National Bureau of Statistics of PRC
Improvements on the Issues of
12th Workshop: Finance, Health,
Education and Owner Occupied
Dwelling Estimation
LU Feng
Department of National Accounts, NBS
30 Nov., 2009
Haikou, China
Finance: Banking Industry
1. FISIM Estimation
From 2008, the NBS begins to use reference rate
approach to calculate the FISIM, which is an important
improvement in the GDP estimation of China.
Finance: Banking Industry
1. FISIM Estimation
Old method:
FISIM = (Loan interest revenue - Deposit interest expense)
+(Revenue from transactions with financial institutions
- Expense from transactions with financial institutions)
+ Investment revenue
+ Rental revenue
Finance: Banking Industry
1. FISIM estimation
New method:
FISIM for the depositors = Annual average deposits of financial
institutions × Reference rate – Actual interest payment of deposits
FISIM for the borrowers = Actual interest income of loans – Annual
average loans of financial institutions ×Reference rate
Finance: Banking Industry
1. FISIM estimation
New method:
Total FISIM = FISIM for the depositors + FISIM for the borrowers
Where,
Reference rate = (Deposit rate + Loan rate) ÷ 2
Finance: Banking Industry
2. The central bank of China – the People’s
Bank of China now is treated as enterprise
institution in GDP estimation. Before, it was
treated as government institution.
Finance: Securities Industry
1. Real VAD Estimation
The real value-added estimation of securities now
uses volume extrapolation approach instead of
single deflation approach.
Finance: Securities Industry
1. Real VAD Estimation
Old method:
Real VAD = Nominal VAD / Deflator
where the deflator is equal to the weighted
average of CPI and IPI (Investment Price Index).
Finance: Securities Industry
1. Real VAD Estimation
New method:
Real VAD = Real VAD of last year
× Stock transaction volume index
Finance: Securities Industry
2. Nominal VAD is subdivided into more
detailed level to calculate. According to the
Second Economic Census’s data, value
added of securities is subdivided into three
parts, which are securities, fund and futures.
Finance: Securities Industry
3. The treatment of stamp duty on
securities transactions is improved. Now
only stamp duty of securities transactions
paid by agencies is treated as production
tax of securities, not including stamp duty
on securities transactions paid by individuals.
Finance: Insurance Industry
Real VAD Estimation
Real VAD estimation still uses the single
deflation method, but the deflator is
improved.
Finance: Insurance Industry
Real VAD Estimation
Old method:
Deflator = Weighted average of CPI and IPI
New method:
Deflator = (Investment revenue / Insurance output) ×
Deflator of securities + [(Insurance output － Investment
revenue) ÷ Insurance output] × Weighted average of CPI
and IPI
Health
Real VAD Estimation
Real VAD estimation still uses the single
deflation method, but the deflator is
improved.
Health
Real VAD Estimation
In the old method, the deflator was the
health care and personal articles price index,
while in the new method the deflator is the
health care price index.
Education
Real VAD Estimation
As education includes both market activities
and nonmarket activities, now we use the
average of deflation method result and
quantity extrapolation method result as the
real VAD result of education.
Education
Real VAD Estimation
Old method:
Real VAD = Nominal VAD / Education price index
Education
Real VAD Estimation
New method:
Real VAD = (Real VAD_Def + Real VAD_Exa) / 2
Where,
Real VAD_Def = Nominal VAD / Education price index
Real VAD_Exa = Real VAD of last year × employee
number index
Owner Occupied Dwelling
Real VAD Estimation
The real value-added estimation of Owner
Occupied Dwelling now uses volume extrapolation
approach instead of single deflation approach.
Owner Occupied Dwelling
Real VAD Estimation
Old method:
Real VAD = Nominal VAD / Deflator
where the deflator is the renting price index of houses.
New method:
Real VAD = Real VAD of last year × Floor space of
residents index
Thank you for your attention!