ECONOMY|AGRICULTURE|INDUSTRY|CONSTRUCTION|INVESTMENT IN FIXED ASSETS|TRANSPORTATION|POSTS AND TELECOMMUNICATIONS|BANKING, SECURITIES AND INSURANCE|DOMESTIC TRADE|FOREIGN ECONOMIC RELATIONS

Summary

Money supply increased appropriately, enhancing the liquidity of money to some extent. The central bank continued to implement a prudent monetary policy, employing various monetary policy tools to appropriately increase the money supply. By the end of 2000, the supply of money in broad sense (M2) was 13.5 trillion yuan, up 12.3 percent over the end of the previous year, and the supply in narrow sense (M1) was 5.3 trillion yuan, up 16 percent. Cash in circulation (M0) amounted to 1.47 trillion yuan, up 8.9 percent. Savings deposits and loans increased steadily. Savings deposits in various forms in all banking institutions totaled 12.38 trillion yuan, an increase of 13.8 percent, a growth rate slightly higher than that at the end of 1999. Of this total, savings deposits of enterprises accounted for 4.4 trillion yuan, up 18.6 percent, and savings deposits by urban and rural residents reached 6.43 trillion yuan, up 7.9 percent. Loans in various forms by banking institutions stood at 9.94 trillion yuan, up 13.4 percent in comparable prices. Of this total, the long- and medium-term loans increased 379.3 billion yuan, 30.3 billion yuan more than the increase recorded in the previous year. Supervision over banking institutions was further enhanced and initial achievement was scored in risk diversion for small and medium-sized banking institutions.

The stock market developed in the midst of regulation. In 2000, 154 companies issued A shares and another 162 companies issued A shares rights at Shanghai and Shenzhen stock exchanges, with capital paid in topping 149.9 billion yuan, an increase of 62.5 billion yuan over 1999. The issuing of 18 B shares, H shares and Red-chips helped draw US$20.8 billion worth of foreign capital. Convertible A-share bonds worth of 2.85 billion yuan were issued. Capital raised through the issuing of shares and rights reached 324.9 billion yuan. The number of listed companies (with A or B shares) in China rose from 949 at the end of 1999 to 1,088 at the end of 2000, worth 4,809.1 billion yuan, up 82 percent. The new domestic debts through the issuance of treasury bonds reached 465.7 billion yuan, an increase of 64.2 billion yuan over the previous year.

Insurance service developed vigorously. In 2000, the insurance premium totaled 159.6 billion yuan (including foreign institutions), up 14.5 percent over the previous year. Of this total, the premium of property insurance was 59.8 billion yuan, that of life insurance was 85.1 billion yuan, and that of health and unforeseen accident insurance was 14.6 billion yuan. The insurance companies paid an indemnity of 52.7 billion yuan as reparations in insurance programs, of which payments under property insurance and short-term personal insurance plans stood at 35.1 billion yuan. Another 17.6 billion yuan was paid out under life insurance programs.