上海金融稳定报告

Part l Overview

1.1 Enhanced stability of Shanghai's financial system

1.1.1 The economy maintained stable growth

1.1.2 The financial industry performed stably

1.1.3 Financial infrastructure was further improved

1.2 Issues of concern in the maintenance of Shanghai's financial stability

1.2.1 Issues of concern in Shanghai's economic growth

1.2.2 Issues of concern in the performance of Shanghai's financial industry

Part II Economic and Financial Conditio

2.1 Steady economic and financial performance in Shanghai

2.1.1 Continuous and steady economic development

2.1.2 Optimized economic structure featured by coordinated development between the secondary and tertiary industry

2.1.3 Effective utilization of foreign investment despite dampened import and export

2.1.4 Continuous rise of fiscal revenue and household disposable income

2.1.5 Optimized fixed asset investment structure

2.1.6 Enhanced concentration of financial i titutio

2.1.7 Differentiated financial markets turnover

2.2 Noteworthy issues in economic and financial performance

2.2.1 Attention to economic development

2.2.2 Attention to short-term capital flows

2.2.3 Attention to equity changes of foreign-funded i titutio

2.2.4 Attention to private investment growth

Part III Banking Sector

3.1 Performance of Shanghai's banking sector

3.1.1 Growing number of banking i titutio

3.1.2 Assets and liabilities moderately rose

3.2 Soundness assessment of Shanghai's banking sector

3.2.1 Both non-performing loa （NPLs） ratio and outstanding

NPLs declined for 7 co ecutive yea

3.2.2 Capital adequacy ratio （CAR） and provision coverage ratio continued increasing

3.2.3 Optimized profitability structure &； continued growth in profit

3.2.4 Relatively fast growth rate of deposits featured by

higher proportion of term deposits

3.3 Noteworthy issues in the development of Shanghai banking sector

3.3.1 Improve risk management and pay attention to risk exposure in downward cycle of the economy

3.3.1.1 Pay close attention to real estate credit risk

3.3.1.2 Pay attention to risks of land reserve loa

3.3.2 Focus on high loan concentration

3.3.3 Focus on possible operational risk in Shanghai banking sector

3.3.4 Focus on the succeeding profit growth under macro-control conditio

3.3.5 Challenges confronting Shanghai foreign banks

3.3.6 Focus on market risks brought about by international

financial risks to Shanghai banking sector

Part IV Securities Sector

4.1 Overview of Shanghai's securities sector

4.1.1 Sound performance of securities and futures i titutio amid market correctio

4.1.2 Strengthened corporate governance and internal control of securities and futures companies

4.1.3 Opening-up of securities and futures sector continuously

promoted，and business innovation developed rapidly

4.1.4 Securities market became more financially functional

4.2 Soundness assessment of Shanghai's securities i titutio

4.2.1 Asset and liability features of Shanghai's securities i titutio

4.2.1.1 Overall asset liquidity was obviously improved，and client trading margi got safer i titutional protection

4.2.1.2 Securities i titutio increased their net capital

steadily，and their anti-risk ability enhanced greatly

4.2.1.3 Capital leverage multiplier fell sharply，and the risk bearing ability got strengthened

4.2.1.4 Financial structure became more flexible，and the long term liability

to total debt ratio remarkably lowered

4.2.2 Earning models features of Shanghai's securities i titutio

4.2.2.1 Profit gained from brokerage business declined

significantly，while still being the major income

4.2.2.2 Securities underwriting income decreased，however the

corresponding share of total income was bigger

4.2.2.3 Net investment income and net asset management income dropped sharply

4.2.2.4 Net profit declined significantly with one securities company suffering net loss

4.8 Noteworthy issues in the development of Shanghai's securities sector

4.3.1 Attention on protection of securities investo ' rights

4.3.2 Emphasis on redemption risk of open-ended securities fund

4.3.3 Concer about trading risks of futures market

Part V I urance Sector

5.1 Performance of Shanghai i urance sector

5.1.1 I urance sector developed steadily and played a role of

safeguarding social and economic stability

5.1.2 The number of market participants increased steadily and market

share of foreign-funded i urance companies declined

5.1.3 Agricultural i urance developed rapidly

5.1.4 The management system of "；issuing policy upon payment"； came into effect

for auto i urance and the market was standardized

5.2 Soundness assessment of i urance i titutio incorporated in Shanghai

5.2.1 Total asset size grew slightly； property i urance companies suffered great loss

5.2.2 Premium income grew steadily； business structures of domestic and

foreign-funded i urance companies had big difference

5.2.3 Return on i urance fund investment declined co iderably

5.2.4 Solvency adequacy ratio declined somewhat but still at high level

5.3 Concerned issues for the development of Shanghai i urance industry

5.3.1 Focus on the problem of "；interest spread loss"； that might occur

to life i urance companies due to the continuous interest rate cuts

5.3.2 Focus on the loss of'property i urance companies caused by excessively high comprehe ive cost rate

5.3.3 Focus on the impact of economic and financial scenario changes on return of i urance fund investment

5.3.4 Focus on the impact ofimbalanced development of i urance business channels

on the development of i urance sector

5.3.5 Focus on surrende of investment-linked i urance

5.3.6 Focus on the impact of international financial crisis on Shanghai i urance industry

Part Vl Financial Infrastructure Co truction

6.1 Continuous improvement in payment system co truction

6.1.1 Coordinated development of regional economy and finance enhanced

6.1.1.1 Launching the reform of bank acceptance draft among the three provinces and one municipality in East China

6.1.1.2 Actively conducting the credit-based check writing business on a pilot basis

6.1.1.3 Writing the requirement proposal of electronic commercial bill of exchange system

6.1.2 Financial infrastructure co truction in Yangtze River Delta region effectively boosted

6.1.2.1 Establishing a close-collaborative joint mechanism of payment and settlement in Yangtze River Delta region

6.1.2.2 Joint enhancement of the check image exchange system in Yangtze River Delta region

6.1.2.3 Actively involved in the pilot work of cross-border RMB trade settlement

6.1.2.4 Making investigatio into financial infrastructure co truction in Yangtze River Delta region

6.1.3 Promoting the co truction of payment environments for the Olympic Games and the World Expo

6.1.3.1 Strengthening the collaboration in industrial management of bank card in Yangtze River Delta region

6.1.3.2 Taking the opportunities of'the Olympic Games and the World Expo and meeting the growing social demand for a safe，efficient and stable payment environment'

6.1.3.3 Taking the lead in improving the payment environment for the World Expo

6.1.4 New progress in payment and settlement system co truction

6.1.5 Surveillance and capacities of'the payment and settlement system boosted

6.1.5.1 Overall enhancement of the system's daily management and capacities

6.1.5.2 Training programs of the payment and settlement system advanced

6.1.5.3 RMB bank accounts i pected

6.1.5.4 Respo ibilities of administrative permission and administrative sanction fulfilled

6.2 Continuous improvement in credit information system co truction

6.2.1 Progress in the co truction of corporate and individual credit information system

6.2.1.1 Overall enhancement of data quality of the credit information system

6.2.1.2 Functio of the credit information system greatly expanded

6.2.1.3 Steady expa ion of the data collection scope of non-banking i titutio

6.2.1.4 Co truction of credit information system of SMEs stepped up

6.2.2 Marketization of credit rating system pushed forward based on innovation and regulation

6.2.2.1 Further exploratio into the training and assessment system of rating practitione in Shanghai

6.2.2.2 Launching the pilot work of rating of commercial acceptance drafts

6.2.2.3 Launching credit rating of debto ，business groups and guarantee agencies step-by-step

6.2.2.4 Management of credit rating services strengthened and the credit rating market regulated

6.3 Monitoring of AML enhanced

6.3.1 Strengthening counter-terrorist financing in an all-round manner and enhancing its efficiency

6.3.2 Cooperative mechanism of AML work improved and joint-ministerial efforts in AML stepped up

6.3.3 Administrative investigation of AML deepened and a bunch of important crime clues uncovered

6.3.4 AML work in financial system further enhanced

6.3.5 Enhancing offsite i pection and heightening AML monitoring and analysis

6.3.6 Careful preparatio made to facilitate the FATF assessment work in Shanghai

Appendix I Statistics

Appendix II Financial I titutio in Shanghai

Box

Box 3-1 Impacts of continuous interest rate cuts on banks' income '

Table

Table 3-1 Loa ' Industry Direction Denominated in Domestic and

Foreign Currencies of Shanghai Domestic Banks

Table 4-1 Performance of 15 Securities Companies in Shanghai in 2008

Table 4-2 Capital Market Financing of Listed Companies in Shanghai in 2008

Table 4-3 Balance Sheet of 8 Large-and-medium Sized Securities Companies in Shanghai

Table 4 4 Income Structure of 8 Large-and-medium Sized Securities Companies in Shanghai

Table 5-1 Premium Income，I urance De ity and Penetration in Shanghai

Table 5-2 Expenditure of All I urance Claims and Payments in Shanghai

Table 5-3 Utilization of I urance Fund

Figure

Figure 2-1 GDP Growth in Shanghai from 2001 to 2008

Figure 2-2 Import &； Export Volume in Shanghai from 2003 to 2008

Figure 3-1 Total Assets and Growth Rate of Shanghai Banking I titutio

Figure 3-2 Outstanding Deposits Denominated in Domestic and Foreign Currencies and Growth

Rate of Shanghai Domestic and Foreign Banks

Figure 3-3 New Loa 1）enominated in Domestic and Foreign Currencies of Shanghai Domestic

and Foreign Banks

Figure 3-4 NPL Ratio of Shanghai Domestic Banks （Domestic and Foreign Currencies Included）

Figure 3-5 Pre-Tax Profit and Growth Rate of Domestic Commercial Banks in Shanghai （Domestic and Foreign Currencies Included）

Figure 3-6 Industry Distribution of Loa Denominated in Domestic and Foreign Currencies of Shanghai Domestic Banks in 20（i）6-2008

Figure 4-1 Net Capitals of 8 Large-and-medium Sized Securities Companies in Shanghai

Figure 5-1 Premium Revenues of Domestic and Foreign-funded I urance Companies and

Market Shares of Foreign-funded I urance Companies

Figure 5-2 Comparison of Net Profits of I urance Companies Incorporated in Shanghai

Figure 5-3 Comparison of Business Structures of Life I urance Companies Incorporated in Shanghai

The Shanghai Financial Stability Report 2009 is structured differently from thoseof previous years. Taking into consideration the current conditions of China's financialindustry， adjustments have been made to part of the report's framework to enhancethe organization of analysis. The present report consists of the following. Part I is anoverview of Shanghai's financial stability status. Part II looks at the performance ofShanghai's economy and major issues that may affect financial stability. Parts III toV give an assessment of current conditions and stability status of banking， securitiesand insurance sectors respectively. Given the importance of infrastructure to financialstability， Part VI deals with infrastructure construction in the areas such as creditinformation， anti-money laundering and payment and settlement.