The People's Bank of China has announced plans to intensify its oversight and enforcement of interest rate policies, aiming to regulate market behaviors that could undermine the effectiveness of monetary policy transmission.
At a press briefing held by the State Council Information Office, Yan Xiandong, a spokesperson for the central bank and head of its Survey and Statistics Department, provided an update on the asset management sector. He noted that the total assets under management in this sector have maintained robust growth this year. As of the end of June, the aggregate assets of asset management products reached 124.8 trillion yuan, marking a year-on-year increase of 12.7% and a rise of 4.6 trillion yuan from the beginning of the year. The breakdown includes 34.8 trillion yuan in bank wealth management products, 42.9 trillion yuan in public funds, 25.3 trillion yuan in trust assets, and a combined 21.8 trillion yuan in products managed by insurance companies, securities firms, fund houses, futures companies, and financial asset investment firms.
Examining the sources of funds, Yan highlighted that capital raised from non-financial enterprises has grown rapidly, while households remain the primary source of incremental funding for asset management products. By the end of June, funds raised from non-financial enterprises surged 24.7% year-on-year, maintaining a growth rate above 20% for four consecutive months, with the outstanding amount increasing by 331.9 billion yuan from the start of the year, a rise of 353.8 billion yuan compared to the same period last year. Funds raised from households grew by 7.7% year-on-year, with the outstanding balance up by 1.1 trillion yuan since the beginning of the year.
Regarding asset allocation, growth in various underlying assets showed divergence, with bonds experiencing notably higher year-on-year increases. At the end of June, asset management products held a combined 28.5 trillion yuan in interbank deposits and certificates of deposit, a 10% increase year-on-year. Holdings of bonds stood at 38.2 trillion yuan, up 8.4% year-on-year, with the growth rate rising for consecutive months; the outstanding amount increased by 2.2 trillion yuan from the start of the year, 1.1 trillion yuan more than the previous year's increase. Equity holdings amounted to 9.5 trillion yuan, reflecting a substantial 26.2% year-on-year growth.
Yan Xiandong emphasized that the data indicates the growth rates for asset management product scale, funds raised from non-financial enterprises, and the flow of funds back into the banking system via interbank deposits and certificates of deposit are all significantly higher, to varying degrees, than the growth rates of broader financial aggregates such as total social financing, the broad money supply (M2), and financial institution deposits and loans. In response, the People's Bank of China will enhance its monitoring and analysis, strengthen the implementation and supervision of interest rate policies, and increase efforts to standardize unreasonable market behaviors that diminish the effectiveness of monetary policy transmission.
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