I wish to extend my warmest greetings to all the staff members of the PBC system and wish everyone a Happy New Year!

In 2010, under the leadership of the State Council and facing a complex economic and financial environment, the PBC continued to implement a relatively accommodative monetary policy, making the policy measures more targeted and flexible. The PBC strengthened liquidity management, guided financial institutions to optimize the structure of credit resource allocation and continued to deepen the financial sector reform. The Agricultural Bank of China successfully completed joint stock reform and initial public offering. The reform of the RMB exchange rate regime was furthered. A breakthrough was made in cross-border RMB business and foreign exchange management reforms progressed in key areas. The inter-bank bond market developed further. Measures were taken to ward off systemic financial risks and crack down on abnormal foreign capital inflows. The financial legislation and financial infrastructures building made further progress financial service and management improved. The PBC also actively involved itself in global economic and financial governance and regional cooperation, and made fresh progress in the monetary cooperation with fellow central banks.

In 2011, the first year of the 12th Five Year Plan, the tasks in macro-economic management and reform, development and stability of financial sector remain arduous. The PBC will implement a prudent monetary policy, focus on improving the policy’s target, flexibility and effectiveness, keep the general price level stable, and support the transformation of the growth mode and the strategic adjustment of economic structure. The PBC will promote the financial reform, speed up financial innovations, prevent systemic financial risks, effectively safeguard financial stability and enhance the financial services and management. The PBC will strive to make new progress in the New Year.