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Press Conference Shanghai Municipal People’s Government January 29, 2016
    Upon the closing of the 4th Session of the 14th Shanghai Municipal People’s Congress, the Shanghai Municipal Government held a press conference at its pressroom at Shanghai Urban Planning Exhibition Hall on the afternoon of January 29. Yang Xiong, mayor of Shanghai, met the Chinese and foreign journalists and answered their questions.
    Li Yiping: Good afternoon, friends in the news media. At the successful closing of the 4th Session of the 14th Shanghai Municipal People’s Congress, we are holding this press conference here. It is with great pleasure that we have invited Mayor Yang Xiong to meet the Chinese and foreign journalists and answer your questions. Now, let us invite Mayor Yang Xiong to speak first.
    Yang Xiong: Good afternoon, friends from the press. The “two sessions” of Shanghai this year are a great success. They are meetings of inspiration and unity encouraging the people to forge ahead. Here, I wish to express appreciation to our friends from the press. I thank you for the tremendous efforts you have put in to cover the two sessions, so the civic population could keep abreast of the meetings and we could know the opinions and suggestions of all sectors of society about the work of the government.
    The just concluded “two sessions” reviewed and passed the outlines of the 13th Five-Year Plan of Shanghai and defined the goals and tasks of economic and social development this year, which the Shanghai Municipal Government will make every effort to fulfil. I believe that with the concerted efforts of the people of the entire city, we will accomplish the set goals and tasks and achieve new progress in 2016.
    Now, I will be happy to answer your questions.
    Li Yiping: We begin questions now. I propose that each journalist ask but one question, so as to give opportunities to more journalists. I hope to have your understanding and support.
    “Twelfth Five-Year Plan” Laid a Stable and Balanced Foundation
    Having High Confidence in Economic Prospects
    Xinhua News Agency: I am with Xinhua News Agency. We know that the economic climate index has somewhat declined over the last couple of years. My question is whether you remain optimistic about Shanghai’s economic development and what are the targets for growth this year? During the 13th Five-Year Plan period, will Shanghai have projects similar to the domestically made large airplane, as a new engine propelling economic development?
    Yang Xiong: Thank you for your question. In spite of considerable economic downward pressure, Shanghai’s economy, thanks to the restructuring over the last few years, has achieved new progress. We have been optimistic about economic development. Why? Because the basics of the national economy continue to show an upward tendency, and the overall environment has created favorable conditions for our city’s development. The basics of Shanghai’s economy are also good.
    Shanghai’s economy entered a new normal quite early. During the 12th Five-Year Plan period, we pushed forward innovation-driven development and economic transformation and upgrading and achieved steady economic development. While economic growth has been scaled down to some extent, public finance, employment and industrial restructuring have all developed in a balanced way, and this has laid a sound foundation for future development. Meanwhile, we carried out many reform trials, such as the building of China (Shanghai) Pilot Free Trade Zone and science & technology innovation center and many others. These reforms will yield dividends in the 13th Five-Year Plan period. That is why we are so confident in Shanghai’s economic prospects.
    This year’s economic growth has been set for 6.5-7%, a target established based on a range of considerations, including potential growth rate, making more restructuring, coping with economic changes, employment and fiscal revenue.
    Just now you mentioned the rolling off assembly line of the large airplane C919 last year, which is a major achievement China has made in its airplane industry. We look forward to more this year, that is, to its fly, and that will be a milestone. We expect to have similar major projects during the 13th Five-Year Plan period, which will fuel Shanghai’s development.
    A Comprehensive Innovation and Reform Program Has Been Formulated
    Many Enterprises Eye Listing on the Strategic Emerging Industries Board
    People’s Daily: I am a journalist with People’s Daily. The word “mass entrepreneurship and innovation” was hot in China last year. I would like to ask Mayor Yang what actual changes did the building of Shanghai science & technology center bring to the city last year? Also, although there are many policies in support of innovation and entrepreneurship now, the capital market has remained low and many entrepreneurs feel the pressure. Do you think this will adversely affect Shanghai’s innovation in science and technology?
    Yang Xiong: We adopted a program for building the science & technology innovation center last year. As other provinces, autonomous regions and municipalities, we have vigorously encouraged mass entrepreneurship and innovation, and at the same time we have formulated a program for comprehensive innovation and reform experiments, which we have applied to the state government departments concerned for approval. I should say our work in the past year and more has brought about some good changes.
    The first change is the social consensus on innovation and entrepreneurship. In particular, many enterprises, science & technology research personnel and institutions now pay high attention to innovation and entrepreneurship and more enterprises are joining in.
    The second change is that new innovation and entrepreneurship incubators have sprung up like bamboo shoots after a spring rain. There are about over 400 maker spaces in the city today, which are entirely different from the government-sponsored incubators, accelerators and science & technology nurseries. It should be said that the government has also done much in this regard. In the past, any talk about conversion of scientific and technological achievements would include incubators. Not anymore. So, the government has been backing out from the incubators and let social institutions to take its place, which has produced good results.
    The third change is that many fine teams have been a part of innovation and entrepreneurship. Let me give you one example, Shanghai Innovation and Entrepreneurship Contest, which drew more than 3,000 teams last year, over three times the figures for previous years. All these will give an impetus to mass entrepreneurship and innovation and to the building of science & technology innovation center. The building of the science & technology innovation center is progressing in an orderly way and in line with the plan and implementation rules announced last year. A number of major science & technology infrastructure facilities and innovation and entrepreneurship clusters and technology transfer platforms are being built, whose impact on the economy as a driving force will manifest itself as time goes on.
    The question on the capital market you raised just now is a concern of all. Normally, we may tend to think that its fluctuations would affect innovation and entrepreneurship, but a careful analysis will find that not necessarily the case.
    So far as I know, the capital market investors and financial institutions take a keen interest in the innovation and entrepreneurship institutions. For instance, when Shanghai Equity Exchange introduced the science & technology innovation board at the end of last year, it received high attention on the capital market and that has remained so thus far. In the meantime, some banks have also adopted measures to support the innovative and entrepreneurial businesses in science & technology. The same is true with the strategic emerging industries board to be launched soon, where many enterprises want to be among the first to be listed. This indicates that, against market fluctuations, the investors may be more interested in the innovation and entrepreneurship businesses, for they show better growth prospects and represent new business modes and therefore are more attractive to the investors. Viewing the matter from this angle, the capital market gives high attention to the innovation and entrepreneurship firms. I think the capital market will make greater contributions in this aspect in the time to come.
    Striving for a Most Open Free Trade Zone
    Measuring Our Work with International Standards
    Lianhe Zaobao: I am a journalist from Lianhe Zaobao of Singapore. Recently, you have made some important explanations of the 13th Five-Year Plan of Shanghai and one of them is comparing Shanghai with some international metropolises, such as New York, Tokyo and London, and you said Shanghai would have to achieve more in building itself into an international economic center. When we look at New York and London, the degree of openness to the outside world is an important indicator. I would like to ask you to comment on Shanghai’s degree of openness and during the 13th Five-Year Plan period how Shanghai will enhance its openness, particularly under circumstances that the capital and financial markets are fairly fluctuant? Thank you.
    Yang Xiong: Opening is Shanghai’s biggest advantage in development. For many years, the CPC Shanghai Municipal Committee and the Shanghai Municipal Government have attached great importance to opening up to the outside world. The China (Shanghai) Pilot Free Trade Zone is a major move to expand opening up to the outside world. In particular, the state promulgated the Rules on the Establishment of a New System for Open Economy last year, which Shanghai is actively implementing now. In Shanghai’s case, the reform experiments at the FTZ indicate a clear direction, that is, we will further facilitate investment and trade and expand the opening of the financial service sector and under the capital account. This is a priority in opening up in the days to come. Shanghai has adopted many measures and gained useful experience in the process of reform at the FTZ, which has laid a sound foundation for future opening up.
    Next, we will integrate further with international practice in investment and trade. For instance, we may start at the FTZ a management model featuring pre-establishment national treatment plus a negative list and integrate with common international practice later, in an effort to widen opening in all aspects, the service sector in particular. The key of the FTZ’s overall plan approved by the State Council lies in the expansion of the service sector, including financial, commercial and trade, shipping, professional, cultural and social services. We will next focus on these areas, with an aim to increase the degree of openness of our city. In financial reform and opening up, we will earnestly implement the Program on Further Financial Reform and Innovation Experiment at China (Shanghai) Pilot Free Trade Zone and Acceleration of Building of Shanghai International Financial Center (the 40 Financial Reform Measures), so finance will better adapt itself to such an open environment and serve the real economy.
    The state requires us to build the China (Shanghai) Pilot Free Trade Zone into a most open FTZ. By comparison with some cities and regions in the world, we have found out where we have fallen short and we should drive opening up to catch up. Thank you.
    Policy in Support of Angel Funds Draws Attention
    It Is Favorable for Implementation and Improvement
    Bloomberg News: I am from Bloomberg News. The Shanghai Municipal Government has recently announced that it will introduce a risk compensation mechanism for angel investing. Why is there such a mechanism? Is it because we lack seed funds? Some criticize it for it would affect the market, how do you look at it?
    Yang Xiong: You are all interested in the supportive policy Shanghai has adopted for angel investing and startups and innovative businesses. In fact, Shanghai introduced a similar policy as early as 2006. This time, Shanghai Municipal Commission of Science and Technology, Shanghai Municipal Commission of Development and Reform and Shanghai Finance Bureau have primarily made some revisions of the past policy where they felt necessary.
    So far as we know, other countries in the world and some local governments in our country have all had policies of various kinds in support of angel investing and startups.
    At present, angel investing is inadequate in Shanghai and we wish to promote the growth of startups by giving more support to angel investing. Your opinions are very helpful to us in this regard. Your concern is more on whether the policy can be fully implemented and whether there will be problems in the process of implementation. This reminds us to ensure its successful implementation. I think many constructive suggestions you have aired will help us improve the system in its implementation in the next stage, in particular, to avoid cashing in and fraud. Next, we will have to do better in the verification, supervision and public operation, making sure that this policy will truly aid the healthy development of angel investing and startups.
    OTV: I am a journalist from OTV and We know that Shanghai introduced a Residence Permit policy in 2013, which stipulates that the Shanghai Residence Permit holders of seven years or longer shall be qualified to apply for residence registration. I would like to ask Mayor Yang that how many have been granted residence registration since then and weather the results have tallied with expectations. Will the Residence Permit policy change in the future?
    Yang Xiong: The Residence Permit system based on the accumulation of points has been a basic population service and administration system in Shanghai. Since its introduction in 2002, things have been pretty much what we have expected. By the end of 2015, altogether 1.1 million people had applied for the Residence Permit, of whom 300,000 reached 120 points or higher. After verification, 26,000 out of 300,000 have been granted residence registration, with 11,000 receiving it directly and the rest 15,000 being former Residence Permit holders. 
    What needs to be explained is that for those Residence Permit holders we have not applied points but conditions in administration. Only those who have at least 120 points and also satisfy certain conditions shall be granted residence registration.
    Next, we will make an assessment of the policy. The state has also announced a new residence permit system and some reform measures regarding the registered residence policy. We will give the matter an overall consideration in light of the Shanghai circumstances so far and what happens after the adoption of a system luring talent during the building of science and technology innovation center.
    Real Estate Regulation and Restriction on Purchase Will Continue This Year
    Air Pollution Treatment Will Be Intensified
    CCTV: In the past year, Shanghai’s housing market has seen higher sales and prices. Will Shanghai’s real estate regulation policy change in 2016? The state has also called for destocking, what are Shanghai’s objectives? How to balance destocking and stabilizing real estate prices?
    Yang Xiong: There have been quite big changes in real estate in the last two years. In 2014, sales dropped while prices came down just a bit, but last year there was a hike in both. So far as the Shanghai Municipal Government is concerned, we have observed one and same guiding principle, that is, to promote the steady and healthy development of the real estate market in Shanghai. Sales shot up and prices rose somewhat last year. New commercial housing sold totaled 20.09 million sq. m, and sales of second-hand housing exceeded 30 million sq. m, a rather fast increase, almost doubling that of the previous year. We will continue the existing policy of regulation including restriction on purchase, and we hope to increase the supply of medium- and small-sized apartments in keeping with changes in the market.
    You mentioned destocking just now. By the end of 2015, there was a total of 10.75 million sq. m of new commercial housing available for sale online in Shanghai, which can translate into a sale cycle of approximately seven months by last year’s market. This does not create a big pressure on destocking, but we should still pay close attention to the market and find a proper equilibrium. Next, we will be very careful, so as to ensure the steady development of the real estate market.
    The Paper: I am with The Paper. Smog is a high concern of the residents, and I want to ask you whether the Shanghai Municipal Government has new measures to deal with it and clear targets for better air quality? Thank you.
    Yang Xiong: Smog is a major concern of us all and we do have clear objectives for its treatment. We drew up a clean air action plan in the year before last, which calls for a reduction of 20% in average annual density of PM 2.5 by 2017 from the level of 2013. The 13th Five-Year Plan sets the target for about 42 microgram/cm by the end of its period. The figure for 2013 is 62 microgram and that at the end of last year is 53, a drop of 14.5%. We have taken some measures in recent years, including phasing out vehicles failing to meet the European Standard I for emissions and using clean energy replacements for the medium and small boilers and kilns. Also, we have done a lot of work, such as controlling dust, placing a ban on burning of stalks and straws, and phasing out heavy polluters in industries. We will continue our efforts to meet the set targets.
    In regard to the treatment of atmospheric environment, we will first fulfil the tasks set for 2017, that is, a reduction of 20% from 2013, to lower to 49.6 microgram/cm and lay a foundation for attaining the target of 42 microgram/cm for 2020. Our work plan contains mainly the following. First, we will make ultra-low emission renovation of coal-burning generating sets with a capacity of 600,000 kw or higher this year. Second, we will treat volatile organic compounds (VOC). In the light of the EU standards, we published new standards for VOC emissions, fairly high standards which will govern treatment and supervision this year. We will accomplish treatment of about 170 major VOC dischargers and carry forward work to control VOC at another 1,300 enterprises. Third, we will continue control over emissions of motor vehicles, phasing out old ones and putting new ones using new energy. Fourth, we will strengthen dust control, including vigorously developing prefabricated construction and reducing dust at construction sites, roads and stacking grounds. More road sweepers and sprinklers will be used to prevent dust from increasing PM2.5 concentration. Moreover, we will enforce a ban on burning of stalks and straws, further phase out “three-high” businesses, and intensify industrial restructuring, including control in some heavily polluted areas.
    There is one more important task on the agenda, that is, to step up joint control of atmospheric pollution in the Yangtze River delta, particularly the integration of plans and standards, coordinated motor vehicle supervision, building of low-emission control areas for boats, and reduction in discharge by ships at ports. It should be said that much progress has been made in joint air pollution control and overall emissions have been on the decrease in the delta in recent years.
    Comprehensive Subsidy Program for Elders Is under Perfection
    Provision of Medical Care for Children to Be Increased
    Shanghai Radio: I am a journalist with Shanghai Radio. We know that an “elders’ subsidy program” was put out to solicit public opinions, which has received much attention. I would like to ask Mayor Yang if the program has been finalized now. What revisions, if any, have been made in line with public opinions and when will it be officially introduced?
    Yang Xiong: As the comprehensive subsidy program for elders touches the immediate interest of the broad masses of elders, we attach great importance to it. In the process of its making, we have widely solicited opinions from all sides, including those of the deputies to the Shanghai Municipal People’s Congress and members of the Shanghai Committee of the Chinese People’s Political Consultative Conference on six occasions. We have held more than 600 meetings at the district, county, sub-district and town levels to hear comments and suggestions. We also issued questionnaires to the elders and got back 15,000 of them. Besides, many residents offered very good comments and suggestions through hotline “12345” and other channels. From the feedback we have found that the overwhelming majority of the people are supportive of such a scheme. Now we are making revisions to it based on the feedback. The just concluded Shanghai Municipal People’s Congress session passed the Regulation on the Protection of Rights and Interests of Elders in Shanghai, which contains relevant provisions. We will introduce the program after it is revised and perfected.
    China Central People’s Radio: Good afternoon, Mayor Yang. I am from China Central People’s Radio. Now that the universal two-child policy has been adopted, has Shanghai made projections of population growth in the next few years and what measures does the government have to cope with possible deficiencies in high quality educational and medical resources? Thank you.
    Yang Xiong: Since the adoption of the universal two-child policy, the departments concerned have made some estimation and projections. According to the analysis, in the first three years, that is, in 2016, 2017 and 2018, there probably will be a baby boom, which will fall gradually afterwards. It is estimated that there will be approximately 260,000 births each year, of which about 40,000-50,000 will make the addition. This is just the estimation made based on current general intention of people to have a second child and the intervals between natural births. Based on this estimation, we are preparing support facilities in a hope to achieve a balance between demand and supply. Generally speaking, Shanghai’s resources can meet the needs, but readjustments and improvements are always necessary.
    Shanghai has an annual child delivery capacity of 300,000, which is enough to cope with the total number of births after the new policy is put into force. However, we will have to properly reallocate resources, so as to deal with periodic peaks and improve our service and capabilities.
    At the 4th session of the Shanghai Municipal People’s Congress, some deputies raised problems in medical care for the children. The main problem lies in the imbalance in the allocation of resources, with most of them being in the paediatrics departments of Class III hospitals and the children’s hospitals. Next, we will consider giving more support to enhancing paediatric capacity. We will, on the one hand, require all the comprehensive hospitals of Class II or higher to beef up their paediatrics departments and, on the other, relying on the technical strength of the Class III hospitals and the children’s hospitals, form hospital groups or joint teams in each of the east, south, west, north and central areas, in an effort to expand paediatrics capacity. In addition, we will devote more efforts to the training of paediatricians and increase their ranks.
    Aside from the above, we hope to bring children’s health management into the service of the family doctors and improve their service. We will also give consideration to pre-school education resources. We now have an initial plan, which calls for putting up or renovating or expanding 90 kindergartens and run them well, so as to raise the educational and service level of kindergartens. According to these plans, we will be able to deal with baby booms following the universal two-child policy. Of cause, much will have to be done in points of detail and implementation, and it is only likely that there will be unexpected questions on the way ahead for us to address.
    Creating a Better Business and Living Environment
    Making Sure Talent Are Content with Innovation and Entrepreneurship in Shanghai
    United Daily News of Taiwan: I would like to ask a question about the relations across the Taiwan Strait, in particular, the cooperation between Shanghai and Taipei. Taipei Mayor Ko Wen-je came to Shanghai to attend the “Shanghai-Taipei Forum” last year. I would like to know if you have a plan to go to Taipei and attend the forum between the two cities this year. Up to now, what are the more prominent achievements of the forum? Thank you.
    Yang Xiong: Since 2008, on the basis of upholding the 1992 Consensus, a series of important achievements have been made in the peaceful development of relations between the two sides of the Taiwan Strait, which have advanced the well-being of the people on both sides of the Strait and maintained peace and stability of the Strait. On the basis of this, Shanghai and Taipei have held the two-city forum for 6 years in a row, signing 23 cooperation agreements which cover such areas as science & technology, education, culture, health, sports and youth exchange. The signing and implementation of these agreements have spurred the exchange between the mainland and Taiwan and are favorable for improving the well-being of the people. We should treasure and uphold the political basis and favorable situation for the peaceful development of relations between the mainland and Taiwan, and we take an active attitude toward conducting exchange with Taipei. We hope the two sides will make joint efforts to increase ties and further promote the exchange and cooperation in various areas.
    Wenhui Daily: Good afternoon, Mayor Yang. I am a journalist from Wenhui Daily. My question is about helping with innovation and entrepreneurship. We know that Shanghai adopted a series of supportive policies, such as an accumulated points system for residence permit, social insurance subsidies for startups and financing of e-commerce startups. Will Shanghai introduce measures to encourage entrepreneurship and increase employment this year? Thank you.
    Yang Xiong: Last year, we launched a new three-year action plan encouraging entrepreneurship and expanding employment and introduced a batch of policies in support of entrepreneurship in aspects such as import of talent, financing and subsidies. These policies have been very effective, with over 10,000 young business starters receiving help last year. We will implement further these policies to promote entrepreneurship and increase employment. Of cause, we will also continue to improve and carry out the various policies including the building of training bases for the young, and readjust and improve the preferential policies in light of the young people’s needs in entrepreneurship. We will continue this work, as it will help with employment and fuel entrepreneurship and innovation.
    You mentioned the import of talent. When we made the plan for the science & technology center, we included specifically policies on talent. A main task for us this year is to implement well these policies. We will make it a high priority our work to build a better environment for the career development of the talent, so that they can bring into full play their special skills and abilities and fulfil their dreams. This will help us improve incentive policies and encourage them to throw themselves into entrepreneurship and innovation. In the meantime, we will further improve the business environment in a direction of international integration, marketization and rule of law and create a better living environment, where they can live a convenient life and are content with entrepreneurship and innovation in Shanghai. These policies have been actively supported by all sectors of society. Our main task this year is to ensure their further and effective implementation.
    Spring Festival Is the Real Test for Ban on Fireworks and Firecrackers
    Implementation of Regulation Needs Cooperation of Residents
    Xinmin Evening News: Good afternoon, Mayor Yang. I am with Xinmin Evening News. Spring Festival is around the corner. We all know that the public security and armed police forces have entered a top alert recently. I would like to ask if these urban security measures will become a normal. Also, we know that Shanghai has released the Regulation on the Safety Administration of Fireworks and Firecrackers this year, which came into force on January 1, 2016. What we are concerned about is whether the Regulation will be effectively implemented. For some residents, they may not get used to a most quiet Spring Festival in history. As the Mayor of Shanghai, what would you like to say to the residents? Thank you.
    Yang Xiong: During the World Expo in 2010, we established a multi-grade social prevention and control duty mechanism, which has continued to date. The duty mechanism, as it is so called, classifies all the situations into grades and responds to them accordingly. The public security departments will act depending on the actual circumstances during the upcoming Spring Festival holiday. We believe the vast numbers of police officers will be able to ensure the broad masses of the people an auspicious Spring Festival. Here, I would like to thank the police forces for their tremendous efforts to maintain social stability. They work really hard to guarantee security of the city and have made great contributions.
    Since the new Regulation on the Safety Administration of Fireworks and Firecrackers took effect on January 1, things have been rather smooth. We have imposed over 200 fines in all, including just 40-odd fines levied for setting off fireworks and firecrackers, with the rest being illegally shipping, selling and storing fireworks and firecrackers. We have also dissuaded people from lighting fireworks and firecrackers in nearly 100 instances. 
    True, the real test will be the Spring Festival holiday, for which we have made appraisals fully. First of all, we will, in accordance with the Regulation, firmly crack down on and punish according to law illegal sale, shipping and storage of fireworks and firecrackers. At the same time, we will beef up patrols and inspections and urge those setting off fireworks and firecrackers not to do so. Those who refuse shall be punished according to law. On the other hand, the Regulation will be given more publicity and made known to more people. Volunteers will also be organized to join patrols and inspections. As the mayor, I call on the broad masses of the residents to cooperate actively, and let us make joint efforts to ensure safety of our city and protect the environment of Shanghai and earnestly implement the Regulation.
    Implementation of “40 Financial Reform Measures” Not to Halt
    There Is No Timetable for QDII2 Yet
 I am a reporter from Mayor Yang, I noticed that you and other vice-mayors expounded some important policies and plans at press conferences by the Shanghai Municipal Government last year. I would like to know if this practice will continue this year. In connection with that, what other measures will the Shanghai Municipal Government adopt in publication of government information? Thank you.
    Yang Xiong: The publication of government information is an important policy by the Central Committee of the Communist Party of China and the State Council. Shanghai was the first among the provincial governments to implement this policy in 2004. In the 12 years since then, we have made public 1.8 million items of government information. Following the principle that publication is “normal” and non-publication is “exceptional”, we have promoted publication of government information consistently and safeguarded the rights of the general public to know, participate and supervise. The municipal leaders and the principal leaders of some departments concerned attended news conferences to expound policies last year. It is an important way to carry forward publication of government information and increase communication with the broad masses of the people. We will continue to do so. In fact, we have maintained communication with the public through “Mayor’s Hotline” program on Shanghai Radio in recent years.
    Next, the government will continue to uphold the principle of transparency and make public more of its information in decision making, implementation, administration, service and results. In particular, more information about financial budget and actual budget, the making of major public policies and major projects will be published. We hope that more transparency and social supervision will promote scientific and democratic decision making, enhance our ability to serve the people and boost public confidence in the government, and make the government more transparent and just.
    Economic Daily: Good afternoon, Mayor Yang. I am a journalist from Economic Daily. I would like to ask you a question about the “40 Financial Reform Measures”. The renminbi has been depreciating since last year, which has led to the exodus of capital. Will this have an impact on the implementation of the “40 Measures”? The Measures contain provisions that allow or expand investment by qualified institutions and individuals in the domestic and overseas securities and futures markets. Are there any specific programs? Is there a timetable for QDII2? Thank you.
    Yang Xiong: The Measures are a document we and some state departments concerned including the People’s Bank of China, China Banking Regulatory Commission and China Securities Regulatory Commission formulated together last year, with the approval of the State Council. You expressed a concern whether the current market fluctuations will affect the implementation of the policy. The aim of the Measures is to speed up financial reform and further serve the real economy, so the document includes much that aims to improve the overall financial administration system, to better facilitate the cross-border use of the renminbi, to serve the enterprises’ going global and inviting in, and to satisfy the development needs of the real economy. The document’s many provisions are precisely meant to be helpful to deepening reform and coping with market fluctuations. Owing to the market fluctuations, however, there should be some control on the pace of implementation of some of the measures, but the implementation of the document as a whole will not come to a halt because of the market situations. Taking the free trade account as an example, the FTZ has not become a passage for the entry and exodus of hot money. Therefore, we think the financial security system and policy arrangement we designed have withstood the test of the market. 
    In the process of carrying out the measures, the various departments have been losing no time in making related plans and detailed rules for implementation. In fact, the State Administration of Foreign Exchange, Shanghai Bureau, laid down the first detailed foreign exchange administration rules at the end of last year. Next, we will formulate plans and release them one by one as they mature, but we must avoid regional and systematic financial risks and ensure their effective implementation.
    For QDII2, the plan is still being made and it is yet to be demonstrated. There is no timetable for it now and the same is with the question of investment by qualified institutions in the domestic and overseas markets. We will introduce them when our studies reach maturity, but a timetable is not something in sight at this moment.
    Li Yiping: The press conference draws to an end now. We thank Mayor Yang and our friends in the media. Wish you all a Happy New Year!