Shanghai Finance

Financial Center

Major Operation Conditions of Shanghai Financial Market

   
 

Yu Zhengsheng,then Shanghai Party secretary, and Zhou Xiaochuan, president of People's Bank of China jointly launch the Interbank Lending and Borrowing System on September 25, 2010

 

1. Credit Market

At the end of 2013, total deposits in Shanghai amounted to 6.92 trillion yuan. New deposit accumulated in 2013 totaled 547.43 billion yuan, an increase of 9.51 billion yuan over the previous year. The characteristics of deposit growth are as follows: (1.) Yuan-denominated deposits rose quickly, while increases in foreign exchange deposits were slow. (2.) Company deposits rose fast, and their proportion in total new deposits increased considerably. (3.) Individual deposit rose much more slowly. The tendency of deposit diversion is obvious.

At the end of 2013, total unpaid loans amounted to 4.44 trillion yuan in Shanghai. New loans extended in 2013 were 329.75 billion yuan, a drop of 52.08 billion yuan from the prior year.  The characteristics of credit operation are as follows: (1.) Growth of yuan-denominated lending was appropriate, while foreign currency lending rose more slowly. (2.) Individual loans rose relatively faster, but corporate demand was weak. (3.) Loans were mainly used to support economic growth and restructuring. (4.) The increase in loans to property and land development was stable, and the proportion of loans for affordable housing fell. (5.) Individual home mortgages continued to rise quickly.

 

Deposit and Loans of Banks in Shanghai: January through December 2013

  unit:100 million yuan

 

balance

New

year-on-year

Yuan and foreign currency deposit

69256

5474.3

95.1

Yuan and foreign currency loans

44358

3297.5

-520.8

资料来源:人民银行上海总部

Source: Shanghai headquarters of the People's Bank of China

2. China Foreign Exchange Center and Interbank Market

Transactions on the China Foreign Exchange Center and Interbank Market in 2013 amounted to 285.1 trillion yuan, a decline of 6.4 percent from the previous year. Transactions in the currency market were 193.7 trillion yuan, up 2.8 percent, while, transactions in the bond market fell 44.6 percent to 41.7 trillion yuan. Transactions in interest rate derivative products totaled 2.7 trillion yuan, down 6.5 percent year-on-year. Transactions in the foreign exchange market were up 23.2 percent at 47.1 trillion yuan.

Issuance of corporate bonds, short-term financing bonds, medium-term notes and commercial bank bonds on the domestic interbank bond market amounted to 3.39 trillion yuan in 2013, 0.3 percent less than in the previous year. Issuance of corporate bonds was 434.72 billion yuan, down 31 percent, while issuance of short-term financing bonds gained 2 percent to 832.48 billion yuan. Issuance of ultra short-term financing bonds was 753.5 billion yuan, up 29.4 percent on the year. Issuance of private placement bonds totaled 566.81 billion yuan, up 48.6 percent, and issuance of medium-term notes was 691.61 billion yuan, down 17.9 percent. Issuance of commercial bank bonds fell 71.6 percent to 111.7 billion yuan

.

Transactions on China Foreign Exchange Center and Interbank Market 2013

unit:100 million yuan

 

December

yoy(%)

Jan to Dec

yoy(%)

Currency market

168679.1

7.7

1936829.1

2.8

Within: credit lending

22328.3

-41.6

355189.5

-23.9

 Pledge-style repurchases

138674.2

22.0

1519757.2

11.2

  Buyout repurchases

7676.7

61.2

61882.3

21.4

  Bond market(spot)

19588

-73.4

416827.8

-44.6

  Interest rate derivatives

1730.9

-24.7

27279.3

-6.5

within:bond forwards

0

-

1

-99.4

   Interest rate swaps

1730.9

-24.7

27277.8

-6.0

  Forward rate agreements

0

-

0.5

-75.0

Foreign exchange market

46008.2

37.2

470868.8

23.2

TOTAL

236006.2

-11.3

2851462

-6.4

source: China Foreign Exchange Center and Interbank Market

3. Gold Market

Transactions in Shanghai’s gold market amounted to 5.2 trillion yuan in 2013, a gain of 48 percent from the prior year. Annual transactions in gold and silver nearly doubled, mainly due to strengthened investment needs as gold prices fell. Shanghai topped the world in trading of spot gold.

Transactions in Shanghai Gold Market 2013

unit:100 million yuan

 

December

yoy(%)

Jan to Dec

yoy(%)

Gold

2747

22.6

32133.8

49.4

Platinum

28.1

60.6

273.7

30.1

Silver

1406.9

1.7

19834.6

46.1

TOTAL

4182.1

14.9

52242.2

48.0

资料来源:上海黄金交易所。

Source: Shanghai Gold Exchange

4. Securities Market

Transactions on the Shanghai Securities Exchange amounted to 86.5 trillion yuan in 2013, a rise of 58 percent from the previous year. Trading of stocks was 23 trillion yuan, up 39.6 percent, while trade in bonds rose 64.8 percent to 62.6 trillion yuan. Annual turnover of stocks ranked the fifth place in the world. The Shanghai Composite Index fluctuated throughout the year, opening at 2,289.41 points, sliding in June to a low for the year at 1,849.65 points, then rising to close at 2,215.98 points. The close was down 3.2 points from January 1. The market value of stocks listed in Shanghai was 15.1 trillion yuan, down 5 percent year-on-year, ranking seventh in the world.

Financial institutions and companies raised a combined 564.61 billion yuan on then Shanghai stock market in 2013, up 16.1 percent from the previous year. Financing through stocks was 251.57 billion yuan, down 13 percent, while financing through corporate bond gained 58.6 percent to 313.04 billion yuan.

Trade in Shanghai Securities Market 2013

unit:100 million yuan

 

December

yoy(%)

Jan to Dec

yoy(%)

Stocks

18262.2

5.9

229608.8

39.6

Funds

2004.5

327.6

8989.5

183.5

Bonds

73274.4

82.7

625839.4

64.8

TOTAL

93660.7

61.9

865098.3

58.0

Source: Shanghai Stock Exchange

5. Futures Market

Transactions on the Shanghai Futures Exchange totaled 120.8 trillion yuan in 2013, up 35.5 percent from the previous year. Although settlement prices of major contracts were generally lower, growth of trade accelerated, thanks to increasing demand from a domestic economic recovery. Annual trading in gold, silver and rebar futures increased, respectively at 165.3 percent, 459.5 percent, and 62.4 percent.

Trade in Shanghai Futures Market: January through December 2013

unit:100 million yuan

 

December

yoy(%)

Jan to Dec

yoy(%)

Copper

19027.8

10.8

334647.2

2.2

Aluminum

373.1

-3.0

4814.6

-22.2

Zinc

1489.3

-30.9

18081.8

-44.0

Lead

72.3

53.8

492.6

-7.1

Gold

11245.2

261.0

107090.6

165.3

Silver

34462.9

444.0

231109.7

459.5

Natural rubber

21634.4

-2.0

290535.6

-6.0

Fuel

0.3

-58.6

5

-89.5

Petroleum asphalt

507.8

-

2741.1

-

Rebar

11787.2

-41.9

218814.3

62.4

Wire rod

0.03

-87.7

2.9

37.1

TOTAL

100600.4

40.6

1208335.5

35.5

Source: Shanghai Futures Exchange

6. Financial Futures Market

Transactions of various products on the China Financial Futures Exchange amounted to 141 trillion yuan, up 85.9 percent from the previous year. Trade in the CSI300 Futures Index was 140.7 trillion yuan, up 85.5 percent. Treasury futures were launched on September 6, and the trade in those products has been steady. Trade in 2013 was 306.39 billion yuan.

Trade in China Futures Exchange 2013

unit:100 million yuan

 

December

yoy(%)

Jan to Dec

yoy(%)

CSI300 Futures

111919.3

7.6

1407002.3

85.5

Government bond futures

578.7

-

3063.9

-

TOTAL

112498

8.1

1410066.2

85.9

Source: China Financial Futures Exchange