The State Council Information Office held a series of themed press conferences on "promoting high-quality development" this afternoon. Xiao Yuanqi, Deputy Director of the China Banking and Insurance Regulatory Commission, attended the conference to introduce the situation and answer questions. The important contents of the press conference are as follows:

China Banking and Insurance Regulatory Commission: The net income of several private banks in the first half of the year has decreased compared to the same period last year, mainly due to the significant increase in provisions for bad debts.

Liao Yuanyuan said that the net income growth rate of private banks has shown a negative growth. We have also noticed this. In the first half of this year, private banks were profitable overall, but the net income of several private banks has decreased compared to the same period last year. This is mainly because these banks have significantly increased their provision for bad debts, directly affecting their current profits, resulting in a temporary decline in net income of private banks.

China Banking and Insurance Regulatory Commission: The non-performing loan ratio of the banking industry at the end of July was 1.61%, a decrease of 0.08 percentage points compared to the same period last year.

Xiao Yuanqi, Deputy Director of the China Banking and Insurance Regulatory Commission, said that at the end of July, the total assets of the banking industry financial institutions were 423.8 trillion yuan, an increase of 7% compared to the same period last year; the total assets of the insurance industry were 33.9 trillion yuan, an increase of 7.7% since the beginning of the year. The asset quality remains stable, and the non-performing loan ratio is stable and declining. Overall, credit risks have been under control. At the end of July, the non-performing loan ratio of the banking industry was 1.61%, a decrease of 0.08 percentage points compared to the same period last year. The disposal of non-performing assets has also been intensified. In the first half of this year, banks have disposed of 1.4 trillion yuan of non-performing assets. The ability to offset risks has been strengthening. At the end of July, the loan loss provision coverage ratio of banks was 216.7%, which means that the loan loss provision is more than twice the non-performing loans. At the same time, at the end of the first half of this year, the capital adequacy ratio of banks was 15.53%, and the comprehensive solvency adequacy ratio and core solvency adequacy ratio of insurance companies were 195.5% and 132.4% respectively. The "ammunition" of banks and insurance institutions to withstand risks is still very ample. Liquidity remains stable. The two major liquidity indicators of banks, liquidity coverage ratio and net stable funding ratio, are in compliance with regulatory requirements. Therefore, China's banking industry is generally stable, with controllable risks, and key operating indicators and regulatory indicators are within a healthy and reasonable range.

China Banking and Insurance Regulatory Commission: Manufacturing loans increased by 11.4% year-on-year at the end of July, and loans to high-tech industries increased by 13.9% year-on-year.

Xiao Yuanqi said that the ability of financial institutions to serve the real economy has further improved, especially in increasing the supply of financial services to major strategies, key areas, and weak links, with greater precision and efficiency. The total amount of funds has been increasing steadily. At the end of July, the balance of RMB loans was 251 trillion yuan, an increase of 13.5 trillion yuan compared to the beginning of the year; the balance of bonds investment by banking and insurance institutions was 103 trillion yuan, an increase of 4.9 trillion yuan compared to the beginning of the year; the balance of insurance fund utilization was 31 trillion yuan, an increase of 7.4% compared to the beginning of the year. This is the perspective of the supply of financial funds. In addition, the fund structure has also been optimized. This is mainly due to the increased support for advanced manufacturing and technological innovation. At the end of July, manufacturing loans increased by 11.4% year-on-year, and loans to high-tech industries increased by 13.9% year-on-year. In addition, the level of financial services provided to small and micro enterprises and agriculture has been continuously improving. At the end of July, loans to inclusive small and micro enterprises increased by 17.1% year-on-year. The support for the health industry and the silver-haired economy has been further enhanced, with loans for the elderly care industry increasing by 16.1% compared to the beginning of the year. In terms of deep integration of the digital economy and the real economy, loans for core industries in the digital economy increased by 12.4% year-on-year. As of the end of July, the insurance industry provided various types of financing support through bonds and stocks, totaling 28.5 trillion yuan.

The China Banking and Insurance Regulatory Commission: Guiding and cultivating more long-term capital, patient capital investment early, small-scale, long-term, and hard technology investment.

Xiao Yuanqi said that the next step, in terms of technology finance, is to urge financial institutions to earnestly implement the requirements for the full life cycle financial services of technology enterprises, and guide and cultivate more long-term capital, patient capital investment early, small-scale, long-term, and hard technology. In terms of green finance, it is necessary to further improve the relevant statistical system, enrich the supply of green financial products, and particularly enhance the accuracy and effectiveness of green financial services. In terms of inclusive finance, the main focus is to further promote the implementation of the above two notices, as well as the Implementation Opinions of the State Council on Promoting the High-quality Development of Inclusive Finance, and achieve results. In terms of pension finance, steady progress should be made in the development of commercial pension finance, and insurance institutions should be required to design pension insurance products that are simpler, more convenient, and more secure to meet the characteristics and needs of pension insurance. In terms of digital finance, it is necessary to further strengthen top-level design and overall planning, promote the innovative application of digital technology in the financial field, increase digital empowerment, and improve the management level of financial institutions.

The China Banking and Insurance Regulatory Commission: Insurance claims in our country account for about 10% of economic losses caused by disasters, with much room for improvement.

Yin Jiang'ao, Director of the Property Insurance Supervision Department of the China Banking and Insurance Regulatory Commission, said that the role of our country's insurance industry in dealing with disaster accidents is gradually being realized, but compared with the global average level, there is still much room for improvement. For example, in the first half of this year, the global economic losses from natural disasters were approximately 120 billion US dollars, of which insurance payouts were approximately 60 billion US dollars, accounting for approximately 50%. In our country, insurance claims for disaster economic losses account for about 10%, with much room for improvement.

The China Banking and Insurance Regulatory Commission: Will establish an evaluation system for insurance protection capabilities and improve the hierarchical response mechanism for disaster accidents.

Yin Jiang'ao said that in the next step, we will promote the better functioning of the insurance industry. In terms of improving the system, we will establish an evaluation system for insurance protection capabilities and improve the hierarchical response mechanism for disaster accidents. In terms of exploring pilot projects, we will expand the scope of residential catastrophic insurance coverage based on the experience of Hebei, Hubei, and Mentougou in Beijing, and promote pilot projects in various places. In terms of deepening reforms, we will expand the supply of agricultural insurance; at the same time, we will improve the co-insurance mechanism and enhance risk protection for major projects. In terms of strengthening supervision, we will optimize the underwriting and claims standards, improve the quality and effectiveness of insurance services, and safeguard the legitimate rights and interests of consumers.

The China Banking and Insurance Regulatory Commission: Will guide banking institutions to continue to strengthen refined management, cultivate new sources of profit growth, and continuously improve profitability.

Liao Yuanyuan, director of the Statistics and Risk Monitoring Department of the China Banking and Insurance Regulatory Commission, stated that maintaining a reasonable level of profit is of great significance to banks in timely supplementing capital, maintaining stable operation, and enhancing the ability to serve the real economy. Facing the pressure of slowing profit growth, commercial banks have also been tapping internal potential and reducing costs through various means. At present, the profitability level of Chinese commercial banks is still within a reasonable range. For example, in the first half of this year, the net income of banks increased by 0.4% year-on-year, still achieving positive growth in net income. In other words, not only is it profitable, but its net income is also growing positively. During the same period, the asset profit margin and capital profit margin of banks remained basically stable. The next step for the China Banking and Insurance Regulatory Commission is to guide banks to continue to strengthen refined management, optimize the asset-liability structure, cultivate new profit growth points, and continuously improve profitability.