With several banks, securities and futures trading firms, insurance agencies and other institutions thriving in Qingdao the city's financial sector is gaining momentum.

A total of 193 financial institutions operate in the city including foreign invested banks Standard Chartered, HSBC and Deutsche Bank as well as Samsung Property and INGBOB Life Insurance. Together they offer more than 300 financial products.

Financial services played a significant role in shaping the city's booming economy. The fixed asset loans and syndicated loan balance reached 252.53 billion yuan ($40.56 billion). Micro loans for small and medium-sized enterprises as well as agriculture-related loans increased by 33.5 percent and 16.8 percent in 2013 respectively. A total of 49 trillion yuan in economic and social assets were insured by insurance companies.

In 2013, the city's overall deposits and loans including foreign currencies hit 114.183 trillion yuan and 96.424 trillion yuan. This was an increase of 16.3 percent and 11.7 percent from 2012 respectively.

Agency transactions for securities and future goods in Qingdao jumped by 73.7 percent and 64.3 percent respectively from a year earlier. Overall insurance premiums reached 17.89 billion yuan, up 11.8 percent from 2012.

In 2011, Qingdao became the first city in China to allow trade in won, the South Korean currency. Five banks are qualified to operate won trading businesses.

Direct trade in the Japanese yen started the following year with many banks granted the right to do business in the sector.

Qingdao's banks facilitated cross-border renminbi settlements worth of 307 billion yuan since 2010. The initiative covered various types of international transactions including imports and exports, trade financing, trade in services, foreign direct investment, overseas direct investment, exterior liabilities and foreign guarantees.

The central government's decision in February to launch a financial pilot zone in Qingdao is expected to further boost the city's development.

Nine banks in the city have set up their own private banking operations.

Qingdao's wealth management sector is represented by a large number of private banking operations, wealth management companies, mutual fund companies, private equity firms and various other financial institutions.

It will explore cross-border wealth management services and launch pilot projects to reform the foreign exchange management system.

In addition, 32 Qingdao-based companies are listed at home or abroad.

xiechuanjiao@chinadaily.com.cn

(China Daily 05/16/2014 page12)