Page 212 - Contributed Paper Session (CPS) - Volume 6

CPS1892 Yang Xinhong

The survey and research of “non-
observed finance" -- Take Shenzhen as
an example
Yang Xinhong
Statistics Bureau of Guangdong Province, Guangzhou, The People's Republic of China

Abstract
"Non-observed Finance" includes folk informal finance, underground finance
and illegal finance. Taking self-employed households in Shenzhen as samples,
this study is the first time in China to explore the use of direct-survey method
to measure the "Non-observed Finance" scale and its added value. The result
shows that the total amount of "Non-observed Finance" of self-employed
households in Shenzhen municipality is tens of billions of yuan, which is
basically consistent with the data collated by industry associations and the
data of formal loan provided by banking regulatory department. FISIM
method is used to calculate the added value of self-employed households in
2015.

Keywords
informal finance; underground finance; illegal finance; direct-survey-method;
FISIM method

1. Introduction
In recent years, "Non-observed Finance" ("NOF") , a terminology referring
to the "Non-observed Economy" ("NOE"), has been used by domestic
theoretical circles (Tian Guangning, 2008; Li Jianjun, 2008, 2010; Ren Biyun,
2013). It refers to the financial organizations which exist outside the System
of National Accounts, financial statistics monitoring system and economical
and financial supervision system, their activities, as well as the value forms of
monetary and financial assets resulting from their activities. In general, "NOF"
is referred to as folk informal finance, underground finance and illegal finance.
The existence of "NOF" affects the government's judgment about the financial
and economic situation, and impacts the effect of macro monetary policy. To
make a judgment about the impact and effect mentioned above, we must
master the scale of "NOF". That how to monitor "NOF" has also became the
focus of theoretical research and practical work.
At present, only a limited number of domestic scholars, such as Tian
Guangning (2008) Jianjun (2006, 2008, 2010) [4-5, 7] Ren Biyun (2013) have
studied "NOF", focusing on the definition of "NOF", the estimation of its scale
and its impact on the money supply, etc. However, the scholars apply the

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