the primary market shall be developed into a diversified and competitive market with considerable size. on the one hand, the primary market with considerable size can not only provide sufficient funding sources for the growth of the real estate market, but also lay the groundwork for setting up and developing the secondary market. in the u. s housing mortgage assets securitization was introduced in the 1970s, and commercial mortgage securitization began in early 1990s. whilst as early as the beginning of the 1970s, even before the birth of mortgage - backed assets securitization, the primary mortgage market had reached a substantial size with the outstanding balance hitting near usd300 billion. on the other hand, diversified primary market is conducive to fostering competition of fund supply and demand and improving efficiency of resource allocation. the u. s. primary real estate finance market mainly consists of savings and loan associations, commercial banks, credit unions, life insurance companies and real estate trust investment funds. hence, it is necessary to study effective channel, timing and method to introduce new financial institutions, broaden financing sources

from the peak after rectification. efforts must be made to prevent financial institutions from over - leveraged and complex cross - sector financial products, and put an end to all kinds of “ loan - like ” products before they emerge. the new asset management rules must be implemented effectively to ensure successful overhaul of existing asset management products. third, we must firmly crack down on illegal public offerings of securities. currently, there are a large number of public equity products disguised as private equity ones in the financial markets. many of the illegal fund - raising cases were essentially illegal public offerings of securities which were issued to unqualified investors, with the number of investors exceeding the 200 limit, thereby causing severe damages to the market, communities and individuals. upon discovering such disguised offerings, punishments must be imposed in accordance with the law, and the issuers and related parties must be held liable for fraudulent offering, financial fraud or false disclosure. fourth, effective steps must be taken to prevent financial derivatives investment risks. in the previous cases, many retail investors invested in financial derivatives and incurred great losses. in mature financial markets, however, institutional investors are the key players in financial derivatives, because they are not suitable for unqualified individuals. given uncontrollable and even unpredictable factors, the prices of financial derivatives are highly volatile and therefore investors need to be professionally competent and highly risk tolerant. speculation in derivatives by common retail investors is equivalent to disguised gambling, and they are sure to suffer losses. investors that speculate in currency, gold or other commodity futures hardly have any chance of getting rich, as they are set to pay the same heavy price as those betting that property prices will never fall. fifth, we must remain vigilant against ponzi schemes. nowadays, we have seen a resurgence of investment frauds that promise high returns and could be disguised as financial technology or internet finance, but they are illegal fund - raising in essence. all individuals should bear in mind that there is no such thing as a free lunch and that principal - guaranteed investments 3 / 4 bis central bankers'speeches offering high returns are financial fraud. they need to be more alert, beware of risks and improve capability to identify risks, and stay away from illegal financial activities. we hope that the participants here at this forum, while offering insightful views, can patiently help promote such basic financial literacy. many thanks to the moderator for his kind introduction and support. i wish this forum a complete success! may new progresses be made in