Beijing [China], February 1 (ANI/CNA): The Financial Supervisory Commission announced today that in 2023 At the end of December, the total exposure of domestic banks to China fell below the trillion yuan mark, and the ratio of exposure to net value dropped to 22.7 per cent, a new statistical low.
The total exposure of the three financial industries to China was NT USD 151.338 billion, a year-on-year decrease of 11.96 per cent.
The Financial Supervisory Commission today released an overview of the three financial industries' exposure to China.
As of the end of December 2023, the total exposure of domestic banks, insurance industries and securities, futures, investment, trust, and investment consulting industries to China dropped to 151.338 billion yuan, a quarterly decrease of 5.33 per cent and an annual decrease of 11.96 per cent, showing a "double decrease" trend.
Among them, the total exposure of domestic banks to China officially fell below the trillion yuan mark, falling to 961 billion yuan, accounting for 22.7 per cent of the net value after the final accounts of last year. Since the Financial Supervisory Commission released statistics in the third quarter of 2013, a total of 42 season lows.
China National Bank's exposure to China includes credit, investment, and placement of funds.
Among them, China National Bank's investment in China was 244.438 billion yuan, a quarterly increase of 7.207 billion yuan; capital placements and deposits were 76.287 billion yuan, a quarterly increase of 8.628 billion yuan; however, credit in China fell to 640.275 billion yuan, a quarterly decrease of 63.409 billion yuan.
Lin Zhiji, deputy director of the Banking Bureau of the Financial Supervisory Commission, explained that the total exposure of China National Bank to China is limited to 1 times the net value after the final accounts of the previous year.
As of the end of the fourth quarter of 2023, all of China National Bank's exposure to China is still within the legal limit and controllable range.
Lin Zhiji observed that overall, the Bank of China's exposure to China has declined, mainly due to the slowdown in China's economic growth rate and China's debt and real estate risks in recent years, which has led to the Bank of China's credit extension to China becoming cautious and conservative.
As of the end of December 2023, the total investment in Chinese securities by the insurance industry reached 77.4 billion yuan, a quarterly decrease of 13.03 per cent and an annual decrease of 25.29 per cent, accounting for only 0.24 per cent of the insurance industry's available funds.
Among them, the insurance industry's exposure to Chinese securities is entirely held by the life insurance industry, and the exposure amount of the property and casualty insurance industry is zero.
The exposure of the securities, futures, trust, investment and consulting industry to China dropped to 12.938 billion yuan at the end of December 2023, a quarterly decrease of 0.12 per cent and an annual decrease of 10.28 per cent.
Among them, securities companies adjusted their financial investments, and their exposure to China fell below 10 billion yuan to 9.998 billion yuan, a quarterly decrease of 16 million yuan; futures merchants and investment trust and investment consulting companies' exposure to China were 251 million yuan and 2.689 billion yuan respectively, the same as the end of September 2023. (ANI/CNA)
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