Financial Markets 2008 Trading Volume Up As Stocks Slump

飞雪寒冰

The trading volume of all financial markets in China except stocks increased last year, the central bank said in a report released on May 4.

Total trading volume in major markets -- including interbank lending, bonds, gold, stocks and futures -- reached 220.7 trillion yuan in 2008, a record 38 percent year-on-year increase, according to the central bank's China Financial Market Development Report 2008.

But a weakened A-share market generated only 333.6 billion yuan for the year, down 56.8 percent from a year ago. The Shanghai Composite Index plunged 65 percent in 2008, as the global economic slump began to bite.

飞雪寒冰

As stocks in both Shanghai and Shenzhen plummeted, investors diverted funds to gold products and bonds, which recorded the biggest growth in trade volume. Gold trading rose 174.4 percent in 2008, while interbank bond trading increased 137.9 percent.

The report said that there was adequate liquidity in the market. M2 amounted to 47.5 trillion yuan by December 2008, a 17.8 percent increase year-on-year.

Savings continued to be strong as outstanding deposits in financial institutions totaled 30.3 trillion yuan, or 1.3 trillion yuan more compared with a year ago.

The central bank urged further financial product innovation and coordination between the country's primary and secondary markets this year, as well as more regulation to keep watch on credit risks.