the real economy reach 17. 29 trillion yuan. The trend of relatively fast growth of money, credit and aggregate financing to the real economy during the first few months of year was effectively controlled. In 2013, CPI rose by 2.6 percent; international balance of payments kept moving toward equilibrium; and, the macroeconomic management targets set at the beginning of the year were achieved Promoting financial reform and development and maintaining financial stabilit The PbC has always been attaching great importance to financial reform and development and financial stability. It promoted financial reform in order to let the market play a decisive role in allocating resources, while taking the avoidance of systemic financial risks as the bottom line of its financial work. In advancing the market-based interest rate reform further in 2013 the PBC fully liberalized lending rates, established and improved self-regulatory mechanism of market interest rate pricing, launched the centralized quote and releasing mechanism of Loan Prime Rate, and successfully issued the first batch of 34 billion yuan of interbank certificate of deposits. RMB exchange rate experienced slight appreciation, showing the feature of two way floating and greater flexibility, and moving further toward a reasonable and equilibrium level. The PBC led the establishment of Joint Ministerial Conference Mechanism on Financial Regulatory Coordination, coordinated studies and implementation of important policy issues including financial information sharing, comprehensive and integrated financial statistics, the normalized development of internet finance, interbank businesses normalization, and the functional assignment of financial regulatory responsibilities between the central and local governments. The PBC released opinions with regard to financial support to the development of China(Shanghai) Pilot Free Trade Zone, in which a series of pilot policies regarding capi tal account convertibility, cross-border use of RMB, and etc. were specified. The PBC actively pushed forward regional financial reform pilot programs in areas such as Wenzhou in Zhejiang Province and Qianhai in Shenzhen, and added seven provinces to the list of the pilot program of the Rural Financial Business Division of Agricultural Bank of China(ABC). Efforts were made to prepare for the launch of the deposit insurance system. The PBC also comprehensively studied and estimated potential financial risks, strengthened risk monitoring of key areas such as local government financing platforms and cross-market financial products, enhanced regu latory cooperation on securities and futures, continued efforts in resolving risks of highly risky financial institutions, and explored the establishment of an early warning system for systemic financial risks. Chinas financial sector continued to perform stably and efficiently against the complicated and varying international environment, and played an important role in promot ing the development of the real economy and the transformation of economic growth pattern Promoting the cross-border use of RMB Adapting to changes in international financial markets and demand in trade and investthe real economy reach 17.29 trillion yuan. The trend of relatively fast growth of money, credit and aggregate financing to the real economy during the first few months of year was effectively controlled. In 2013, CPI rose by 2.6 percent; international balance of payments kept moving toward equilibrium; and, the macroeconomic management targets set at the beginning of the year were achieved. Promoting financial reform and development and maintaining financial stability The PBC has always been attaching great importance to financial reform and development and financial stability. It promoted financial reform in order to let the market play a decisive role in allocating resources, while taking the avoidance of systemic financial risks as the bottom line of its financial work. In advancing the market-based interest rate reform further in 2013, the PBC fully liberalized lending rates, established and improved self-regulatory mechanism of market interest rate pricing, launched the centralized quote and releasing mechanism of Loan Prime Rate, and successfully issued the first batch of 34 billion yuan of interbank certificate of deposits. RMB exchange rate experienced slight appreciation, showing the feature of two￾way floating and greater flexibility, and moving further toward a reasonable and equilibrium level. The PBC led the establishment of Joint Ministerial Conference Mechanism on Financial Regulatory Coordination, coordinated studies and implementation of important policy issues, including financial information sharing, comprehensive and integrated financial statistics, the normalized development of internet finance, interbank businesses normalization, and the functional assignment of financial regulatory responsibilities between the central and local governments. The PBC released opinions with regard to financial support to the development of China (Shanghai) Pilot Free Trade Zone, in which a series of pilot policies regarding capi￾tal account convertibility, cross-border use of RMB, and etc. were specified. The PBC actively pushed forward regional financial reform pilot programs in areas such as Wenzhou in Zhejiang Province and Qianhai in Shenzhen, and added seven provinces to the list of the pilot program of the Rural Financial Business Division of Agricultural Bank of China (ABC). Efforts were made to prepare for the launch of the deposit insurance system. The PBC also comprehensively studied and estimated potential financial risks, strengthened risk monitoring of key areas such as local government financing platforms and cross-market financial products, enhanced regu￾latory cooperation on securities and futures, continued efforts in resolving risks of highly risky financial institutions, and explored the establishment of an early warning system for systemic financial risks. China’s financial sector continued to perform stably and efficiently against the complicated and varying international environment, and played an important role in promot￾ing the development of the real economy and the transformation of economic growth pattern. Promoting the cross-border use of RMB Adapting to changes in international financial markets and demand in trade and invest-