4) Intensive efforts will be made to improve the loan structure. We will actively guide and encourage commercial banks to increase lending for agriculture, farmers and rural areas, the service sector, small and medium-sized enterprises, independent innovation, energy conservation, environmental protection, balanced regional development and expansion of employment. The volume of mid- and long-term loans will be controlled. In particular, financing for projects that are energy intensive and highly polluting and for poorly performing companies in industries with excess production capacity will be strictly controlled.
5) We will continue to deepen the reform of the foreign exchange management system and expand channels and means for using foreign exchange reserves.
6) Coordination and information sharing between macroeconomic regulatory authorities and banking regulatory authorities will be enhanced to guard against and reduce financial risks. The broad money supply (M2) should increase by about 16% in 2008.
We will continue to rein in the excessive growth of fixed asset investment.
1) New projects will be strictly scrutinized. Requirements will be instituted to improve and standardize the management of new projects, and we will ensure that the eight specified conditions are strictly met for each new project. Construction projects that violate laws and regulations must be resolutely cancelled or suspended. We will strictly control the use of budgetary funds to finance office buildings for Party and government organs. Nevertheless, we need to judge each case on its own merits, encouraging some and restricting others, and continue to increase support for weak links and priority areas in economic and social development.
2) Expansion of industries that are energy intensive and highly polluting will be strictly controlled. The list of government-approved investment projects will be revised and management will be tightened for projects in industries that are energy intensive, highly polluting and have excess production capacity. The required proportion of upfront capital for certain types of projects will be increased and standards for project approval in terms of technology, environmental impact, energy consumption and scale will be raised. We will prevent the relocation of backward production facilities and highly polluting projects from one region to another. We will encourage enterprises in energy-intensive and highly polluting industries to merge and reorganize so that the superior ones can prosper and the inferior ones be eliminated.
3) We will tighten overall management of investment projects. We will establish a sound mechanism for interdepartmental coordination in the management of new projects. We will continue to strictly review applications for land and credit and rigorously enforce market access standards. Approval to use land for construction purposes will be strictly controlled, particularly land for industrial purposes, to ensure that land is used in an economical and efficient way. The total amount of planned land use in 2008 will be kept at the same level as last year. Oversight and inspection of land use will be tightened. Project approval will be restricted in regions where the problem of illegal land use is widespread or there are serious pollution problems. Inspection of major construction projects, particularly those financed with government investment, will be enhanced, and oversight of the entire process will be tightened. We will do a good job in monitoring, forecasting and releasing information on total investment in society to properly guide non-government investment.