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Government net assets at 55.3t yuan: research

Updated: Dec 20,2014 6:41 PM     Xinhua

BEIJING -- The total net assets of the Chinese government, including government executive departments, legislative departments and justice departments, was 55.3 trillion yuan ($9 trillion) in 2013, according to research published on Dec 20.

In a broad measurement that also included government-backed public institutions and associations, the government’s net assets stood at 92.3 trillion yuan in 2013, according to the finance research institute under the People’s Bank of China, the central bank.

The total net assets of China’s public departments, including the government’s net assets as well as government-controlled companies, stood at 106.9 trillion yuan.

The government’s net assets in the narrow sense of measurement accounted for 26 percent of the gross domestic product (GDP) in 2013.

“Given China’s relatively huge foreign exchange reserves, the Chinese government has a good foundation for economic control,” the finance research institute said.

It added that the government’s net assets were substantial and also demonstrated structural stability and fitness.

Chinese authorities are pushing for a unified economic accounting regime and compilation of national and local balance sheets, which would draw a clear picture of the country’s liabilities and assets, and provide a tool for risk prevention.

However, the process has met stumbling blocks in terms of the classification of departments and liabilities definition. This recent research will facilitate the process.

Launched in September 2013, the research program is scheduled to be complete by 2018.