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 the well regulated development of small and medium local financial institutions, and focus on solving the problem of small and micro enterprises finding it tough and expensive to access financing.

We will deepen the reform to develop a multi-tiered capital market, and promote the development of the bonds and futures markets. We will expand the insurance market's role in protecting against risk. We will deepen reforms to make the interest rate and exchange rate more market-based, and see that the RMB exchange rate remains generally stable at an adaptive and equilibrium level.

We will advance institutional social reforms.

We will deepen reform of the old-age pension system, and establish a central system for enterprise employees' basic old-age pension funds to be used inter-provincially. We will deepen comprehensive public hospital reform and make coordinated moves to reform healthcare pricing, staffing and remuneration, medicine distribution, and health insurance payment models. We will improve the quality of healthcare services and work hard to resolve the difficulties people face in accessing medical care. We will continue reforms in education, culture, and sports, fully unlocking society's vast potential for development.

We will build a more robust system for developing an ecological civilization.

We will reform and improve the system for ecological and environmental regulation, strengthen regulation over the use of natural ecological spaces, roll out a system of compensation for ecological and environmental damage, and improve the compensation mechanisms for ecological conservation, using more effective institutions to achieve ecological and environmental protection.

4. Fighting three critical battles

To fulfill our key annual tasks, we need to make everyone involved clear about their responsibilities, strengthen policy implementation, and ensure that every element of work is done to good, solid effect.

First, we will strive for notable progress in forestalling and defusing major risks.

At present, China's economic and financial risks are on the whole manageable. What we need to do is to tackle both symptoms and root causes and take effective measures to defuse potential risks.

There will be a serious crackdown on activities that violate the law like illegal fundraising and financial fraud. Debt-to-equity swaps and business acquisitions and reorganizations, conducted in a way consistent with market