Chi­na’s top plan­ning au­thor­ity has shed light on the vol­ume of as­sets and li­a­bil­i­ties in the na­tional econ­omy as a whole.

“The mar­ket econ­omy is a bal­ance sheet econ­omy from the per­spec­tive of ac­count­ing and sta­tis­tics, and all en­ter­prises have bal­ance sheets, while coun­tries have bal­ance sheets as well,” said Ning Jizhe (宁吉喆), deputy-chair of the Na­tional De­vel­op­ment and Re­form Com­mis­sion (NDRC), at a press con­fer­ence held on 24 May.

“The lat­est [na­tional] bal­ance sheet clearly in­di­cates that Chi­na’s to­tal as­sets al­ready ex­ceed 1300 tril­lion yuan (ap­prox. USD$182.26 tril­lion)

“We must drive li­a­bil­i­ties in­vest­ment which is ra­tio­nal to form a large vol­ume of ef­fec­tive as­sets. This can en­able eco­nomic growth and liv­ing stan­dards to have even firmer foun­da­tions of ma­te­r­ial tech­nol­ogy.”

Ning’s re­marks ar­rived just fol­low­ing the re­lease of Chi­na’s gov­ern­ment work re­port at the 2020 Two Ses­sions con­gres­sional meet­ing, which out­lined a deficit ra­tio of at least 3.6% this year, for an in­crease of one tril­lion yuan com­pared to 2019.

The Chi­nese gov­ern­ment has also out­lined the is­suance of one tril­lion yuan in anti-Coro­n­avirus bonds, as well as 3.75 tril­lion yuan in lo­cal gov­ern­ment spe­cial bonds, for an in­crease of 1.6 tril­lion yuan com­pared to last year.

Source: China Banking News