i would like to brief you on the work of the people ’ s bank of china ( pbc ) in practicing sound monetary policy in a more flexible and appropriate manner and implementing the requirements of the government work report on securing market entities in the fight against the covid - 19 pandemic since the beginning of this year. first, by leveraging quantitative monetary policy tools, we expanded aggregate supply with a focus on easing financing difficulties. in h1 2020, with respect to monetary policy, we rolled out a mix of forceful supporting measures, including three rounds of required reserve ratio ( rrr ) cut, additional rmb1. 8 trillion quotas for central bank lending and central bank discount, a program for supporting credit - based loans to micro and small businesses ( msbs ), and the phased deferment of loan principal and interest repayments for micro, small and medium - sized enterprises ( msmes ). these measures have yielded solid results. at end - may, the growth rates of broad money ( m2 ) and the aggregate financing to the real economy ( afre ) reached 11. 1 percent and 12. 5 percent respectively, both remarkably higher than those of last year. the stock market, bond market, foreign exchange market and rmb exchange rate were generally stable. since q2 2020, china ’ s major macroeconomic indicators have displayed favorable signs of recovery. in h2 2020, we will continue to keep liquidity adequate at a reasonable level through monetary policies, which is expected to bring about expansion in rmb loans by nearly rmb20 trillion and growth in afre by over rmb30 trillion throughout the year. second, by advancing the market - based interest rate reform, we guided a continuous decline of market rates and promoted the financial sector to reasonably mark down profits to support enterprises, in an attempt to alleviate high financing costs. since the beginning of 2020, the financial sector has marked down profits to support enterprises in three ways, namely lowering interest rates, adopting monetary policy tools that can directly support the real economy, and reducing banks ’ charges. it is estimated that, with these measures, the financial system will mark down rmb1. 5 trillion worth of profits to support enterprises throughout the year. 2 / 3 bis central bankers'speeches third, by strengthening write - offs and disposal of bank non - performing loans ( npls ), we made efforts to solve the sustainability problem related to the support of the financial sector for the real economy. under the impact of the

yi gang : speech - 12th lujiazui forum speech by mr yi gang, governor of the people's bank of china, at the 12th lujiazui forum " shanghai international financial center 2020 : new starting point, new mission, new vision ”, shanghai, 18 june 2020. * * * honorable vice premier liu he, secretary li qiang, mayor gong zheng, ladies and gentlemen, good morning! during general secretary xi jinping ’ s inspection tour in shanghai last november, he noted that shanghai should “ strengthen its function of allocating global resources and actively allocate global resources, including capital, information, technology, talents and goods ”, which pointed out the direction for the development of shanghai as an international financial center. the address by vice premier liu he is very important and greatly instructive for our financial work. i also fully agree with the discourse secretary li qiang has just made in his address on accelerating the building of shanghai as an international financial center. at the previous lujiazui forum, i proposed the “ five centers ” that we should focus on in building shanghai as an international financial center. here, i would like to further discuss the “ five centers ” with you. first, shanghai is becoming a center for rmb - denominated asset allocation. that is to say, when world - class investors plan to invest in rmb - denominated assets, they will regard shanghai as their first choice. global institutional investors can conveniently conduct crossborder investment and financing activities here. notably, china ’ s economic fundamentals remain sound, with monetary policy within the normal range. the rmb interest rates are at the lowest level among developing countries, but there is a relatively remarkable positive spread compared with the interest rates of major convertible currencies. in this sense, rmb - denominated assets are fairly attractive for global capital allocation. second, shanghai is becoming a center for risk management of rmb - denominated financial assets. after investing in rmb - denominated assets, investors, domestic and abroad, are bound to diversify and manage their risks on a continuous basis. in shanghai, all factors related to risk management are improving. first, in terms of pricing, continuous pricing has been realized for all classes of rmb - denominated assets. second, in terms of transaction, the rmb financial market enjoys adequate liquidity as well as sound depth and width, allowing buy - in and sell - out at