China’s social net wealth reaches 437 trillion yuan, ranking 2nd in the world

China’s social net wealth totaled 437 trillion yuan (63.48 trillion U.S. dollars) by the end of 2016, of which 73 percent was owned by the people and 27 by the government, according to China’s National Balance Sheet released by the National Institution for Finance & Development, Beijing Youth Daily reported on Dec. 27.

The wealth level ranked second in the world after that of the US and accounted for 70.7 percent of the latter, said Zhang Xiaojing, an analyst with the Chinese Academy of Social Sciences. China’s GDP in the period was 74.4 trillion yuan, second only to that of the US and 57.2 percent of the latter.

Investment is the biggest contributor to the wealth accumulation, the report indicated.

The report also indicated that financial assets increased more than non-financial assets. Between 2000 and 2016, China’s non-financial assets grew 10.3 fold from 37.5 trillion yuan to 424.5 trillion yuan, while financial assets grew 13.8 fold from 53.2 trillion to 786.2 trillion.

Securities investment funds, insurance and undiscounted bankers’ acceptances experienced the highest growth rates, increasing by 44.2 percent, 26.7 percent and 25.2 percent, respectively.

Zhang said it reflected the rapid development of the country’s non-banking financial system and the continuous upgrade of national financial structure.

Investments contributed 68 percent to the rise of non-financial assets, which went up by 23 trillion yuan annually between 2000 and 2015. Outbound investment contributed 171 percent to the annual growth of China’s net overseas financial assets, which increased by one trillion yuan each year on average.

Zhang said the balance sheet stressed that net wealth is an important indicator of the capability of the country’s financial sector to deal with risks.

He pointed out that the balance sheet indicted that China has enough confidence to deal with debt risks. Between 2000 and 2016, the debt of the Chinese government grew from 2 trillion yuan to 27 trillion yuan while the governmental assets from 11 trillion yuan to 146 trillion yuan.