In the third quarter of 2019, inflows and outflows of inward foreign direct investments in domestic financial institutions (see appendix for the definition )amounted to RMB 38,608 million and RMB 46,869 million respectively, resulting in a net outflow of RMB 8,261 million.Outflows and inflows of outward foreign direct investments by domestic financial institutions amounted to RMB 26,057 million and RMB 9,723 million respectively, resulting in a net outflow of RMB 16,334 million (see table 1).

In the US dollar terms, in the third quarter of 2019, inflows and outflows of inward foreign direct investments in domestic financial institutions amounted to USD 5,525 million and USD 6,708 million respectively, resulting in a net outflow of USD 1,182 million.Outflows and inflows of outward foreign direct investments by domestic financial institutions amounted to USD 3,729 million and USD 1,392 million respectively, resulting in a net outflow of USD 2,338 million (seetable 2).

In the third quarter of 2019, the changes in inward foreign direct investments in domestic financial institutions were mainly due to the inter-company debt allocations between domestic financial institutions and their foreign non-financial related companies, which were normal fluctuations.Equity investments from foreign investors maintained net inflows. Meanwhile, outward foreign direct investments by domestic financial institutions remained stable.

Table1: Foreign Direct Investment Flows in Financial Sector(Quarterly)

Unit:RMB 100 million

Notes:

1.This table employs rounded-off numbers.

2.The RMB value of quarterly flows is converted from the correspondent USD value for the quarter, the conversion rate is the quarterly average central parity rate of RMB against USD.

3.Net flow is the difference between inflow and outflow; the positive value represents net inflow, and the negative represents net outflow.

Table2: Foreign Direct Investment Flows in Financial Sector(Quarterly)

Unit:USD 100 million

Notes:1. This table employs rounded-off numbers.

2.Net flow is the difference between inflow and outflow; the positive value represents net inflow, and the negative represents net outflow.

Appendix:Glossary

Financial institutions include the headquarters,branches, and subsidiaries of institutions engaging in banking, securities, insurance, and other financial businesses which are established within the territory of China according to the law.

Direct investments of financial institutions refer to equity or bond investments either by foreign investors in China’s domestic financial institutions or by China’s domestic financial institutions in overseas enterprises, which enable the investors to have voting rights of 10 percent or more in the invested enterprises.

The table of Direct Investment Flows of Financial Institutions exhibits the data on equity or bond investment flows of inward and outward foreign direct investments (excluding profit reinvestments). Specifically, the inflows of inward foreign direct investment refer to the equity or bond investments made or increased by foreign investors in China’s domestic financial institutions; the outflows of inward foreign direct investment refer to the equity or bond investments decreased or withdrawn by foreign investors from China’s domestic financial institutions. The outflows of outward foreign direct investment referto the equity or bond investments made or increased by China’s domestic financial institutions in overseas enterprises; the inflows of outward foreign direct investment refer to the equity or bond investments decreased or withdrawn by China’s domestic financial institutions from overseas enterprises.