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For the purpose of realizing the administration of donations in foreign exchange and facilitating the receipt and payment of donations in foreign exchange, and pursuant to the Regulations of the People's Republic of China on Foreign Exchange Administration and other relevant laws and regulations, the relevant issues concerning administration of donations in foreign exchange by domestic institutions are hereby promulgated: Article 1. Donationsherein refer to free donations and aid of legal foreign exchange funds between domestic institutions and overseas institutions/individuals. Article 2. Donations in foreign exchange by domestic institutions must be conducted in compliance with the laws and regulations and other relevant administrative rules of the Peoples Republic of China, and shall not be in violation of social morality, nor be detrimental to the public interest and legal rights and interests of other citizens. Article 3. Domestic institutions shall handle donations in foreign exchange via separate foreign exchange accounts for donations. Designated foreign exchange banks (hereinafter referred to as Banks) shall open accounts hereof for domestic institutions, and bring them under the administration of the foreign exchange account administration information system. Unless otherwise stipulated in the Circular, the opening, use, alteration, and closing of foreign exchange accounts for donations shall be subject to the relevant regulations of foreign exchange administration for current accounts. The income of the accounts hereof shall include: donated foreign exchange funds remitted inward from overseas countries/regions and foreign exchange funds for donation to overseas countries/regions that have been transferred from the foreign exchange accounts of the current accounts under the same name or via foreign exchange purchases. Expenditures hereof shall include donations agreed upon in donation agreements as well as other donation expenditures. Income/expenditure of foreign exchange accounts for donations by domestic representative institutions of overseas non-governmental organizations (NGOs) shall include foreign exchange funds for donations to projects agreed upon by the general headquarters of overseas NGOs and for the legal expenditures incurred in China. In the event that domestic enterprises accept/make donations from/to overseas profit-making institutions or overseas individuals, the opening, use, alteration, and closing of their foreign exchange accounts for donations shall be subject to the relevant regulations concerning the administration of foreign exchange accounts under the current account. Article 4. Domestic institutions shall not carry out the account procedures for entry and outward payments of donated foreign exchange funds unless the relevant materials have been provided and approved by the banks in compliance with the Circular. Article 5. In the event of accepting/making donations from/to overseas non-profit institutions by domestic enterprises, the domestic enterprises shall provide the following materials to the banks: (1) An application. (In the application the domestic enterprises must truthfully guarantee and affirm that their donations shall not be in violation of any relevant prohibitions of the state, that all procedures such as approval and filing have been conducted in line with the relevant regulations of the state, that the overseas institutions from/to which they accept/make donations are non-profit institutions, and that the domestic enterprises shall use the donated funds in strict accordance with the donation agreements and shall be held legally responsible for any issues arising therefrom. See Annex 1 for the format); (2) A photocopy of the business license of the enterprise; (3) A notarized donation agreement specifying the purpose of the fund; (4) Supporting documents proving the legal overseas registration and establishment of the overseas non-profit institutions (accompanied by Chinese translations); (5) Other required materials when the aforesaid materials fail to sufficiently prove the validity of the transaction. When domestic enterprises accept/make donations from/to overseas profit-making institutions or overseas individuals, the relevant procedures shall be conducted in line with the relevant regulations on cross-border investments and external liabilities and claims. Article 6. When donations are made/accepted by government organs at or above the county level and some social organizations (see Annex 2 for the list) that do not need to register or that are exempt from social organization registration according to the relevant regulations, the relevant procedures for receipt and payment of foreign exchange shall be carried out with the aforesaid application at the banks. Article 7. Domestic representative institutions of overseas NGOs shall carry out the procedures for account entry of foreign exchange with the aforesaid application and the donation agreement between the general headquarters of the overseas NGO and the domestic party receiving the donation. Article 8. When domestic institutions other than those prescribed in Article 5, 6, and 7 herein carry out receipt and payment of donations in foreign exchange, the following materials shall be provided to the banks: (1) An application. (In the application the domestic enterprises must truthfully guarantee and affirm that their donations shall not be in violation of any relevant prohibitions of the state, that they have carried out all procedures, such as the approval and filing in compliance with the relevant regulations of the state, and that they shall be held legally responsible for any issues arising therefrom); (2) A photocopy of the registration certification issued by the relevant authorities; (3) The donation agreement specifying the purpose of the fund. When national religious organizations accept donations in foreign exchange equivalent to RMB 1,000,000 or more in a lump sum, the supporting documents for the approval of the donation hereof by the State Administration for Religious Affairs shall also be provided. When religious sites, such as Buddhist temples, Taoist temples, mosques and churches, and local religious organizations accept donations in foreign exchange equivalent to RMB 1,000,000 or more in a lump sum, supporting documents for approval of the donation hereof by the peoples government at the provincial level in the places where the aforesaid sites and organizations are located shall also be provided. Article 9. In the event of donations to overseas countries/regions by domestic institutions, other than such materials as prescribed herein, the Tax Certificates for Foreign Payments under Trade in Services, Profits, Current Transfers, and Partial Capital Accounts shall also be submitted according to the relevant regulations. Article 10. In the event of carrying out the receipt and payment of donations in foreign exchange for domestic institutions, the banks shall examine the relevant materials according to the relevant regulations and report in a timely manner to the administrative foreign exchange authorities in the locality where they are located any information regarding suspicious or abnormal receipt/payment of donations in foreign exchange. The banks shall, on the examination documents, specify the date and amount of the transaction and affix their business seal. The relevant documents shall be preserved in the archives for a period of 5 years for future reference. Article 11. The Administrative foreign exchange authorities shall, according to the relevant laws, supervise and administer the receipt and payment of donations in foreign exchange according to the laws and regulations and shall enhance the off-site supervision thereof. Article 12. Conduct in violation of the Circular and the relevant regulations on foreign exchange administration shall be punished in accordance with such regulations as the Regulations of the People's Republic of China on Foreign Exchange Administration. Article 13. This Circular shall enter into force as of March 1, 2010. Should there be any difference between previous regulations and this Circular, this Circular shall prevail. Upon receipt of this Circular, the branches of the SAFE in a timely manner shall forward it to their subdivisions, city commercial banks, rural commercial banks, and foreign banks within their jurisdiction. The Chinese-funded designated foreign exchange banks shall in a timely manner forward it to their branches and divisions. In the event of any problem arising from implementation, kindly provide feedback to the SAFE promptly. 2009-12-30/en/2009/1230/700.html
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The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and all designated Chinese-funded foreign exchange banks: In order to further improve administration of individual foreign exchange settlement and sale, effectively check individualsevasion of supervision over the limitation on the aggregate amount by means of fund splitting and so forth, and standardize foreign exchange settlement of individuals by presenting foreign currency notes, the relevant issues are hereby notified as follows: ` No individual shall evade administration of the annual aggregate amount of individual exchange settlement and individual exchange purchases within the territory of China by means of fund splitting and so forth. Generally, individual settlement and sales of foreign exchange through splitting are characterized by the following: 1. One individual/organization outside the territory of China remits foreign exchange to 5 or more different individuals on the same day/every other day/or on successive days, and these payees separately carry out the exchange settlement. 2. Five or more different individuals remit foreign exchange to the same individual/organization outside the territory of China after separately purchasing foreign exchange on the same day/every other day/or on successive days. 3. Five or more different individuals deposit/remit RMB funds into the RMB account of the same individual/organization after separately settling the exchange on the same day/every other day/or on successive days. 4. An individual withdraws foreign currency notes close to an equivalent of USD10,000 five or more times within 7 days from the same foreign exchange savings account; or five or more individuals jointly settling the exchange of foreign currency notes on the same day at the same bank outlet with each individual settling the equivalent of close to USD5,000. 5. The same individual transfers deposits from his/her foreign exchange savings account to more five or more direct relatives who then complete the exchange settlement within the limit on the annual aggregate amount; or five or more direct relatives of the same individual transfer foreign exchange purchased within the limit on the annual aggregate amount to his/her foreign exchange savings account. 6. Other acts by which individuals complete exchange settlement and sale by splitting many times through the agency of many persons for the purpose of evading administration of the limitation. a When banks identify any individual application for exchange settlement and sale in conformity with any of the characteristics stated in Article 1 of this Circular, the banks shall handle the application in accordance with the following provisions: 1. The banks shall reject individuals applications for foreign exchange settlement and sale bearing the distinct characteristics of splitting which can be identified by the banks as exchange settlement and sale by splitting. 2. In the event that the foreign exchange settlement and sale by individuals conform with any of the aforesaid characteristics, whereas the settlement and sale cannot be identified by the banks as foreign exchange settlement and sale through splitting, the banks shall, if under the current account, require the involved individuals to submit the relevant certifications stating the transaction amount in compliance with the principle of authenticity verification of foreign exchange collection and payment under the current account before handling the business; if the applicants fail to submit the relevant certifications, the banks shall reject the applications. If under the capital account, the banks shall handle the relevant business in accordance with the regulations concerning administration of individual capital accounts, such as Chapter b of the Detailed Rules for the Implementation of Measures for Individual Foreign Exchange Administration. 3. When an individual is identified by the bank in an ex-post examination as a suspect involved in foreign exchange settlement and sale through splitting, the bank shall make efforts to collect the relevant evidence to prevent fund splitting conducted by the same individual. At the same time, the bank shall also report the situation within 3 working days from the date of identification to the SAFE branches or sub-branches in the localities where the banks are located (hereinafter referred to as SAFE branches). b Individual applications for exchange settlement by presenting foreign currency notes shall be handled in accordance with the following provisions: 1. When an individual who has not exceeded the limit on the annual aggregate amount of exchange settlement settles the exchange by presenting foreign currency notes, the settlement of foreign currency notes with a total sum on the same day equivalent to USD5,000 or less shall be handled at the bank by presenting a valid identity certificate for the said individual; when the total sum of the exchange settlement exceeds the equivalent of USD5,000, the business shall be settled at the bank by presenting the valid identity certificate of the said individual, the Declaration Form of Incoming Passengers at Customs Entries of the PRC (hereinafter referred to as Customs Entry Declaration Form), or vouchers for the withdrawal of foreign currency notes from the bank where the said individual had previously deposited his/her money. 2. When an individual who exceeds the limit on the annual aggregate amount for exchange settlement conducts exchange settlement by presenting foreign currency notes, if under the current account, the business shall be handled at the bank by presenting the valid identity certificate of the said individual, his/her Customs Entry Declaration Form, or vouchers for the withdrawal of foreign currency notes from the bank where the said individual has previously deposited money and the relevant certification stating the transaction amount as prescribed in Chapter II of the Detailed Rules for the Implementation of the Measures for Individual Foreign Exchange Administration (Huifa [2007] No.1); if under the capital account, the business shall be handled at the bank by presenting a valid identity certificate for the said individual, his/her Customs Entry Declaration Form, or vouchers for the withdrawal of foreign currency notes from the bank where the said individual previously had deposited his/her money and in accordance with the regulations on the administration of individual capital accounts such as Chapter III of the Detailed Rules on the Implementation of the Measures for Individual Foreign Exchange Administration. c Individual foreign exchange purchases of funds for non-operational purposes under the current account shall be limited to cash in RMB or funds in the RMB account/bankcard of the said individual or his/her direct relatives. d The pilot institutions for the franchise business of domestic and foreign currency exchange for individuals shall, to the same extent as banks, comply with the provisions of this Circular. e Banks, pilot institutions for the franchise business of individual domestic and foreign currency exchange, and individuals shall act in strict compliance with the Measures for Individual Foreign Exchange Administration (Decree No.3 [2006] of the Peoples Bank of China), the Detailed Rules for the Implementation of the Measures for Individual Foreign Exchange Administration, and the provisions of this Circular. For any act in breach of this Circular a penalty shall be imposed by the SAFE branches in accordance with Articles 47 and 48 of the Regulations of the Peoples Republic of China on Foreign Exchange Administration (Decree No. 532 of the State Council of the PRC, August 5, 2008), and other relevant regulations. f This Circular shall take effect as of the date of promulgation. The branches and foreign exchange administration departments of the SAFE shall, upon receipt of this Circular, promptly transmit this Circular to the sub-branches, municipal commercial banks, rural commercial banks, foreign banks, and pilot institutions for the franchise business of domestic and foreign currency exchange for individuals within their respective jurisdictions; all the designated Chinese-funded foreign exchange banks shall transmit this Circular at the earliest possible date to the branches within their jurisdictions. For any problems arising from implementation of this Circular, please provide feedback to the SAFE in a timely manner. November 19, 2009 2009-12-23/en/2009/1223/698.html
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The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo: For the purpose of regulating foreign exchange administration of overseas securities investments by domestic fund management companies and securities companies (hereinafter referred to as Securities Trading Institutions) and pursuant to the Regulations of the People's Republic of China on Foreign Exchange Administration and the relevant regulations, the relevant issues are hereby notified as follows: 1. The State Administration of Foreign Exchange, with all its branches (hereinafter referred to as AFEs), shall be responsible for the supervision, administration, and inspection of the overseas securities investment quota (hereinafter referred to as Investment Quota), foreign exchange accounts, and exchange by/of the Securities Trading Institutions. 2. Securities Trading Institutions qualifying for foreign exchange business when operating overseas securities investment business shall apply to the SAFE for an Investment Quota. 3. The following materials shall be submitted to the SAFE when Securities Trading Institutions apply for an Investment Quota: 1) A written application, including basic information about the applicant, the overseas securities investment plan, the Investment Quota for which the application is being submitted, information about the senior executives for the overseas securities investments, the internal control system, the risk management measures, and the relevant preparations, and the Basic Information on Overseas Securities Investments by Domestic Institutions(Attachment One). 2) Qualification approvals for domestic institutional investors issued by the China Securities Regulatory Commission (hereinafter referred to as CSRC). 3) Other materials as required by the SAFE Those who apply to increase the Investment Quota shall submit the materials prescribed thereof, as well as a report on the use of the approved Investment Quota. 4. The SAFE implements balanced management of the Investment Quota. The net outward remittances for overseas securities investments by Securities Trading Institutions shall never exceed the approved Investment Quota. Securities Trading Institutions may, as investment requires, within the range of its Investment Quota invest in relevant overseas securities investment products approved by the CSRC (hereinafter referred to as Products). Should a Securities Trading Institution fail to use its Investment Quota effectively within two years after approval, the SAFE shall have the right to reduce the quota. A Securities Trading Institution shall not transfer or assign its Investment Quota in any form to any other institution. 5. Securities Trading Institutions may collect from domestic investors foreign exchange funds for overseas securities investments, as well as RMB funds to purchase foreign exchange for overseas securities investments. Domestic investors shall not invest in relevant Products issued by the Securities Trading Institutions in the form of foreign currency banknotes. 6. A domestic custodian shall open a domestic escrow account for the relevant Products of a Securities Trading Institution with the approval for the Investment Quota issued by the SAFE, among which a domestic foreign exchange escrow account shall be opened for Products collected in the form of foreign exchange, and a domestic RMB escrow account and a domestic foreign exchange escrow account shall be opened for Products collected in the form of RMB. A domestic custodian shall open a domestic escrow account for each Product respectively. Foreign exchange escrow accounts in different currencies for one Product shall be deemed to be one account. A domestic custodian shall provide and file, within 5 working days after the opening of a domestic foreign exchange escrow account, the account opening information and the trust agreement to the AFE in the place where the custodian is located.. A domestic custodian shall, at the place where the overseas custodian is located, open an overseas escrow account for the relevant Products issued by the Securities Trading Institutions See Attachment Two for the division of revenue and expenditures of domestic foreign exchange escrow accounts and overseas escrow accounts. 7. When raising foreign exchange funds from domestic investors for overseas securities investments, Securities Trading Institutions shall, in compliance with the relevant regulations, open special foreign exchange accounts with raised funds and foreign exchange clearing accounts for the Products. If Securities Trading Institutions need to raise foreign exchange funds from domestic investors in the form of direct sales and proxy sales, foreign exchange accounts for the direct sales and proxy sales of the Products shall also be opened. All the accounts hereof shall be opened by the Securities Trading Institutions based on the approved Investment Quota issued by the SAFE and in compliance with the relevant regulations. See Attachment Two for the divisions of the revenue and expenditures in all the accounts hereof. 8. If domestic investors invest with their own foreign exchange, after the inward remittance of the principal and proceeds, they shall not directly withdraw the cash or proceeds for exchange settlement, but they shall transfer it from the domestic foreign exchange escrow accounts, via the foreign exchange clearing accounts and the direct sales and proxy sales foreign exchange accounts, to the foreign exchange accounts of the domestic individual investors or to the previous foreign exchange accounts of the domestic institutional investors. If domestic investors invest with RMB funds, after the inward remittance of the principal and the proceeds, the payments shall be made after the exchange settlement by the Securities Trading Institutions on their behalf via the domestic foreign exchange escrow accounts with the approved Investment Quota issued by the SAFE. 9. Securities Trading Institutions shall, within 7 working days after the establishment of each Product, provide information about the Product, such as the amount of funds actually raised and the fund sources, to the SAFE. (See Attachment 3 for the format.) Securities Trading Institutions shall, within 7 working days after the end of every month, provide to the SAFE the relevant tabulated data on its overseas securities investments. (See Attachment 4 for the format.) Domestic custodians shall, within 7 working days after the end of every month, provide to the SAFE the relevant data regarding the overseas securities investments of entrusted Securities Trading Institutions. (See Attachment 5 and 6 for the format.) 10. Securities Trading Institutions and domestic custodians shall perform their obligations to report the balance of payments in compliance with the relevant regulations for reporting the balance of payments 11. Should Securities Trading Institutions or domestic custodians fail to honor and observe this circular, they shall be punished by the corresponding AFEs in compliance with the Regulations of the People's Republic of China on Foreign Exchange Administration and the relevant regulations on foreign exchange administration. In serious cases involving the domestic custodians, the AFEs may order a replacement of the domestic custodian of the Securities Trading Institution. In serious cases involving the Securities Trading Institutions, the AFEs may revoke their Investment Quotas. 12. The present Circular shall be implemented as of the date of promulgation. The Circular of the SAFE on Relevant Issues Concerning Foreign Exchange Management of Overseas Securities Investments by Fund Management Companies (Huifa No. 46 [2006]) shall be repealed. Upon receipt of this Circular, all SAFE branches and foreign exchange administrative departments shall transmit it in a timely manner to the fund management companies, securities companies, and designated foreign exchange banks under their respective administrations. Attachments: (omitted) 1. Basic Information on Overseas Securities Investments by Domestic Institutions. 2. Division of Revenue and Expenditures in Relevant Accounts of Overseas Securities menvestments by Fund Management Companies and Securities Companies. 3. Record for Raising Overseas Securities Investment Products by Securities Trading Institutions. 4. Monthly Report on the Use of the Overseas Securities Investment Quota by Qualified Domestic Institutional Investors. 5. Monthly Report on Overseas Securities Investments by Qualified Domestic Institutional Investors. 6. Details on Outward and Inward Remittances of Overseas Securities Investment Funds by Qualified Domestic Institutional Investors. September 29, 2009 2009-11-13/en/2009/1113/696.html
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The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the central government, the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks: To efficiently implement the Opinions of the General Office of the State Council on Promoting Economic Development by Following Current Economic Trends (Guobanfa No.126 [2008]), and to facilitate the process of trade, the State Administration of Foreign Exchange (or SAFE) decided to launch a pilot program on the reform of the import payments verification system (hereinafter referred to as import verification reform), thus gradually completing transformation of import payments administration from case-by-case verification to batch-based verification, from on-site verification to off-site verification, and from behavioral supervision to subject supervision. The SAFE collects electronic information about cargo flows and capital flows of import companies through the Inspection System for the Collection and Settlement of Foreign Exchange under Trade (hereinafter referred to as inspection system), subjects import companies to off-site batch-based inspections as well as monitoring and early warning to identify abnormal capital flows and trading transactions, and subjects import companies to administration through examinations and evaluations that are conducted based on the outcome of on-site inspections. The circular on the relevant issues is given as follows: 1. Starting May 1, 2010, the pilot program for the reform of import verifications will be launched in the SAFE branches in Tianjin, Jiangsu, Shandong, Hubei, Inner Mongolia, and Fujian (including the autonomous regions and municipalities directly under the Central Government), and in the region under the jurisdiction of the SAFE's Qingdao branch. 2. The import companies in the pilot regions shall undergo import payments procedures subject to the Measures for the Pilot Program on Reform of the Administration of Foreign Exchange Payments for the Import of Goods and its implementing rules (hereinafter referred to as Measures, see Appendices 1 and 2); the banks in the pilot regions shall handle the import payments for import companies in accordance with the Measures. The import payments for the non-pilot regions shall be dealt with pursuant to the functional provisions for verification of import payments. 3. During implementation of the pilot program, inter-provincial (inter-autonomous region and inter-municipality directly under the Central Government) business related to non-local foreign exchange payments shall be dealt with subject to the functional provisions for verification of import payments. Where import companies in the pilot regions deal with non-local import payments in non-pilot regions, they shall register such payments with the local foreign exchange authorities where they are registered; where import companies in the non-pilot regions deal with non-local import payments in the pilot regions, the banks shall examine the Import Payments Registration Form and other relevant instruments in accordance with the pre-reform provisions. 4. To ensure the smooth transformation of import payments administration before and after the said reform, for import payments accrued prior to January 1, 2010, the import companies in both the pilot regions and non-pilot regions shall undergo the related verification formalities with their local foreign exchange authorities before July 31, 2010. Where the import companies fail to go through the verification formalities for any overdue business within the prescribed limit and without any justification, the foreign exchange authority in question shall mete out penalties accordingly or shall put it on file for a future inspection of the import payment. 5. Considering that the import verification reform is a great initiative for facilitating the process of trade, all foreign exchange branches in the pilot regions shall attach great importance to the reform and arrange the following issues in a centralized manner: (1) The said branches shall step up publicity and training efforts. Following the SAFEs centralized deployment, they shall provide effective publicity and sound explanations about the pilot program through different channels, direct the concerned banks and import companies and urge them to become familiarized with the outlines of the reform as well as other policies and measures as soon as possible; the said branches shall institute training activities among the foreign exchange authorities, banks, and import companies within their jurisdictions so as to pave the way for such banks and import companies to conduct related businesses in future. (2) The said branches shall urge import companies listed on the Name List of Import Companies for Import Payments to sign the confirmation letter for the import payment business before July 31, 2010. The text of the confirmation letter will be issued separately. (3) The said branches shall, in accordance with the Measures, complete the administrative work for the pilot program, such as the name registration, off-site inspection and monitoring and early warning, on-site supervision and inspection, and classified management, and shall optimize the functions of the inspection systemfor administration. (4) The said branches shall report to the SAFE the progress of the pilot program without delay, and provide feedback if any problem arises from implementation of the pilot program and propose corresponding solutions or suggestions. 6. During implementation of the pilot program, the foreign exchange authorities from the non-pilot regions shall clear up the left over that occurred before January 1, 2010 by taking different approaches to either informing the concerned import companies or urging them to go through the verification formalities. Meanwhile, the said authorities shall proactively study the policies on the import verification reform and track the progress of the pilot program so as to be well prepared for the official implementation of import verification reform. As of the date of issuance this circular, all branches and administrative departments of the SAFE shall start the preparatory work accordingly, and shall promptly forward it to the central sub-branches, sub-branches, local commercial banks, foreign banks, and relevant entities within their respective jurisdiction. If any problems arise from implementation thereof, the import companies and banks shall promptly report them to the foreign exchange authorities where they are located; and the branches and administrative departments shall report them to the SAFE in a timely manner. April 2, 2010 FILE: Implementing the Rules for the Measures on the Pilot Program on Reform of the Administration of Foreign Exchange Payments for the Import of Goods FILE: Measures for the Pilot Program on Reform of the Administration of Foreign Exchange Payments for the Import of Goods 2010-04-02/en/2010/0402/701.html
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The branches and foreign exchange administration departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the central government, and the SAFE branches of Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo: In order to maintain an equilibrium in the balance of payments and to guard against risks caused by abnormal inflows of cross-border funds, the State Administration of Foreign Exchange (SAFE) has decided to moderately reduce the total scale of the quota for the short-term external debt balance of domestic institutions in 2010. A quota of a total of USD32.4 billion has been ratified for the short-term external debt balance of domestic institutions, representing a decrease of 1.5 percent from the 2009 level. Meanwhile, in order to optimize the structure of the quota distribution and increase efficiency of the use of the quota, the SAFE has adjusted downward the quotas for the Chinese- and foreign-funded financial institutions that have track records of large quotas but poor efficiency in utilization. However, appropriate preferential policies will be provided to joint-equity banks and local commercial banks with rapid growth in their trade financing businesses during recent years. Relevant information about ratification of the quotas for the short-term external debt balance of domestic institutions (hereinafter referred to as quotas) for 2010 (April 1, 2010 to March 31, 2011, as below) and the relevant policies are hereby notified as follows: 1. A quota of a total of USD9.938 billion for some Chinese-funded banks for 2010 has been ratified (see Table 1 in the Appendix). A quota of a total of USD14.54935 billion for 2010 has been ratified for some legal-person foreign-funded banks and branches of foreign-funded banks that implement centralized administration of their quotas (see Table 2 in the Appendix). Local quotas of a total of USD7.904 billion have been ratified for Chinese- and foreign-funded legal-person banks, branches of foreign-funded banks that have not implemented centralized administration of quotas, and Chinese-funded enterprises and other relevant institutions within the jurisdiction of the SAFE branches and foreign exchange administration departments (hereinafter referred to branches) (see Table 3 in the Appendix) For domestic institutions with quotas that have been adjusted downward, if on the date of reduction of the quota, their short-term external debt balance subject to quota control already exceeds the newly-ratified quota, they shall, within 3 months, bring down the short-term external debt balance subject to the actual quota control within the scope of the newly-ratified quota. 2. All branches shall distribute and regulate quotas in a fair and reasonable manner and increase efficiency in the use of quotas based on the status of the utilization of the quotas and the structure of the utilization of the sources of the funds in a bid to serve the needs of economic growth, to bolster trade financing, to guard against external financial risks, and to promote an equilibrium in the balance of payments. All branches shall guide and encourage domestic institutions to expand their trade financing businesses and to promote the healthy development of the real economy and foreign trade. In the 2010 distribution of the quotas the branches shall give priority to banks with larger amounts of trade settlement in a bid to ensure that the quotas are used preferentially to support the trade financing of the import and export businesses of domestic enterprises. 3. Domestic institutions shall borrow, use, and repay their external debts in strict compliance with the provisions in the Interim Regulations on Statistics and Monitoring of the External Debt, the Interim Measures for External Debt Administration, and other regulations for external debt administration and shall register the external debt in the external debt statistics and monitoring system. 4. Policies concerning the borrowing of short-term external debt by Chinese-funded enterprises: (1) After ratification of the quotas, a branch can distribute part of the local quotas for 2010 as balances to Chinese-funded enterprises within its jurisdiction that have lived up to the relevant standards. (2) Quotas distributed to Chinese-funded enterprises after ratification shall only be used for the borrowing of short-term external debt with a contract term not longer than one year (inclusive). The balance of the outstanding principal of the short-term external debt of Chinese-funded enterprises which is subject to quota administration shall not exceed the scale of the ratified quota. The branches can regulate and utilize the quotas among financial institutions and Chinese-funded enterprises based on the quota utilization situation of the institutions within their jurisdiction. (3) Ratified quotas of Chinese-funded enterprises shall be given to industries that are encouraged or permitted by national industrial policies and that have sound financial statuses and strong solvency. (4) The short-term external debt borrowed by Chinese-funded enterprises shall not be used for foreign exchange settlement. (5) Chinese-funded enterprises shall borrow the short-term external debt in strict compliance with the relevant regulations for the administration of the short-term external debt currently in effect and shall conduct external debt registration on a deal-by-deal basis; the opening of a special account for the external debt and the repayment of the capital and the interest by the Chinese-funded enterprises shall be examined and approved by the SAFE. 5. Branches shall conduct monitoring of the balance and changes in the short-term external debt of financial institutions and Chinese-funded enterprises within their jurisdiction via the external debt statistics and monitoring system, carry out strict control over implementation of the quota for the short-term external debt balance of financial institutions and Chinese-funded enterprises within their jurisdictions, and submit the Form for Implementation of Quotas for the Short-term External Debt Balance of Institutions within Jurisdiction XXX at the end of X Quarter of XXXX (Table 4 in the Appendix) to the of Capital Account Management Department of the SAFE within the last 15 working days of each quarter via the email address on the SAFEs portal Web site (debt@capital.safe). Appendix: (Omitted) April 21, 2010 2010-04-29/en/2010/0429/704.html
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The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange in all provinces, autonomous regions, and municipalities directly under the Central Government, and the branches of the State Administration of Foreign Exchange in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo: To further improve the regulatory system of foreign exchange administration, we hereby notify you regarding the repeal and invalidation of the following regulatory documents on foreign exchange administration: I. Fifteen regulatory documents of which the main content has been replaced by new content and do not conform to the present actualities in the administration shall be repealed (see Annex 1 for the Checklist). II. Nine regulatory documents that have been invalidated due to either the expiration of the period of application or to the elimination of the objects of regulation (see Annex 2 for the Checklist). This Circular shall come into force as of the date of promulgation. April 13, 2010 Annex 1: Checklist of Fifteen Regulatory Documents on Foreign Exchange Administration Repealed by the State Administration of Foreign Exchange SN Title of Law, Regulation, or Document Document No. 1 Reply on Several Issues Concerning the Interim Provisions for the Statistics and Monitoring of External Debts Huiguanzhaizi No. 713 [1987] 2 Circular on the Relevant Issues Concerning the Issuance of Foreign Exchange Settlement Vouchers/ Acknowledgement Receipts by Banks Huiguanhanzi No. 284 [1993] 3 Circular on the Relevant Issues on Completing and Reporting the Revenue and Expenditure Statistical Tables of Foreign Exchange Accounts Huichuan No. 03 [1998] 4 Circular of the State Administration of Foreign Exchange on Earnestly Implementing the Off-site Supervisory System for the Foreign Exchange Business of Financial Institutions Huiguanhanzi No. 004 [1998] 5 Circular on Improving the Administration of Sales and Payments of Foreign Exchange Huihan No. 27 [1998] 6 Reply on the Relevant Issues Concerning the Additional Launching of International Express Payment Services Huifu No. 44 [1999] 7 Reply on the Relevant Issues Concerning Foreign Exchange Administration Regarding the Transfer of the Development Fund and the Reserve Fund to Increase the Registered Capital by Foreign-funded Enterprises Huifu No. 203 [2000] 8 Circular of the State Administration of Foreign Exchange on Determining the Period for Implementation of the Supplementary Circular on Strengthening the Administration of Contracts Introducing Technology and Foreign Exchange Sales and Payments Huifa No. 90 [2001] 9 Reply of the State Administration of Foreign Exchange on the Relevant Issues on Delegating the Quotas for Short-term External Debts to Branches by Chinese-funded Designated Foreign Exchange Banks Huifu No. 64 [2001] 10 Circular of the State Administration of Foreign Exchange on the Relevant Issues Concerning Foreign Exchange External Payments of Maritime Freightage and Relevant Charges Promulgated and came into force on August 15, 2001 11 Reply of the State Administration of Foreign Exchange on the Relevant Issues Concerning Foreign Exchange Registration for the Purchase of Domestic Land-use Rights by Foreign Investors Huifu No. 156 [2002] 12 Circular of the State Administration of Foreign Exchange on the Relevant Issues Concerning the Abolition of the Administrative Examination and Approval Items for Foreign Exchange Administration under the Current Account Huifa No. 53 [2003] 13 Reply of the State Administration of Foreign Exchange on Issues Concerning the Entrusted Banks of the Domestic Foreign Exchange Entrusted Loans among the Internal Members of Multinational Companies Huifu No. 107 [2005] 14 Reply of the State Administration of Foreign Exchange on Retaining Foreign Exchange Proceeds Earned from the Transfer of Shares by Domestic Institutions and Individuals Huifu No. 239 [2007] 15 Reply of the General Affairs Department of the State Administration of Foreign Exchange on the Applicability of Laws and Regulations Concerning the Enterprises Handling of the Registration Formalities for Deferred Payments for the Second Time of Foreign Exchange Huizongfu No. 2 [2008] Annex 2: Checklist of Nine Regulatory Documents on Foreign Exchange Administration Invalidated upon Announcement by the State Administration of Foreign Exchange SN Title of Law, Regulation or Document Document No. 1 Circular on the Relevant Issues Concerning the Transitional Period of the Reform of the Foreign Exchange Administration System Huichuan No. 5 [1994] 2 Circular on Adjusting the Debt Structure and Reducing the Interest Rate for External Debts Huizihanzi No. 121 [1995] 3 Circular on Printing and Distributing the Foreign Exchange Inspection Workflow Huibanhanzi No. 211 [1998] 4 Circular on Ceasing the Handling of International Settlement Business in RMB by Your Bank Huifa No. 51 [1998] 5 Circular on the Issuance of the Plan on the Punishments for Violations of Regulations by Travel Agencies and the Plan on the Punishments for Violations of Regulations on Reporting the Loss of the Verification and Writing-off Forms Huifu No. 347 [2000] 6 Circular on Preventing Some Overseas Financial Institutions from Selling Counterfeit Securities in the Name of the World Bank Huizongfa No. 12 [2000] 7 Urgent Circular of the State Administration of Foreign Exchange on Doing a Good Job at Present in the Verification and Writing-off of Export Proceeds in Foreign Exchange Huifa No. 182 [2001] 8 Reply of the State Administration of Foreign Exchange on Authorizing its Shanghai Branch to Improve Foreign Exchange Administration of Foreign Exchange Loans of Foreign-funded Financial Institutions in Shanghai Huifu No. 293 [2003] 9 Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning the Verification and Writing-off of the Collection of Export Proceeds in Foreign Exchange (2004) Huizongfa No. 26 [2004] 2010-04-23/en/2010/0423/702.html
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The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches of the SAFE in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and all designated Chinese-funded foreign exchange banks: In order to facilitate foreign exchange purchases by overseas individuals during the 2010 World Expo in Shanghai and to deliver high-quality financial services during the Expo, the SAFE has decided to implement a policy of an aggregate amount for foreign exchange purchases by overseas individuals during the 2010 World Expo in Shanghai. The relevant issues are hereby notified as follows: 1. From May 1 to October 31, 2010 (hereinafter referred to as During the 2010 World Expo in Shanghai), foreign exchange purchases by overseas individuals at designated foreign exchange banks (hereinafter referred as banks) shall be conducted in accordance with the following regulations: (1) During the 2010 World Expo in Shanghai, administration of an aggregate amount of foreign exchange purchases by individuals shall be implemented and the aggregate amount of foreign exchange purchases shall be equivalent to USD50,000. In order to ensure continuity of the data and completeness of the management information system for foreign exchange settlement and sales by individuals, the foreign exchange purchase business conducted by overseas individuals via the management information system for foreign exchange settlement and sales by individuals during the period from January 1 to April 30, 2010 shall be incorporated into a lump sum of the aggregate amount that is equivalent to USD50,000 based on the strength of the prescribed evidentiary materials. (2) Foreign exchange purchases by overseas individuals of an aggregate amount equivalent to USD50,000 (inclusive) shall be carried out at the banks by the individuals themselves based on the strength of their valid identity documents. (3) Foreign exchange purchases with legitimate income in RMB under the current account acquired within the territory of China by overseas individuals for the aggregate amount which is more than the equivalent of USD50,000 shall be conducted on the strength of their valid identity documents and relevant evidentiary materials attesting to the amount of the business transaction (including tax vouchers). Re-conversion of the RMB that has not been used after the initial conversion into foreign exchange shall be conducted based on the strength of the valid identity documents of the relevant individuals and original exchange memos. 2. The banks shall inquire about the aggregate amount of foreign exchange purchases by overseas individuals within the prescribed quota in a real-time manner via the management information system for foreign exchange settlement and sales by individuals, and shall record the information about foreign exchange purchases under the current account by overseas individuals on a deal-by-deal basis under the items of Foreign exchange purchases with income of overseas individuals under the current account and Re-conversion to the original currency by overseas individuals in the module of the Foreign exchange purchase transactions of the management information system for foreign exchange settlement and sales by individuals; the three-digit alphabetic country code and passport number shall be input under the item No. of identity document; the timeliness, accuracy, and completeness of the input of the data shall be ensured. 3. Banks and overseas individuals shall not evade supervision of the quota by splitting the foreign exchange into smaller amounts nor shall they evade administration of the authenticity by use of fake commercial documents or vouchers for the handling of their foreign exchange purchase business and currency re-conversion business. 4. When handling foreign exchange purchase business and currency re-conversion business, banks and overseas individuals, unless stipulated in this Circular, shall comply with the Measures for the Administration of Individual Foreign Exchange (Decree of PBOC [2006] No.3), the Detailed Rules for the Implementation of the Measures for the Administration of Individual Foreign Exchange (Huifa [2007] No.1), the Circular of the SAFE on Further Improvements in the Administration of Foreign Exchange Settlement and Sales Business by Individuals (Huifa [2009] No.56), and the relevant foreign exchange administration regulations. 5. Beginning on November 1, 2010, implementation of the policy on the administration of an aggregate amount of foreign exchange purchases by overseas individuals during the 2010 World Expo in Shanghai shall be terminated; the banks shall resume handling the foreign exchange purchase business for overseas individuals in accordance with the Measures for the Administration of Individual Foreign Exchange, the detailed rules, and other relevant foreign exchange administration regulations currently in effect. 6. Banks that handle foreign exchange purchase businesses for overseas individuals in breach of the provisions stipulated in this Circular or the relevant foreign exchange administration regulations shall be punished by the SAFE and its branches in accordance with the Regulations of the Peoples Republic of China on Foreign Exchange Administration (Decree of the State Council of PRC, No. 532, August 5, 2008). 7. This Circular is subject to interpretation by the SAFE. The SAFE branches and foreign exchange administration departments shall transmit this Circular to the sub-branches, municipal commercial banks, rural commercial banks, and foreign-funded banks within their jurisdictions immediately upon receipt; the designated Chinese-funded foreign exchange banks shall transmit this Circular to their branch institutions as soon as possible upon receipt. For any problems arising from implementation of this Circular, please provide feedback to the SAFE in a timely manner. April 23, 2010 2010-04-29/en/2010/0429/703.html
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The SAFE branches and foreign exchange administration departments in Tianjin, Shanghai, Jiangsu, Shandong, Guangdong, Beijing, Heilongjiang, Zhejiang, Fujian, Guangxi, Hainan, Yunnan, and Xinjiang (provinces, autonomous regions, and municipalities directly under the Central Government), and the SAFE branches in Shenzhen, Qingdao, Xiamen, and Ningbo: In August 2008, the State Administration of Foreign Exchange (SAFE) granted approval for the pilot implementation of domestic and foreign currency exchange franchise business to individuals in Beijing and Shanghai. The implementation has achieved the expected results, with relevant work progressing smoothly. For the purpose of promoting fair competition in the domestic and foreign currency exchange franchise market to individuals and further improving the overall level of Chinas individual currency exchange services, with the approval of the State Council, the relevant issues concerning the expansion of the pilot implementation of the domestic and foreign currency exchange franchise business to individuals are hereby notified as follows: 1. The locations of the pilot implementation shall be expanded to the provinces and municipalities (autonomous regions), including Tianjin, Shanghai, Jiangsu, Shandong, Guangdong, Beijing, Heilongjiang, Zhejiang, Fujian, Guangxi, Hainan, Yunnan, and Xinjiang, as well as the cities specifically designated in the state plan, including Shenzhen, Qingdao, Xiamen, and Ningbo. 2. The branches of the SAFE (foreign exchange administration departments, hereinafter referred to as SAFE branches) located in the areas of the pilots in principle shall select one city or one region at the prefectural or city level based on its actual economic and social conditions to be the location of the pilot implementation. 3. The SAFE branches in the newly-added pilot locations shall, according to the requirements set forth in Annex`&a, submit applications to the SAFE for approval regarding the pilot implementation. The SAFE shall decide whether or not to grant approval, according to the applicants preparations for the pilot work and the actual demands of the local market. 4. In the event that the SAFE branches in the pilot areas (including Beijing and Shanghai) grant approval to establish new operations institutions for the pilot implementation of the domestic and foreign currency exchange franchise business (including cross-regional operations institutions), the SAFE branches shall submit for approval to the SAFE a summary regarding the situation for the pilot implementation of the domestic and foreign currency exchange franchise business to individuals prior to the application, along with the Form on the Status of Operations Institutions Applying for Pilot Implementation (see Annexa). 5. The SAFE branches in the pilot locations shall carry out pilot implementation of the domestic and foreign currency exchange franchise business to individuals in strict compliance with the Measures for the Administration of Pilot Implementation of the Domestic and Foreign Currency Exchange Franchise Business to Individuals (see Annex b), strengthen publicity and explanatory work regarding the pilot implementation, carry out supervision of compliance of the institutions in the pilot implementation of the domestic and foreign currency exchange franchise business to individuals with the relevant foreign exchange administrative regulations and shall report to the SAFE any relevant situations regarding the pilot implementation in a timely manner. Tel.: 010-68402310, 68402313 It is hereby notified. Nov. 9, 2009 Annex (omitted) 2009-12-23/en/2009/1223/699.html
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June 26, 2007 - In Beijing, the SAFE recently held a briefing meeting on inspection of the foreign exchange transactions of banks. Attendees included representatives from 19 Chinese-funded banks, 4 foreign cooperative banks, and some foreign-funded banks. Ms. Hu Xiaolian, deputy governor of the PBOC and administrator of the SAFE, attended the meeting and delivered a speech. According to Ms. Hu, the disequilibrium in the balance of payments has become increasingly serious. On many occasions, the Party Central Committee and the State Council have attached great importance to this problem and have proposed clear requests to promote a general equilibrium in the balance of payments and to strengthen improvements in foreign exchange management. One of the key administrative tasks for the current period is to monitor short-term speculative capital inflows, strengthen inspection and management of cross-border capital inflows, especially short-term capital inflows, and seriously deal, according to the law, with foreign exchange inflows without real transaction backgrounds or those with fraudulent reports on export trading volumes. According to the unanimous decision of the Party Central Committee, since last year the SAFE has actively boosted the reform of the foreign exchange management system and further facilitated foreign exchange holdings and use by enterprises and individuals for trade and investment activities. Meanwhile, the SAFE has seriously combated illegal and abnormal short-term capital inflows and foreign exchange sales, thus restraining short-term speculative capital inflows. In terms of foreign exchange receipts and payments under the items of trade, services, capital fund, and external debt as well as some industries like tourism and real estate, relevant foreign exchange inspection departments have carried out special inspections of capital inflows and sales of foreign exchange. Meanwhile, since many of China 's foreign exchange administration policies and regulations are implemented through the banks, key inspections were intensified on the compliance of the foreign exchange transactions of banks and their own foreign exchange collection and sales. This is very necessary and timely for accurately analyzing the cross-border capital flows, discovering the main channels and forms of abnormal capital inflows, searching for policy loopholes, and offering a scientific decision-making basis for reinforcing and improving macro-control. Ms. Hu pointed out that in recent years foreign exchange-designated banks have made great efforts to coordinate with the adjustment of foreign exchange policies, carrying out the tasks of authenticity verification. They have contributed to the healthy development of China 's foreign trade, the steady advancement of the financial opening-up, and the promotion of a general equilibrium in the balance of payments. However, some problems have arisen from the inspections, to which great attention should be paid. Concerning the question of how banks can promote their own healthy development and better implement their responsibilities related to foreign exchange administration, Ms. Hu put forward the following requests. First, banks should properly balance the relationship between their own interests and the national interests. Along with the continual progress in the financial system reform, commercial banks have faced obviously stronger restraints from their shareholders and the market, and their internal management and operating mechanisms have witnessed fundamental changes. The pursuit of interests by banks has poured energy into the development of the financial industry. However, the interests of banks are closely linked to the operation of the macro-economy. While pursuing their own interests, banks should further strengthen their consciousness of the overall situation and take an initiative to carry out national macro policies. Second, banks should properly manage the relationship between passive and active implementation of foreign exchange inspections. So far, most of the authenticity verifications of foreign exchange under the current account and the verifications of the comparatively standard foreign exchange sales and purchases under the capital account have been handled directly by the banks. Therefore, banks are required to fulfill the responsibility of exercising authenticity verifications seriously and to take an initiative to actively carry out the requirements for foreign exchange inspections. Third, banks should properly manage the relationship between commercial competition and fulfilling the subrogation responsibility of the government. With the continual financial opening-up, commercial banks are facing increasingly severe market competition. Banks should compete orderly under the precondition of seriously implementing national macro-economic policies and fulfilling the subrogation responsibility of the government. The competition should not become the solicitation of clients and businesses at the price of failing to carry out inspections. Fourth, banks must properly manage the relationship between their business management and foreign exchange supervision requirements. Due to the special requirements for the business processing and internal management of banks, foreign exchange supervision must be implemented through electronic and IT approaches. In order to fulfill the subrogation responsibility of the government more efficiently and conveniently, banks should further improve their business procedures to satisfy the two requirements. Meanwhile, banks should establish relevant platforms for the collection, processing, and exchange of information so as to receive authentic and accurate data and information, and then should help implement the regulations in practice. Fifth, the banks must properly manage the relationship between financial innovation and compliance. The foreign exchange administrations have been supporting and encouraging financial innovation, and have strengthened enforcement efforts by adjusting relevant policies and employing a series of measures for developing foreign exchange derivatives and expanding financial investment abroad. While enhancing innovation consciousness, the banks should intensify the risk concepts and master the direction of the innovation from the perspective of the long-term healthy development of both themselves and the financial industry, not only meeting the needs of clients, but also satisfying the relevant regulations and the requirements for national macro-control. Ms. Hu emphasized that in the near term the foreign exchange administrations would carry out a special inspection on implementation of control of the size of the short-term external debt and on the execution of the administrative regulations by banks throughout China . Hence, all banks should prepare for this in advance, seriously and actively carrying out self-checking and coordination. Mr. Deng Xianhong, deputy administrator of the SAFE, reported on the illegal behavior found from the inspections of the foreign exchange business. He put forward that generally all the foreign exchange-designated banks have attached increasingly more importance to the compliance of their foreign exchange business operations, and their legal consciousness in terms of operations has been improved; but certain illegal behaviors in the foreign exchange business still exist in some banks. These illegal behaviors can be mainly classified into three types. First, responsibility for authenticity examination is not fulfilled in some banks, for example, handling foreign exchange collection and sales for clients against the rules, violating the related rules about foreign exchange loans, and breaching the administrative regulations concerning the verification business for exports. Such behaviors have led to inflows of some foreign speculative capital through trade or investment channels, and some of the capital even flows into the domestic real estate and stock markets in disguised forms, thus having some negative effect on the healthy development of China 's macro-control and economy. Second, for some banks, illegal behaviors exist in the operation of the foreign exchange business, such as policy-incompliance in the comprehensive position management of foreign exchange sales and purchases, poor management of short-term external debt, illegal treatments of their own foreign exchange sales business, and posting exchange rates beyond the stipulated floating ranges, etc. All of these have seriously harmed the implementation effect of the policies, not only disregarding the requirements for risk control and the sound operation of the banks, but also bringing pressure on implementing the monetary policies of the Central Bank and maintaining an equilibrium in the balance of payments. Third, in some banks, the quality of data reporting is poor, the business or accounting system cannot meet the current regulatory requirements, and the balance of payments fails to be managed according to the rules. During the 2006 annual inspection, the SAFE punished 19 Chinese-funded banks and 10 foreign-funded banks that were found to be violating the relevant foreign exchange administrative regulations. The results of the illegal behaviors discovered during the 2006 special inspection of the external debt of banks and the 2007 special inspection of the foreign exchange collection and sales of banks are in the process of being handled. 2007-06-26/en/2007/0626/842.html
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May 25, 2007 - The Balance of Payments Statistical Branch of the National Statistical Society of China (hereinafter referred to as the BOP Statistical Branch) was recently established in Beijing . The first leadership group and organizations were elected at the meeting. Mr. Li Dongrong, deputy administrator of the SAFE, was present and delivered a speech. Mr. Li Gang, secretary general of the National Statistical Society of China, and Mr. Tang Sining, head of the Financial Survey and Statistics Department of the PBOC, also attended the meeting and congratulated the BOP Statistical Branch on its establishment. Li Dongrong pointed out that the statistics in China 's balance of payments are facing new challenges as the international economy has witnessed an expanding scope and the demands from macro-economic decision-making have been increasing. First, the volume of statistical data has increased rapidly and accordingly the statistical methods and approaches require improvement. The task of maintaining integrated, accurate, and timely statistics has become more arduous. Second, the position of the balance of payments has become more and more complex, and its connections with the world economy and other aspects of the national economy have become closer. It is more difficult to master the development rules of the balance of payments and to solve in-depth economic issues. Third, the functions and social effects of serving the economy and society through statistical analysis of the balance of payments have not been fully utilized. The laws and regulations relevant to the reporting, collection, and application of statistical data need to be improved. Fourth, the development of China 's economy requires a team that is proficient in both theory and practice, and dedicated to a statistical analysis of the balance of payments. Therefore, the BOP Statistical Branch was set up at an appropriate time. It will infuse new effective strength into the statistical work of the balance of payments, provide a platform for studying academic theory, enhance the way of thinking on statistical work, enrich the statistical approaches, and improve the theoretical level of the statistics. Li Dongrong expressed hopes that the BOP Statistical Branch, serving as a stage, will create an academic atmosphere for research on the statistical analysis of the balance of payments, master the operations and change in the rules of the balance of payments through carrying out research on the economic phenomena and the internal reasons behind the statistical data, thus improving the intrinsic value of statistics in the balance of payments, providing a scientific basis for national macro-economic analysis and decision-making, and playing a consultative role in promoting an equilibrium in the balance of payments. He proposed several tasks for the work of the Branch, as follows: First, the Branch should always stick to the principles of seeking truth from facts and combining theory with practice, and achieve good results under the guidance of the principles. Second, the Branch should guarantee the positioning of its work and set a solid foundation for its development. Third, the Branch should strengthen analysis and research and make use of its advisory function in making policies on the national macro-economy and the balance of payments. Fourth, the Branch should establish service awareness and embody its own value in the development of market entities. Fifth, the Branch should carry on the spirit of unity and cooperation and establish a statistical analysis team with a solid theoretical foundation, rich experience in practice, and active ideas about innovation. Ms. Han Hongmei, head of the BOP Statistical Branch, presented a report entitled "Establish a Platform and Utilize the Advantages, Promote the Vigorous Development of Statistical Work in the Balance of Payments." She put forward that based on the ideas of pioneering and the principles of being practical and innovative, the BOP Statistical Branch would devote itself to the establishment of a professional platform which is full of a spirit of innovation, has a good incentive mechanism, and is oriented to statistical practices in the balance of payments. The Branch must reach achievements in four respects, such as making clear the urgency of the times, building up its professional authority, improving the popularity of its business, and increasing its ability for acceptance and inclusion. In 2007, the work of the Branch shall focus on the central target of promoting a general equilibrium in the balance of payments, carry out a scientific view of development in an in-depth manner, boost all the basic work, improve the Branchs organizational construction and functions, and develop various timely activities such as theoretical investigation and research and business training. 2007-05-25/en/2007/0525/841.html