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QS World Universities Ranking 2025 | Hong Kong universities climb in the rankings

In recent years, many universities in Hong Kong have made significant progress in global rankings, including the University of Hong Kong, the Hong Kong University of Science and Technology, the Chinese University of Hong Kong, and Lingnan University. The University of Hong Kong is one of the oldest and most prestigious universities in Hong Kong. With its excellent teaching and research results, as well as extensive international cooperation, the University of Hong Kong has always been ranked among the top in international rankings. The Hong Kong University of Science and Technology has also made significant progress in rankings in recent years. It focuses on cultivating innovative talents and has achieved groundbreaking research results in science, engineering, business management and other fields. The Chinese University of Hong Kong is highly praised for its diversified disciplines and excellent research results. In international rankings, the Chinese University of Hong Kong also main

Understand Economic Report Released by Chinese Government - Key Financial Terms Unit 1

To understand the mechanism of the Chinese Economy and the reports released by the Chinese government, this series is particularly designed for all readers who are willing to learn more about the Chinese economy, identify risks and opportunities of markets in China, study and research for your course about China, enhance your knowledge for a future career, and obtain the important signal of China. This series will present key financial terms that you must know before reading any official documents released by the Chinese government.


Macro leverage (宏观杠杆率)

The macro leverage ratio is the ratio of a country's total debt to GDP. The macro leverage ratio is generally measured by the ratio of the debt balance of the non-financial enterprise sector (hereinafter referred to as the enterprise sector), the government sector, and the household sector to the gross domestic product (GDP).


The leverage ratio of government departments is calculated by dividing the debt of government departments by the nominal GDP. It can be further divided into the central government leverage ratio and the local government leverage ratio.


The calculation of the leverage ratio of the residential sector is to divide the debt of the residential sector by the nominal GDP.



A new framework of "three levels and two advantages" reserve ratio (三档两优准备金率新框架)

"Three levels" refers to setting the deposit reserve ratio into three benchmark levels according to the importance of the financial institution system, the nature of the institution, and the service positioning.


The first level is the deposit reserve ratio of large banks, reflecting the requirements of preventing systemic risks and maintaining financial stability. 


The second tier is the deposit reserve ratio of medium-sized banks, which is slightly lower than the first tier. Medium-sized banks mainly include joint-stock commercial banks and urban commercial banks; 


The third tier is the reserve ratio of small banks, including rural credit cooperatives, rural cooperative banks, rural banks, and rural commercial banks serving counties.


"Two advantages" means that there are two advantages on the basis of the three benchmark grades:


(1)   banks in the first and second grades who meet the assessment criteria for the targeted reduction of the reserve ratio of inclusive finance can enjoy a deposit reserve ratio of 0.5 or 1.5 percentage points; 


(2)   banks serving counties that have reached a certain proportion of new deposits for local loan assessment standards can enjoy a 1 percentage point deposit reserve ratio discount. 


Considering that the banks serving the county as inclusive financial institutions have already enjoyed a low-grade deposit reserve ratio, they will no longer enjoy the preferential assessment of targeted reduction of the reserve ratio of inclusive finance. After enjoying the "two advantages", the actual deposit reserve ratio of financial institutions is lower than the benchmark.



Bimodal regulation (双峰监管)


Under the Bimodal regulatory model, the prudential regulatory authority is specially responsible for the prudential operation and solvency supervision of the regulated, including the supervision of capital adequacy, liquidity, non-performing assets, and finance; 


The behavior supervision institution is responsible for the behavior supervision of financial institutions and the protection of financial consumers, and finally implements the regulatory goal of "the buyer is responsible and the seller is responsible". 


Each regulatory agency has clear and simple objectives, a clear division of responsibilities, smooth coordination, and easy accountability. The "double peak" regulation avoids the main defects of institutional and functional supervision and is an effective institutional arrangement.



Hope you enjoy the learning. For more information, please click the label "China Financial Key Terms" on the left bar to see the whole series.



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