The nature of socialism with Chinese characteristics determines that our finance must face hundreds of millions of people. In capitalist society, finance is an important cause of polarization. In some countries under the epidemic situation, the poorer and the richer are getting richer, which is largely due to the serious deviation of their financial markets from the real economy. For example, the stock markets of some countries are in high spirits. Since this year, the market value growth of five large enterprises has accounted for more than 80% of the total market increase. Here, we should adhere to the new concept of development and give full play to the role of Finance in adjusting industrial structure, improving income distribution and enhancing social welfare.
Chinas basic financial services have covered 99% of the population, and the coverage rate of bank outlets in villages and towns has reached 96.6%. There are 8.06 bank accounts and 6.01 bank cards per capita in China, and 40% of the countrys individual settlement accounts are opened in rural areas. Two thirds of SMEs, tens of millions of individual businesses and ordinary farmers can obtain bank loans. All kinds of medical and health insurance funded or subsidized by the government have covered all urban and rural residents. These achievements are great achievements in the world. But we cant be satisfied with that. The contradiction between the imbalance and insufficiency of financial supply and the multi-level diversification of financial demand is still quite prominent, and a lot of work needs to be done to achieve the goal of financial inclusion.
We must firmly promote the structural reform of the financial supply side. We should not only develop large and super large financial enterprises, but also cultivate small and medium-sized financial institutions. There should be not only one-stop organization for comprehensive operation, but also specialized organization with characteristics. Different types of financial entities adhere to the positioning, learn from each other to build a prosperous financial forest. All financial institutions should pay close attention to digital transformation. Only in this way can we effectively improve our ability to serve the public.
It is still urgent to deepen the internal governance reform of financial institutions. We must face up to the risks and problems of violation of laws and regulations, resolutely punish corrupt elements, and try our best to recover the losses of the state and the people. No matter big, small and medium-sized financial institutions, including city commercial banks, rural credit cooperatives, trust companies and leasing companies, should establish and improve the modern enterprise system. The key is to strengthen the corporate governance structure, better play the leading and political core role of the party organization, and strictly select loyal, professional, honest and pragmatic executives.
We should further strengthen and improve supervision and guide financial resources to the weak areas of economic and social development. Adhere to customer-oriented, strive to achieve the career vision of employees, take root in urban and rural communities, and actively fulfill social responsibility. We should improve the availability of financial services, and reduce the service cost through enabling technology, so that the broad masses of people can have equal access to financial resources and enjoy high-quality financial services. To achieve these goals is in line with the need to create more value for equity investors.
Financial institutions should give full play to their professional advantages, do a good job in wealth management, increase residents property income, and realize the long-term maintenance and appreciation of peoples wealth. We should prevent risk spillover, maintain financial market stability, and improve social welfare. We should also take the initiative to play an exemplary role in disaster prevention and relief, green development and climate change.
Giving full play to the financial advantages and vigorously developing the third pillar of pension security can effectively relieve the pressure of pension insurance expenditure and meet the diversified needs of the people. At the same time, it can also concentrate long-term stable funds, explore cross cycle investment mode, and become an important force of long-term investment and value investment in the capital market, fundamentally promote the healthy development of the capital market and meet the capital needs of infrastructure construction and scientific and technological innovation. At present, the total financial assets of Chinese residents have reached 160 trillion yuan, of which more than 90 trillion yuan are bank deposits, and most of them are less than one year. Financial assets that can be converted into financial resources for life-long pension are very large in scale and have obvious advantages.
In recent years, we, together with relevant ministries and financial enterprises, conducted extensive research on the reform and development of pension finance, and formed the next working idea. The Central Committee of the party and the State Council attach great importance to it. The financial commission of the State Council has made special arrangements, which require that it be active and stable, step by step, and gradually improve. The general policy is to walk on two legs. On the one hand, we should pay attention to the existing business norms, that is, to rectify the source, unify the standards of pension financial products, and clean up products that do not match the name. On the other hand, we should carry out business innovation pilot projects and vigorously develop professional pension products with real pension functions, including pension savings deposits, pension financing and funds, exclusive pension insurance, commercial pension, and so on. We will choose financial institutions and specialized institutions with better conditions to participate first, adhere to the reality of our country, learn from the positive and negative experience of the world, and explore a new way of reform and development of pension finance.
3u3001 Unswervingly promote the opening up of financial service industry
In the next step, we will unswervingly expand the opening up of the financial service industry, continuously optimize the institutional arrangements of the financial market, deepen international economic and financial cooperation, and continuously enhance the competitiveness of the financial system in the process of opening up. We welcome foreign institutions with good market reputation and credit history, especially those with characteristics and expertise in risk control, pension management, consumer finance, wealth management and health insurance to enter China, so as to stimulate market vitality. We also support Chinese funded financial institutions to go global and develop their business in the host country in accordance with the law.
4u3001 Give full play to the great role of scientific and technological progress in improving financial efficiency
Finance and science and technology have always promoted each other and developed together. All the major scientific and technological revolutions have greatly promoted the progress of the financial industry. The emergence of telegraphy has made financial services break through the limitation of time and space. The application of computer greatly improves the storage capacity of financial data and the efficiency of financial services. Today, the technological changes represented by the Internet, big data and blockchain have been widely used in the financial industry. At the same time, finance also supports and strengthens the development of science and technology enterprises through the credit market and capital market. The financial industry takes the lead in widely applying scientific and technological achievements, which has become an important driving force for scientific and technological progress. Some of our banks and insurance companies have set up influential technology enterprises.
Chinas application of financial science and technology has been in the forefront of the world in many aspects. Mobile payment, electronic clearing, online banking and digital credit are developing rapidly. At present, the off the counter trading rate of the banking industry is close to 90%. In the past, loans for small and micro enterprises used to be approved within 20-30 days. Now, the technology platform has realized the second application, second loan and instant availability. Some Internet technology companies are also actively exploring the development of financial business, and have made remarkable achievements.
We will continue to support the development of financial technology, optimize customer service experience and improve service efficiency. Pay close attention to and evaluate the impact of the scientific and technological revolution on the financial industry, and make forward-looking deployment arrangements. In terms of supervision, it is also necessary to increase the use of science and technology to improve the efficiency of supervision. Of course, the development of financial technology has also brought some new problems. We must attach great importance to network security, data privacy, oligopoly and other risk challenges to ensure market fairness and financial stability.
As the capital, Beijing has a special status. The financial industry must spare no effort to support the function construction of Beijings four centers and create a comprehensive demonstration area for the national service industry to expand its opening up. Support Beijing to speed up the construction of pilot free trade zone. Support Beijing to build a high-level open platform for coordinated development of Beijing, Tianjin and Hebei.