The growth of the financial industry is expected to be better in 2019 than it was in 2018, 21st Century Business Herald reported.
On the one hand, stock turnover, which was low in 2018, will rise. On the other hand, the growth of deposits and loans will pick up under the demand of leverage ratio stabilization. So the value added of the financial industry may rebound in 2019, but not very much, said Guo Yuwei, an analyst at CIB research.
In 2018, the growth of the financial industry increased by 4.4% year-on-year, which was in line with the low growth seen in 2017.
The added value of the financial industry accounted for 7.68% of GDP, a slight decrease of 0.29 percentage points from the same period in the previous year.
The financial sector has been contributing less and less to GDP after reaching a high of 8.4% in 2015. This is a response to the tightening of regulation in the context of financial deleveraging and risk prevention.
The smaller gain of the financial industry in 2018 is mainly related to the sluggish stock market throughout the year, Guo added.