Shenzhen is endeavoring to build a finance system that will have the capacity to support the city’s economic development, to incorporate flexibility into the city’s industrial structure, and effectively prevent and avoid risks. By 2010, the city is expected to have developed into a modern and international finance center of China.
Finance
Shenzhen leads the country in terms of the density of banks, securities companies, insurance firms, the number of foreign financial institutions and the percentage of employees among the population. In 2006, the total assets of Shenzhen’s finance industry reached 1,600 billion yuan, and the revenue growth rate of the city’s finance industry overtook the growth rate of the city’s GDP for the first time, the best achievement in the past 10 years.
The government of Shenzhen will strive to strengthen its support for the city’s finance industry by providing the most favorable policies, optimum environment and top-quality services. By 2010, the added value made by the city’s finance industry will be expected to total 135 billion yuan and account for more than 15 percent of the city’s GDP.
Banking
By the end of 2006, the total assets of the city’s banking institutions reached about 1,450 billion yuan, up about 20 percent over the previous year. The banking institutions’ outstanding deposits in RMB and foreign currencies totaled 1,061.6 billion yuan, and outstanding loans, 839.4 billion yuan, a 10 percent increase over the previous year. The city ranked fourth in the country in terms of total outstanding deposit and loan.
Securities
Shenzhen is one of China’s landmark centers for securities and capital market. The Shenzhen Stock Exchange, one of China’s only two stock exchanges, has entered a new stage in terms of scale and market orientation. In 2004, the small and middle-sized enterprise board was launched in the city. Since then, the stock exchange listings have been operated well. By the end of 2006, 579 companies had been listed at the Shenzhen Stock Exchange, 621 stocks were in trade, 35 more than the previous year. A total of 237.583 billion shares were issued in the Shenzhen market, an increase of 11.4 percent, while 117.69 billion shares were in circulation, an increase of 26 percent. The market value of all listed companies in the Shenzhen Stock Exchange totaled 1,779.152 billion yuan in 2006, up 90.6 percent over 2005.
Venture Capital
The venture capital market in Shenzhen shows rapid growth. The city has the largest number of institutions and the largest amount of capital in China, which made Shenzhen one of China’s most attractive centers for venture capital.
In 2006, there were more than 500 registered venture capital firms, about half of the country’s total.
Insurance
Shenzhen is China’s third-largest city in terms of insurance business. The total assets of the city’s insurance industry have been increasing constantly, with an improved business structure developing. Insurance companies with foreign investments maintain strong growth. So far, seven insurance companies have set up their headquarters in Shenzhen. Besides that, the city has 29 branch insurance organizations and about 35,000 employees in insurance business. In 2006, the total assets of the insurance industry in Shenzhen added up to 27.2 billion yuan, accounting for 13 percent of the country’s total.
The development of foreign-invested insurance companies in Shenzhen remains strong. By the end of 2006, there were eight representative offices of foreign-invested insurance companies in the city, netting premium of 1.616 billion yuan.
Foreign Financial Institutions
In January 1982, the Shenzhen Branch of Nanyang Commercial Bank started business in the city as the first foreign bank after the People’s Republic of China was founded.
2006 saw more foreign banks arrive in Shenzhen. Three Hong Kong banks, Wing Lung Bank, Dah Sing Bank and Shanghai Commercial Bank, launched their branches in Shenzhen. CITIC Ka Wah Bank and Industrial and Commercial Bank of China (ASIA) started business in the city, while the Bank of East Asia and Hang Seng Bank set up branch offices. Currently, Shenzhen boasts 38 foreign financial institutions, among which 31 are operational institutions and seven are representative offices.
Since the RMB service opened up to foreign banks at the end of 2006, 29 foreign banks in Shenzhen have been striving to expand their businesses in the city.