Chinese Financial Sector Levered 19:1
From a Guotai Junan report:
Calculated in December 2016 data. Net assets as a substitute for capital indicators, the securities industry in December net assets of 1.64 trillion yuan, the trust industry net assets of 0.45 trillion yuan, the futures industry has not yet announced, according to the previous data estimate of about 0.09 trillion yuan. Fund subsidiary net assets to replace the registered capital of 0.005 trillion yuan. The total net assets of the above industries is 2.19 trillion yuan. Then, the statistics of the size of the four industries’ management assets, December 2016 data was 41.16 trillion yuan.
The net assets of the industry divided by the total assets of the industry management, the result is 5.31%. Of course, you can also use another denominator, that is, the total amount of non-bank loans (December 2016 26.53 trillion yuan) when the denominator, calculated 8.24%.
This ratio is the degree of coverage of the net capital of non-banking institutions, that is, a relatively rough capital adequacy ratio, for reference only. But we found that this is a very low level, while observing the data from 2014 to the present, it can be found that the latter proportion is still declining in the trend.
In other words, “if this business is not money, then this non-banking institutions to take their own capital to absorb the loss” of this assumption, for some non-banking sector, it is likely to be difficult, at least impossible Completely absorbed. Because of this credit intermediary’s own capital strength is limited. Therefore, the bank is still highly exposed to the bottom of the assets of corporate credit risk, according to non-silver put to set the risk weight, is clearly unreasonable.