Shenzhen’s financial industry surges

Shenzhen’s financial industry had a strong first half, with growth across every major sector posting double-digit gains. 

The only area that didn’t see strong growth was the one that the government didn’t want to see grow strongly: its own. The city’s tax revenue from the financial industry rose just 2% to reach RMB89.4 billion, thanks to a series of tax reforms that reduced tax bills across the city. Still, finance accounted for 24.8% of the city’s total tax revenues and is still the leading contributor to the city’s coffers.

The securities industry continued to be a standout, as 22 securities firms registered combined assets worth RMB1.65 trillion with operating income reaching RMB39.685 billion, ranked first in China (ahead of Shanghai). The asset-management business, meanwhile, exceeded RMB12 trillion, accounting for about one quarter of the country’s total, second behind Beijing. 

The most eye-popping growth, however, came in the fund-raising side of the business. Shenzhen enterprises raised RMB19.738 billion via the stock market and RMB293.522 billion via the bond market, up a combined 1.6 times YoY.

The banking industry kept booming, with deposits exceeding RMB8.049 trillion, up 13% YoY, and loans at RMB5.656 billion, up 12.0% YoY. Moreover, credit is being directed to more productive industries: At the end of June, the balance of loans to private enterprises was up 13.99% at RMB1.72 trillion, with RMB1.06 trillion going to SMEs, up 20.73%.

The insurance industry was no laggard. Total assets in the sector grew 9.43% YoY to RMB4.64 trillion, while corporations saw a 53.24% YoY jump in net profit, totaling RMB96.519 billion. Premiums rose 18.75% to RMB76.97 billion.

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