On November 8, the press briefing on “Shanghai Financial Operation in the First Three Quarters of 2022” held by the Shanghai Headquarters of the People’s Bank of China released information that in the first three quarters, the scale of social financing in Shanghai increased by 951.2 billion yuan, a year-on-year increase of 29.056 billion yuan. Yuan. Renminbi loans play the role of the “main force”, accounting for more than 60% of the increment of social financing scale, and have an obvious role in driving social financing scale.
Rapid growth of loans to key industries
The briefing introduced Shanghai’s monetary and credit operations, cross-border RMB business operations and foreign exchange receipts and payments in the first three quarters.
Regarding the credit situation in the first three quarters of Shanghai, Lv Jinzhong, director of the Investigation and Statistics Research Department of the Shanghai Headquarters of the People’s Bank of China, pointed out that the credit growth rate in Shanghai has been steady with a slight increase.
Data show that at the end of September, the balance of domestic and foreign currency loans in Shanghai was 10.25 trillion yuan, a year-on-year increase of 10.1%. Among them, the balance of RMB loans was 9.52 trillion yuan, a year-on-year increase of 11.5%. In the first three quarters, new RMB loans in Shanghai amounted to 689.4 billion yuan. Among them, new loans from June to September were 414.1 billion yuan, accounting for 60% of the increase in the first three quarters, an increase of 146.2 billion yuan year-on-year.
Loans to key industries in Shanghai maintained rapid growth. At the end of September, Shanghai’s manufacturing loan balance was 943.1 billion yuan, a year-on-year increase of 29.5%. The loan balance of high-tech enterprises, small and medium-sized technology enterprises, and “specialized, specialized, and new” enterprises increased by 25.5%, 42.0% and 32.3% year-on-year respectively.
The development of inclusive finance is also one of the important contents of the reform and development of Shanghai’s financial industry. The Shanghai Headquarters of the People’s Bank of China actively implements the long-term mechanism of financial services for small and micro enterprises who dare to lend, willing to lend, and will be able to lend. The micro-lending rate fell by 23 basis points year-on-year to a historical low.
The scale of RMB cross-border settlement has grown steadily
Since the beginning of this year, RMB cross-border settlement in Shanghai has achieved steady growth, and more and more economic entities use RMB for settlement.
Statistics show that in the first three quarters, 32,500 corporate entities in Shanghai adopted RMB cross-border settlement, an increase of more than 1,600 over the same period last year, and received and paid funds with 156 overseas economies. Shanghai’s cross-border RMB settlement amounted to 14.7 trillion yuan, ranking first in the country.
Regarding the characteristics of cross-border RMB settlement in Shanghai, Shi Liya, Director of the Cross-border RMB Business Department of the Shanghai Headquarters of the People’s Bank of China, said that first, the linkage effect between the construction of Shanghai’s international financial center and the internationalization of RMB is further manifested; the second is that RMB cross-border financial services serve the headquarters economy. Third, the cross-border use of RMB has strongly supported the construction of the Free Trade Zone and the Lingang New Area; fourth, the level of facilitation of cross-border RMB and free trade account settlement has been continuously improved.
Liu Xingya, deputy director of the Shanghai Headquarters of the People’s Bank of China, previously stated that the cross-border use of RMB is a market-driven and natural process, and financial institutions are not only participants and promoters, but also leaders of financial product and service innovation. Financial institutions should use the “offshore + onshore” linkage service model to enrich the investment channels of overseas RMB funds and enhance the confidence of overseas entities in holding and using RMB. Implement “local currency first” with practical actions, and provide more convenient and efficient cross-border RMB financial products and services, so that enterprises can truly feel the advantages and convenience of local currency settlement.
Strong resilience in foreign exchange receipts and payments
Since the beginning of this year, Shanghai’s foreign exchange receipts and payments have generally been stable and rising, showing strong resilience. In the first three quarters, the total foreign-related receipts and payments of banks in Shanghai on behalf of customers amounted to US$2,685.7 billion, a year-on-year increase of 8.9%. Among them, the revenue was 1,230.6 billion US dollars, and the expenditure was 1,455.1 billion US dollars, a year-on-year increase of 5.9% and 11.5% respectively.
According to Ge Qing, deputy director of the Foreign Exchange Management Department of the Shanghai Headquarters of the People’s Bank of China, in terms of trade in goods receipts and payments, in the first three quarters, Shanghai’s total foreign-related receipts and payments of trade in goods totaled US$646.8 billion, a year-on-year increase of 3.4%. In terms of service trade receipts and payments, in the first three quarters, Shanghai’s cross-border service trade receipts and payments totaled US$185.6 billion, a year-on-year increase of 15.5%.
In the first three quarters, two-way direct investment in Shanghai was also stable and orderly, and the structure was optimized. Ge Qing pointed out that in the first three quarters, the capital inflow of Shanghai’s foreign direct investment (FDI) in China was US$27.35 billion, a year-on-year decrease of 5.5%. Among them, the growth rate in the third quarter has turned from negative to positive. In particular, the inflow of foreign capital in the pharmaceutical and new energy manufacturing industries has grown significantly, more than doubling year-on-year.
In addition, the pilot program of high-level opening-up of cross-border trade and investment in Lingang New Area has been fully implemented. According to Ge Qing, at present, all pilot policies have been implemented and effective. Banks and enterprises generally believe that the pilot policy is highly in line with international rules, and the convenience of foreign exchange receipts and payments and the availability of cross-border investment and financing have been significantly improved.
