China s Financial Market Development and Economic Growth

Transcription

1 China s Financial Market Development and Economic Growth Dr. YANG Nong Deputy Secretary-General, NAFMII May 2013 Copenhagen 1

2 Table of Contents Contents Section I CHINA S FINANCIAL MARKET DEVELOPMENT Section II CHINA S ECONOMIC PROSPECTIVE Section III NAFMII AND CHINA S BOND MARKET 2

3 Section I CHINA S FINANCIAL MARKET DEVELOPMENT 3

4 China s Financial Market Development China s Economy Achieved Great Development Trillion RMB China s GDP growth China s GDP/World GDP China s Financial Market Data source: IMF Bonds Money Foreign Currency Gold Derivatives Others 4

5 China s Financial Market Development Growing Market Size The total asset of banking industry reached trillion RMB by the end of Trillion RMB Q1 The trading volume of the money market amounted to trillion RMB by the end of 2012 Trillion RMB The spot bond trading volume of the interbank market amounted to trillion RMB by the end of 2012 Trillion RMB Data source: Chinabond, Wind. NAFMII 5

6 China s Financial Market Development Continuous Product and Institutional Innovation Inter-bank Bond Market Stock Market Products 1997 National Debts Policy Bank Financial Bonds Boards 1990 Central Bank Notes Commercial Bank Financial Bonds Enterprise Bonds The Main Board Corporate Bonds Commercial Papers (CPs) The Growth Enterprise Market (GEM) Medium-term Notes (MTNs) Asset-backed Notes (ABNs) SME Collective Notes (SMECNs) The New Third Board International Development Institutions RMB bonds Now Now 6

7 China s Financial Market Development Better Market Infrastructures Laws and Regulations Market Infrastructures Infrastructures The Law of PRC on the People s Bank of China The Real Right Law The Contract Law The Bankruptcy Law The Securities Law Other laws and regulations Higher Degree of Openness Stock Market The number of QFIIs increased steadily Apr/13 Data source: China Securities Regulatory Commission, CSRC Bond Market More QFIIs are permitted to enter inter-bank bond market More international institutions are authorized to issue bond in China More Domestic institutions are allowed to issue bonds in foreign currencies HK offshore RMB bond market is growing fast 7

8 Section II CHINA S ECONOMIC PROSPECTIVE 8

9 China s Economic Prospective China s Economy Continues to Grow after the Financial Crisis Annual GDP Growth (the World & China) 15.00% 10.00% 5.00% 0.00% -5.00% World China Expanding and Diversifying Financial Market Data source: IMF Monetary Policies Increasingly Diversified Market Players Fast-growing financial market, especially interbank bond market improves the efficiency of monetary policies. Commercial banks Insurance companies Securities companies Trust & investment companies Fund management companies Foreign Institutions 9

10 China s Economic Prospective The Economic Blueprint of the Chinese Central Government Economic Objective From 2010 To 2020 Doubling the GDP Doubling the per capita income of urban and rural residents Projected based on data from National Bureau of Statistics of China Driving Forces of China s Economy RMB Trillion RMB GDP urban residents'income rural residents'income Urbanization Deepening the Reform China Developed Countries Market economy system rural 20% Household registration system and administration system urban 50% rural 50% urban 80% Income distribution system Social security system Other systems 10

11 Section III NAFMII AND CHINA S BOND MARKET 11

12 NAFMII and China s Bond Market Interbank Market as the Most Active Part of Chinese Financial System The annual issuance volume in inter-bank bond market has risen 20 times from 1997 to 2012 Trillion RMB The annual trading volume in inter-bank bond market has risen 159 times from 1997 to 2012 The total volume under custody in interbank bond market has risen 48 times from 1997 to 2012 Data source: Chinabond, Wind. NAFMII 12

13 NAFMII and China s Bond Market Debt-financing Instruments Registered with NAFMII Annual issuance volume of debt-financing instruments registered with NAFMII Billion RMB Debt-financing instruments registered with NAFMII (including CPs, MTNs, SMECNs, SCPs, PPNs, ABNs, etc.) have become the fastest-growing debtfinancing products in the inter-bank market and in the corporate credit bond market. Data source: NAFMII, Chinabond Outstanding volume of debt-financing instruments registered with NAFMII Billion RMB

14 NAFMII and China s Bond Market NAFMII s International Connections MOU with the ICMA in the UK MOU with Paris EUROPLACE in France MOU with the TMA in Hong Kong NAFMII is willing to enhance exchanges with financial market entities and regulators of all countries as well as international financial organizations to intensify mutual understanding and deepen cooperation. 14

15 THANK YOU 15