On August 21, Financial Union reported that the State Council Information Office held a series of themed press conferences on the topic of "promoting high-quality development". Xiao Yuanqi, Deputy Director of the National Financial Supervision and Administration Bureau, attended the conference to introduce the situation and answer questions. The important contents of the press conference are as follows:

The Financial Supervision and Administration Bureau: In the first half of the year, the net profit of several private banks declined year-on-year due to a significant increase in provision for bad debts.

Liao Yuan mentioned that the net income growth rate of private banks has shown negative growth. We have also noticed this. In the first half of this year, private banks were overall profitable, but the net income of several private banks declined year-on-year. This was mainly because these banks significantly increased their provision for bad debts compared to the same period last year, directly affecting the current period's profit, leading to a temporary decline in net income of private banks.

The Financial Supervision and Administration Bureau: The non-performing loan ratio of the banking industry at the end of July was 1.61%, which was 0.08 percentage points lower than the same period last year.

Xiao Yuanqi, Deputy Director of the National Financial Supervision and Administration Bureau, said that at the end of July, the total assets of banking and financial institutions reached 423.8 trillion yuan, a year-on-year increase of 7%; the total assets of the insurance industry reached 33.9 trillion yuan, a year-on-year increase of 7.7%. The asset quality remained stable, and the non-performing loan ratio decreased. Overall, credit risk has been kept under control. At the end of July, the non-performing loan ratio of the banking industry was 1.61%, which was 0.08 percentage points lower than the same period last year. The disposal of non-performing assets has also been further increased, with banks disposing of 1.4 trillion yuan of non-performing assets in the first half of this year. Risk mitigation has been stable and improved. 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 the year, the capital adequacy ratio of banks was 15.53%, and the comprehensive solvency and core solvency ratios of insurance companies were 195.5% and 132.4% respectively. Banks and insurance institutions have sufficient "ammunition" to resist risks. Liquidity is stable and improving. The two main liquidity indicators of banks, the liquidity coverage ratio and the net stable funding ratio, comply with regulatory requirements. Therefore, the current banking industry in China is stable, with manageable risks, and the main operating and regulatory indicators are in a healthy and reasonable range.

The Financial Supervision and Administration Bureau: As of the end of July, loans to the manufacturing industry increased by 11.4% year-on-year, and loans to high-tech industries increased by 13.9% year-on-year.

Xiao Yuanqi stated that the ability of financial institutions to serve the real economy has further improved, especially in terms of continuously increasing the financial supply for major strategies, key areas, and weak links, with more precision and efficiency. The total amount of funds is steadily increasing. At the end of July, the RMB loan balance was 251 trillion yuan, an increase of 13.5 trillion yuan from the beginning of the year; the bond investment balance of banks and insurance institutions was 103 trillion yuan, an increase of 4.9 trillion yuan from the beginning of the year; the balance of insurance fund utilization was 31 trillion yuan, a growth of 7.4%. This is from the perspective of financial funds supply. In addition, the fund structure has been optimized. In particular, support for advanced manufacturing and technological innovation has increased, with loans to the manufacturing industry increasing by 11.4% year-on-year at the end of July, and loans to high-tech industries increasing by 13.9% year-on-year. Moreover, the level of financial services for small and micro enterprises and agriculture and rural areas is constantly improving, with loans to inclusive small and micro enterprises increasing by 17.1% year-on-year at the end of July. Support for the healthcare industry and the silver economy is further increasing, with loans to the elderly care industry increasing by 16.1% from the beginning of the year. In terms of the deep integration of the digital economy and the real economy, loans to the core industries of the digital economy increased by 12.4% year-on-year. At 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 in early, small, long-term, and hard technology.

Xiao Yuanqi expressed that the next step in technology finance is mainly to urge financial institutions to conscientiously implement the full life cycle financial service requirements for technology-based enterprises, and to guide and cultivate more long-term capital, patient capital investment in early, small, 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 especially improve the accuracy and effectiveness of green financial services. In terms of inclusive finance, the main focus is to further promote the implementation and effectiveness of the above two notices, and the "Implementation Opinions of the State Council on Promoting the High-quality Development of Inclusive Finance", and to achieve results. In terms of pension finance, it is necessary to steadily promote the development of commercial pension finance, and at the same time require insurance institutions to design retirement insurance products that are simpler, more convenient, and more robust to adapt to the characteristics and needs of retirement 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 enhance the management level of financial institutions.

The China Banking and Insurance Regulatory Commission: Insurance payouts in our country account for approximately 10% of economic losses from disasters, and there is still significant room for improvement.

Yin Jianga, Director of the Property Insurance Regulatory Department of the China Banking and Insurance Regulatory Commission, stated that the role of our country's insurance industry in responding to disaster accidents is increasingly significant, but compared to the global average level, there is still significant 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, with insurance payouts of approximately 60 billion US dollars, accounting for approximately 50% of the total. In our country, insurance payouts account for approximately 10% of economic losses from disasters, and there is still significant room for improvement.

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

Yin Jianga said that the next step will be to promote the better functioning of the insurance industry. In terms of system improvement, an evaluation system for insurance protection capabilities and other aspects will be established, and the hierarchical response mechanism for disaster accidents will be improved. In terms of exploration and piloting, on the basis of expanding the scope of residential catastrophic insurance protection earlier this year, the practices in Hebei, Hubei, and Mentougou district of Beijing will be summarized to promote pilot projects in various regions. In terms of deepening reform, the supply of agricultural insurance will be expanded; at the same time, the co-insurance mechanism will be improved to enhance risk protection for major projects. In terms of strengthening supervision, the underwriting and claims standards will be optimized, the quality and effectiveness of insurance services will be enhanced, and the legitimate rights and interests of consumers will be safeguarded.

The China Banking and Insurance Regulatory Commission: will guide banking institutions to continue to strengthen refined management, cultivate new profit growth points, 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.