## Figure 1.27. China: Regulatory Tightening Has Helped Contain Financial Sector Risks

## Source details

**Canonical URL:** [Figure 1.27. China: Regulatory Tightening Has Helped Contain Financial Sector Risks](https://www.imf.org/-/media/files/publications/gfsr/2017/october/chapter-1/pdf-data/figure1-27.pdf)

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### Key observations from the figure
- On-balance-sheet shadow credit proxy and unsecured interbank liabilities net issuance are plotted from 2012:Q1 through 2017 (quarter labels shown from 12:Q1 to 17:Q2).
- Vertical scales shown in the figure include:
  - A primary scale with tick marks at –1,500; –1,000; –500; 0; 500; 1,000; 1,500; 2,000; 2,500; 3,000.
  - A secondary scale with tick marks at –400; –200; 0; 200; 400; 600; 800; 1,000; 1,200.
- Captioned summary statements in the figure text:
  - "Interbank lending and shadow credit dipped sharply in 2017 ..."
  - "... and so did off-balance-sheet shadow credit."
- The figure includes a panel titled:
  - "2. Bank-Sponsored Wealth Management Product Net Issuance (Billions of renminbi)"
- Another panel title:
  - "1. Small and Medium-Sized Banks: Monthly Change in Selected Balance Sheet Categories (Billions of renminbi, three-month average)"

### Implied findings and trends (as presented)
- Regulatory tightening is presented as having helped contain financial sector risks in China, with interbank lending and shadow credit declining sharply in 2017.
- Both on-balance-sheet and off-balance-sheet shadow credit measures show declines by 2017, according to the figure annotations.
- Bank-sponsored wealth management product net issuance is reported in the figure on a scale denominated in "Billions of renminbi."
- Small and medium-sized banks’ balance sheet categories are tracked monthly, with data shown as three-month averages in "Billions of renminbi."

### Data coverage and labeling
- Time coverage: quarterly observations labeled from "12:Q1" through "17:Q2" (figure x-axis labels include sequences such as 12:Q1, 12:Q2, 12:Q3, 12:Q4, 13:Q1, 13:Q2, 13:Q3, 13:Q4, 14:Q1, 14:Q2, 14:Q3, 14:Q4, 15:Q1, 15:Q2, 15:Q3, 15:Q4, 16:Q1, 16:Q2, 16:Q3, 16:Q4, 17:Q1, 17:Q2).
- Units: "Billions of renminbi" for wealth management product issuance and balance sheet category changes; net issuance and liability flows are shown on the numeric scales reproduced above.

*Sources: CEIC Data Co. Ltd.; China Banking Regulatory Commission; Haver Analytics; media reports; People’s Bank of China; Wind data; and IMF staff calculations.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2017/october/chapter-1/pdf-data/figure1-27.pdf_