China’s current financial system
Divided according to the status and functions of China’s financial institutions, the main systems are as follows:
1. Central Bank. The People's Bank of China is the central bank of China, established on December 1, 1948. Under the leadership of the State Council, it formulates and implements monetary policies, prevents and resolves financial risks, maintains financial stability, provides financial services, strengthens foreign exchange management, and supports local economic development.
The main difference between the People's Bank of China and the Bank of China is: the People's Bank of China is the government's bank, a bank's bank, and an issuing bank, and does not handle specific deposit and loan businesses; the Bank of China is responsible for the industrial and commercial bank and the Agricultural Bank of China. Bank, China Construction Bank and other state-owned commercial banks have the same responsibilities.
2. Financial regulatory agencies. The main financial regulatory agencies in China include: China Banking Regulatory Commission, referred to as the China Banking Regulatory Commission, which was established in April 2003. It is mainly responsible for the regulatory functions of the banking industry transferred from the People's Bank of China, and provides unified supervision and management of banking financial institutions and trusts. Investment companies and other financial institutions; the China Securities Regulatory Commission, referred to as the China Securities Regulatory Commission, was established in October 1992 to supervise and manage the securities and futures industries in accordance with the law; the China Insurance Regulatory Commission, referred to as the China Insurance Regulatory Commission, was established in November 1998. Responsible for the supervision and management of the national commercial insurance market. In accordance with China's existing laws and relevant institutional regulations, the People's Bank of China retains some financial regulatory functions.
3. State Administration of Foreign Exchange. It was established on March 13, 1979, and was managed by the People's Bank of China at that time; in April 1993, according to the State Council's institutional reform plan approved by the First Session of the Eighth National People's Congress and the "Notice of the State Council on the Establishment of National Bureaus Managed by Ministries and Related Issues" 》, the State Administration of Foreign Exchange is a national bureau managed by the People's Bank of China and is an administrative agency that conducts foreign exchange management in accordance with the law.
4. Board of supervisors of key state-owned financial institutions. The Board of Supervisors is dispatched by the State Council and is responsible to the State Council. It supervises the asset quality of key state-owned financial institutions and the preservation and appreciation of state-owned assets on behalf of the state.
5. Policy financial institutions. Policy financial institutions are institutions initiated and funded by the government to carry out financing and credit activities to implement and cooperate with the government's specific economic policies and intentions. China's policy financial institutions include three policy banks: the China Development Bank, the Export-Import Bank of China, and the Agricultural Development Bank of China. Policy banks do not aim to make profits, and their business operations are subject to national economic policies and accept the business guidance of the People's Bank of China.
6. Commercial financial institutions. China's commercial financial institutions include three major categories: banking financial institutions, securities institutions and insurance institutions.
Banking financial institutions include commercial banks, credit cooperative institutions and non-bank financial institutions. Commercial banks refer to for-profit institutions that mainly absorb deposits, grant loans and engage in intermediary business, mainly including state-owned commercial banks (Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, China Construction Bank), joint-stock commercial banks (Bank of Communications, Bank of Communications, CITIC Industrial Bank, China Everbright Bank, Hua Xia Bank, China Minsheng Bank, Guangdong Development Bank, Shenzhen Development Bank, China Merchants Bank, Industrial Bank, Shanghai Pudong Development Bank, Hengfeng Bank, etc.), city commercial banks, rural commercial banks and housing savings banks, foreign banks and Sino-foreign joint venture banks. Credit cooperative institutions include urban credit cooperatives and rural credit cooperatives. Non-bank financial institutions mainly include financial asset management companies, trust investment companies, finance companies, leasing companies, etc.
Securities institutions refer to institutions that provide intermediary services to securities market participants (such as financiers and investors), including securities companies, stock exchanges, securities registration and clearing companies, securities investment consulting companies, and fund management companies. Company etc. The securities mentioned here mainly refer to stocks, bonds, investment funds, depositary receipts and other valuable certificates issued and circulated with the approval of relevant government departments. Direct financing through securities as a carrier can achieve an organic combination of investment and financing. It can also effectively save financing costs.
Insurance institutions refer to institutions that specialize in insurance business, including state-owned insurance companies, joint-stock insurance companies, foreign-funded insurance branches and Sino-foreign joint venture insurance companies engaged in insurance business in China.