China's Financial Industry Operates Smoothly

Home>>Business

Last updated at: (Beijing Time) Friday, January 18, 2002

China's Financial Industry Operates Smoothly

Statistics released Thursday by the People's Bank of China (PBOC) show that China's financial industry has operated in a healthy and stable way and strongly supported the country's economic growth and restructuring.

DISCUSSION

CHINESE

SEND TO FRIEND

Broad money

According to statistics, at the end of last year there was 15.8 trillion yuan in outstanding broad money (M2), up 14.4 percent from the previous year; six trillion yuan in narrow money (M1), up 12.7 percent; and money in circulation (M0) reached 1.6 trillion yuan, up 7.1 percent.

Cash input

In 2001 the cash input stood at 103.6 billion yuan, 16.1 billion yuan less than the previous year.

A PBOC spokesman said that the money supply growth was six percentage points higher than the sum of the GDP growth and price hikes, indicating that the money supply is appropriate.

At the end of last year, outstanding deposits stood at 14.4 trillion yuan, up 16 percent from the previous year. Of these, corporate deposits made up 5.2 trillion yuan, up 16.9 percent; savings by residents were 7.4 trillion yuan, up 14.7 percent.

Loans

At the same time, the outstanding loans were 11.2 trillion yuan, up 11.6 percent from the previous year. Loans to agriculture, individual consumption and note discount saw big increases, which helped to rationalize loan structure and improve loan quality.

Foreign exchange

The country's foreign exchange reserves were 212.2 billion U.S. dollars, up 28.1 percent from the previous year. The exchange rate of the local currency Renminbi was one U.S. dollar for 8.2766 yuan, appreciating by 15 basic points.

The spokesman said that this year the central bank will continue to implement prudent monetary policies and regulate the money supply with various monetary policy tools.

China to Speed up Financial System Reform

With China's entry into the World Trade Organization (WTO), China's financial industry faces new challenges brought by financial globalization.

At this crucial moment, China will speed up the reform of the banking system and the capital market. Dai Xianglong, governor of the People's Bank of China, said last December.

The emphasis of China's financial reform will be laid on deepening reforms of the four largest state-owned commercial banks.

Meanwhile, China will continue to standardize and develop joint- stock commercial banks, encouraging them to merge and restructure according to the market principle to form small and medium-sized investment firms.In addition, more foreign banks will be allowed to operate in China.

During the "Tenth Five-Year Plan" period, China will continue to develop the stock market, to manage the stock market in accordance with the guidelines of" management by law, regulation, self-discipline and standardization" and the principle of market-oriented. >>details

Questions?Comments? Click here

China to Further Promote Financial Reform

China's Financial Sector Operates Smoothly