The next five years are likely to form a period of considerable change for China's financial services industry. The government led by Xi Jinping, who was appointed president in March 2013, appears set on a drive to internationalise the renminbi and to allow the capital account to open. These reforms will be accompanied by interest-rate liberalisation.
Stresses in the financial system will become increasingly apparent in 2015-19, as banks struggle to manage a rise in bad loans associated with a post-2008 lending boom. Many lenders will look to shore up their capital bases through stock and bond issuances. State-owned asset managers, or "bad banks", will probably intervene to take non-performing loans (NPLs) off the balance sheets of major institutions. Interest-rate reform and the opening of the sector to more private competition will also place established lenders under pressure.

Financial services report 2

Banks 3

Insurers 7

Asset managers 9

Financial markets and instruments 11

Financial regulation 16

Monetary and currency policy 18

China at a glance 20

Fundamental indicators 21

Key contacts 22

中国科学技术信息研究所