How is the financial operation of Shanghai in the first half of 2023? The complete data can be found here in Shanghai | the whole city | data

On July 27th, the Shanghai headquarters of the People's Bank of China stated at its regular press conference for the third quarter of 2023 that the total amount of credit in Shanghai continued to grow in the first half of this year, and financing costs remained stable and slightly reduced.

Various loans increased year-on-year

In terms of credit growth rate, by the end of June 2023, the balance of local and foreign currency loans in the city was 10.91 trillion yuan, a year-on-year increase of 7.7%, with a growth rate 1.1 percentage points lower than the end of last month and 0.3 percentage points higher than the end of last year. Among them, the balance of RMB loans was 10.28 trillion yuan, a year-on-year increase of 9.6%, with a growth rate 1.2 percentage points lower than the end of last month and 0.3 percentage points higher than the end of last year. In terms of increment, RMB loans increased by 523.3 billion yuan in the first half of the year, an increase of 47.2 billion yuan year-on-year. Among them, the first quarter increased by 397.5 billion yuan, and the second quarter increased by 125.8 billion yuan.

In terms of financing costs, in June, the weighted average interest rate for corporate loans in the city was 3.60%, a decrease of 15 basis points from the same period last year, which is at a historical low and also one of the lowest in the country. Among them, the weighted average interest rate for small and micro loans was 3.88%, a decrease of 33 basis points from the same period last year. At the same time, several commercial banks have recently lowered some term deposit interest rates to alleviate the cost pressure on the debt side and maintain a relatively stable interest rate spread.

Looking at the objects, on the one hand, corporate loans have maintained a rapid growth. At the end of June, the balance of RMB corporate loans in the city increased by 10.2% year-on-year, consistently higher than all loans. In terms of increment, RMB corporate loans increased by 462.8 billion yuan in the first half of the year, an increase of 24.1 billion yuan year-on-year. The term structure continues the medium to long-term characteristics since last year. In the first half of the year, the proportion of medium to long-term loans in the increment of RMB corporate loans was 71.4%, which is 15.4 percentage points higher than the full year of last year. From the perspective of key areas, loans from manufacturing and technology enterprises have grown rapidly. At the end of June, the balance of medium and long-term loans in the manufacturing industry in the city increased by 33.6% year-on-year, and the balance of loans for technology-based small and medium-sized enterprises increased by 41.6% year-on-year. From the perspective of enterprise types, the loan growth rate of private enterprises and foreign enterprises has steadily increased. In addition, the financing demand for the real estate industry has improved. In the first half of the year, real estate development loans increased by 23.7 billion yuan, an increase of 5 billion yuan year-on-year.

On the other hand, the growth rate of household loans has rebounded. At the end of June, the balance of RMB household loans in the city increased by 6.2% year-on-year, showing a gradual recovery trend since the beginning of this year. In terms of increment, RMB household loans increased by 39.6 billion yuan in the first half of the year, an increase of 36.3 billion yuan year-on-year. Among them, short-term loans increased by 25.3 billion yuan, an increase of 30 billion yuan year-on-year, which is related to the recovery of offline and travel consumption.

All deposits have maintained growth. At the end of June, the balance of local and foreign currency deposits in the city was 19.87 trillion yuan, a year-on-year increase of 7.0%. Among them, the balance of RMB deposits was 18.76 trillion yuan, a year-on-year increase of 8.7%, with a growth rate of 1.6 percentage points lower than the end of last month. From a segmented perspective, driven by factors such as declining market interest rates and financial statements, the balance of RMB household deposits increased by 23.5%, significantly higher than in previous years. At the same time, the trend of fixed term and other deposits in RMB household deposits continued since last year. At the end of June, the proportion of fixed term and other deposits in RMB household deposits was 71.5%, an increase of 4.9 percentage points year-on-year.

The overall scale of social financing is stable. In the first half of the year, the city's social financing scale increased by 421.2 billion yuan. The RMB loans issued to the real economy increased by 502.5 billion yuan, an increase of 74 billion yuan year-on-year, which has a significant driving effect on the scale of social financing. However, direct financing by enterprises has decreased, with a net decrease of 78.7 billion yuan in corporate bond financing and an increase of 52.2 billion yuan in stock financing. Off balance sheet financing continued to decline, with a cumulative decrease of 102.6 billion yuan in entrusted loans, trust loans, and undiscounted bank acceptance bills.

Significant achievements in the internationalization of the RMB

Shi Liya, Director of the Cross border RMB Business Department of the Shanghai Headquarters of the People's Bank of China, introduced that in the first half of 2023, the cross-border RMB settlement volume in Shanghai was 10.79 trillion yuan, a year-on-year increase of 10%, accounting for 44.1% of the total cross-border RMB settlement volume in China and continuing to maintain the first place in the country. Among them, the cross-border RMB settlement volume in Shanghai in the second quarter was 5.76 trillion yuan, a year-on-year increase of 17.9%, higher than the national average growth rate of 15.2%, showing a clear recovery trend. At the same time, the cross-border RMB settlement volume between Shanghai and ASEAN, RCEP, and countries along the "the Belt and Road" increased by 20%, 5%, and 16% respectively in the second quarter compared with the first quarter. In June, the monthly month on month growth was 50%, 42%, and 31%, respectively, with a significant recovery momentum.

The joint promotion of RMB internationalization by domestic and foreign financial institutions has achieved significant results. In the first half of the year, the market share of Chinese banks and foreign banks in Shanghai's cross-border RMB settlement volume was 61.9% and 38.1%, respectively. In the second quarter, the market share of Chinese banks and foreign banks in cross-border RMB settlement volume was 56.4% and 43.6%, respectively.

The function of the RMB as a settlement currency for commodities has been enhanced. In the first half of the year, Shanghai's total commodity trade revenue and expenditure reached 115.8 billion yuan, a year-on-year increase of 65%. Among them, the total amount of gold trade revenue and expenditure was 57 billion yuan, iron ore trade was 24.8 billion yuan, and oil trade was 1.2 billion yuan.

"In the second quarter of this year, under the continuous pressure of the RMB against the US dollar exchange rate, the resilience of foreign trade and foreign investment in the Shanghai region has become prominent." Ge Qing, Deputy Director of the Ministry of Foreign Exchange Management, introduced that firstly, under exchange rate pressure, it is beneficial for exports, and the trade deficit of goods has narrowed. From January to June, the foreign related expenditure on goods trade in Shanghai reached 260.77 billion US dollars, a year-on-year increase of 3.1%; The foreign-related income from goods trade was 170.78 billion US dollars, a year-on-year increase of 7.8%; The income and expenditure deficit was 89.99 billion US dollars, a year-on-year decrease of 4.9%. Secondly, under the pressure of exchange rates, the overall flow of foreign investment remains stable, with structural highlights. From January to June, the inflow of foreign direct investment capital into the retail and catering industries in Shanghai increased by 2.9 times and 1.4 times year-on-year, respectively; The inflow of foreign direct investment capital into the computer, electronic and communication industry increased by 3.4 times year-on-year.

The agglomeration of foreign trade enterprises in Shanghai inevitably affects foreign-related enterprises due to fluctuations in the RMB exchange rate. From the research results, it can be seen that market entities in Shanghai are more rational about recent exchange rate fluctuations, and their awareness of exchange rate hedging is relatively leading nationwide. If enterprises actively use foreign exchange derivatives to effectively cover their exchange rate risk exposure, the hedging rate within the jurisdiction of Shanghai reached 21.8% in the first half of the year.

Creating specialized products and ecosystems

Lv Jinzhong, Director of the Investigation and Statistics Department of the Shanghai Headquarters of the People's Bank of China, revealed at a press conference that Shanghai is currently researching the launch of a special product for the rediscount of loans for science and technology innovation enterprises.

The Shanghai headquarters actively seeks support from the headquarters of the People's Bank of China, increasing the Shanghai refinancing and rediscounting quota, and researching the launch of special products for refinancing and rediscounting, such as "Shanghai Science and Technology Special Loans" and "Shanghai Science and Technology Special Subsidies", to guide the expansion of credit support for small, micro, and private science and technology innovation enterprises. The objects supported by "Shanghai Science and Technology Special Loans" and "Shanghai Science and Technology Special Ties" are determined by government industry departments according to relevant standards, mainly including high-tech enterprises, technology small giant enterprises, "specialized, refined, and new" small and medium-sized enterprises, "specialized, refined, and new" small and medium-sized enterprises, as well as technology-based small and medium-sized enterprises listed in Shanghai. At the same time, in order to focus more on the financing and mortgage difficulties of small, micro, and private science and technology innovation enterprises, financial institutions are encouraged to increase their investment in down loans and credit loans. For eligible science and technology innovation enterprise down loans and credit loans issued by commercial banks, "Shanghai Science and Technology Special Loans" will be given priority support.

In addition, the Shanghai headquarters is currently leading relevant departments in building a Shanghai financial support technology innovation ecosystem, fully leveraging the role of market mechanisms, promoting cooperation among banks, private equity investment, government guided funds, and state-owned enterprise investment platforms, accelerating the formation of a financial service support system mainly based on equity investment and linked with "stock loan debt guarantee", and providing full life cycle financial services for technology-based enterprises.