Financial intermediation 2019

By the end of 2019, money supply in a broad sense (M2) was 198.6 trillion yuan($28.79 trillion), reflecting an increase of 8.7 percent from the end of the 2018. Money supply in a narrow sense (M1) was 57.6 trillion yuan, up by 4.4 percent. Cash in circulation (M0) was 7.7 trillion yuan, up by 5.4 percent.

In 2019, the aggregate financing to the real economy (AFRE) (flow) reached 25.6 trillion yuan, or 3.1 trillion yuan more than that in 2018 on a comparable basis. The AFRE (stock) totaled 251.3 trillion yuan at the end of 2019, up by 10.7 percent from the end of 2018 on a comparable basis. Specifically, loans granted to the real economy in Renminbi stood at 151.6 trillion yuan, up by 12.5 percent. Savings deposits in Renminbi and foreign currencies in all branches of financial institutions totaled 198.2 trillion yuan at the end of 2019, an increase of 15.7 trillion yuan compared with the beginning of the year. Of this total, savings deposits in Renminbi stood at 192.9 trillion yuan, an increase of 15.4 trillion yuan. Loans in Renminbi and foreign currencies in all branches of financial institutions reached 158.6 trillion yuan, an increase of 16.8 trillion yuan. Of this total, loans in Renminbi were 153.1 trillion yuan, an increase of 16.8 trillion yuan.

Loans in Renminbi from rural financial institutions (rural credit cooperatives, rural cooperation banks and rural commercial banks) totaled 19.07 trillion yuan by the end of 2019, an increase of 2.09 trillion yuan compared with the beginning of the year. Loans in Renminbi for consumption use from all financial institutions totaled 43.97 trillion yuan, an increase of 6.17 trillion yuan. Of the total, short-term personal loans totaled 9.92 trillion yuan, an increase of 1.45 trillion yuan, and medium and long-term personal loans reached 34.04 trillion yuan, an increase of 4.71 trillion yuan.

Funds raised through A-shares issued on Shanghai and Shenzhen Stock Exchanges amounted to 1.35 trillion yuan in 2019, an increase of 207.6 billion yuan from the previous year. 201 A-shares were newly issued, raising 249.0 billion yuan worth of capital altogether, up by 111.2 billion yuan from 2018. Of the total, 70 shares were from the science and technology innovation board, raising 82.4 billion yuan; refinancing of A-shares (including public newly issued, targeted placement, right issued, preferred stock and exchanged convertible bonds) raised 1.10 trillion yuan, an increase of 96.4 billion yuan from the previous year. Various types of market entities financed 7.20 trillion yuan through issuing bonds (including corporate bonds, convertible bonds, exchangeable bonds, financial bonds issued by policy banks, local government bonds and asset-backed securities) on Shanghai and Shenzhen Stock Exchanges, up by 1.51 trillion yuan from the previous year. There were 8,953 companies listed on National Equities Exchange and Quotations and funds raised by listed companies reached 26.5 billion yuan in 2019.

In 2019, 10.71 trillion yuan corporate debenture bonds were issued, an increase of 2.92 trillion yuan over 2018.

The premium of primary insurance received by insurance companies totaled 4.26 trillion yuan in 2019, up by 12.2 percent from 2018. Of this total, life insurance premiums of primary insurance amounted to 2.28 trillion yuan, health and casualty insurance premiums of primary insurance 824.1 billion yuan, and property insurance premiums of primary insurance 1.16 trillion yuan. Insurance companies paid an indemnity worth 1.29 trillion yuan, of which life insurance indemnity was 374.3 billion yuan, health and casualty insurance indemnity 264.9 billion yuan, and property insurance indemnity 650.2 billion yuan.

At the end of 2019, China’s foreign exchange reserves reached $3.11 trillion, an increase of $35.2 billion compared with the end of 2018. The average exchange rate of the year was 6.8985 RMB to 1 USD dollar, a depreciation of 4.1 percent from 2018.