Thursday, July 26, 2018

Brief Introduction to ShenZhen Financial services Industry

Shenzhen is a financial hub of China, with the financial industry comprising a hefty portion of the city's GDP. Shenzhen ranked 22nd among the world financial centers, according to the Global Financial Centers Index, which was released by British think tank ZYEN Group.
FINANCIAL INDUSTRY
In 2016, the add value of Shenzhen's financial industry reached 287.69 billion yuan, up 14.6% from the previous year, ranking third in China. The added value of the financial industry accounted for 14.8% of the city's GDP. The city's total assets of the industry amounted to 12.7 trillion yuan, ranking third in China. The total assets of banks were 7.85 trillion yuan. The total assets of securities and insurance companies reached 1.25 trillion yuan and 3.6 trillion yuan, respectively. Shenzhen has 233 listed companies, ranking sixth in the country. The total market value of the listed companies reached 4.35 trillion yuan, ranking third in the country. Shenzhen has 403 financial institutions with the numbers of its banks, securities institutions, insurance companies and foreign financial companies and employees ranking among the tops in China.

In 2016, the transaction scale of interbank monetary markets and bond markets achieved 94.42 trillion yuan, up 48.8% from a year ago. The night turnover of gold reached 632,000 tons, accounting for 54.2% of the total turnover of Shanghai Gold Exchange. The cross-border RMB transaction reached 1.04 trillion yuan in 2016. Since the launch of the cross-border RMB business, the total transaction was 5 trillion yuan with 159 countries and regions involved.

BANKING
By the end of 2016, total savings deposits in Shenzhen banks reached 6.44 trillion yuan, up 11.5% from the previous year and ranking third in the country. Loans reached 4.05 trillion yuan, up 24.9% from 2015 and ranking third in China. The balance of loans of small and micro businesses was 646.88 billion yuan, up 31.08% from 2015. A total of 227,000 small and micro enterprises were offered loans.

SECURITIES INDUSTRY
As one of the centers of China's securities markets, Shenzhen is home to the Shenzhen Stock Exchange (SSE) - one of the two stock exchanges on the Chinese mainland. By the end of 2016, the transaction volume of securities in Shenzhen reached 123.5 trillion yuan, up 37.8% from 2015. Shenzhen has 20 securities companies. The total capital, net asset, net capital and retained profit of securities companies ranked second in the country. The city has 25 fund companies, and the net value of the public offering of fund was 2.51 trillion yuan, ranking third in the country. There were 3,544 registered private equity management companies and 8,300 registered private equity products. The total volume of managed asset reached 1.18 trillion yuan, ranking third in the country. Shenzhen has 13 futures companies, ranking third in China.

In 2016, Shenzhen had 233 domestic listed companies with a total market value of 4.35 trillion yuan. A total of 697 companies were listed on National Equities Exchange and Quotations, among them 65 were innovative companies.

INSURANCE
Shenzhen insurance firms saw robust growth in 2016. The total premium income reached 83.45 billion yuan, growing 28.9% from 2015. The number of insurance companies amounted to 25, the insurance branches were 72, and the insurance agents were 127.

EQUITY INVESTMENT
Shenzhen's equity investment industry leads China. The Qianhai Equity Transaction Center started to operate in May 2013 with over 9,000 enterprises listed, making it a regional equity transaction center with the most listed enterprises in China. Shenzhen has become the pilot city to have Qualified Foreign Limited Partner and the registered capital is over 20 billion yuan.

FINANCIAL ENVIRONMENT
Shenzhen is one of the financial centers in China. With the rapid development of Shenzhen's economy and finance, the status of the financial industry as a pillar of its economy has been enhanced and strengthened since Shenzhen was established as a special economic zone over 30 years ago. The financial clusters include Futian, Luohu and Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone. Representative enterprises include China Merchants Bank and Ping An Insurance Company of China.

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