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The SAFE recently released Chinas International Investment Position for the year 2009. The statistics reveal that at the end of 2009, China's external financial assets hit USD3460.1 billion, up 17 percent over that at the end of 2008; external financial liabilities reached USD1638.1 billion, a rise of 12 percent year on year; external net financial assets totaled USD1821.9 billion, an increase of 22 percent year on year. Among the external financial assets, direct investments abroad totaled USD229.6 billion, portfolio investments totaled USD242.8 billion, other investments totaled USD536.5 billion, and reserves assets reached USD2451.3 billion, accounting for 7 percent, 7 percent, 16 percent, and 71 percent of external financial assets respectively. In terms of external financial liabilities, foreign direct investments totaled USD997.4 billion, portfolio investments USD190 billion, and other investments USD450.8 billion, accounting for 61 percent, 12 percent, and 28 percent of external financial liabilities respectively. The International Investment Position (hereinafter referred to as the IIP) is a statistical statement which reflects at a specific point the stocks of financial assets and liabilities of one country or region to other countries or regions in the world; together with the Balance of Payments Statement (BOP statement) it constitutes the complete international accounts system of the country or region indicating the trade flows. The SAFE adjusted its IIP from 2004 to 2008 according to the latest data. China's International Investment Position Unit: 100 million US dollars Items End of 2004 End of 2005 End of 2006 End of 2007 End of 2008 End of 2009 Net Position 2764 4077 6402 11881 14938 18219 A. Assets 9291 12233 16905 24162 29567 34601 1. Direct Investments Abroad 527 645 906 1160 1857 2296 2. Portfolio Investment 920 1167 2652 2846 2525 2428 2.1 Equity Securities 0 0 15 196 214 546 2.2 Debt Securities 920 1167 2637 2650 2311 1882 3. Other Investment 1658 2164 2539 4683 5523 5365 3.1 Trade Credits 432 661 922 1160 1102 1646 3.2 Loans 590 719 670 888 1071 942 3.3 Currency and Deposits 553 675 736 1380 1529 1409 3.4 Other Assets 83 109 210 1255 1821 1368 4. Reserves Assets 6186 8257 10808 15473 19662 24513 4.1 Monetary Gold 41 42 123 170 169 371 4.2 Special Drawing Rights 12 12 11 12 12 125 4.3 Reserves Position in the Fund 33 14 11 8 20 25 4.4 Foreign Exchange 6099 8189 10663 15282 19460 23992 B. Liabilities 6527 8156 10503 12281 14629 16381 1. Foreign Direct Investments 3690 4715 6144 7037 9155 9974 2. Portfolio Investment 566 766 1207 1466 1677 1900 2.1 Equity Securities 433 636 1065 1290 1505 1748 2.2 Debt Securities 133 130 142 176 172 152 3. Other Investment 2271 2675 3152 3778 3796 4508 3.1 Trade Credits 809 1063 1196 1487 1296 1617 3.2 Loans 880 870 985 1033 1030 1114 3.3 Currency and Deposits 381 484 595 791 918 1034 3.4 Other Liabilities 200 257 377 467 552 742 Note: 1. This IIP employs rounded-off numbers. 2. Net position refers to assets minus liabilities, + refers to net assets, and -refers to net liabilities. Compilation Principles and Indexes for the IIP I. Compilation Principles for the IIP In accordance with the standards of the Balance of Payments Manual (Fifth Edition) published by the International Monetary Fund (IMF), the IIP is a statistical statement which reflects at a specific point the stocks of financial assets and liabilities of one country or region to other countries or regions of the world. Changes in the IIP can be caused by changes in transactions, prices, or exchange rates, as well as by other adjustments during a specific period. The IIP is consistent with the BOP statement with regard to the principles of valuation, measurement, and conversion, and together with the BOP Statement constitutes a complete international accounts system of the country or region. Chinas IIP is a statistical statement which reflects at a specific point the stocks of financial assets and liabilities of China (excluding that of Hong Kong SAR, Macao SAR, and Taiwan Province) to other countries or regions of the world. II. Explanation of the Major IIP Indexes According to IMF standards items on the IIP are categorized according to assets and liabilities. Assets are divided into China's direct investments abroad, portfolio investments, other investments, and reserves assets, and liabilities are divided into foreign direct investments, portfolio investments, and other investments. The net position refers to external assets minus external liabilities. The items are specifically defined as follows: 1. Direct Investment refers to external investment whereby an investor of one country operates an enterprise located in another country with the aim of acquiring effective control over the enterprise. It consists of direct investment abroad and foreign direct investment. Direct investment abroad includes the stocks of the direct investment abroad conducted by China's non-financial sectors, the stocks of the capital fund and working capital allocated by domestic banks to set up branches overseas, as well as the stocks of loans between the parent companies and the subsidiaries both in China and abroad, and the stocks of other receivables and payables. Foreign direct investment includes the stocks of foreign direct investment absorbed by Chinas non-financial sectors, the stocks of direct investment overseas absorbed by the financial sectors (including foreign investment attracted by branches of foreign financial sectors and Chinese-funded financial sectors, and investments by foreign parties in joint financial sectors), as well as the stocks of loans between the parent companies and the subsidiaries both in China and abroad, and the stocks of other receivables and payables. 2. Portfolio Investment includes some types of investment such as shares, long- and medium-term bonds, and money-market instruments. Portfolio investment assets refer to holdings of negotiable securities, such as shares, bonds, money-market instruments, and derivative financial instruments, which are held by Chinese residents but issued by non-resident enterprises. Portfolio investment liabilities refer to shares and bonds held by non-resident enterprises but issued by resident enterprises. 2.1 Equity Securities consist of securities in the form of stocks. 2.2 Debt Securities include long- and medium-term bonds, short-term (one year or less) bonds, and money-market instruments or transferable debt instruments, such as short-term treasury notes, commercial papers, and large-sum short-term negotiable certificates of deposits. 3. Other Investment refers to all financial assets and liabilities, including trade credits, loans, currency, and deposits, as well as other assets and liabilities, but excluding direct investments, portfolio investments, and reserves assets. Long term refers to a contract period for the relevant financial assets/liabilities that is longer than one year, whereas short term refers to a contract period that is one year or less. 3.1 Trade Credits refer to direct business credit arising from the import and export of goods between China and other countries. Assets refer to the receivables of China's exporters and the advance payments by Chinas importers, and liabilities refer to the payables of Chinas importers and the advance receipts of China's exporters. 3.2 Loans refer to the external assets held by domestic institutions by providing loans and lending to overseas institutions; and liabilities refer to loans borrowed by domestic institutions, such as loans from foreign governments, loans from international institutions, loans from foreign banks, and sellerscredit. 3.3 Currency and Deposits. Assets refer to the funds deposited abroad and the foreign cash in stock held by China's financial institutions; and liabilities refer to overseas private deposits and short-term funds from foreign banks absorbed by China's financial institutions, as well as other short-term funds, for instance loans from foreign exporters and individuals. 3.4 Other Assets or Liabilities refer to investments other than trade credits, loans, currency, and deposits, for example, capital paid by non-currency international institutions and other receivables and payables. 4. Reserves Assets refer to external assets that can be used at any time and are effectively controlled by the PBOC, consisting of monetary gold, special drawing rights (SDRs), the reserves position in the fund, and foreign exchange. 4.1 Monetary Gold: refers to the gold held by the PBOC as reserve. 4.2 Special Drawing Rights is a type of ledger assets, which is allocated by the IMF according to the capital share of its members; it can be used to repay debt to the IMF and can make up for a deficit in the balance of payments between the governments of member countries. 4.3 Reserves Position in the Fund refers to assets in the ordinary accounts of the IMF that can be used freely. 4.4 Foreign Exchange refers to current assets and liabilities that are retained by the PBOC and that can be used as a means of international compensation. 2010-05-04/en/2010/0504/929.html
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The SAFE recently released revised data for China's 2009 Balance of Payments Statement. The statistics reveal that the current account and the capital and financial account continued to post a "twin surplus" in 2009. In 2009, China's surplus under the current account totaled USD 297.1 billion, a decrease of 32 percent compared with that of the previous year. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD 249.5 billion, USD 43.3 billion, and USD 33.7 billion, respectively, whereas the deficit in services amounted to USD 29.4 billion. In 2009, the surplus under the capital and financial account totaled USD 144.8 billion, a 6.64-fold increase over that in the previous year. In particular, net inflows of direct investments, portfolio investments, and other investments amounted to USD 34.3 billion, USD 38.7 billion, and USD 67.9 billion respectively. China's international reserves assets from transactions increased by USD 398.4 billion. Specifically, foreign exchange reserves assets registered a net increase of USD 382.1 billion (exclusive of the influence of the change in the value of non-transaction factors such as the exchange rates, prices, and so forth), whereas special drawing rights, the reserve position in the IMF, and monetary gold posted increases of USD 11.1 billion, USD 0.4 billion, and USD 4.9 billion respectively. Following the release of these data, in compliance with international conventions data on the foreign exchange reserves assets in Chinas Balance of Payments Statement will only record changes in transactions; changes in the value of the reserves assets due to non-transaction factors, such as exchange rates and prices, will be reflected in the International Investment Position. The SAFE has made retroactive adjustments to the data in the Balance of Payments Statements since 2003 according to the above specifications and is releasing them simultaneously with this statement (see the attachment). In addition, the BOP Analysis Team of the SAFE released China's Balance of Payments Report for 2009 in order to facilitate an understanding of the data and analysis of China's balance of payments among all groups in the society. China's Balance of Payments Statement 2009 Unit: USD 100 million Items # Balance Credit Debit I. Current Account 1 2,971 14,846 11,874 A. Goods and Services 2 2,201 13,333 11,132 a. Goods 3 2,495 12,038 9,543 b. Services 4 -294 1,295 1,589 1.Transportation 5 -230 236 466 2.Travel 6 -40 397 437 3.Communications Services 7 0 12 12 4.Construction Services 8 36 95 59 5.Insurance Services 9 -97 16 113 6.Financial Services 10 -3 4 7 7.Computer and Information Services 11 33 65 32 8.Royalties and Licensing Fees 12 -106 4 111 9.Consulting Services 13 52 186 134 10.Advertising and Public Opinion Polling 14 4 23 20 11.Audio-visual and Related Services 15 -2 1 3 12. Other Business Services 16 59 247 188 13. Government Services, n.i.e. 17 1 9 8 B. Income 18 433 1,086 653 1.Employee Compensation 19 72 92 21 2.Investment Income 20 361 994 632 C. Current Transfers 21 337 426 89 1.General Government 22 -2 0 3 2.Other Sectors 23 340 426 86 II. Capital and Financial Account 24 1,448 7,464 6,016 A. Capital Account 25 40 42 2 B. Financial Account 26 1,409 7,422 6,014 1. Direct Investment 27 343 1,142 799 1.1 Abroad 28 -439 42 481 1.2 In China 29 782 1,100 318 2. Portfolio Investment 30 387 981 594 2.1 Assets 31 99 669 570 2.1.1 Equity Securities 32 -338 122 461 2.1.2 Debt Securities 33 437 547 110 2.1.2.1 Bonds and Notes 34 370 479 110 2.1.2.2 Money Market Instruments 35 67 68 0 2.2 Liabilities 36 288 312 24 2.2.1 Equity Securities 37 282 288 7 2.2.2 Debt Securities 38 6 23 17 2.2.2.1 Bonds and Notes 39 6 23 17 2.2.2.2 Money Market Instruments 40 0 0 0 3. Other Investment 41 679 5,299 4,620 3.1 Assets 42 94 1,174 1,080 3.1.1 Trade Credits 43 -544 0 544 Long-term 44 -38 0 38 Short-term 45 -506 0 506 3.1.2 Loans 46 130 450 320 Long-term 47 -315 0 315 Short-term 48 445 450 5 3.1.3 Currency and Deposits 49 52 267 216 3.1.4 Other Assets 50 456 457 1 Long-term 51 0 0 0 Short-term 52 456 457 1 3.2 Liabilities 53 585 4,125 3,540 3.2.1 Trade Credits 54 321 321 0 Long-term 55 22 22 0 Short-term 56 298 298 0 3.2.2 Loans 57 37 3,222 3,185 Long-term 58 -97 135 232 Short-term 59 134 3,087 2,953 3.2.3 Currency and Deposits 60 116 456 340 3.2.4 Other Liabilities 61 111 126 15 Long-term 62 110 110 0 Short-term 63 1 16 15 III. Reserves Assets 64 -3,984 0 3,984 3.1 Monetary Gold 65 -49 0 49 3.2 Special Drawing Rights 66 -111 0 111 3.3 Reserves Position in the Fund 67 -4 0 4 3.4 Foreign Exchange 68 -3,821 0 3,821 3.5 Other Claims 69 0 0 0 IV. Net Errors and Omissions 70 -435 0 435 1. This statement employs rounded-off numbers. 2. After this release, according to international convention, the SAFE has made adjustments to the methods for recording the reserves assets, i.e., only changes in reserves assets due to transactions will be recorded in the balance of payments statement, which will be exclusive of changes in the value of reserves assets due to non-transaction factors such as exchange rates and prices. 2010-04-19/en/2010/0419/926.html
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At the end of 2009, China's outstanding external debt (excluding that of Hong Kong SAR, Macao SAR, and Taiwan Province) reached USD 428.647 billion, of which the outstanding registered external debt was USD 266.947 billion and the balance of trade credit was USD 161.7 billion.Note According to comparable specifications, the outstanding long- and medium-term external debt (with the remaining term) was USD 169.388 billion, accounting for 39.52 percent of the total outstanding external debt. The outstanding short-term external debt (with the remaining term) was USD 259.259 billion, accounting for 60.48 percent of the outstanding external debt. In terms of China's outstanding short-term external debt, the balance of trade credit was USD 161.7 billion. The outstanding registered short-term external debt (with the remaining term) was USD 97.559 billion, accounting for 37.63 percent of the outstanding short-term external debt and 22.76 percent of the total outstanding external debt. Of the outstanding registered external debt of USD 266.947 billion, the outstanding sovereign debt borrowed by ministries under the State Council totaled USD 36.855 billion, accounting for 13.81 percent; the outstanding debt of Chinese-funded financial institutions was USD 94.079 billion, accounting for 35.24 percent; the outstanding debt of foreign-funded enterprises was USD 93.181 billion, accounting for 34.91 percent; the outstanding debt of foreign-funded financial institutions in China was USD 38.34 billion, accounting for 14.36 percent; the outstanding debt of Chinese-funded enterprises was USD 4.184 billion, accounting for 1.57 percent; and the outstanding debt of other institutions was USD 308 million, accounting for 0.11 percent. The amount of long- and medium-term external debt in 2009 was USD 22.445 billion, a decrease of USD 13.862 billion or 38.18 percent from that during the previous year. The principal repayment of long- and medium-term external debt was USD 34.186 billion, an increase of USD 10.895 billion, or 46.78 percent over that in the previous year. The interest payment of long- and medium-term external debt was USD 3629 million, a decrease of USD 525 million or 12.64 percent from that in the previous year. In 2009, in terms of types of debt, international commercial loans constituted the majority of Chinas external debt. The balance of international commercial loans amounted to USD 198.649 billion at year-end 2009, accounting for 74.42 percent of the outstanding registered external debt; the balance of foreign government loans and loans granted by international financial organizations amounted to USD 68.298 billion, accounting for 25.58 percent of the outstanding registered external debt. In terms of the currency structure, debt in U.S. dollars constituted the majority of Chinas external debt in 2009. Of the total registered external debt at year-end 2009, debt in U.S. dollars accounted for 67.76 percent, debt in Japanese yen accounted for 11.89 percent, and debt in Euro was 6.38 percent; other debts, including SDRs and Hong Kong dollars, accounted for 13.97 percent of the total. The medium- and long-term debt was mainly absorbed by the manufacturing sector and the construction of infrastructure such as communications and transportation sector, warehousing, postal-service facilities, and so on. According to the industrial classifications of the national economy, of the USD 188.138 billion of outstanding registered medium- and long-term external debt (based on contract terms), USD 39.082 billion was channeled to the manufacturing sector, accounting for 20.77 percent of the total; USD 23.783 billion was absorbed by the communications and transportation sector, the warehousing sector, and the postal-service sector, accounting for 12.64 percent of the total; USD 16.564 billion went to the production and supply of electric power, coal, gas, and water, accounting for 8.80 percent; USD 12.231 billion was absorbed by the information technology services sector, accounting for 6.50 percent; and USD 11.825 billion was channeled to the real estate sector, accounting for 6.29 percent. Initial calculations reveal that the debt service ratio in 2009 was 2.87 percent, the ratio of outstanding external debt to foreign exchange income was 32.16 percent, the ratio of outstanding external debt to GDP was 8.73 percent, and the ratio of short-term external debt to foreign exchange reserves was 10.81 percent. All of these indicators are within the safe range of international standards. Note Adjustments have been made to the sampling survey method for trade credit in 2009. According to the new method, the balance of trade credit at year-end 2009 was USD 161.7 billion. To ensure data comparability, the balance of trade credit at year-end 2008 was adjusted to USD 129.6 billion (the pre-adjustment amount was USD 114.1 billion). 2010-04-06/en/2010/0406/925.html
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At the end of March 2010, China's outstanding external debt (excluding that of Hong Kong SAR, Macao SAR, and Taiwan Province) reached USD443.236 billion, of which the outstanding registered external debt was USD276.436 billion and the balance of trade credit was USD166.8 billion. With respect to the terms, the outstanding long- and medium-term external debt (with the remaining term) was USD167.034 billion, accounting for 37.69 percent of the total outstanding external debt. The outstanding short-term external debt (with the remaining term) was USD276.202 billion, accounting for 62.31 percent of the total outstanding external debt. Specifically, the outstanding registered short-term external debt (with the remaining term) was USD109.402 billion and the balance of trade credit was USD166.8 billion. In terms of the type of debtor, outstanding sovereign debt borrowed by ministries under the State Council was USD38.43 billion, accounting for 13.90 percent of the total outstanding registered external debt; outstanding debt of Chinese-funded financial institutions was USD98.655 billion, accounting for 35.69 percent; the outstanding debt of foreign-funded enterprises was USD94.015 billion, accounting for 34.01 percent; outstanding debt of foreign-funded financial institutions in China was USD40.882 billion, accounting for 14.79 percent; the outstanding debt of Chinese-funded enterprises was USD4.145 billion, accounting for 1.50 percent; and outstanding debt of other institutions was USD309 million, accounting for 0.11 percent. With respect to the types of debt, the balance of international commercial loans amounted to USD208.129 billion, accounting for 75.29 percent of the outstanding registered external debt, with proportion rising by 0.87 percentage point compared with that at the end of 2009. The balance of foreign government loans and loans granted by international financial organizations amounted to USD68.307 billion, accounting for 24.71 percent of the outstanding registered external debt. In terms of the currency structure, the debt in U.S. dollars accounted for 70 percent of the outstanding registered external debt, representing an increase of 2.24 percentage points compared with that at the end of 2009. The debt in Japanese yen accounted for 11.04 percent, representing a decline of 0.85 percentage point compared with that at the end of 2009. The debt in euro accounted for 5.49 percent, representing a decline by 0.89 percentage point compared with that at the end of 2009; other kinds of debt including SDRs and HKD accounts accounted for 13.47 percent of the outstanding registered external debt, a decline of 0.5 percentage point compared with the end of 2009. In terms of the sectoral distribution with reference to the Industrial Classifications of the National Economy, USD40.145 billion was invested in the manufacturing sector, accounting for 21.45 percent of the medium- and long-term outstanding registered external debt (based on contract terms); USD24.427 billion was invested in the transportation, warehousing, and postal services sectors, accounting for 13.05 percent; USD16.024 billion was invested in the production and supply of electricity, coal, gas, and water, accounting for 8.56 percent; USD11.911 billion was invested in the information technology services sector, accounting for 6.37 percent; USD11.606 billion was invested in the real estate sector, accounting for 6.20 percent of the medium- and long-term outstanding registered external debt. From January to March 2010, medium- and long-term external borrowing totaled USD8.151 billion, an increase of USD4.347 billion or 114.27 percent over that during the same period of 2009; repayment of the principal was USD5.634 billion, a decrease of USD1.018 billion, or 15.30 percent, over that during the same period of 2009. The interest payment was USD694 million, a decrease of USD111 million, or 13.79 percent. 2010-07-02/en/2010/0702/935.html
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Recently, the SAFE released Preliminary Data on China's Balance of Payments Statement for the First Quarter of 2010. This is the first time that the Chinese government has released quarterly data on the balance of payments (BOP). In Q1 of 2010 the current account and the capital and financial account posted a "twin surplus" and international reserves maintained a growing momentum. In Q1 of 2010, China's surplus under the current account totaled USD40.9 billion, a decrease of 48 percent year on year. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD29.4 billion, USD21.3 billion, and USD8.3 billion, respectively, whereas the deficit in trade in services amounted to USD18 billion. Meanwhile, China's surplus under the capital and financial account (including net errors and omissions) totaled USD55 billion in Q1 of 2010. Specifically, net inflows of foreign exchange by foreign direct investments amounted to USD17.5 billion. China's international reserves assets posted a change of USD96 billion, a rise of 46 percent year on year as calculated on a comparable basis. Specifically, transactions in foreign exchange reserve assets registered a change of USD95.9 billion (exclusive of the influence by non-transaction value-change factors such as exchange rates and prices), and special drawing rights posted an increase of USD100 million. The release of quarterly data on the BOP is of great significance to enhance the statistical transparency of the BOP and to reflect in a more time manner Chinas state of foreign-related economic development. Balance of Payments1 (Preliminary Data) Q1 of 2010 Unit: 100 million US dollars Items # Amount I. Current Account 1 409 A. Goods and Services 2 113 a. Goods 3 294 Credit 4 3,160 Debit 5 2,866 b. Services 6 -180 B. Income 7 213 C. Current Transfers 8 83 II. Capital and Financial Account2 9 550 Incl.: Direct investment 10 175 III. Reserves Assets 11 -960 3.1 Monetary Gold 12 0 3.2 Special Drawing Rights 13 -1 3.3 Reserves Position in the Fund 14 0 3.4 Foreign Exchange 15 -959 3.5 Other Claims 16 0 Notes: 1. This statement employs rounded-off numbers. 2. The data under the capital and financial accounts in this statement is the balance between Current Account Balance and the amount of change in reserve assets. 2010-05-14/en/2010/0514/930.html
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According to statistical data released by the State Administration of Foreign Exchange (SAFE), in 2009 the amount of foreign exchange settlement and sales by banks on behalf of clients amounted to USD978.6 billion and USD715.1 billion respectively, representing a decrease of 22 percent and 10 percent as compared to the same period of 2008. The surplus of foreign exchange settlement and sales amounted to USD263.5 billion, representing a decrease of 42 percent as compared to 2008. Foreign-related receipts and payments of domestic banks on behalf of clients amounted to USD1405.4 billion and USD1241.9 billion respectively, a decrease of 22 percent and 13 percent from 2008; the surplus of foreign-related receipts and payments reached USD163.4 billion, a decrease of 56 percent from the previous year. In order to better analyze and examine the foreign exchange situation and to provide a reflection of Chinas development of its foreign-related economy from different perspectives and to increase the transparency of foreign exchange statistical data, the SAFE has decided that beginning in 2010 monthly data on the foreign exchange settlement and sales by banks on behalf of clients and data on foreign-related receipts and payments of banks on behalf of clients will be released on a quarterly basis. Appendix: Glossary Balance of payments (BOP) refers to all economic transactions between residents and non-residents of China, including all financial transactions and barter transactions that result in changes in the assets and liabilities of residents and non-residents. Foreign exchange settlement and sales on behalf of clients by banks refer to the business of foreign exchange settlement and sales conducted by designated foreign exchange banks for their clients, excluding data on foreign exchange settlement and sales conducted by designated foreign exchange banks on their own behalf and data on inter-bank foreign exchange market transactions. The period when the conversion between the Renminbi and the foreign currency occurs shall be regarded as the time point for the statistics. Specifically, foreign exchange settlement refers to the sale of foreign exchange to designated foreign exchange banks by owners of foreign exchange; foreign exchange sales refers to the sale of foreign exchange by designated foreign exchange banks to users of foreign exchange. Foreign-related receipts and payments of banks on behalf of clients refer to the receipts and payments between domestic non-bank residential institutions and individuals (hereinafter referred to as the non-bank sector) and non-residential institutions and individuals via domestic banks, excluding receipts and payments in cash and the foreign-related receipts and payments of the banks themselves. Specifically, they include: cross-border receipts and payments between the non-bank sector and non-residents via domestic banks (including foreign exchange and the Renminbi), and domestic receipts and payments between the non-bank sector and non-residents via domestic banks (currently including receipts and payments in foreign exchange and receipts and payments in RMB under the RMB settlement account for cross-border trade); the time when the clients of banks conduct foreign-related receipts and payments at domestic banks shall be regarded as the time point for the statistics. Specifically, foreign-related receipts of banks on behalf of clients refer to the monetary amounts collected by the non-bank sector from non-residents via domestic banks; foreign-related payments of banks on behalf of clients refer to the monetary amounts paid by the non-bank sector to non-residents via domestic banks. 2010-03-31/en/2010/0331/923.html
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Recently, the State Administration of Foreign Exchange (SAFE) released data on foreign exchange settlement and sales on behalf of clients by banks and data on foreign-related receipts and payments of banks on behalf of clients. An official of the SAFE was interviewed on relevant issues. Q: What is the difference between foreign exchange settlement and sales by banks on behalf of clients and foreign exchange settlement and sales by banks? A: Foreign exchange settlement and sales by banks on behalf of clients refers to foreign exchange settlement and sales business conducted by designated foreign exchange banks for their clients, which reflects the scale of the foreign exchange settlement and sales by the designated foreign exchange banks for their institutional and individual clients. It excludes data on foreign exchange settlement and sales conducted by designated foreign exchange banks for themselves and data on inter-bank foreign exchange market transactions. Q: What is the relationship between the balance of foreign exchange settlement and sales by banks on behalf of clients and changes in the foreign exchange reserves during the same period? A: The balance of foreign exchange settlement and sales by banks on behalf of clients is the balance by the foreign exchange settlement and foreign exchange sales by banks on behalf of their clients, which will be offset by the banks through transactions on the inter-bank foreign exchange market; it is one of the major factors causing changes in the countrys foreign exchange reserves. However, there are other factors, such as foreign exchange settlement and sales by designated foreign exchange banks for themselves and changes in the composite positions of the foreign exchange settlement and sales by banks, which also contribute to changes in the foreign exchange reserves. Thus, the balance of foreign exchange settlement and sales by banks on behalf of clients is not equivalent to the changes in foreign exchange reserves during the same period. Q: What is the difference between data on foreign exchange settlement and sales on behalf of clients by banks and data on foreign-related receipts and payments of banks on behalf of clients? A: The data on foreign exchange settlement and sales on behalf of clients by banks are differentiated from the data on foreign-related receipts and payments of banks on behalf of clients in terms of both the scope of the statistical data and the time-point for the statistics. The foreign-related receipts and payments of banks on behalf of clients is a component of the balance of payments statistics, which reflects the condition of fund flows between the domestic non-bank sector and non-residents; the time when clients conduct foreign-related receipts and payments at domestic banks is regarded as the time point for the statistics. The statistics of foreign exchange settlement and sales on behalf of clients by banks do not comply with the principle of transactions between residents and non-residents; any transaction between the RMB and the foreign currencies at domestic bank counters (excluding transactions conducted by designated foreign exchange banks themselves) shall be incorporated into the scope of the statistics, and the time when the conversion between the RMB and the foreign currencies occurs shall be regarded as the time point for the statistics. Q: How should we understand the relationship between foreign-related receipts and payments of banks on behalf of clients and the balance of payments statistics? A: The foreign-related receipts and payments of banks on behalf of clients is an integral part of the balance of payments statistics, which reflects the scope of foreign-related receipts and payments between the domestic non-bank sector and non-residents via domestic banks, i.e., the condition of fund flows between the domestic non-bank sector and non-residents. It does not reflect the barter transactions and foreign-related transactions conducted by the banks themselves; the scope of the statistics of foreign-related receipts and payments of banks on behalf of clients is smaller than that of the balance of payments statistics. In addition, the accounting method for statistics on foreign-related receipts and payments of banks on behalf of clients carried out on a cash basis is different from the accrual basis of accounting required by the balance of payments statistics. 2010-03-31/en/2010/0331/924.html
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For the purposes of adapting to the developments and changes in the business of foreign-related receipts and payments conducted by domestic financial institutions and of improving the BOP statistical declarations, the State Administration of Foreign Exchange (SAFE) has recently issued the Operating Rules for the Balance of Payments Statistical Declarations through Financial Institutions (hereinafter referred to as Operating Rules), which shall supersede the previous trial version of the Operating Rules. These Operating Rules shall go into effect as of the date of promulgation. As compared with the previous trial version, the new Operating Rules mainly include the following adjustments: First, the receipts and payments between domestic residents and domestic non-residents via domestic banks have been incorporated into the statistical scope of foreign-related receipts and payments; second, the threshold for foreign-related personal income declarations has been raised from USD2,000 to USD3,000; third, the online reporting procedures for the foreign-related income of institutions have been clarified to facilitate the reporting of the declared entities in a timely manner; fourth, the filing and retention requirements for foreign-related receipts and payments of domestic banks have been adjusted; fifth, with respect to entities that fail to report in due course, special treatment measures shall be taken, under which payments will be refused in cases of unfulfilled reporting. These Operating Rules feature both convenience and high efficiency. Implementation of these Operating Rules is expected to reduce the administrative costs for both the banks and the declaring entities, and to make Chinas balance of payments statistical declarations more timely, accurate, and complete. 2010-06-08/en/2010/0608/934.html
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The SAFE recently released the revised data on China's Balance of Payments Statement for Q1 of 2010. The statistics reveal that the current account and the capital and financial account continued to post a "twin surplus" in Q1 of 2010. In Q1 of 2010, China's surplus under the current account totaled USD53.6 billion, a decrease of 32 percent year on year. Specifically, according to the statistical coverage of the balance of payments, the surplus in goods, income, and current transfers reached USD30.3 billion, USD21.1 billion, and USD9.5 billion, respectively, whereas the deficit in services amounted to USD7.2 billion. Meanwhile, the surplus under the capital and financial account totaled USD64.2 billion in Q1 of 2010, compared to a deficit of USD12.8 billion posted during the same period of 2009. In particular, net inflows of direct investments and portfolio investments amounted to USD15.5 billion and USD2.2 billion respectively, whereas net inflows of other investments reached USD45.4 billion. China's international reserve assets posted an increase of USD96 billion. Specifically, foreign exchange reserve assets registered a net increase of USD95.9 billion (exclusive of changes in the value of non-transaction factors such as exchange rates and prices), and special drawing rights posted an increase of USD100 million. 2010-07-05/en/2010/0705/937.html
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The SAFE recently released China 's Balance of Payments Statement for 2007. The statistics reveal that the current account and the capital and financial account posted a "twin surplus" in 2007 and international reserves increased rapidly. China 's surplus under the current account in 2007 totaled USD 371.8 billion. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD 315.4 billion, USD 25.7 billion, and USD 38.7 billion respectively, whereas the deficit in services amounted to USD 7.9 billion. Meanwhile, China 's surplus under the capital and financial account totaled USD 73.5 billion in 2007. In particular, the net inflows of direct investments and portfolio investments amounted to USD 121.4 billion and USD 18.7 billion respectively, whereas the outflows of other investments reached USD 69.7 billion. Furthermore, China 's international reserves continued to grow. At the end of 2007, China registered a total of USD 1528.2 billion in foreign exchange reserves, an increase of USD 461.9 billion over the end of 2006. In addition, the BOP Analysis Team of the SAFE released China 's Balance of Payments Report for 2007 in order to facilitate an understanding in the society of the data and analysis of China 's balance of payments. Balance of Payments* 2007 US dollars (thousands) Item Line Balance Credit Debit I. Current Account 1 371,832,620 1,467,881,998 1,096,049,377 A. Goods and Services 2 307,476,604 1,342,205,962 1,034,729,358 a. Goods 3 315,381,397 1,219,999,629 904,618,232 b. Services 4 -7,904,793 122,206,333 130,111,126 1.Transportation 5 -11,946,918 31,323,823 43,270,740 2.Travel 6 7,446,953 37,233,000 29,786,047 3.Communication Services 7 92,886 1,174,551 1,081,665 4.Construction Services 8 2,467,280 5,377,097 2,909,817 5.Insurance Services 9 -9,760,431 903,696 10,664,127 6.Financial Services 10 -326,437 230,486 556,924 7.Computer and Information Services 11 2,136,680 4,344,752 2,208,072 8.Royalties and Licensing Fees 12 -7,849,433 342,634 8,192,067 9.Consulting Services 13 724,182 11,580,552 10,856,370 10.Advertising and Public Opinion Polling 14 575,347 1,912,265 1,336,918 11.Audio-visual and Related Services 15 162,569 316,285 153,716 12.Other Business Services 16 8,676,788 26,914,852 18,238,064 13. Government Services, n.i.e. 17 -304,260 552,339 856,599 B. Income 18 25,688,492 83,030,308 57,341,816 1.Employee Compensation 19 4,340,072 6,833,130 2,493,058 2.Investment Income 20 21,348,421 76,197,179 54,848,758 C. Current Transfers 21 38,667,524 42,645,727 3,978,204 1.General Government 22 -165,960 34,947 200,907 2.Other Sectors 23 38,833,484 42,610,780 3,777,297 II. Capital and Financial Account 24 73,509,250 921,960,702 848,451,452 A. Capital Account 25 3,099,075 3,314,699 215,624 B. Financial Account 26 70,410,175 918,646,003 848,235,828 1. Direct Investment 27 121,418,332 151,553,693 30,135,361 1.1 Abroad 28 -16,994,854 1,929,982 18,924,836 1.2 In China 29 138,413,185 149,623,710 11,210,525 2. Portfolio Investment 30 18,671,987 63,969,241 45,297,254 2.1 Assets 31 -2,324,017 42,643,237 44,967,254 2.1.1 Equity Securities 32 -15,188,600 1,753,200 16,941,800 2.1.2 Debt Securities 33 12,864,583 40,890,037 28,025,454 2.1.2.1 Bonds and Notes 34 10,590,583 38,616,037 28,025,454 2.1.2.2 Money Market Instruments 35 2,274,000 2,274,000 0 2.2 Liabilities 36 20,996,004 21,326,004 330,000 2.2.1 Equity Securities 37 18,509,607 18,509,607 0 2.2.2 Debt Securities 38 2,486,397 2,816,397 330,000 2.2.2.1 Bonds and Notes 39 2,486,397 2,816,397 330,000 2.2.2.2 Money Market Instruments 40 0 0 0 3. Other Investment 41 -69,680,144 703,123,069 772,803,213 3.1 Assets 42 -151,485,862 29,879,034 181,364,896 3.1.1 Trade Credits 43 -23,800,000 0 23,800,000 Long-term 44 -1,666,000 0 1,666,000 Short-term 45 -22,134,000 0 22,134,000 3.1.2 Loans 46 -20,805,513 294,330 21,099,842 Long-term 47 -4,119,000 0 4,119,000 Short-term 48 -16,686,513 294,330 16,980,842 3.1.3 Currency and Deposits 49 -2,381,759 15,994,859 18,376,618 3.1.4 Other Assets 50 -104,498,590 13,589,846 118,088,436 Long-term 51 0 0 0 Short-term 52 -104,498,590 13,589,846 118,088,436 3.2 Liabilities 53 81,805,718 673,244,035 591,438,317 3.2.1 Trade Credits 54 29,100,000 29,100,000 0 Long-term 55 2,037,000 2,037,000 0 Short-term 56 27,063,000 27,063,000 0 3.2.2 Loans 57 17,296,028 548,960,080 531,664,053 Long-term 58 6,988,110 20,882,738 13,894,628 Short-term 59 10,307,918 528,077,342 517,769,425 3.2.3 Currency and Deposits 60 34,316,941 91,634,184 57,317,243 3.2.4 Other Liabilities 61 1,092,750 3,549,771 2,457,021 Long-term 62 1,132,310 1,167,941 35,631 Short-term 63 -39,561 2,381,830 2,421,391 III. Reserves Assets 64 -461,744,102 239,766 461,983,869 3.1 Monetary Gold 65 0 0 0 3.2 Special Drawing Rights 66 -78,869 0 78,869 3.3 Reserves Position in the Fund 67 239,766 239,766 0 3.4 Foreign Exchange 68 -461,905,000 0 461,905,000 3.5 Other Claims 69 0 0 0 IV. Net Errors and Omissions 70 16,402,232 16,402,232 0 * The BOP statement employs rounded-off numbers. The SAFE recently released China 's Balance of Payments Statement for 2007. The statistics reveal that the current account and the capital and financial account posted a "twin surplus" in 2007 and international reserves increased rapidly. China 's surplus under the current account in 2007 totaled USD 371.8 billion. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD 315.4 billion, USD 25.7 billion, and USD 38.7 billion respectively, whereas the deficit in services amounted to USD 7.9 billion. Meanwhile, China 's surplus under the capital and financial account totaled USD 73.5 billion in 2007. In particular, the net inflows of direct investments and portfolio investments amounted to USD 121.4 billion and USD 18.7 billion respectively, whereas the outflows of other investments reached USD 69.7 billion. Furthermore, China 's international reserves continued to grow. At the end of 2007, China registered a total of USD 1528.2 billion in foreign exchange reserves, an increase of USD 461.9 billion over the end of 2006. In addition, the BOP Analysis Team of the SAFE released China 's Balance of Payments Report for 2007 in order to facilitate an understanding in the society of the data and analysis of China 's balance of payments. Balance of Payments* 2007 US dollars (thousands) Item Line Balance Credit Debit I. Current Account 1 371,832,620 1,467,881,998 1,096,049,377 A. Goods and Services 2 307,476,604 1,342,205,962 1,034,729,358 a. Goods 3 315,381,397 1,219,999,629 904,618,232 b. Services 4 -7,904,793 122,206,333 130,111,126 1.Transportation 5 -11,946,918 31,323,823 43,270,740 2.Travel 6 7,446,953 37,233,000 29,786,047 3.Communication Services 7 92,886 1,174,551 1,081,665 4.Construction Services 8 2,467,280 5,377,097 2,909,817 5.Insurance Services 9 -9,760,431 903,696 10,664,127 6.Financial Services 10 -326,437 230,486 556,924 7.Computer and Information Services 11 2,136,680 4,344,752 2,208,072 8.Royalties and Licensing Fees 12 -7,849,433 342,634 8,192,067 9.Consulting Services 13 724,182 11,580,552 10,856,370 10.Advertising and Public Opinion Polling 14 575,347 1,912,265 1,336,918 11.Audio-visual and Related Services 15 162,569 316,285 153,716 12.Other Business Services 16 8,676,788 26,914,852 18,238,064 13. Government Services, n.i.e. 17 -304,260 552,339 856,599 B. Income 18 25,688,492 83,030,308 57,341,816 1.Employee Compensation 19 4,340,072 6,833,130 2,493,058 2.Investment Income 20 21,348,421 76,197,179 54,848,758 C. Current Transfers 21 38,667,524 42,645,727 3,978,204 1.General Government 22 -165,960 34,947 200,907 2.Other Sectors 23 38,833,484 42,610,780 3,777,297 II. Capital and Financial Account 24 73,509,250 921,960,702 848,451,452 A. Capital Account 25 3,099,075 3,314,699 215,624 B. Financial Account 26 70,410,175 918,646,003 848,235,828 1. Direct Investment 27 121,418,332 151,553,693 30,135,361 1.1 Abroad 28 -16,994,854 1,929,982 18,924,836 1.2 In China 29 138,413,185 149,623,710 11,210,525 2. Portfolio Investment 30 18,671,987 63,969,241 45,297,254 2.1 Assets 31 -2,324,017 42,643,237 44,967,254 2.1.1 Equity Securities 32 -15,188,600 1,753,200 16,941,800 2.1.2 Debt Securities 33 12,864,583 40,890,037 28,025,454 2.1.2.1 Bonds and Notes 34 10,590,583 38,616,037 28,025,454 2.1.2.2 Money Market Instruments 35 2,274,000 2,274,000 0 2.2 Liabilities 36 20,996,004 21,326,004 330,000 2.2.1 Equity Securities 37 18,509,607 18,509,607 0 2.2.2 Debt Securities 38 2,486,397 2,816,397 330,000 2.2.2.1 Bonds and Notes 39 2,486,397 2,816,397 330,000 2.2.2.2 Money Market Instruments 40 0 0 0 3. Other Investment 41 -69,680,144 703,123,069 772,803,213 3.1 Assets 42 -151,485,862 29,879,034 181,364,896 3.1.1 Trade Credits 43 -23,800,000 0 23,800,000 Long-term 44 -1,666,000 0 1,666,000 Short-term 45 -22,134,000 0 22,134,000 3.1.2 Loans 46 -20,805,513 294,330 21,099,842 Long-term 47 -4,119,000 0 4,119,000 Short-term 48 -16,686,513 294,330 16,980,842 3.1.3 Currency and Deposits 49 -2,381,759 15,994,859 18,376,618 3.1.4 Other Assets 50 -104,498,590 13,589,846 118,088,436 Long-term 51 0 0 0 Short-term 52 -104,498,590 13,589,846 118,088,436 3.2 Liabilities 53 81,805,718 673,244,035 591,438,317 3.2.1 Trade Credits 54 29,100,000 29,100,000 0 Long-term 55 2,037,000 2,037,000 0 Short-term 56 27,063,000 27,063,000 0 3.2.2 Loans 57 17,296,028 548,960,080 531,664,053 Long-term 58 6,988,110 20,882,738 13,894,628 Short-term 59 10,307,918 528,077,342 517,769,425 3.2.3 Currency and Deposits 60 34,316,941 91,634,184 57,317,243 3.2.4 Other Liabilities 61 1,092,750 3,549,771 2,457,021 Long-term 62 1,132,310 1,167,941 35,631 Short-term 63 -39,561 2,381,830 2,421,391 III. Reserves Assets 64 -461,744,102 239,766 461,983,869 3.1 Monetary Gold 65 0 0 0 3.2 Special Drawing Rights 66 -78,869 0 78,869 3.3 Reserves Position in the Fund 67 239,766 239,766 0 3.4 Foreign Exchange 68 -461,905,000 0 461,905,000 3.5 Other Claims 69 0 0 0 IV. Net Errors and Omissions 70 16,402,232 16,402,232 0 * The BOP statement employs rounded-off numbers. 2008-06-05/en/2008/0605/868.html