Tag Archives: Almanac Of China’S Finance And Banking



Yearbook title:中国金融年鉴(英文版)2018
Published Date :02/2019
Language : English
Availability : Printed Version;Electronic Version(PDF Version)


On October 18,2017,the 19th CPC National Congress,an important meeting leading China to the great rejuvenation,was successfully held. In the report delivered at the 19th National Congress of the CPC,President Xi Jinping made the major political judgment that socialism with Chinese characteristics has entered a new era,and he also pointed out that the principal contradiction facing the Chinese society in the new era has evolved into the contradiction between unbalanced and inadequate development and the peopled ever-growing needs for a better life. As China’s economy has shifted from a stage of high-speed growth to a stage of high-quality  development,the new development philosophy must be implemented,so as to promote the transformation in quality,efficiency and driving force in the economic development,and to continuously enhance the innovation and competitiveness of China’s economy. The financial sector will firmly implement the spirit of the 19th CPC National Congress,while implementing the overall arrangements of the National Financial Work Conference and the Central Economic Work Conference. Under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era,by acting in response to the evolution of the major contradictions in Chinese society and changes in the stage of economic development,the financial sector will implement the new development philosophy in a decisive way to promote the financial reform and opening up with great efforts,and to provide strong financial support for the high-quality development of the economy! Firmly implementing a new development philosophy,with serving the supply-side structural reform as the main task,and providing support for the high-quality development of the real economy. Byworking around the five tasks of reducing excess capacity,destocking,deleveraging,lowering costs,and shoring up weak spots,the PBC appropriately dealt with corporate debts of the overcapacity industries through the establishment of the creditors’ committee and market-based debt-for-equity swaps. Meanwhile,guidance was offered to banking financial institutions to ensure that rational financing needs of the steel and iron as well as coal industries with excess capacity can be met when they pursued transformation,based on the principle of differentiated treatment by supporting some while suppressing others. This move was aimed at supporting good enterprises,stabilizing problem enterprises,and exiting “zombie enterprises”. The Guiding Opinions on Providing Financial Support for Building China into a Manufacturing Power was issued to increase financial support for the construction of a manufacturing power. Financial support for major national strategies was also intensified,including the coordinated development of Beijing,Tianjin and Hebei province,development of Xiong ‘ an New Area,growing into a maritime power,military-civilian integration ? and development of the Belt and Road Initiative. At the end of 2017,loans to the infrastructure sector increased by 15.7%,while loans to the strategic emerging industries of 21 major banks increased by 10.1%,and the growth rate of loans to the manufacturing industry turned positive from negative. Qualified manufacturers were encouraged to finance through China^s multi-tiered capital markets. In 2017,there were331 IPOs made by manufacturing companies for a combined 163.54 billion yuan and follow-on offerings for 299.95 billion yuan,and a total of 5 804 manufacturing companies had been admitted onto the NEEQ,accounting for 50% of the NEEQ market,and 1 223of which secured 57.03 billion yuan in financing through stock issue Financial services for science and technology innovation,culture industry,and new types of consumption were deepened to actively foster new growth drivers. At the end of 2017,outstanding medium and long-term loans to scientific research and technological services,culture and sports,and the entertainment industry stood at 364.2 billion yuan.Nine mass innovation and entrepreneurship debt financing instruments were registered with a total value of 17 billion yuan. Giving priority to focusing on key issues,addressing weak links,and strengthenii^weakness for the purpose of providing support for prevention and mitigation of major risks,targeted poverty alleviation,and prevention and control of pollutio Reinforcing the financial risk firewall to firmly safeguard the bottom line of preventing systemic financial risks. In 2017,the financial sector actively and steadily promoted deleveraging to prevent and mitigate the risk of high leverage in a practical way. The PBC issued the Guiding Opinions on Regulating the Asset Management Activities by Financial Institutions to set down single standards and regulations for key issues arising from asset management,including multiple packaging,unclear leverage,regulatory arbitrage,and implicit guarantee. Efforts were made to formulate measures for supervising and regulating financial holding companies,and the Opinions on the Regulation of Investment by Non-financial Enterprises in Financial Institutions was rolled out to prevent the risk cross-contagion between financial and real sectors. The PBC promoted the specific program to manage Internet finance risks,and facilitated the establishment of a long?term mechanism for Internet finance regulation and risk prevention. The PBC strictly rectified the irregularities in the financial market by intensifying financial supervision and regulation and maintaining high pressure on law enforcement. The PBC firmly focused on financial services for targeted poverty alleviation,improved the development level of inclusive finance,and provided support for the implementation of the strategy of rural revitalization. The PBC released the Opinions on Providing Financial Support to the Battle against Poverty in Deeply Impoverished Regions,launched the pilot reform of interest rate pricing mechanism for poverty alleviation central bank lending,and issued innovative debt financing instruments such as poverty alleviation social impact bonds and poverty alleviation bills. The pilot reform of inclusive finance was steadily advanced,the financial institution system and policy system serving the grass roots were greatly improved,and the efficiency of service of the agro-related social credit system and payment system was significantly enhanced The reform of green finance was steadily pushed forward to produce sustainable economic,social and environmental benefits. The infrastructure construction of green finance was continuously strengthened,including policy framework,standard system,statistical system,information disclosure requirements,green evaluation,and evaluation certification. The pilot reform of green finance witnessed positive progress in the continuous product and service innovation. The market size of green financial expanded rapidly,providing strong financial support for the green transformation of the real economy. Deepening the reform of the financial system,improving and making iiuiovation in the macro-control mechanism,enhancing the financial supervision system,and promoting the sound development of the financial market. A two-pillar regulatory framework of monetary policy and macro-prudential policy was preliminarily established. On the one hand,the PBC promoted the shift of monetary policy framework from mainly relying on quantitative instruments to mainly relying on price instruments in a proactive and prudent manner. To achieve it,the PBC developed numerous monetary policy tools,and kept liquidity basically stable. On the other hand,the PBC made great efforts for developing and improving its macro-prudential policy framework. In 2016,the dynamic adjustment mechanism of the differentiated reserve requirement ratios was upgraded into the MPA system. Afterwards,the off-balance sheet wealth management and interbank certificates of deposit were included in the MPA indicator assessment,and the cross-border capital flows and the real estate market were also included in the macro-prudential regulation. The combination of monetary and macro-prudential policies will help promote financial stability while maintaining the value of the Renminbi,create a neutral and adequate monetary and financial environment for the supply-side structural reform,and prevent systemic financial risks in an even better fashion The financial supervision system was improved to enhance the efficiency of supervision. In November 2017,the Financial Stability and Development Committee under the State Council(hereinafter referred to as the “ FSDC ”)was formally established. The FSDC is a deliberative and coordinating organ under the State Council for the overall planning and coordination of the major issues regarding the financial stability and reform and development. Its establishment will help achieve full coverage of macro-prudential management and financial supervision on all types of financial institutions,business,activities,and their risks,will eliminate the neglected aspects of supervision and improve the effectiveness of supervision,and will be of great significance for accelerating the establishment of a powerful and efficient modern financial supervision framework,supervision rules and regulations as well as supervision standards. The institution building of the financial market was strengthened,and a robust multi-tiered financial market system was built. The market-making mechanism of the interbank bond market was improved by launching the bidding for financial bond swap on a trial basis as a move to diversify means of issuance,which will help increase the overall market liquidity and market rate stability. The Measures for the Administration of Securities Offering and Underwriting was revised,the mechanism of Public Offering Review Committee was reformed,and the delisting rules were further recalibrated.Market tiering and reform of trading rules for the NEEQ made major breakthroughs,with the introduction of call auction trading and differentiated matchmaking,disclosure and supervisory arrangements,all aimed at bolstering price discovery. With the release of the Trial Measures for the Supervision and Administration of Regional Equity Trading Platforms,consolidated business rules and regulations were set out,formally incorporating regional equity trading platforms into China’s multi-tiered capital markets. Focusing on providing support for the development of the Belt and Road Initiative to promote the formation of a new layout of financial opening up. A multi-tier investment and financing framework was built to provide financial support for the development of the Belt and Road Initiative. In May 2017,the first Belt and Road Forum for International Cooperation was held in Beijing,which produced a series of important outcomes. The overall plan for providing financial support for the development of the Belt and Road Initiative was formulated and released. The equity investment funds such as the Silk Road Fund was successfully put into operation,the advantages of the development finance were given full play in the development of the Belt and Road Initiative,and the network layout of financial institutions and services in the Belt and Road countries was continuously promoted. The circulation of funds in the capital market was further deepened. The governments and higher-credit enterprises and financial institutions of the Belt and Road countries were supported to issue the Renminbi-denominated bonds in China. The financial market opening-up and the Renminbi internationalization were promoted in a steady and orderly manner. The PBC continued to explore two-way financial market opening-up through infrastructure connectivity,and it launched the Bond Connect jointly with the Hong Kong Monetary Authority(HKMA). As of the end of2017,a total of 249 overseas institutions accessed China’s interbank bond market through the Bond Connect with bond holdings exceeding 80 billion yuan. The panda bond issuers were diversified,expanding from overseas non-financial enterprises to foreign government institutions,international development agencies,and overseas financial institutions and non-financial enterprises. China’s A-shares were included in the MSCI Emerging Markets Index. The review mechanism for follow-on offerings by domestic companies on overseas markets was further optimized,and the pilot program of H-share full circulation was launched. As of the end of 2017,a total of 806 overseas institutions had gained access to China’s interbank bond market. The pilot of RQFII was expanded to 18 countries and regions with a total investment quota of 1.74 trillion yuan. The domestic Renminbidenominated financial assets held by overseas entities in the form of equities,bonds,loans,and deposits stood at 4.29 trillion yuan,soaring 41.3% year on year In the past year,under the leadership of the Party Central Committee and the State Council,China’s financial industry achieved a steady development,providing strong support for the transformation and high-quality development of its economy. By adhering to the historical responsibility of preservation of history and inheritance,The Almanac of China’s Finance and Banking faithfully recorded the course of reform and development of Chinas financial industry in the past year,with a view to benefiting readers in learning from history,carrying on the past and opening a way for future,and opening a new chapter in the reform and development of Chinafinancial industry in the new era!

Almanac Of China’S Finance And Banking 2017

Almanac Of China’S Finance And Banking 2017 PDF Download
Yearbook title:中国金融年鉴(英文版)2017
Yearbook English title:Almanac Of China’S Finance And Banking 2017
Publisher : China Financial Yearbook magazine
Published Date : 3/2018
Frequency : Annually
Language : English
ISBN/ISSN : 1007-5607
Availability : Printed Version;Electronic Version(PDF)

Almanac Of China'S Finance And Banking 2017
Almanac Of China’S Finance And Banking 2017

the year 2016 was not only the beginning year of the decisive stage for China to complete the task of building a modestly prosperous society,but also the crucial year for the promotion of the supply-side structural reform.Under the leadership of the Central Committee of the Communist Party of China(CPC) and the State Council,the financial system strengthened and improved macroeconomic management,comprehensively deepened financial reform and opening-up,and effectively prevented financial risks,which created a favorable monetary and financial environment for stabilizing growth and carrying out the supply-side structural reform. Strengthening and Improving Macroeconomic Management,with the Sound Monetary Policy Better Targeted and More Effective In 2016,the world economy maintained an overall trend of recovery.However,uncertainties in the international political and economic arenas heightened further,and populism,anti-globalization,trade protectionism and investment protectionism were on the rise;the Chinese economy stabilized amid a slowdown and turned for the better,but the structural mismatches were still prominent,and the economy was still facing inadequate endogenous growth drivers.The macroeconomic management became more difficult due to the complex and changeable domestic and international economic and financial situations,various superimposed contradictions,and converged potential risks. Under such circumstances,by firmly implementing the strategic policy decision made by the CPC Central Committee and the State Council of stabilizing growth,adjusting structure and preventing risks by relying on reform and innovation instead of using the method of “flooding the cash” to stimulate the economy,the PBC proactively adapted to the new normal in economic development,maintained a prudent and sound monetary policy focusing especially on the pace,strength,and mix of policy tools in light of the evolving situation,to maintain appropriate liquidity.The PBC comprehensively adopted a series of monetary policy instruments,including targeted reserve requirementratio cuts,Pledged Supplement Lending(PSL),and central-bank lending for small enterprises and for poverty alleviation,to optimize the credit structure for supporting the development of the real economy.To further improve the macro-prudential policy framework,the PBC upgraded the dynamic adjustment mechanism of the differentiated required reserve to a Macro-Prudential Assessment(MPA) system.Full coverage of macro-prudential regulation of cross-border financing was implemented across the country to manage more financial activities and financial conducts.The counter-cyclical adjustment was implemented to prevent systemic risks.Transformation of the monetary policy framework was promoted,and the leveraging role of interest rate and exchange rate prices was brought into full play. In general,the sound monetary policy has yielded expected regulation results,with moderate growth of money,credit,and all-system financing aggregates,stable interest rates,a basically stable Renminbi exchange rate against a basket of currencies and increased flexibility of the bilateral Renminbi and the U.S.dollar exchange rate. Providing Financial Services for the Development of the Real Economy to Fully Support the Supply-side Structural Reform and Key National Development Strategies The PBC,the CBRC,the CSRC,the CIRC and other ministries jointly issued the Several Opinions on Providing Financial Support to the Industry in its Effort to Stabilize Growth,Adjust Structure and Increase Efficiency in a bid to provide financial support for the industrial supply-side structural reform.The creditors’ committee system was established and promoted to explore a variety of flexible and effective debt disposal methods.The PBC made concerted efforts to provide financial services to reduce capacity in the steel and coal industries and to bring about a smooth corporate debt financing transition in these industries.By closely focusing on the orientation of “housing is for living in not for speculation”,the PBC introduced the differentiated housing credit policy to promote the destocking of the real estate industry.The PBC carried out debt-equity swaps in a market-oriented manner and in compliance with the law to effectively promote deleveraging.It properly expanded corporate bond financing,and firmly promoted reduction of costs by lowering financial service charges.The PBC further carry forward the financial aid for targeted poverty alleviation and financial inclusion development,promoted financial support for the weak points in the economy and for economic development and social stability in the poverty-stricken and economically-backward regions,so as to shore up weak spots with great efforts. To meet the financing demand of the major strategic decisions of the state,the PBC provided more targeted and high value-added comprehensive financial services for the implementation of the “Belt and Road” Initiative,the growth of the Yangtze River economic belt,and the collaborative development of the Beijing-Tianjin-Hebei region and so on.The PBC mainly focused on supporting the key projects which serve as a driving force for the macro-economy and regional economy,such as renovation of shantytowns,major water conservancy projects,and railway and highway construction in the middle and western regions and so on.The PBC actively supported the “Made in China 2025″strategy,the transformation and upgrading of traditional industries,and the development of emerging industries with strategic importance and other key areas.The development of financial inclusion was accelerated by setting up a pilot reform zone for financial inclusion in Lankao County of Henan Province,so as to actively explore an innovative,coordinated,green,open and shared development model for the financial inclusion.The PBC made great efforts to develop the green finance,and through innovative green financial products and institutional arrangements,it guided and encouraged more private capital to be invested into the green industries,so as to promote the economic transformation and upgrading. Deepening the Financial Reform and Opening-up to Stimulate the Development Vitality and Dynamism of the Financial Industry The financial reforms in key areas and critical links of the financial sector were deepened,and the financial system has been increasingly improved.The PBC continued to thoroughly promote the market-based reforms of the Renminbi interest rates and exchange rates,further improved the central bank interest-rate adjustment framework,fostered the benchmark interest-rate system for the financial market,and continuously improved the self-regulatory mechanism for market interest-rate pricing.The PBC clarified the Renminbi/U.S.dollar central parity formation mechanism,namely “the previous closing rate+the exchange-rate movements of a basket of currencies”.The mechanism struck a balance between market supply and demand,the stability of the Renminbi exchange rate against a basket of currencies,and market expectations.It was also more rule-based,transparent,and market-oriented.Deepening of the reforms of financial institutions continued,with the corporate governance mechanism and business management system becoming increasingly modern and international,private banks developed in a steady pace,and the organizational structure system of the financial industry was further improved.Reforms of regional finance and financial inclusion were further promoted,and a green finance policy framework was established initially.The top-down systemic design of the commercial paper market was introduced,a centralized national commercial paper trading platform was put into service,and the Shanghai Commercial Paper Exchange was established. New progress was made in the Renminbi internationalization and the two-way opening up of the financial markets,China’s influence in the arena of governance of international finance has been enhancing.Renminbi was officially included in the SDR basket,which not only represented an important milestone in the Renminbi internationalization,but also an important step for China’s integration into the global financial system.The two-way opening up of the financial markets developed steadily,and more qualified foreign institutional investors were allowed to access into the interbank bond market,and the investment quotas were removed.On the basis of improving the Shanghai-Hong Kong Stock Connect program,the Shenzhen-Hong Kong Stock Connect program was launched,facilitating connectivity between the stock markets in Shanghai,Shenzhen and Hong Kong.Under its G20 presidency,China successfully held the G20 Hangzhou Summit,the PBC guided discussions on major global macroeconomic policies,reached important summit results on topics such as macroeconomic policy coordination,improving the international financial architecture,promoting financial sector reforms,and developing financial inclusion and green finance,which combined China’s philosophy and perspectives with global macroeconomic and financial governance. Effectively Preventing Financial Risks to Firmly Safeguard the Bottom-line in Terms of Preventing Systemic Financial Risks The prevention of financial risks is an eternal theme of financial work,especially under the circumstances of the increased downward pressure on the international and domestic economy and the increased spillover of the international financial crisis,the cyclical,structural and institutional contradictions in the domestic economy are superimposed with a trend of easy and frequent occurrence of financial risks,and the financial system has paid more attention to the prevention of risks. As a leading agency,by making overall arrangements to coordinate the CBRC,the CSRC and the CIRC,the PBC focused on preventing and mitigating financial risks in key areas.It improved regulatory arrangements for cross-market and cross-sector financial services and various comprehensive businesses,worked on formulating normative standards for asset management businesses,and organized and conducted a special rectification campaign on Internet financing risks.A differentiated risk-based premium mechanism was introduced in deposit insurance,an assessment of deposit insurance risks was carried out and the rating results were applied,and relevant research was conducted to improve risk recognition and an early rectification mechanism for the deposit insurance system was implemented in a bid to strengthen positive incentives.Default risks in the bond market were mitigated and resolved in an active manner and the interests of bond investors were protected. The financial regulation authorities conducted strict and comprehensive regulation and supervision according to law.The CBRC strengthened regulation of credit risks in key areas such as local government financing platform,real estate and excess capacity,investigated and punished violations of relevant regulations and rules such as the “downpayment lending” and “fake mortgage loans”,and it also explored market-based and diversified disposal of non-performing loans of financial institutions.The CSRC steadily and orderly regulated the use of excessively leveraged funds in the stock market and continued to clean up illegal margin financing,and organized targeted enforcement activities against such market misconducts as IPO frauds,market manipulation,and front running schemes,promoting the capital markets to stabilize through self-recovery.The CIRC formally launched the regulatory mechanism of China Risk Oriented Solvency System(C-ROSS),which enhanced the early warning and management of risks in the insurance sector.The CIRC conducted special inspections on such businesses as universal insurance etc.to regulate the takeover acquisitions of listed companies with insurance funds and investment of insurance funds,and to guide the insurance industry to go back to its primary business of providing insurance services. In 2016,the financial system fully implemented the requirements and decisions of the 18th National Congress of the Communist Party of China(CPC) and the Third,Fourth and Fifth Plenary Sessions of the 18th Central Committee of the CPC as well as the Central Economic Work Conference,adhered to the guideline of seeking progress while maintaining stability in economic management,and insisted on promoting the supply-side structural reform as a key priority,so as to enhance the efficiency and level in providing financial services for the real economy,and to promote a sound cycle and healthy development of the economy and the financial sector.The Almanac of China’s Finance and Banking faithfully recorded the course of reform and development of China’s financial industry in the past year,hoping that it will be beneficial to readers in reviewing the past and knowing better the present,and foreseeing the future by reviewing the past,and to continue to fulfill the tasks of financial work under the new situation,so as to welcome the successful convening of the 19th CPC Congress with an excellent scorecard!