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China’s banking and insurance sectors have injected approximately CNY170 trillion (around USD24 trillion) into the nation’s real economy over the past five years, primarily through credit, bonds, equity, and other financial instruments, aligning with the goals of the current five-year plan.
During this period, funding efforts focused on specific, strategic areas, with a collaborative report from key financial regulatory bodies highlighting the achievements. Notably, research and technology loans, medium- and long-term loans for manufacturing, and infrastructure investments grew at average annual rates of 27%, 22%, and 10%, respectively. The outstanding inclusive loans to small and micro-enterprises reached CNY36 trillion (roughly USD5 trillion), marking a 2.3-fold increase from the previous five-year period, while interest rates on these loans decreased by 2 percentage points.
The total assets of the banking and insurance industries now surpass CNY500 trillion, experiencing an average annual growth of 9% over the last five years. This expansion has further established China’s dominance as the world’s largest credit market and the second-largest insurance market globally.
Asset management entities in trust, wealth management, and insurance sectors handle nearly CNY100 trillion, doubling their size compared to the end of the last five-year plan. Out of the top 1,000 banks worldwide, 143 are Chinese, with six ranking among the top ten globally.
Progress in opening up China’s financial sector has been notable. Changes during this period include removing foreign ownership restrictions in banking, improving access for qualified foreign investors, and enhancing international connecting mechanisms like the Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, and Shanghai-London Stock Connect.
Most of the world’s leading banks and insurers have established a presence in China, with 43 of the top 50 banks having branches within the country, and half of the largest 40 insurers operating locally. Additionally, 13 new foreign-controlled securities, fund, and futures firms have been approved to conduct business on the mainland, with foreign investors holding a total market capitalization of CNY3.4 trillion (approximately USD478 billion). Around 269 companies have also gone public overseas.
In the foreign exchange market, China has achieved fundamental convertibility in key areas, boosting openness. As of July, international institutions and individuals held over CNY10 trillion in domestic stocks, bonds, deposits, and loans.
The exchange markets have facilitated CNY57.5 trillion in combined equity and bond financing over five years, with direct funding sources growing steadily—from 28.8% to 31.6% of the total—indicating increased efficiency and openness in market funding.
The technological sophistication of China’s capital markets continues to advance, with the tech sector now comprising over 25% of the mainland market, reflecting ongoing modernization efforts.
The government has also focused on risk mitigation across critical sectors. Key measures include reducing the number of financing platforms by over 60%, halving financial sector debt, and lowering mortgage loan interest rates—relieving about CNY300 billion (roughly USD42 billion) annually in household debt burdens, benefiting over 50 million families.
Overall, this conference reviewed the medium- and long-term progress made during the current five-year plan, emphasizing stability rather than short-term policy adjustments. Future financial reform initiatives and strategic steps will be discussed following directives from central authorities, as preparations for the next phase proceed.
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