## Figure 1-19. Chinese Banking System and Financial Market Developments and Liabilities

## Source details

**Canonical URL:** [Figure 1-19. Chinese Banking System and Financial Market Developments and Liabilities](https://www.imf.org/-/media/files/publications/gfsr/2018/april/ch1/pdf/figure1-19.pdf)

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- [Markdown version](/-/media/files/publications/gfsr/2018/april/ch1/pdf/figure1-19.pdf.md)
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### Overview
- Headline observations from the figure:
  - "Regulatory tightening has stifled growth in financial sector leverage and in risky investment products ..."
  - "... but capital positions are becoming more stretched and underlying profitability continues to fall."
  - "Bank vulnerabilities remain elevated as funding costs rise ...... and liquidity remains stretched."

### 1. China: Three-Month Changes in Investment Products Outstanding and Small and Medium Banks’ Financial Sector Claims (Trillions of renminbi)
- Time labels shown: Dec. 2015; Feb. 16; Apr. 16; Jun. 16; Aug. 16; Oct. 16; Dec. 16; Feb. 17; Apr. 17; Jun. 17; Aug. 17; Oct. 17; Dec. 17; Feb. 18.
- Numeric markers on vertical axis (three-month changes): –4, 8, –2, 0, 2, 4, 6.
- Components tracked (as labeled):
  - Investment products
  - Bank claims on financial sector (small and medium banks)
  - Bank liabilities to financial sector

### 2. Chinese Banks: Tier 1 Capital Ratio and Preprovision Operating Profits to Assets (Percent)
- Series/components shown:
  - Preprovision operating profits ratio
  - Big 5 banks CET1 ratio
- Time labels shown: 2011 12 13 14 15 16 17:Q3 (and variations: 20151617:H1)
- Exact numeric values/markers shown:
  - 1.7
  - 2.4
  - 1.8
  - 1.9
  - 2.0
  - 2.1
  - 2.2
  - 2.3
  - 20151617:H1
- Annotation: "CET1 = common equity Tier 1; HQLA = high-quality liquid assets."

### 3. Chinese Bond Prices: Corporate Credit Spreads and Short-Term Unsecured Bank Funding Costs
- Series/components shown:
  - Three-month negotiable certificate of deposit yield (percent, left scale)
  - Yield spread: Corporate (AAA) and government three-year bonds (percentage points, right scale)
- Numeric axis markers shown:
  - Left scale: 2.0, 2.5, 3.0, 3.5, 4.0, 4.5, 5.0, 5.5, 6.0
  - Right scale: 8.0, 8.5, 9.0, 9.5, 10.0, 10.5, 11.0, 11.5, 12.0
  - Additional markers: 0.3, 1.9, 0.5, 0.7, 0.9, 1.1, 1.3, 1.5, 1.7 (dates: Dec. 2015; Feb. 16; Apr. 16; Jun. 16; Aug. 16; Oct. 16; Dec. 16; Feb. 17; Apr. 17; Jun. 17; Aug. 17; Oct. 17; Dec. 17; Feb. 18)
  - A numeric series labeled 25, 0, 5, 10, 15, 20 shown on a vertical axis segment.
- Yields/spreads referenced generically in figure text; no additional numeric values provided in the source beyond axis markers above.

### 4. Chinese Small and Medium Banks: Short-Term Nondeposit Funding and High-Quality Liquid Assets
- Notes and definitions:
  - "Panel 4 is based on a sample of 10 banks that disclose HQLA and contractual maturities."
  - "Short-term is less than three-month contractual maturity or on demand."
  - "China’s HQLA definition disallows required reserves held at the People’s Bank of China."
- Series/components shown:
  - HQLA (percent of bank assets, left scale)
  - Short-term nondeposit funding (percent of bank assets, left scale)
  - Ratio of short-term nondeposit funding to HQLA (right scale)
- Numeric markers and ratios shown:
  - Ratios/values: 1.6x, 2.6x, 1.8x, 2.0x, 2.2x, 2.4x
  - Time labels: 2011 12 13 14 15 16 17:Q3 (and 20151617:H1)
  - Other numeric markers present in the panel: 1.6x through 2.6x as above.

### Key statistics and numeric markers extracted from the figure
- Axis and marker values preserved exactly as shown in the figure:
  - –4
  - 8
  - –2
  - 0
  - 2
  - 4
  - 6
  - 2.0
  - 6.0
  - 2.5
  - 3.0
  - 3.5
  - 4.0
  - 4.5
  - 5.0
  - 5.5
  - 0.3
  - 1.9
  - 0.5
  - 0.7
  - 0.9
  - 1.1
  - 1.3
  - 1.5
  - 1.7
  - Dec. 2015
  - Feb. 16
  - Apr. 16
  - Jun. 16
  - Aug. 16
  - Oct. 16
  - Dec. 16
  - Feb. 17
  - Apr. 17
  - Jun. 17
  - Aug. 17
  - Oct. 17
  - Dec. 17
  - Feb. 18
  - 8.0
  - 12.0
  - 8.5
  - 9.0
  - 9.5
  - 10.0
  - 10.5
  - 11.0
  - 11.5
  - 25
  - 0
  - 5
  - 10
  - 15
  - 20
  - 1.6x
  - 2.6x
  - 1.8x
  - 2.0x
  - 2.2x
  - 2.4x
  - 20151617:H1
  - 1.7
  - 2.4
  - 1.8
  - 1.9
  - 2.0
  - 2.1
  - 2.2
  - 2.3
  - 2011 1213141516 17:Q3
  - "Small and medium banks"

*Sources: Asset Management Association of China; Bloomberg Finance L.P.; CEIC; People’s Bank of China; S&P Global Market Intelligence; and IMF staff calculations.*

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_Source: https://www.imf.org/-/media/files/publications/gfsr/2018/april/ch1/pdf/figure1-19.pdf_