Publisher : Almanac of China's Finance and Banking Editorial Board
Published Date : 4/2010
Frequency : Annually
Language : English
ISBN/ISSN : 9771007560002
Weight : 1.10kg
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After bidding farewell to the yea r of 2007 when world economic and financial situa—tions were complicated and constantly changing，China witnessed an unusual 2008．At the beginning of the year，an unexpected snow and frost disaster．raging from the South to the North，struck most parts of China．In May，a mega earthquake，measuring 8．0 on the Richter scale，shook Wenchuan county of Sichuan province，affecting 1 6 prov— inces，autonomous regions and municipalities，41 7 counties，and 4624 towns and villa— ges．In July，when the trauma of natural disasters still lingered on，the international fi— nancial tsunami broke out．The market shrank SO unexpectedly that a host of trade com— panies were unable to respond．In September，after Lehman B rothers went bankrupt， the international financial crisis escalated．In China，some trade companies went bust while some others were also skating on thin ice．However，despite the grim situations at home and abroad，China still witnessed a high economic growth rate of 9 percent，an overall stable price，a big success of Beijing Olympic Games and a successful launch of the spacecraft．2008 was an unprecedented and unusual year for China，as it was in this year that the Chinese people 7S perseverance and bravery touched and overwhelmed the world． For the People 7S Bank of China(PBC)，the central bank，the macroeconomic ad— justment in 2008 was as tough as making decisions in a difficult chess game．In ea rly 2008，given that the high economic g rowth rate of 1 3 percent in 2007 still maintained mOmentum and the international commodity prices remained high persistently with new records popping out one after another，the PBC tightened the monetary policy in a bid to prevent the relatively fast g rowing economy from slipping into overheating and the struc— tu ral price increase frOm evolving into inflation．In the fi rst half of 2008．the PBC raised the reserve requirement ratio five times by a total of 3 percentage points and offered guidance to financial institutions on how to execute credit plans appropriately．However， in the face of snow and frost disasters，financial institutions sped up the credit supply in the fi rst quarter under the PBC 7S guidance．In the afterma廿1 of Wenchuan Earthquake． the PBC immediately lifted the credit plan constraint on financial corporations in the quake—affected areas and offered guidance to banks on how to strengthen the internal credit resource allocation with a focus on increasing credit supply to the quake--hit re-- gions．The PBC and China Banking Regulatory Commission(CBRC)jointly promulgated the Emergency Notice on Strengthening Financial Services in the Earthquake—hit Areas， which required all banking institutions to provide credit support for the fight against the earthquake，the disaster relief，and the reconstruction． In mid一2008，as the international financial crisis began spreading from the financial sector to the real economy，the global economic g rowth slowed down considerably， commodity prices fell sha rply and the risk of deflation increased．The change in external economic environment started to exert an unfavorable impact on China 7S financiaI mar- kets and the real economy．Given that，the PBC adjusted the tight monetary policy，set the macro financial adjustment objective of maintaining steady and relatively fast eco— nomic g rowth while containing price hikes．downsized open market operations，ln— creased the expected growth of new loans in 2008．and instructed the financiaI institu— tions to expand credit agg regate with preference for agriculture，rural areas and farmers， small—and medium—sized enterprises and post—quake reconstructions，and optimize credit structure as well． Starting from September，the international financial crisis aggravated tremendously， spreading from the financial sector to the real economy and from developed economies to emerging ma rket economies．The world economy went into recession．The sha rply shrinking externaI demand led to a rapid drop in China 7S domestic output and the pnce level．The GDP growth rate plummeted to 6．8 percent in the fourth quarter from 1 0．6 percent．1 0．1 percent and 9 percent in the first three qua rters．The CPI soared 8．7 per- cent in February，a record high since 1 996，but began to decline g radually afterwards． The purchasing price index of raw materials，fuel and power and the producer，s price in— dex for manufactured products fe|I tO一1．3 percent and一1．1 percent respectively from 1 5．4 percent and 1 0．1 percent in July and August．The economic downward risk rose remarkably．The Communist Pa rty of China(CPC)Central Committee and the State Council implemented timely a package of measu res to expand domestic demand and pro— mote economic growth．Echoing the overall arrangement of the State Council，the PBC adopted a moderately loose moneta ry policy．It adjusted open market operations¨1 a timely and flexible manner．10wered the reserve requirement ratio four times with diffe— rent requi rements for different types of depository institutions，reduced the benchmark RMB lending rate five times and cut the benchmark RMB deposit rate fou r times．The floor for the interest rate of commercial individuaI housing loans was lowered to 0．7 times the benchmark rate．The hard constraint on the credit plan of financial institutions was cancelled．Besides，the PBC set up a working g roup on managing the international financiaI crisis．conducted real—time monitoring of financiaI market developments at home and abroad，and promptly responded to contingent financial risks，for instance，reducing the liquidity pressure of some China—based foreign—funded financial institutions，providing support to a few insurance companies confronted with temporary solvency problems， and mitigating the tempora ry liquidity risk of some Chinese—funded institutions due to the involvement in derivatives business．In addition．the PBC also cooperated closely with overseas financial regulatory authorities．It established the cross—border standby liquidity facilities between the Mainland and Hong Kong，signed the bilateral local currency swap agreement with Bank of Korea，and pa rticipated in the rule making of international finan— ciaI crisis relief SO as to combat the crisis iointly with the internationaI community． The development of Olympics payment environment was an arduous task for the PBC in 2008．In March 2007，the PBC and other relevant ministries and depa rtments． such as the Ministry of Finance，the Ministry of Housing and U rban—rural Development， the Ministry of Industry and lnformation Technology．and Beijing Organizing Committee for the Olympic Games，jointly set up a steering group for the development of Olympics payment envi ronment and formulated the Guiding Opinions on Strengthening the Buil— ding of Olympics Payment Environment．Thanks to the joint efforts by the PBC，relevant ministries and six CO—hosting cities，the payment environment in cities where Olympic events took place ameliorated in an all—round way．The overall account service was up— graded，the bankca rd acceptance environment was improved，the foreign exchange service became more convenient，the payment system maintenance and management was enhanced，and the soft environment of financial services improved remarkably． During Beijing Olympic Games and Paralympics．institutions and individuals from home and broad all enjoyed convenient，high—quality，and safe and highly efficient payment services with no accidents，complaints or bad news reported．Besides，the deve— Iopment of China 7S payment infrastructu re and envi ronment was also enhanced． In 2008，under the guidance of the PBC 7S moneta ry and credit policies，banking fi— nanciaI institutions further enhanced the supportive role of finance in economic develop— ment．In particular，they provided strong financial support for the reconstruction of earth— quake—stricken regions．The outlets of banking institutions in quake—hit areas all gave top priority to ensuring the availability of financial services and got fully involved in the fight against the ea rthquake and disaster relief tasks．As a provider of financial services du ring the Olympic games，China 7S banking sector，in line with the overall arrangement of the PBC，completed its mission successfully，demonstrating a good international image．Af— ter 30 years of reforms and experiences，combined with lessons frOm 2008，the overall strength of China 7S banking sector continued to grow．Remarkable improvements were achieved in asset size，asset quality，profitability，capital adequacy ratio and liquidity ratio．According to the latest ranking of world top 1 000 commercial banks released by The Banker in July 2009．there were 52 Chinese commerciaI banks on the list．seven more than 2007．In recent yea rs，the number and ranking of Chinese banks among the top 1 000 world banks has been rising yea r by year． In 2008．the Chinese government decisively launched the shareholding refOrm Of China Development Bank(CDB)and Ag ricultural Bank of China(ABC)despite the inter— national financial crisis，injecting 20 billion and 1 9 billion US dollars respectively into these two banks．On December 1 6，China Development Bank Corporation was established， signifying CDB 7S successful transition from a policy bank to a commercial bank．The ABC 7S shareholding reform had entered a substantial phase since the State Council pas— sed the refOrm plan in October．Up till now．the shareholding refOrm of large state— owned banks has almost been completed successfully． 2008 witnessed a deep adjustment of China 7S stock market．Taking on a one—sided downward trend most of the time，the Shanghai Composite Index slumped more than 65 percent．frOm 5262 points at the beginning of the year to 1 821 points at the year—end． The stock market saw an annual turnover of 26．7 trillion yuan，down 42 percent year on yea r，and an annual financing volume(including I PO and refinancing)of 353．5 billion yuan，a year—on—year decrease of 55．2 percent．I n addition to the big slump in the stock market．a large number of non—tradable shares became tradable．To regulate the selling of unlocked sha res and buffer the impact on market，China Secu rities Regulatory Com— mission(CSRC)issued the Guiding Opinions on the Listed Companies’Transfer of Orig— inal Shares Released from Trading Restrictions SO as to standardize the transfer proce— dures．Central Huijin Investment increased its shares of Industrial and Commercial Bank of China(ICBC)，Bank of China(BOC)and China Construction Bank(CCB)on the secondary market and the big shareholders of other listed companies also committed to increase shares one after another．Besides，given that the stock market index continued to d rop and the trading volume kept on shrinking，the rate of stamp tax on securities trading was cut from 3 percent to 1 percent，effective on April 24：sta ring from Septem— ber 1 9．the stamp tax was levied only on stock sales．The above—mentioned policies and measures played a positive role in cushioning the i rrational market slump and rebuilding investors’confidence． In April 2008．the total insurance assets in China hit 3 trillion yuan for the fi rst time． By the end of 2008．it had reached 3341．844 billion yuan．China 7S insu rance sector accu— mulated its first trillion assets over 24 yea rs from 1 980 when domestic insurance busi— ness was resumed to early 2004；the second trillion assets were accumulated over three years from ea rly 2004 to JanuaH 2007；however，the accumulation of the thi rd trillion only took 1 6 months．The growth of insurance assets well reflected the speedy develop— ment of China’S insurance industry．New breakth roughs were made in agricultural insu r— ance．Fiscally supported by the central government，the pilot projects of policy agricultur— al insurance were implemented in 1 6 provinces and regions and the Xinjiang Production and Construction Corps．The function of insurance was enhanced continuously．In the face of an unexpected natu ral disaster in 2008，the insurance sector took a series of emergent case—specific measures for claim settlement and paid to the disaster—hit areas a total of 1 0．6 billion yuan on claims．The insu rance sector endeavored to solve the prob— tems of disaster victims and actively cooperated with local governments in various undeF takings，playing a positive role in restoring the stability of disaster—hit regions． When reminiscing about 2008，one may find it has recorded the awe—inspiring spi rit demonstrated by people from the financial sector and disaster—hit regions who fought shoulder by shoulder against the snow and frost disaster and the devastating earth— quake，it has recorded the wit and wisdom of financial workers who responded to big economic and financial ups and downs under the leadership of CPC Central Committee and the State Council，and it has also recorded the enormous efforts of financial workers to support the successful host of Beijing Olympic Games and the launching of Shenzhou Seven manned spacecraft．At the tu rn of the yea r when 2008 is going to be history，one may follow the Almanac of china?s Finance and Banking and review the unusual path of China 7S economic and financial development under the impact of the US financial tsuna— mi ForewordEditorial Committee of Almanac of China’S Finance&Banking

Part One General Survey of China’s Finance and Banking
 Siaonlh Retrospect
    China’S Macroeconomic Performance(3)
    Monetary Policy(8)
    Financial Stability(16)
    Financial Sector Ref01T11(19)
Market Performance
    Interbank Market  (20)
    Securities Market  (26)
    Insurance Market  f 28)
    Gold Market  f 35)
Financial Infrastructure
    State Treasury Management  (38)
    Regulation of Credit Information Service Industry and Development of Credit
    Information System(40)
    Anti-money Laundering(43)
Financial Management and Regulation
    The People’S Bank of China(45)
    State Administration of Foreign Exchange(50)
    China Banking Regulatory Commission(53)
    China Securities Regulatory Commission(65)
    China Insurance Regulatory Commission(69)
Business OvervieW of Fiancial Institutions
    China Development Bank Corporation(71)
    The Export—Import Bank of China(74)
    The Agricultural Development Bank of China(78)
    The Industrial and Commercial Bank of China Ltd(83)
    The Agncultural Bank of China(90)
    Bank of China Ltd(96)
    China Construction Bank Corporation  (107)
    Bank of Communications Corporation Ltdf 112)
    China CITIC Bank Corporation Ltd  (116)
    China Everbright Bank Corporation Ltd(120)
    Han Xia Bank Corporation Ltd(125)
    China Minsheng Banking Corporation  (126)
    China Merchants Bank Corporation Ltd(129)
Part Two  Economic．Financial and Business Statistics
Money and Banking
  Table 1．Monetary Aggregates in 2001～2008(I)(II)(139)
  Table 2．Total Assets of the Banking Institutions(140)
  Table 3．Total Liabilities of the Banking Institutions  (140)
  Table 4．Sources and Uses of Credit Funds of Financial Institutions  (1 4 1)
  Table 5．Outstanding Balance of Urban and Rural Savings Deposits  (1 42)
  Table 6．Savings Deposits Per Capita  (143)
  Table 7．Outstanding Balance of Savings Deposits in Foreign Currencies of the
    Whole Country．bv Ateas(144)
    Table 8．Depository Corporations Survey in 2008f 145)
    Table 9．Balance Sheet of the Monetary Authority in 2008f 146)
    Table 10．Balance Sheet of Other Depositary Corporations in 2008f 147)
    Table 11．Balance Sheet of Policy Banks in 2008  (148)
    Table 1 2．Balance Sheet of State．owned Commercial Banks in 2008  f 1 49)
    Table 13．Balance Sheet of Joint Stock Commercial Banks in 2008  (150)
    Table 14．Balance Sheet of Urban Commercial Banks in 2008  f 151)
    Table 15．Balance Sheet of Rural Commercial Banks in 2008(152)
    Table 16．Balance Sheet of Foreign．funded Banks in 2008(153)
    Table 17．Balance Sheet of Urban Credit Cooperatives in 2008(154)
    Table 18．Balance Sheet of Rural Credit Cooperatives in 2008  (155)
    Table 19．Balance Sheet of Rural Cooperative Banks in 2008(156)
    Table 20．Balance Sheet of Postal Savings Bank of China in 2008(157)
    Table 21．Balance Sheet of Finance Companies in 2008f 158)
BoP、Reserves．External Debts、and Exchange Rates
    Table 22．Survey of Balance of Paymentsf 159)
    Table 23．Balance of Payments in 2008  f 160)
    Table 24．Comprehensive Indicators of the External Sector(162)
    Table 25．Gold and Foreign Exchange Reserves(163)
    Table 26．China’S External Debt  f 163)
    Table 27．Brief Table of Types of Debtor／Debt of China’S External Debt，
    End-2008f 164)
    Table 28．Monthly Exchange Rates in 2008(166)
Fillancial Market
    Table 29．Money Market Statistics  (166)
    Table 30．General Statistics on Securities Markets  f 167)
    Table 31．Issuance of Domestic Securities by Category  (168)
    Table 32．Domestic Issuance of Government Debts in 2008(169)
    Table 33．Trading Statistics on Futures Market throughout the Whole Country  (1 70)
Interest Rates
    Table 34．Interest Rate Adiustments of Financial Institutions’Deposit with the
    Central Bankf 171)
    Table 35．Interest Rate Adiustments of the Central Bank’S Loan to Financial
    Institutions(171)
    Table 36．Interest Rate Adiustments of Deposits of Financial Institutions  (1 72)
    Table 37．Interest Rate Adjustments of Loans by Financial Institutions(1 73)
    Table 38．Interest Rates on Small．value Deposits in Foreign Currencies(173)
Flow of Funds Accounts
    Table 39．Flow of Funds Accounts(for Financial Transactions，2006)(1 74)
    Table 40．Flow of Funds Accounts(for Physical Transactions，2006)  (176)
    Table 41．Flow of Funds Accounts(for Financial Transactions，2007)(178)
    Table 42．Flow of Funds Accounts(for Physical Transactions，2007)  (1 80)
Assets and Liabilities of Ban}ks
    Table 43．Balance Sheet of China Development Bank Corporation(1 84)
    Table 44．Balance Sheet of the Export．Import Bank of China(185)
    Table 45．Balance Sheet of the Export．Import Bank of China for On-lending
    Business(185)
    Table 46．Balance Sheet of the Agricultural Development Bank of China(1 86)
    Table 47．Balanee Sheet of the Agricultural Bank of China(186)
    Table 48．Consolidated Balance Sheet of the Industfial and Commercial Bank of
    China Ltd••：(187)
    Table 49．Balance Sheet of Bank of China Ltd(188)
    Table 50．Balance Sheet of China Construction Bank Corporation(1 89)
    Table 5 1．Consolidated Balance Sheet of Bank of Communications Co．Ltd(1 90)
    Table 52．Consolidated Balance Sheet of China CITIC Bank Corporation Ltd(1 9 1)
    Table 53．Balance Sheet of China Everbright Bank Co．Ltd(192)
    Table 54．Balance Sheet of Hua Xia Bank Co．Ltd(193)
    Table 55．Balance Sheet of China Minsheng Banking Corporation(1 94)
    Table 56．Consolidated Balance Sheet of China Merchants Bank Co．Ltd  (1 95)
P】rD俄and Loss o
    ．  ．f BanksTable 57 Consolidated Profit and Loss Statement of China Development
    Bank Corporation(196)
    Table 58．Profit and Loss Statement of the Export．Import Bank of China  (1 96)
    Table 59．Profit and Loss Statement of the Agricultural Development Bank of
    China(197)
    Table 60．Consolidated Profit and Loss Statement of the Industrial and Commercial
    Bank of China Ltd(198)
    Table 61．Profit and Loss Statement of the Agricultural Bank of China(199)
    Table 62．Profit and Loss Statement of Bank of China Ltd(200)
    Table 63．Profit and Loss Statement of China Construction Bank Corporation(20 1)
    Table 64．Consolidated Profit and Loss Statement of Bank of Communications
    Co．Ltd(201)
    Table 65．Consolidated Profit and Loss Statement of China CITIC Bank
    Corporation Ltd(202)
    Table 66．Profit and Loss Statement of China Everbright Bank Co．Ltd(203)
    Table 67．Profit and Loss Statement of Hua Xia Bank Co．Ltd  (204)
    Table 68．Profit and Loss Statement of China Minsheng Banking Corporation(205)
    Table 69．Consolidated Profit and Loss Statement of China Merchants
    Bank Co．Ltd(206)
Appendix
    Table 70．Organizations of Foreign—funded Banks in China(207)
  Table 7 1．The Number and Assets of Foreign—funded Banks in China(207)
National Economy
  Table 72．Structural Indicators on National Economy and Social Development(208)
  Table 73．Gross Domestic Product(212)
  Table 74．Indices of Gross Domestic Product(213)
  Table 75．Gross Domestic Product by Expenditure Approach(214)
  Table 76．Structure of Gross Domestic Product by Expenditure Approach(2 1 5)
  Table 77．Total Government Revenue and Expenditure and Their Growth(2 1 7)
  Table 78．General Price Indices(Preceding Year=100)  (218)
  Table 79．General Price Indices(Fixed Base Relative)(219)
  Table 80．Total Retail Sales of Consumer Goods(220)
  Table 81．Total Volume of Exports and Imports(222)
  Table 82．Amount of Foreign Investment，by Types(223)
  Table 83．Foreign Economic Corporation(224)
Part Three  Selected Laws and Regulations    ’
  Circular Economy Promotion Law of the People’S Republic of China(227)
  The Regulation on the Supervision and Administration of Securities Companies(237)
  Regulations on Foreign Exchange System of the People’S Republic of China(253)
  The Administrative Rules on Debt Financing Instruments for Non-financial
  Enterprises on the Interbank Bond Market  (261)
Part Four Appendix
  Table 1．Foreign—funded Banks＆Sino-foreign Joint Venture Banks in China  (265)
  Table 2．Wholly Foreign—funded Finance Companies in China(269)