VIII. Financial Intermediation

By the end of 2008, money supply of broad sense (M2) was 47.5 trillion yuan, reflecting a year-on-year increase of 17.8 percent. Money supply of narrow sense (M1) was 16.6 trillion yuan, up 9.1 percent. Cash in circulation (M0) was 3.4 trillion yuan, up 12.7 percent. Savings deposit in Renminbi and foreign currencies in all items of financial institutions totaled 47.8 trillion yuan at the end of 2008, up 19.3 percent. Loans in Renminbi and foreign currencies in all items of financial institutions reached 32.0 trillion yuan, up 17.9 percent.

Loans in Renminbi from rural financial cooperation institutions (i.e. rural credit cooperatives, rural cooperation banks, and rural commercial banks) totaled 3.7 trillion yuan by the end of 2008, an increase of 590.8 billion yuan as compared with the beginning of 2008. The loans in Renminbi for consumption use from all financial institutions totaled 3.7 trillion yuan, an increase of 460.9 billion yuan. Of all consumption loans, short-term loans for individuals totaled 0.4 trillion yuan, an increase of 103.5 billion yuan, and medium- and long-term loans for individuals reached 3.3 trillion yuan, an increase of 357.5 billion yuan.

Funds raised in 2008 by enterprises through issuing stocks and share rights on stock market amounted to 339.6 billion yuan, a decline of 394.7 billion yuan over the previous year. Of this total, 75 A-shares were issued, receiving 106.6 billion yuan worth of capital altogether, a decline of 348.7 billion yuan. The refinancing of A-shares (including rationing shares, public newly issued, nonpublic newly issued and warrants) received 133.2 billion yuan worth of capital altogether, a decrease of 104.6 billion yuan over 2007. The listed companies financed 99.8 billion yuan through convertible bonds, bonds with attached warrants and corporate bonds, an increase of 58.7 billion yuan.

The total corporate bonds issued throughout the year reached 2,052.0 billion yuan, an increase of 343.7 billion yuan over 2007. Of this total, the financial bonds were 1,179.7 billion yuan, a drop of 11.6 billion yuan; the enterprise (corporate) bonds were 265.5 billion yuan, an increase of 83.4 billion yuan; the short-term financing funds were 433.2 billion yuan, an increase of 98.2 billion yuan; and the medium-term notes were 173.7 billion yuan, an increase of 173.7 billion yuan.

The premium received by the insurance companies totaled 978.4 billion yuan in 2008, up 39.1 percent over the previous year. Of this total, life insurance premium amounted to 665.8 billion yuan, health and casualty insurance premium 78.9 billion yuan, and property insurance premium 233.7 billion yuan. Insurance companies paid an indemnity worth of 297.1 billion yuan, of which, life insurance indemnity was 131.5 billion yuan, health and casualty insurance indemnity 23.8 billion yuan, and property insurance indemnity 141.8 billion yuan.