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SAFE News
  • Index number:
    000014453-2020-0035
  • Dispatch date:
    2020-01-17
  • Publish organization:
    State Administration of Foreign Exchange
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    Foreign Exchange Receipts and Payments for 2019— Press Conference Transcript
Foreign Exchange Receipts and Payments for 2019— Press Conference Transcript

The State Administration of Foreign Exchange (SAFE) held a press conference on foreign exchange receipts and payments for 2019 in the State Council Information Office at 4pm on Friday, January 17, 2020 and answered questions from the press.

Shou Xiaoli:

Ladies and gentlemen, good afternoon. Welcome to today's press conference. We are here to release the annual economic data, and we are delighted to have with us Ms Wang Chunying, press spokesperson, chief economist and director of the Balance of Payments Department of the SAFE. She will brief us on foreign exchange receipts and payments for 2019 and answer questions of interest.

Now let's invite Ms. Wang Chunying for some opening remarks.

2020-01-17 16:00:46

Wang Chunying:

Ladies and gentlemen, good afternoon. Welcome to today's press conference. I would first like to announce China's foreign exchange receipts and payments situations for 2019 and then take your questions.

Amid the complex global environment in 2019, the world economy slowed down, global trade and investment lost steam, and destabilizing factors and uncertainties were many. Notwithstanding, China's economy was resilient, featuring stable growth while making further progress and optimized economic structure, with economic indicators kept within a reasonable range. The RMB exchange rate became more elastic and stayed stable, with overall expectations remaining steady. As a result, China's cross-border capital flows stayed stable on the whole and its foreign exchange market remained in a basic equilibrium in the year.

In 2019, in dollar terms, banks settled USD 1.85 trillion and sold USD 1.91 trillion of foreign exchange, representing a deficit of USD 56 billion; in yuan terms, banks settled RMB 12.76 trillion and sold RMB 13.15 trillion of foreign exchange, representing a deficit of RMB 384.3 billion. For foreign-related receipts and payments by banks for customers, in dollar terms, banks registered USD 3.62 trillion in foreign-related receipts and USD 3.59 trillion in foreign-related payments for customers, representing a surplus of USD 24.5 billion; and in yuan terms, banks posted RMB 24.98 trillion in foreign-related receipts and RMB 24.81 trillion in foreign-related payments for customers, leading to a surplus of RMB 164.4 billion.

China's foreign exchange receipts and payments for 2019 are characterized by the following:

First, foreign exchange settlement and sales by banks represented a slight deficit but foreign-related receipts and payments by banks for customers were in surplus. In 2019, Chinese banks registered a monthly average deficit of USD 4.7 billion, consistent with that of 2018. If other supply and demand factors like forward foreign exchange settlement and sales, and options were considered, the foreign exchange market would be in a basic equilibrium. Banks achieved a monthly average surplus of USD 2 billion in foreign-related receipts and payments for customers, versus a deficit in 2018.

Second, the supply-demand balance was strengthened in the foreign exchange market recently, with increasing cross-border net capital inflows. Despite increasing complexities and uncertainties in the external environment since May 2019, China's foreign exchange market has been in a basic equilibrium. Banks' foreign exchange settlement and sales were improving, with the monthly average deficit trending downward from USD 8 billion to USD 5 billion, and to USD 2.6 billion from the second, third and fourth quarters respectively, and with the foreign exchange settlement and sales for December representing a surplus of USD 2.2 billion. Banks' foreign-related receipts and payments for customers changed from a deficit of USD 28.7 billion in the third quarter to a surplus of USD 22 billion in the fourth quarter.

Third, the foreign exchange sales ratio stayed stable and foreign exchange financing by companies remained steady. In 2019, the foreign exchange sales ratio, a measure of people's desire to buy foreign exchange, or the ratio of foreign exchange purchases by banks to foreign-related foreign exchange payments by customers, stood at 67%, down from the average level of the past five years. Foreign exchange financing by companies was stable. In the first 11 months, Chinese banks' outstanding domestic foreign exchange loans fell by USD 16.8 billion, which was down by 71% from the 2018 level; companies' balance of cross-border foreign currency financing for imports as at the end of 2019 was consistent with that of 2018.

Fourth, the foreign exchange settlement ratio rose steadily, indicating a weakening desire to hold foreign exchange. In 2019, the foreign exchange settlement ratio, a measure of people's desire to settle foreign exchange, or the ratio of sales of foreign exchange by customers to banks to customers' foreign-related foreign exchange receipts, was 64%, higher than the average level of the past five years. Foreign exchange deposits of companies and individuals dropped slightly, with banks' balance of domestic foreign exchange deposits at the end of November down by USD 16.2 billion from that of the end of 2018.

Fifth, banks' forward foreign exchange settlement and sales was in surplus. In 2019, a surplus of USD 145.2 billion was recorded in banks' forward foreign exchange settlement and sales for customers, based on surpluses of USD 34.5 billion, USD 43.2 billion, USD 27.8 billion and USD 39.7 billion in forward foreign exchange settlement and sales for the first to the fourth quarter.

Sixth, the balance of foreign exchange reserves rose steadily. As at the end of 2019, a balance of USD 3.1079 trillion was achieved in foreign exchange reserves, up by USD 12.3 billion month-on-month and by USD 35.2 billion from the beginning of the year.

These are the major statistics on foreign exchange receipts and payments for 2019 I plan to reveal today. Now I would like to take your questions.

2020-01-17 16:10:52

Shou Xiaoli:

Now you can raise your questions, but remember to tell us the news agency you represent first.

2020-01-17 16:11:40

China Media Group:

The global environment was rather complex in 2019. What would you say about China's cross-border capital flows in the year? What would be the trends for the year ahead as compared with 2019? What are the advantages and disadvantages? Thank you.

2020-01-17 16:58:06

Wang Chunying:

I'd like to describe or summarize the situation in the foreign exchange market in 2019 in four words, namely, "stability, equilibrium, rationality and orderliness".

"Stability" means to keep the RMB exchange rate generally stable and at an adaptive and balanced level. In 2019, the CNY and CNH against the dollar depreciated by 1.4% and 1.3% respectively, which were astonishingly low. The US Dollar Index climbed by 0.2% and EMCI fell by 1.2%. In general, the RMB exchange rate was stable, as compared with other non-USD currencies.

"Equilibrium" means the foreign exchange market was in a basic equilibrium. As indicated by the data released just now, banks' foreign exchange settlement and sales represented a monthly average deficit of USD 4.7 billion in 2019, consistent with the 2018 level, and underlining a basic equilibrium. The non-banking sector registered a cumulative slight surplus in cross-border receipts and payments, and the balance of foreign exchange reserves grew while maintaining stability.

"Rationality" means that foreign exchange market players were more rational in cross-border investment and financing and foreign exchange settlement and sales. For example, overseas investors assessed China's economic and market potential in a sensible and active manner and were enthusiastic for investing in China. Statistics from the Ministry of Commerce show that China used USD 124.4 billion in foreign capital from January to November 2019, up by 2.6% year-on-year. Meanwhile, overseas investors continued to increase the domestic RMB assets they held. The SAFE statistics show that overseas investors' net holding of domestic bonds increased by USD 86.6 billion and their net holding of stocks rose by USD 41.3 billion in the year, totaling USD 128 billion. For another example, Chinese players were sensible and orderly in outward investment. Data from the Ministry of Commerce indicates that ODI by the non-financial sector remained stable from January to November 2019 and grew by more than 40% from the 2016 level, and therefore, ODI was made in a good order. What's more, individuals' net purchases of foreign exchange in 2019 went down by 20% year-on-year. Therefore, companies and individuals have become more rational given their market behaviors.

"Orderliness" means that the foreign exchange market was healthier and more orderly. Amid the SAFE's crackdown on violations against laws and regulations, we investigated and dealt with 2,547 cases in 2019 and clamped down on illegal online foreign exchange margin trading platforms in an appropriate and orderly manner, with 2,455 illegal foreign exchange margin websites closed by the end of the year. The crackdown on violations boosted market players to raise their awareness of operations in compliance with regulations and helped maintain a good order in the foreign exchange market. According to the data released just now, outward payments reviewed by banks reached USD 3.59 trillion, which actually is an indication of companies' and individuals' efforts to reallocate their assets through outward payments or overseas investment. In our opinion, an orderly market can be a strong guarantee for compliance of market players and free capital flows, and help address overseas investors' concern over free flows of authentic capital in compliance with regulations.

For the foreign exchange trends in 2020 that you are interested in, cross-border capital flows are expected to remain stable. Globally, there will still be destabilizing factors and uncertainties in the year, such as slowdown of the world economy, impact of trade protectionism on foreign trade and investment, increasing fragility of global financial markets and instabilities in international politics. Nevertheless, China's economic, policy and market fundamentals will continue to play a leading role in stabilizing the foreign exchange market.

China's economic fundamentals will provide a strong support. In exchange rate analysis or BOP analysis, the underpinning role of economic fundamentals is usually stressed since they represent long-term trends that will not change with a minor step or for a minor reason. As indicated by China's economic fundamentals, China boasts strong economic resilience and potential. Its economy is sound and stable, and will remain so over the long term. In addition, since there is much leeway for China's macroeconomic policy to regulate against business cycles, China will continue with positive fiscal policy and prudent monetary policy, and deepen the supply-side structural reform. All this will effectively support economic stability.

China's political fundamentals show that it still has strong potential and large room for deepening reform and opening up, and will continue to boost its economic growth through reform and increase benefits through opening up. In 2020, China will further open up its financial industry as the new foreign investment law will be adopted and the new securities law has been recently introduced. For the business environment, China's global ranking by business environment soared in 2018 and jumped further in 2019.

China's market fundamentals show that it delivered striking performance in 2019 in terms of foreign exchange market maturity. As the RMB exchange rate formation mechanism was improving, exchange rate elasticity was strengthened and played a significant role in allocating foreign exchange resources, balancing the BOP and strengthening macroeconomic resilience. China's capabilities to mitigate risks in foreign exchange markets were improved significantly and market players' behaviors in foreign exchange markets became more rational and orderly.

As shown by economic, policy and market fundamentals, cross-border capital flows in China are expected to stay stable and balanced in 2020.

2020-01-17 16:59:11

China News Service:

What impact will the "phase one" deal signed between China and the US have on China's trade in services and in goods in 2020? What would you say about the trends under the current account in 2020? Thank you.

2020-01-17 17:14:35

Wang Chunying:

Let's first look at the performance of China's current account in recent years. China's current account has been in a basic equilibrium in recent years, except minor fluctuations. Driven by deep-seated and structural factors, the equilibrium will not be easily upset in the mid and long term. In the macroeconomic theory, the balance of the current account is related to the shortages of deposits and investments, and deposits and investing behaviors will not change dramatically in the short term. As a result, the balance of the current account will not change substantially in the short term. Along with economic growth and structural optimization and adjustment, China's current account has entered a stage of further equilibrium. Due to the cyclical fluctuations of commodity prices and import and export demands, the balance of the current account will fluctuate slightly, which however will not change the basic equilibrium of the balance of payments. For example, the current account surplus was USD 49.1 billion in 2018, and rebounded to USD 137.4 billion in the first three quarters of 2019, accounting for 1.3% of GDP. Therefore, despite the complex and changing external environment, China's current account remained robust, showing strong adaptability and a solid foundation for balanced and stable economic growth in China.

We expect that China's current account will be kept within a reasonable range with a slight surplus in 2020. First, surplus in trade in goods may stay stable. The "phase one" deal recently signed by the US and China based on equality and mutual respect will be favorable for increasing trade between the two countries and strengthening global confidence to create a friendly environment for normal trading activities, which will fuel China's imports and exports. The World Bank's latest projections released in January 2020 show that the global trading volume will grow by 1.9% in the year, 0.5 percentage points higher than that of 2019. Given the global trading size, this slight increase could add significantly to the year's trading volume. Further, China boasts a complete manufacturing industry chain and is accelerating the transformation and upgrading of the industry, so relevant products will remain competitive worldwide. In addition, the broad domestic market, residents' strong consumption potential and high demand for quality products will boost China's trade in goods for imports and exports, so the surplus in trade in goods will stay stable.

Second, deficit in trade in services has remained steady in recent years, which will continue in the future. Experience from major developed countries shows that when the economy reaches a certain stage, spending on services like overseas travel and study will not keep rising but go steady as residents' consumption concepts change and the nation's soft power improves. This holds true for the deficit in trade in services in China in recent years. Since 2015, deficit in trade in services in China has grown at a low rate, and even declined slightly in the first three quarters of 2019. Therefore, as the domestic service level and education quality improve, deficit in trade in services will stay stable and may contract in the foreseeable future.

With the outward investment structure optimized, deficit in ROI will remain low. This is mainly because returns will rise with the increase in China's ODI. As shown by China's external asset structure, foreign exchange reserves accounted for a high share in the past, but ODI has increased thus far, providing a strong boost to returns. Therefore, the optimization of the share of external asset will help improve China's return on investment.

Based on the above analysis, the current account will remain in a basic equilibrium in 2020, complemented by slight surpluses.

2020-01-17 17:15:36

The Economic Daily:

As Ms Wang has mentioned, with the liberalization of financial markets, more foreign funds are flowing into China's securities markets. What would you say about this? What's your view on future capital flows?

2020-01-17 18:00:16

Wang Chunying:

As you have said, foreign investors increased the bonds and stocks they held in China by nearly USD 130 billion net in 2019, with the balance nearing USD 650 billion as at the year end. The SAFE statistics show that foreign investors bought USD 86.6 billion net in additional bonds and USD 41.3 billion net in additional listed shares in China in the year. As reform and opening up has been deepened in recent years, foreign investors have increased the bonds and stocks they hold in China at a faster pace, with the balance at the end of 2019 more than doubling that of 2016. Foreign investors now claim around 3% and 4% of China's bond and stock markets, nearly twice those of the end of 2016.

The continuous flows of foreign capital into China's bond and stock markets is a result of the opening up steadily expanded and deepening reforms in China's financial markets. In recent years, China has sped up the opening up of its interbank bond market, launching Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect, and Bond Connect, and has deepened reform of the qualified foreign institutional investors system. For example, the State Council approved the SAFE to relax the investment quota restrictions on QFIIs and RQFIIs in 2019, making it more convenient for foreign investors to invest in China's securities markets. Further, as China's bonds and stocks are included in global mainstream indices, foreign investors' demand for allocating their RMB assets will strengthen, and capital will keep flowing into China's securities and stock markets.

Overall, the flows of foreign capital into China's bond and stock markets have positive implications. For example, they offer domestic players more access to financing, enabling them to leverage both foreign and domestic markets and resources to provide investment opportunities for CNH and increase the attractiveness of RMB in other countries and regions. They can also diversify domestic market players and attract experienced foreign institutional investors into the Chinese market to boost healthy development of China's capital markets, and strengthen both domestic and foreign investors' confidence by indicating foreign investors' confidence in China's economy, markets and RMB assets.

Foreign capital has much room to increase in the Chinese market in the future. On the one hand, with expanding capital markets in China, China is ranked No. 2 globally for its bond and stock markets, of which however foreign capital still has low shares, being around 3% and 4% respectively as I have mentioned, indicating much space for improvement. But as China's capital markets are opened, foreign investors will claim significantly higher shares, as shown in South Korea and Taiwan of China. On the other hand, China's securities market is very attractive in terms of bond yields and equity valuation. For example, ten-year treasury bonds in China have a yield of around 3.1%, 1.3 percentage points higher than that of the US for the same tenure, making China more attractive to bonds with negative interest rates. What's more, Shanghai Stock Exchange Composite Index grew by 22% in 2019, which was at the forefront in global stock markets, but the current price earnings ratio is only about 15 times, lower than 22 times of S&P 500 Index in the US.

China has the conditions and foundation to support the continued growth of foreign capital inflows under portfolio investment in the future. First, mid and long-term asset allocation-driven inflows will continue to dominate. As at the end of 2019, of non-resident players investing in China's bond market, overseas central banks accounted for 62%, which was stable and long-term investment. According to the latest data released by the IMF, the yuan accounted for 2.01% of global reserve currencies as of the end of the third quarter of 2019, hitting a historical high, suggesting room for further improvement for overseas institutions including central banks to allocate the RMB assets. Second, China's economic and financial fundamentals will remain strong. Along with the increasing share of foreign investment in China's bond and stock markets, relevant cross-border capital flows will increase and China's risk mitigation capabilities in the foreign exchange market will be strengthened. Many media and experts have asked us whether we are concerned over the pressure from capital outflows in the future or the hurdles in outward remittances, just as I have mentioned in my answer to the first question, after such a massive amount of foreign capital flows in. That is not necessary actually. China's foreign exchange market has been opened up in a positive, progressive and controllable manner, based on full considerations of the accounts to be opened and processes, with relevant risks kept under control. We have promised to the media and the public that China's foreign exchange market will not be closed, and also expect you to communicate such confidence to global investors, which is critical. Thank you.

2020-01-17 18:00:58

Etnet Hong Kong:

Could you elaborate on the impact of the "phase one" deal between China and the US on the RMB exchange rate? Will the recent appreciation of the RMB sustain? Thank you.

2020-01-17 18:01:23

Wang Chunying:

China's foreign exchange market has responded positively to the "phase one" deal signed by the US and China. For the RMB exchange rate, the "phase one" deal, including relevant provisions, has been released online, and the People's Bank of China has published its explanations, which can serve as a reference for you. The substantive progress of the exchange rate and other issues is a very positive sign. The RMB exchange rate has been on the rise recently. In the future, China would further improve the market-based exchange rate formation mechanism, keep the RMB exchange rate elastic, and leverage the exchange rate as the automatic stabilizer to the macro economy and the balance of payments, so as to keep the RMB exchange rate generally stable and at an adaptive and balanced level. What's more, we hope to release more data to help market players predict the market prospects. If all institutions can make reasonable judgment on trade and investment, China's foreign exchange market will not fluctuate violently. Thank you.

2020-01-17 18:02:15

Hong Kong Economic Herald:

We have noticed that the RMB exchange rate has been increasingly fluctuating since the beginning of 2019. How should enterprises manage the risks arising from the RMB exchange rate? Thank you.

2020-01-17 18:31:50

Wang Chunying:

Thank you for your question. I have answered many times the questions on how enterprises can mitigate risks arising from the RMB exchange rate, but I wish to continue to communicate our views and perspectives. It is the SAFE's responsibility to support the real economy to manage exchange rate risks, and we expect to deepen more enterprises' understanding to avoid losses from fluctuations in the RMB exchange rate through communications in various ways. I would hereby like to share with you some of my ideas, hoping that you can communicate them to a wider array of enterprises.

Enterprises must pay full heed to risk management as the exchange rate becomes increasingly elastic. In 2019, the RMB exchange rate remained robust in global currency markets, with the domestic strike price depreciating by a slight 1.4%. But the two-way fluctuation was more evident, with the amplitude of fluctuation between the peak and the bottom of the RMB exchange rate against the US dollar reaching 7.7%, versus 17% of the BRL, 12.7% of the RUB, 10.8% of the GBP, 9.7% of the KRW, 8.5% of the AUD, 6.5% of the JPY, and 5.9% of the EUR, showing the medium fluctuation range of the RMB exchange rate. Overall, the range was significant for enterprises, and as increasing the elasticity of the exchange rate is an important part of China's managed floating exchange rate system that is based on market supply and demand and regulated against a basket of currencies, market players including enterprises need to adapt to the more elastic foreign exchange environment at a faster pace and emphasize exchange rate risk management.

There are weaknesses, shortcomings and deviations in exchange rate risk management among enterprises, as well as inadaptations to the changes in foreign exchange markets. For example, some manage exchange rate risk passively, not actively, with a habit of stressing risk management when exchange rate fluctuations intensify; some take derivatives as means to make money rather than tools to lock up risks. Many enterprises, we found, aim to make money through hedging against exchange rate risks. They will hedge if that is profitable and won't if that is unprofitable. Still others cling to the stereotype of one-way fluctuation by hedging against exchange rate risks in only one way and ignoring the two-way fluctuations of market-based exchange rate.

It is crucial to the development of foreign exchange markets by supporting enterprises to improve exchange rate risk management. We hope to intensify promotions and education to enterprises about risk management and guide them to establish accurate awareness of exchange rate risks, and to drive financial institutions to diversify products and hedge against risks to better serve enterprises, and to increase market transparency and facilitate reasonable judgment of market situations by market players. The SAFE keeps releasing data in high frequency and disseminates data on banks' foreign exchange sales and settlement, banks' foreign-related receipts and payments for customers, and transactions in foreign exchange markets every month, and the Balance of Payments data in the shortest possible time lag, hoping to enable more enterprises to judge the situations of foreign exchange markets more easily. We also hope to keep the RMB exchange rate generally stable and at an adaptive and balanced level.

We would also like to give some suggestions to enterprises on exchange rate risk management. First, enterprises need to adapt to exchange rate fluctuations and overcome fears of floating exchange rate to face RMB depreciations and appreciations in a sensible way. Second, they need to transact prudently and sensibly with sound risk assessment, avoiding unfamiliar deals and excessive hedging. Third, they need to focus on main businesses, avoiding too many efforts on judging and speculating exchange rate movements, deviation from main businesses or speculative arbitration using derivatives to take unnecessary risks. Fourth, they need to maximize the control over currency mismatch, and build rational currency structure for assets and liabilities to ensure the stability and sustainability of financial positions.

In 2019, we spent a long time on in-depth surveys of enterprises and banks to understand their exchange rate risk management and found problems like information mismatch and inadequate products, but more importantly, their views and awareness of exchange rate risk management, such as executives' low awareness of mitigating exchange rate risks. As a matter of fact, hedging against exchange rate risks is just like buying insurance that requires financial inputs. I also expect you to communicate our philosophy and guide more enterprises to establish accurate concepts on exchange rate risk management. Thank you.

2020-01-17 18:32:42

CRI of China Media Group:

The SAFE has introduced many initiatives on reform and opening up in foreign exchange administration, particularly the 12 initiatives on promoting trade and investment facilitation, which has drawn wide attention. Could you brief us on the impact? Thank you.

2020-01-17 18:34:22

Wang Chunying:

To implement the requirements of the 19th National Congress of the Communist Party of China on "adopting high-level trade and investment liberalization and facilitation policy" and of the State Council on pushing ahead with reforms that delegate power, improve regulation, and upgrade services and follow the guidelines of the executive meeting of the State Council, we introduced 12 initiatives on October 25, 2019. We have kept track of these initiatives and found relevant foreign exchange businesses have remained stable, facilitation has a significant impact, time and labor costs of enterprises have dramatically decreased, cross-border trade, investment and financing have become more convenient and business environment has been further optimized since the initiatives were released. The details are as follows:

First, costs have been reduced to facilitate foreign exchange transactions. For example, according to pilot enterprises for revenue payment facilitation under the capital account, each foreign exchange settlement and payment for foreign currency capital can be completed on the same day, quicker than 2-3 days previously, and the time for preparation of authenticity materials has been shortened from 1-2 hours to several minutes. We have delegated the power to write off external debt to banks to pilot the cancellation of transaction-by-transaction registration of external debt, allowing enterprises to lock up the exchange rate for external debt as they wish, which has significantly reduced their financial costs. In addition, we have relaxed restrictions on foreign exchange settlement under the domestic asset realization account, giving enterprises more and stronger rights to make their own investment decisions, thus enabling them to improve their capital operation efficiency.

Second, piloting has been expanded to allow facilitation policy to benefit more enterprises. The pilot program for facilitation of foreign exchange receipts and payments under trade simplifies document reviews, shortens the time banks spend on reviews and allows enterprises to interface their systems with the banking system and the cross-border foreign exchange payment system, enabling online transmission and transaction-by-transaction matching of ordering, customs declaration, receipts and payments information and shortening the time spent on each transaction to 10 minutes. As a result, the more creditable the enterprises are, the more conveniently they go through transactions. 192 enterprises from Beijing, Shanghai, Guangdong, Shenzhen, Jiangsu, Ningbo, Shandong and Zhejiang have benefited since the rollout of the pilot program. 22,000 foreign exchange receipts worth USD 24.3 billion and 32,000 foreign exchange payments worth USD 20.5 billion have been handled since the kickoff of the pilot program. Further, the pilot program boosts banks to shift from ex-ante review to ex-post review, which has simplified the manual review processes while enabling banks to intensify surveys, assessment, and ongoing and ex-post verification of customers, thus improving banks' risk control capabilities.

Third, initiatives have been implemented to support micro and small businesses and the BRI. Of the 12 initiatives, there is one about simplifying foreign exchange receipts and payments procedures under trade in goods for micro and small cross-border ecommerce players, which has effectively reduced costs for enterprises to visit foreign exchange authorities. The initiatives also allow engineering contractors to centralize the management of foreign funds, which can reduce funds transfers in and outside China. The combined use of funds under the overseas capital account can reduce cross-border receipts and payments, save capital costs like loan interests and exchange gains and losses, and help enterprises to put idle overseas funds to good use, which are all aligned with the government's policy orientation for foreign exchange.

Fourth, the environment has been optimized to attract middle and long-term capital investments in China. As most foreign investors are not investment-oriented players, it is a bold step to allow them to make equity investment with capital funds in China in compliance with laws, which has optimized the business environment and helps facilitate foreign investors to expand investment in China and explore the Chinese market.

Going forward, the SAFE will keep observing the impact of the 12 initiatives during execution and rollout, and addressing issues arising during implementation to further boost facilitation.

2020-01-17 18:35:09

Shou Xiaoli:

Now I have to conclude today's press conference here. Allow me to say special thanks to chief economist Wang Chunying and to you all.

2020-01-17 18:35:42

(The original text is available on www.china.com.cn)

The English translation may only be used as a reference. In case a different interpretation of the translated information contained in this website arises, the original Chinese shall prevail.

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