Yinan Hu : As Chairman who stated in his opening remarks, right, I mean China right now gone through a transition where old model of production again phased out, and new model of production are developing. So we can share with you four observations. So the staff community in China right now is a bit weak, and it’s because the risk appetite for investors has declined. The other observation is in terms of consumption, obviously, consumers in China are cautious coming out of COVID. And there’s obviously some evidence that there is a bit of consumption downgrade of daily products. The third point we can share with you is that social stability is still very evident, although the confidence level across industry is facing some challenges, but we are seeing signs that they are recovering.
So in conclusion, look, every industry in China is going through a period of transition from old models of production to new models of sustainable production. We are all looking for new engines of growth. This will take one to two years to develop and become evident. What Mr. Wu can share with you all is that this new production process will also involve a lot of new tools, including artificial intelligence. We think that the adoption of new technology and tools will become very apparent over the next two years. So if you take insurance industry, for example, right? The last three years, everybody across the value chain in the insurance industry have been looking for a new way out. Looking for new models to develop sustainable growth. And what you’ve seen is that there’s a growing trend of using technology to meet customer needs.
It’s becoming very visible that traditional mass agent model, that commission driven sales process needs to change. We see the adoption of artificial intelligence; we see the adoption of customer demand as the key tools to drive higher quality growth looking ahead. So what we are going through in the insurance industry we think really applies to other industries in China. Everybody’s basically going from a pretty rough business model or operating model to a more higher quality, sustainable model. We have walked this path over the last three years and from all indications you can see that we are starting to get the results. So we are confident that if we can walk this path, a lot of industries and companies in China can also walk this path as well.
So we remain pretty confident on the outlook of the Chinese economy over the long term.
Operator: [Operator Instructions] Our next question come from Xue Zhang from CICC.
Xue Zhang : I have two questions. And the first one is related to the product supply strategy and your sales momentum. We know that the 3.5% pricing traditional life products now is not allowed to sell, and in this case, many insurers and workers have made changes in their product strategy. So could you share some more details on your product strategy for the second half of this year and by far in August? How is the sales momentum of your savings and protection products in your observation? And the second one is about your Open Platform. Could you share or more tell on how you view the growth prospects of the Open Platform strategy, what opportunities and challenges we may face, and also what are the agencies most favorite functions and services in our platform? And what updates will you make in the future? Thanks.
Yinan Hu : Look, just to answer your question. Obviously, post and pricing change in July, the August sales figures across the industry is not looking too great. It will take time for the industry to adjust. But our view is that going from 3.5% to now, 3% guaranteed products. In this market environment, these products are still attractive. So this change from our point of view, it will not bring catastrophic change to the industry in terms of demand. The reality is that every year in China now you’re seeing 20 million people entering the age 60 and above bracket. And over the next few years the projections are every year on an accumulate databases there will be 300 million people entering the age 60 and above category. And this category of elderly population in China, they will still have demand for low risk savings products.
