Recently, “China’s total assets” and “per capita total assets” have become hot topics on the Internet. What exactly is the meaning of “China’s total assets” here? Does it represent the wealth occupied by residents as some netizens have said? In response to social concerns, we will briefly explain the balance sheet and related data released by the Chinese Academy of Social Sciences, hoping to help you further understand asset and liability accounting, correctly understand “China’s total assets” and family wealth and other related issues.

I. Total assets are the sum of all social assets, not all of them are household assets

According to international standards, the national balance sheet is generally carried out by institutional sector prepared by. my country’s balance sheet accounts for assets and liabilities according to the non-financial enterprise sector, financial institution sector, general government sector, and household sector. Assets are divided into financial assets and non-financial assets. Therefore, the total assets in the national balance sheet are the sum of the financial and non-financial assets of the four institutional sectors, not just the household assets of residents. Moreover, the household sector in the national economic accounting also includes individual industrial and commercial households, so the assets of the household sector can only be used as an approximation of household assets. According to relevant research results of the Chinese Academy of Social Sciences [1], total assets in 2016 were 1,211 trillion yuan. These assets include not only buildings, machinery and equipment, but also infrastructure such as railways, highways, and bridges, as well as bank deposits and value Securities, etc. Among them, the total assets of the household sector are 358 trillion yuan, accounting for 30% of the total assets; the total assets of the non-financial enterprise sector are 340 trillion yuan, accounting for 28% of the total assets; the total assets of the financial institution sector are 367 trillion yuan, accounting for the total assets 30%; total assets of government departments are 146 trillion yuan, accounting for 12% of total assets.

Second, total assets are not net assets, only net assets after deducting liabilities

Assets in the national balance sheet are divided into financial assets and non-financial assets Assets, according to general accounting principles, each financial asset has a corresponding liability party, such as the deposit of an individual or enterprise in a bank, which is both the asset of the individual or enterprise and the liability of the bank. Therefore, total assets are not equal to net assets, and total assets minus liabilities are net national assets. According to relevant research results of the Chinese Academy of Social Sciences, total assets in 2016 were 1,211 trillion yuan, and liabilities were 773 trillion yuan. From this, net assets were calculated to be 437 trillion yuan. Among them, the total assets of the household sector are 358 trillion yuan, liabilities (mainly bank loans) are 39 trillion yuan, and net assets are 319 trillion yuan.

Three, total assetsStock accounting, not flow accounting

Various statistical accounting indicators can be roughly divided into three categories, one is flow and the other is inventory, and One is incremental. Briefly, flow accounting is to describe the economic activities that occur in a period of time, stock accounting is to describe the economic basis on which various production activities at a certain time point depend, and incremental accounting is to describe the Increased economic activity. For example, gross domestic product (GDP) is a kind of flow accounting, which measures the value of various goods and services produced by the national economy over a period of time (generally divided into quarters and years); The accounting of production factors, such as assets such as corporate houses and machinery and equipment, is stock accounting; the GDP growth rate is the result of incremental accounting. The scale of total assets is closely related to the level of economic development, because assets are the basis of production activities. The total assets of various countries have a very close relationship with their GDP. Generally speaking, countries with high GDP also correspond to higher total assets. According to data released by the Ministry, the total assets of the United States in 2019 exceeded US$360 trillion, equivalent to nearly RMB 2600 trillion.

The Third Plenary Session of the Eighteenth Central Committee of the Communist Party put forward the important task of compiling national and local balance sheets, which exemplifies the importance attached by the Party Central Committee to the state and local balance sheets It also reflects the need for macro management to find out the bottom of assets and liabilities. In recent years, the National Bureau of Statistics has actively organized research and preparation of national and local balance sheets, and as one of the three major national economic accounting reforms, has continuously enriched and consolidated data sources, improved and improved accounting methods, strengthened in-depth analysis and research, and promoted related work. Form preliminary results. In the future, the National Bureau of Statistics will continue to study relevant compilation techniques at home and abroad, combine the characteristics of China’s economy, make full use of the fourth national economic census data, compile national and local balance sheets, more accurately reflect China’s assets and liabilities, and make better use of assets and liabilities The table has a tremendous role in understanding the “family background” and advancing reforms.

Note: [1] See “China National Balance Sheet 2018”, China Social Sciences Press.

(The author is a senior statistician of the Accounting Department of the National Bureau of Statistics, original title: Li Huaju: Total social assets do not equal total household wealth)