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The national foreign exchange administration work conference has been recently held in Beijing. By following the spirit of 18th CPC National Congress, the Third, Fourth, Fifth and Sixth Plenums of the 18th CPC Central Committee, and the Central Economic Work Conference, the conference reviewed foreign exchange administration in 2016, deeply analyzed the current state of the economy, finance and balance of payments, and discussed and made plans for foreign exchange administration for 2017. Pan Gongsheng, administrator and secretary of the Party Leadership Group of the State Administration of Foreign Exchange (SAFE), delivered a work report at the conference, with deputy administrators, and heads of the SAFE branches (including foreign exchange administration departments), and departments of the SAFE present. The meeting pointed out that, by following the work plans of the CPC Central Committee and the State Council, and the guidance of the CPC Committee of the People's Bank of China, foreign exchange authorities stuck to problem orientation and bottom-line thinking, coordinated the relationship between promoting trade and investment facilitation and guarding against cross-border capital flow risks, and deepened the reform of "delegation, centralization and services" in 2016. To be specific, foreign exchange authorities rolled out nationwide the macro-prudential management policy for full-scale cross-border financing, further liberalized interbank bond markets, and carried out the QFII foreign exchange administration reforms. Under the existing policy framework, foreign exchange authorities strengthened management and execution, worked with other departments for joint regulation, intensified authenticity and compliance reviews, and cracked down on foreign exchange irregularities, in a bid to safeguard the stability of foreign exchange markets. Foreign exchange authorities also enhanced operation and management of foreign exchange reserves, and improved diversified utilization of foreign exchange reserves to safeguard the equilibrium of balance of payments and the national economic and financial security. The meeting emphasized that the year 2017 is key to the implementation of the 13th Five-year Plan and to the deepening of the supply-side structural reform. In the year, foreign exchange authorities are required to implement the spirit of the Central Economic Work Conference and the work plans of the CPC Central Committee and the State Council, adhere to the general work guideline of making progress while maintaining stability and follow the guidance of the CPC Committee of the People's Bank of China to take bold steps to effectively enhance trade and investment facilitation, serve the development of the real economy, intensify authenticity and compliance reviews, and crack down on foreign exchange irregularities, and guard against risks arising from cross-border capital flows, so as to embrace the 19th CPC National Congress with excellent performance. The meeting made plans for the priorities of foreign exchange administration for 2017: first, continue to press ahead with administration streamlining and power delegation and reform in key areas, and further boost trade and investment facilitation to support the development of the real economy. Second, enhance authenticity and compliance reviews, intensify inspections and punishment with regard to foreign exchange irregularities, and maintain a tough stance on crimes such as underground banks and evasion and cheated purchases of foreign exchange, in a bid to safeguard the health and stability of foreign exchange markets. Third, strengthen ongoing and ex-post management, enhance the level of offsite monitoring, analysis and early warning in relation to cross-border capital flows, and refine the management framework for macro-prudential cross-border capital flows. Fourth, improve the operation and management of foreign exchange reserves, to safeguard the security, flows, value growth and maintenance of foreign exchange reserves. Fifth, implement the requirements for strengthening the Party's self-discipline, and continue to step up efforts to build the CPC, clean up undesirable work styles and uphold integrity, and enhance teambuilding and internal management. 2017-01-06/en/2017/0106/1241.html
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The State Administration of Foreign Exchange (SAFE) has recently disseminated the data on banks' foreign exchange sales and settlements, and their foreign-related receipts and payments for customers. Its press spokesperson has answered media questions on recent cross-border capital flows. Q: Could you brief us on cross-border capital flows for October? A: In October, China was faced with less pressure from cross-border capital outflows. First, a narrower deficit was registered under banks' sales and settlements of foreign exchange. The deficit for October was USD 14.6 billion, down by 49% month-on-month. Of note is that a deficit of USD 10.2 billion was recorded under non-banking sectors like enterprises and individuals, down by 62% month-on-month. Second, a lower deficit was posted under foreign-related receipts and payments by non-banking sectors. The deficit for October was USD 14.1 billion, a month-on-month decrease of 69%. To be specific, a surplus of USD 14.8 billion was registered under foreign exchange receipts and payments, versus a deficit of USD 800 million for the previous month; and a deficit of USD 29 billion was posted under RMB receipts and payments, down by 35% month-on-month. Some factors that help find an equilibrium between supply and demand of foreign exchange have played their roles. First, market players' willingness to settle foreign exchange remained stable, and the proportion of foreign exchange purchases represented a month-on-month decrease. In October, the ratio of banks' settlement of foreign exchange for customers to foreign-related foreign exchange receipts was 58%, which was stable on the whole; but the ratio of the bank's sales of foreign change to customers to foreign-related foreign exchange payments was 69%, down by 3 percentage points from September. Second, market players' foreign exchange financing rose steadily, and deleveraging slowed down further. At the end of October, the balance of cross-border foreign exchange financing for imports such as refinancing and forward L/C picked up by USD 1 billion month-on-month, representing the eighth consecutive month of growth. In the month, market players' purchases of foreign exchange to repay domestic foreign exchange loans were down by 34% month-on-month. Third, overseas institutions continued to increase their investments in the domestic bond markets. As at the end of October, the balance of domestic bonds held by overseas institutions rose by USD 20.7 billion against September, the eighth consecutive month of growth. Fourth, the seasonal efforts to purchase foreign exchange under ROI and travel declined. In the month, foreign exchange purchases under ROI slumped by 56% month-on-month, and those under travel dropped by a slight 5%. Fifth, Customs foreign trade surplus went up, driving up the surplus in foreign exchange sales and settlement under trade. In October, Customs reported a foreign trade surplus of USD 49.1 billion, up by 17% month-on-month, and the surplus in banks' foreign exchange sales and settlements for customers under trade in goods rose by 46% month-on-month. The domestic economic growth has become more stable recently, which is favorable for consolidating the foundation for the overall stableness in China's cross-border capital flows. In October, China's official manufacturing PMI hit 51.2%, the highest within more than 2 years; the non-manufacturing PMI was 54.0%, the highest since the beginning of this year; the PPI was up by 1.2% year-on-year, which was higher than before; China's fixed asset investment for the first 10 months grew by 8.3%, up by 0.1 percentage point than the first 9 months. Overall, as China's economy operates more stably, its economic structure are being optimized, and the internal impetus for economic growth becomes stronger, the advantages of its economic fundamentals will be more evident, which will be favorable for withstanding external impact and ensuring the stability of China's cross-border capital flows in the mid and long term. 2016-12-19/en/2016/1219/1236.html
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The State Administration of Foreign Exchange (SAFE) has recently disseminated the initial data on the Balance of Payments for the third quarter and the first three quarters this year. The SAFE press spokesperson answered media questions on relevant issues. Q: What new changes were there to the balance of payments for the third quarter this year? A: First, the surplus under the current account went up, accounting for 2.5% of GDP for the period, which was within a reasonable range. In the third quarter, the surplus under the current account was USD 71.2 billion, up by 11% quarter-on-quarter. In particular, the surplus under trade in goods hit USD 137.1 billion, up by 9% quarter-on-quarter. Alongside the slow recovery of domestic and overseas markets, imports and exports of goods increased. But a deficit of USD 69.5 billion was registered under trade in services, an increase of 25% quarter-on-quarter, due to seasonal factors. July and August are the peak seasons for overseas travel. As a result, a deficit of USD 62.9 was recorded under travel for the first three quarters, up by 26% quarter-on-quarter. Second, a deficit of USD 207.3 billion (including net errors and omissions) was posted under the non-reserve financial account, due to active allocation of external assets by domestic players. Of external assets, a net increase of USD 55 billion was recorded under ODI, down by 14% quarter-on-quarter. Incomplete statistics show a net increase of more than USD 30 billion in external portfolio investments including QDII and southbound trading, and of more than USD 40 billion in external debt. Of external liabilities, FDI represented a net increase of USD 23.6 billion, suggesting China is still attractive to long-term investors. Meanwhile, as corporate deleveraging came to a halt, net inflows under portfolio investment and loan liabilities recovered. For example, a net inflow of more than USD 40 billion was recorded under purchases of stocks and bonds by foreign institutions. Overall, China's economy will continue to grow at a middle and high speed, with the current account led by trade in goods remaining in surplus and its attractiveness to long-term capital to be strong still. As the RMB officially joined the SDR basket, the two-way liberalization of financial markets is pressed ahead with, and domestic stock markets, bond markets and foreign exchange markets are further opened, domestic players' initiative for rationally arranging for cross-border investment and financing will be further strengthened, while international investors will have much stronger demand for China's assets. All these will work together to guide China's cross-border capital towards a pattern of two-way fluctuations featuring alternation between inflows and outflows. 2016-12-19/en/2016/1219/1235.html
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On December 31, 2016, Zhou Xiaochuan, secretary of the CPC Committee and governor of the People's Bank of China (PBC) visited the SAFE Investment Center to show his care for the frontline officials for yearend final accounts, who are committed to the operations and management of foreign exchange reserves, and sent through them his greetings to the workforce of the SAFE and their families. Accompanying him were Pan Gongsheng, member of the CPC Committee and deputy governor of the PBC, and administrator of the SAFE, and Yin Yong, member of the CPC Committee and deputy governor of the PBC, and director of the Investment Center of the SAFE. On behalf of the CPC Committee of the PBC, Zhou reaffirmed the achievements obtained in the operations and management of foreign exchange reserves. According to him, the year 2016 is the first year of the 13th Five-year Plan period, a year crucial to the building of a moderately prosperous society in all respects, and also a year to make breakthroughs in pressing ahead with the structural reform. Under the leadership of the CPC Central Committee and the State Council, the staff engaged in the operations and management of foreign exchange reserves worked with one mind and one heart and forged ahead. They flexibly responded to the heightened volatilities in the global economic and financial markets, and stably advanced the operation and management efforts, ensuring the security, liquidity and value preservation and increase of assets and making new contributions to serving the national development strategy and safeguarding the economic and financial security. Zhou stressed that since the year 2017 is a year to advance the 13th Five-year Plan in all respects, the tasks of reform will become heavier and the external environment will be more complex. By following the gist of the 18th CPC National Congress, and the Third, Fourth, Fifth and Sixth Plenums of the 18th CPC Central Committee, and the Central Economic Work Conference, the talents devoted to the operations and management of foreign exchange should work hard and make breakthroughs based on the basic function that foreign exchange reserves should safeguard the balance of payments. They should also be precise and down-to-earth to ensure the smooth operations and management of foreign exchange reserves, in a bid to better serve the development of China. 2016-12-31/en/2016/1231/1240.html
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On December 21, 2016, Pan Gongsheng, Administrator of the State Administration of Foreign Exchange (SAFE), met with a delegation from China Banking Association Foreign Bank Working Committee in Beijing. A seminar was held with 15 foreign bank delegates. They exchanged ideas on the conditions of foreign exchange markets, regulation of foreign exchange markets, and banks' compliance and self-discipline. According to Administrator Pan Gongsheng, building healthy and orderly foreign exchange markets is the common pursuit of market players. Currently, the cross-border capital flow risk is within control and there are long-term fundamental factors that support the stability of foreign exchange markets. Adhering to the general work guideline of making progress while maintaining stability, foreign exchange authorities have been committed to achieving short-term targets through balancing foreign exchange receipts and payments, and guarding against cross-border capital flow risks, and also to making long-term achievements in boosting the liberalization of financial markets, by balancing facilitation and risk mitigation, strengthening regulation of foreign exchange markets and cracking down on foreign exchange irregularities. Commercial banks are required to follow the business principles and intensify authenticity and compliance reviews in handling foreign exchange business. They should perform their social responsibilities and promote the reform measures with regard to foreign exchange administration. They also should guide market players to rationally use the funds and immediately report problems once they are spotted, so as to jointly safeguard the stability of foreign exchange markets. 2016-12-22/en/2016/1222/1238.html
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Q: The foreign exchange reserves data recently disseminated by the People's Bank of China (PBC) show that China's foreign exchange reserves by the end of December 2016 dropped by USD 41.081 billion month-on-month, and the figure in 2016 fell by USD 319.844 billion year-on-year. Could you explain these declines in foreign exchange reserves? A: As at December 31, 2016, China's foreign exchange reserves amounted to USD 3010.517 billion, down by USD 41.081 billion or 1.3% month-on-month. The factors that influenced the changes in foreign exchange reserves mainly include: 1. the central bank's operation in the foreign exchange market; 2. Price fluctuations of investment assets in foreign exchange reserves; 3. As the US dollar is the measurement currency of foreign exchange reserves, the changes in foreign exchange rate of other currencies against the US dollar may lead to the changes in China's foreign exchange reserves; 4. according to the IMF definition, the foreign exchange reserves used to support "going global" will be recorded beyond rather than under foreign exchange reserves, and vice versa. In December, the central bank provided foreign exchange to the market to rebalance the supply and demand of foreign exchange, respond to the depreciation of non-USD currencies against the US dollar, among others, and consequently resulted in the drops in foreign exchange reserves. Throughout the year, the central bank's effort to stabilize the RMB exchange rate was the primary cause behind the decreases in foreign exchange reserves. When it comes to evaluation, the depreciation of non-USD currencies against the US dollar and the changes in asset prices also contributed to the declines. To sum up, the decreases in foreign exchange reserves for 2016 shrank by USD 192.812 billion year-on-year. 2017-01-07/en/2017/0107/1242.html
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Q: The State Administration of Foreign Exchange has provided window guidance to selected commercial banks with regard to a higher deficit in bank's sales and settlement of foreign exchange, requiring them to take proper measures to narrow the deficit, according to recent media reports. What would you say about this? A: This is not true. Foreign exchange authorities have not taken any new regulatory measures for currency exchanges or cross-border receipts and payments thus far, except to require banks to observe the existing foreign exchange regulations, implement the self-regulatory requirements and intensify authenticity and compliance reviews. The foreign exchange administration policies remain consistent with the previously published ones, with no change made. The foreign exchange purchase, payment, receipt and settlement are handled as usual. Next, foreign exchange authorities will systematically press ahead with the reform in key aspects, further enhance the level of trade and investment facilitation, intensify early warning with regard to monitoring of cross-border capital flows, help banks to improve the self-regulatory mechanism, and to implement the business requirements and responsibilities in authenticity and compliance reviews, while maintaining a tough stance on foreign exchange irregularities, in a bid to safeguard China's economic and financial security. 2016-12-19/en/2016/1219/1234.html
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To ramp up the administrative approval efficiency and improve law-based administration with regard to foreign exchange administration, so that the transparency of law-based administration could be ensured, the State Administration of Foreign Exchange (SAFE) has recently published the Statistical Table on Intermediary Services Involved in Administrative Approval and Entrusted to Relevant Institutions by Administrative Counterparts (Statistical Table). By making known the intermediary services, the SAFE aims to facilitate the general public's inquiries and understanding. The Statistical Table's highlights include 6 intermediary service items required in 3 administrative approval items under the capital account, such as financial audit report, capital verification report and power of attorney. This is another key move the SAFE has taken in recent years to implement the State Council's requirements on administration streamlining, power delegation and strengthening services to boost law-based administration and information transparency. For the details of the Statistical Table, please visit the SAFE's official website at "online services - administrative approval - administrative approval items". 2016-12-23/en/2016/1223/1239.html
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On December 20, 2016, Pan Gongsheng, Administrator of the State Administration of Foreign Exchange (SAFE), met with a delegation from the Hong Kong Association of Banks (HKAB) headed by Mr. Norman Chan, Chief Executive of the Hong Kong Monetary Authority (HKMA) and Ms. Chen Xiumei, Chairperson of the HKAB. The two sides exchanged ideas on issues of both concern such as foreign exchange situation, and foreign exchange administration policies. According to Administrator Pan Gongsheng, the cross-border capital flow risk is within control at the moment, and there are long-term fundamental factors that support the equilibrium of the balance of payments. The SAFE will be committed to trade and investment facilitation under the existing policy framework. What's more, the SAFE will also guard against cross-border capital flow risks, intensify regulation of foreign exchange markets, and crack down on foreign exchange irregularities, in a bid to sustain the health and stability of foreign exchange markets. 2016-12-20/en/2016/1220/1237.html
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By May31, 2006 No. Banks 1 Bank of China 2 China Construction Bank 3 China Citic Bank 4 China Merchants Bank 5 Bank of Montreal Ltd., Guangzhou Branch 6 Citibank,N.A., Shanghai Branch 7 Industrial and Commercial Bank of China 8 Bank of Communications 9 Agricultural Bank of China 10 Industrial Bank 11 The HongKong and Shanghai Banking Corporation Ltd., Shanghai Branch 12 Standard Chartered Bank Shanghai Branch 13 ABN AMRO Bank N.V., Shanghai Branch 14 Shanghai PuDong Development Bank 15 The Bank of Tokyo-Mitsubishi UFJ,Ltd, Shanghai Branch 2006-05-31/en/2006/0531/1283.html