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 principles and the rule of law, will be accelerated.

We will see that internal risk controls are tightened in financial institutions. We will strengthen coordination in financial regulation, improve regulation over shadow banking, internet finance, and financial holding companies, and further improve financial regulation.

We will forestall and defuse local government debt risk. All forms of borrowing and debt underwriting that violate the law and regulations are strictly prohibited. Provincial-level governments should assume overall responsibility for debts incurred by local governments within their jurisdictions; governments below the provincial level should live up to their own responsibilities; and all must take active, prudent steps to deal with outstanding debt. We will improve the standard mechanisms for local governments to secure financing. This year, local government special bonds issued will total1.35 trillion yuan, an increase of 550 billion yuan year on year, to be used as a matter of priority for financing the smooth implementation of ongoing projects; and the scope of the use of special bonds will be appropriately expanded.

The fundamentals of the Chinese economy remain sound, and we have many policy tools at our disposal. We are fully capable of forestalling systemic risks.

Second, we will step up targeted poverty alleviation.

This year, we will further reduce the poor rural population by over 10 million, including 2.8 million people who are to be relocated from inhospitable areas. More will be done to alleviate poverty through the development of local industries, education, and healthcare, and through the development and conservation of local ecological resources. We will shore up weak links in infrastructure and public services, creating self-generated impetus to reduce poverty.

We will do more to support areas affected by extreme poverty, and the central budget's newly enlarged poverty reduction funds and related transfer payments will be weighted toward these areas. We will tailor measures to individuals and individual households to ensure that targeted poor populations, including elderly people, people with disabilities, and people with serious diseases, receive the assistance they need. Poverty relief policies will remain unchanged for those already lifted out of poverty while the battle goes on, and the newly poor and those who slip back into poverty will receive prompt support.

Poverty alleviation funds will be better integrated and performance-based