find a clear answer in corporate governance structure and the company law. centralized management will not be suitable in china, since we have a sizable presence of three - level state ownership. great britain once ruled over india, australia and some other places. a story was told that, the british government delivered heating radiators to schools in colonial india where electronic fans were actually needed, for officials in london thought india might be as cold a place. for china with a complex and large capital system, we could not imagine that a highly centralized approach could work without a layered management mechanism featuring clear responsibilities and adequate capital operational capacities. under such circumstances, owner - agent relationship of state - owned capitals thus became crucial. since chinese people are the real owners in essence, how could we realize such ownership? to whom to consign responsibilities? through what kind of organizational structures, corporate governance structure, checks and balances, including competitive and incentive mechanism? establishing holding company looks like a good solution. different holding companies may compare their performances, thus resulting in different incentives. holding companies could have diverse capital structures and go public to improve efficiencies through public monitor. from this point of view, the establishment of holding companies is an inevitable choice. as an integral part of soe reforms, the reform of state - owned commercial banks adopted the holding company model after studying international and chinese enterprises ’ reform experiences. of course, it has to be tested in practice. finally, how to pay dividends should be decided by the board of directors and the shareholders ’ meeting. the board of directors decides whether and how much to pay, and all shareholders rather part of shareholders should be paid. in summary, who should be paid dividends depends on a clear property right structure. there is no need to complicate this matter. 5. conclusions in my personal view, to clarify property right and improve corporate governance, we should make efforts to reach consensus through discussion of dividends distribution by state - owned enterprises and investment returns of state owned shares in enterprises with mixed ownerships. in line with such a spirit, we have carefully studied and discussed property right reform for bank of china, china construction bank and the industrial and commercial bank of china, hoping to avoid the co - existence of both listed companies and the legacy companies like before. all three conducted complete financial restructuring. among them, china construction bank has less than 10 percent of capital invested by the china jianyin investment co. ltd. which is responsible for providing trust loans on behalf

still strong on the back of a buoyant labour market and fiscal stimulus, activity has slowed since the start of the year in the eurozone, japan and china. second, some policy developments have contributed to either increasing such de - synchronisation – such as fiscal stimulus in the us – or raising overall growth uncertainty, as in the case of rising trade conflicts. one key consequence of such economic and policy developments has been renewed upward pressure on the us dollar, which has benefitted from the further rise in interest rate differentials ( nominal and real ) between the us and other major advanced economies, and from the outperformance of us equities. the combination of rising growth and policy uncertainties, weaker commodity prices – with the notable exception of oil – from march to august 2018 and a stronger dollar has hit emerging countries ’ financial assets particularly hard. since it peaked in february 2018, and despite some recovery in september, the jpmorgan emerging markets foreign exchange index has declined by 13 %. over the same period, the msci index of emerging market equities has shed 13 % and the emerging markets bond index plus ( embi + ) sovereign spread over us treasuries has widened by 60 basis points. however, performances across the emerging world have been very disparate, ranging from severe financial stress to near - stability. judging by these different reactions, it appears that the less favourable global backdrop has led investors to refocus on relative country vulnerabilities, specifically with respect to the rising external liabilities of governments and large corporations, fiscal trends, exposure to global trade and value chains and, in some cases, the level of inflation and the degree of anchoring of inflation expectations. how the changing environment has affected south africa if one excludes the most dramatic sell - offs experienced by the turkish lira and the argentine peso, the south african rand has been among the most affected emerging market currencies this year – losing 13 % on a trade - weighted basis since its 26 february peak. this depreciation, together with the 98 basis point increase in the yield on the r186 benchmark government bond and the 60 basis point widening in the country ’ s five - year credit default swap spread illustrate the vulnerability of south african financial assets to the changing world environment i have just described. why has this happened? in contrast to some of its emerging market peers, south africa has managed to keep its foreign currency - denominated external lia