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The State Administration of Foreign Exchange (SAFE) has recently released the initial data in the Balance of Payments for the third quarter and the first three quarters of 2019. Wang Chunying, SAFE press spokesperson and chief economist, answered related questions from the press. Q: Could you brief us on the features of China's balance of payments for the first three quarters of 2019? A: The initial data in the Balance of Payments shows that China's current account registered a surplus and cross-border capital flows stayed stable in the first three quarters of 2019, suggesting China's balance of payments was in a basic equilibrium. First, the current account was in surplus, with a rising surplus under trade in goods and a narrowing deficit under the trade in services. In the first three quarters of 2019, the current account recorded a surplus of USD 143.2 billion, versus a deficit of USD 5.5 billion the same period a year earlier. Specifically, in the Balance of Payments, trade in goods registered a surplus of USD 343.5 billion, up by 34% year-on-year, but trade in services recorded a deficit of USD 201.7 billion, down by 12% year-on-year. Under trade in services, the deficits of travel, transportation and use of IP rights decreased by 8%, 15% and 10% year-on-year, respectively. Second, FDI remained high. In the first three quarters, direct investment registered a net inflow of USD 27.7 billion. ODI recorded a net outflow of USD 69.3 billion, and FDI, a net inflow of 97 billion, which was high. Third, portfolio investment reached a surplus and two-way capital flows were striking. Initial statistics show that China posted a surplus of USD 40 billion under portfolio investment in the first three quarters. Specifically, China's outward portfolio investment exceeded USD 60 billion, and foreign portfolio investment in China surpassed USD 100 billion. Fourth, reserve assets stayed generally stable. In the first three quarters, China's reserve assets contracted by USD 13 billion due to transactions in the Balance of Payments. Impacted by non-transaction factors including foreign exchange rate and pricing, the balance of China's reserve assets hit USD 3.2045 trillion by the end of September, up by USD 36.5 billion from the end of 2018. Overall, as China's economic fundamentals remain sound over the long term and all-round opening up is pushed ahead, China's balance of payments is expected to stay generally stable and remain in a basic equilibrium throughout the year. 2019-11-08/en/2019/1108/1662.html
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As at the end of 2019, China's banking sector recorded external financial assets of USD 1170.9 billion, external liabilities of USD 1330.1 billion, and net external liabilities of USD 159.1 billion including net RMB liabilities of USD 324.3 billion and net foreign currency assets of USD 165.2 billion. Among the external financial assets of the banking sector, deposits and loans were USD 832.1 billion,bonds investment,USD 163.0 billion, and other assets including equity, USD 175.9 billion,accounting for 71 percent, 14 percent and 15 percent of the sector's total external financial assets respectively. By currency, RMB assets were USD 109.2 billion, USD assets, USD 806.7 billion, and other currency assets, USD 255.1 billion,accounting for 9 percent, 69 percent and 22 percent respectively. Among the external financial assets of the banking sector, the amount invested in the overseas banking sector was USD 588.2 billion, accounting for more than 50 percent; the amount invested in the overseas non-banking sector was USD 582.7 billion,accounting for lessthan 50 percent. Among the external liabilities of the banking sector, deposits and loans were USD 721.5 billion,bonds investment,USD 212.7 billion,and other liabilities including equity, USD 395.9 billion, accounting for 54 percent, 16 percent and 30 percent of the sector's total external liabilities respectively. By currency, RMB liabilities were USD 433.5 billion, USD liabilities, USD 520.5 billion, and other currency liabilities, USD 376.1 billion, accounting for 33 percent, 39 percent and 28 percent respectively. Among the external liabilities of China’s banking sector, USD 536.1billion was from overseas banking sector, accounting for 40 percent; while USD 794 billion was from overseas non-banking sector, accounting for 60 percent. (End) 2020-03-26/en/2020/0326/1655.html
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On January 13, 2020, the State Administration of Foreign Exchange (SAFE) released the Circular of the State Administration of Foreign Exchange on Improving Foreign Exchange Risk Management for Foreign Institutional Investors in Interbank Bond Markets (Huifa No. 2 [2020]) (Circular) to further facilitate foreign exchange risk management by foreign institutional investors in interbank bond markets. Considering the issues that concern foreign investors and settlement agents, the SAFE has recently published the Q&A on Policy Set Forth in the Circular (in Chinese and English versions). The Q&A, with a focus on 16 dimensions mentioned in the Circular, elaborates on operational issues such as scope of foreign exchange risk exposure, changes in the channels of hedging against foreign exchange risks, account opening, and fund transfers. The SAFE will continue to follow the requirements of the CPC Central Committee and the State Council to press ahead with reform and opening up in foreign exchange, deepen the development of foreign exchange markets and launch more foreign exchange facilitation services to better serve the growth of the real economy and the opening up of the financial market. 2020-03-04/en/2020/0304/1663.html
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External_Financial_Assets_and_Liabilities_of_China's_Banking_Sector_(As_of_December_31_2019) 2020-03-26/en/2020/0326/1656.html
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According to the statistics of the State Administration of Foreign Exchange (SAFE), the Chinese foreign exchange market (excluding foreign currency pairs, the same below) recorded total transaction of RMB 12.20 trillion (equivalent to USD 1.74 trillion) in February 2020. Specifically, the transaction volume of the bank to customer market was RMB 2.18 trillion (equivalent to USD 311.9 billion), the transaction volume of interbank market was RMB 10.02 trillion (equivalent to USD 1.43 trillion), the cumulative transaction volume of the spot market was RMB 4.82 trillion (equivalent to USD 689.1 billion), and that of the derivatives market was RMB 7.38 trillion (equivalentto USD 1.06 trillion). From January to February 2020, a total of RMB 25.63 trillion (equivalent to USD 3.69 trillion) was traded in the Chinese foreign exchange market. Because some of the banks have not been able to submit data due to the disease caused by COVID-19, the data for customer market is incomplete. 2020-03-27/en/2020/0327/1657.html
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Honorable Vice Premier Liu He, Secretary Li Qiang, Acting Mayor Gong Zheng, Governor Yi Gang, Secretary Guo Shuqing, Chairman Yi Huiman, Ladies and Gentlemen, Good morning. It is my pleasure to attend this year’s Lujiazui Forum. Vice Premier Liu He’s remarks for the forum are very important, which highlight the macro design and the general framework for further promoting the development of Shanghai as an international financial center and advancing financial market reform and opening-up. We will work for effective implementation of these requirements under the leadership of the Financial Stability and Development Committee. In 2009, the Communist Party of China (CPC) Central Committee and the State Council set the goal of building Shanghai into an international financial center that matches China’s economic strength and the international status of the RMB. It was in the same year that Shanghai took the lead in launching the pilot program of RMB cross-border trade settlement, with which RMB internationalization set sail. We may well say that the building of Shanghai into an international financial center has started and moved on side by side with RMB internationalization. With over a decade passing by, the RMB has been included in the SDR currency basket of the International Monetary Fund, and Shanghai has achieved significant progress in its development as an international financial center. Shanghai has had a relatively complete set of financial factor markets, featuring all categories of RMB-denominated financial assets and active trading, with quite a number of major trading indicators ranking high globally. Shanghai has become home to almost all types of highly internationalized financial institutions. In particular, international financial institutions, headquarters, and functional institutions have been increasing continuously. Shanghai has become an important hub of RMB internationalization and a pioneer always at the forefront of financial opening-up. Regarding interconnectivity between domestic and overseas markets, Shanghai has served as the linkage not only for the Bond Connect but also for the Shanghai-Hong Kong Stock Connect and the Shanghai-London Stock Connect as well. In terms of RMB internationalization, cross-border RMB settlement in Shanghai has accounted for over 50 percent of the national total; and corporations on the Global 500 list that are based in Shanghai have seen their cross-border settlement in the RMB surpass that in foreign currencies, with the RMB becoming the most preferred currency for cross-border settlement among multinationals in Shanghai. In recent years, especially in the wake of the COVID-19 outbreak, with the world’s economic and financial landscape undergoing profound changes, Shanghai has been faced with new opportunities and challenges in building an international financial center with higher influence. The People’s Bank of China (PBC) and the State Administration of Foreign Exchange (SAFE) pledge continued support for the undertaking, and will work with the CPC Shanghai Municipal Committee, the Shanghai Municipal Government, relevant agencies, and market institutions to bring the development of Shanghai as an international financial center to a new height. Today I would like to share some opinions for your reference. First, Shanghai should adhere to its fundamental positioning in the competition among international financial centers, and focus on the development of a financial center based on RMB-denominated financial assets. With China’s economic and financial strength rising continuously, the RMB has become more and more important as an international payment, denomination, trading, and reserve currency. As a result, worldwide demand for investments in RMB assets has been rapidly growing, enhancing the radiation effect of the financial center globally. Currently, China has the world’s second largest bond market and stock market. With a total size of over RMB160 trillion, they have been included in several major international indices. RMB assets in the portfolios of international institutions have amounted to RMB6.4 trillion, increasing at an average annual rate of over 20 percent. In particular, domestic RMB bonds held by overseas institutional investors have witnessed an average annual growth rate of nearly 40 percent in recent years. Going forward, the PBC and SAFE will support Shanghai in exploring its unique advantages as the center for the issuance and trading of RMB assets in an effort to diversify RMB-denominated financial assets through innovation, improve the depth and width of RMB financial markets, and meet the investment and financing needs of various international investors. Second, continued efforts should be made to promote opening-up through multiple channels while work should be sped up to advance higher-level opening-up of onshore markets. China’s financial markets have been opening up progressively through channels. Of the three major types of opening-up channels so far, the first is for interconnectivity between domestic and overseas markets, including the Shanghai-Hong Kong Stock Connect, the Shenzhen-Hong Kong Stock Connect, the Bond Connect, and the Shanghai-London Stock Connect, so that international investors can invest in domestic markets via offshore markets. The second is for direct entry of overseas investors into the market, including the qualified foreign institutional investor (QFII) and RMB qualified foreign institutional investor (RQFII) schemes, and for direct investment in China’s interbank bond market (CIBM). The third is for overseas financial institutions to establish business presence in China and conduct investment and financing directly. The multiple channels in such an opening-up model have complemented each other quite well to meet the needs of overseas investors. Specifically, the first type has been playing an important role so far, with the stocks held by overseas investors through the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect accounting for 60 percent of the total market capitalization of their stock holdings in China, and the Bond Connect witnessing more participants and higher average daily turnover than direct investment channels. As the RMB-denominated financial assets become increasingly attractive and Shanghai matures as an international financial center, accelerating the opening-up of onshore markets will help increase trading efficiency and reduce trading costs, thereby improving Shanghai’s efficiency in resource allocation and enhancing its radiation effect as an international financial center. The PBC and SAFE recently reformed bond market investment channels, abolishing restrictions on QFII/RQFII quotas and expanding the qualified domestic limited partner (QDLP) and qualified foreign limited partner (QFLP) pilot programs. Regulatory agencies removed foreign ownership limits on foreign-funded financial institutions. All these are important steps to expand the opening-up of onshore markets. Going forward, we will continue to support Shanghai’s efforts to optimize the multi-channel opening-up while taking active steps to expand the opening-up of onshore markets in line with market demand and promoting prosperity and development of both onshore and offshore markets. Third, more work should be done to make Shanghai a place where financial institutions concentrate, particularly wealth management and asset management institutions. In recent years, China has been steadily picking up pace in opening up its financial services industry, as reflected by the complete removal of foreign ownership caps on banks as well as securities, fund management, futures, and life insurance companies. A host of foreign-funded financial institutions, including the world’s top 10 asset management companies and over 90 percent of foreign-funded private equity firms in China, have set up offices in Shanghai. Next, the PBC and SAFE will fully implement existing opening-up policies, conduct research to roll out new measures such as the QDLP/QFLP expansion, and work on the model for managing cross-border investment and financing by private equity funds, thereby helping attract to Shanghai more of the world’s leading institutions and make Shanghai a major market of wealth management and asset management globally. Fourth, efforts should be made to foster a law-based and rule-based environment aligned with international standards. A law-based and rule-based environment of high standards is the foundation and guarantee for the development of an international financial center. The maturity, transparency, and predictability of laws, regulations, and policies are key to the confidence of market investors. Based on the actual needs of Shanghai in its development as an international financial center, the PBC and SAFE have worked with relevant authorities, hoping to launch in Shanghai more pilot programs regarding financial laws and regulations, such as those on nominal holding and multi-level custody of securities, clearing and settlement modes, information disclosure, accounting standards, investor protection, and the punishment of illegal financial conduct. These measures are aimed at speeding up the supply of high-standard financial laws and the integration with international practice so as to foster a high-quality business environment for the financial industry. Fifth, capital account opening-up should be achieved at a high level. In recent years, with the implementation of national strategies, such as the building of the Shanghai Pilot Free Trade Zone and the Lin-gang Special Area and the development of Shanghai as a sci-tech innovation center, policies have been introduced in Shanghai for high-level opening-up of both the current account and the capital account. At the same time, a series of innovative opening-up measures have been rolled out to facilitate foreign debt financing, cross-border asset transfer, and the conduct of cross-border RMB businesses so that capital account opening-up in Shanghai has been enhanced effectively. For the next stage, the PBC and SAFE will continue to support Shanghai in pioneering higher-level opening-up of the capital account. Meanwhile, work will be accelerated to improve the framework for foreign exchange market administration featuring “macroprudential management plus micro supervision” and to enhance the review mechanisms for combating money laundering, terrorist financing, and tax evasion so that opening-up and risk control will be pushed ahead together. With strong support from all sides and our joint efforts, Shanghai is bound to become a high-level international financial center based on RMB-denominated financial assets, and will play a bigger role in advancing China’s financial opening-up and high-quality economic development. I wish the forum a complete success. Thank you. 2020-06-24/en/2020/0624/1722.html
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In the second quarter of 2020, China's current account registered a surplus of RMB 847 billion, including a surplus of RMB 1142.6 billion under trade in goods, a deficit of RMB 208.4 billion under trade in services, a deficit of RMB 93.9 billion under primary income, and a surplus of RMB 6.7 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of RMB 16.9 billion, and reserve assets increased by RMB 135.6 billion. In the first half of 2020, China's current account registered a surplus of RMB 611.9 billion, including a surplus of RMB 1303.8 billion under trade in goods, a deficit of RMB 536.7 billion under trade in services, a deficit of RMB 173 billion under primary income, and a surplus of RMB 17.8 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of RMB 130.7 billion, and reserve assets decreased by RMB 39.3 billion. In the US dollar terms, in the second quarter of 2020, China's current account recorded a surplus of USD 119.6 billion, including a surplus of USD 161.3 billion under trade in goods, a deficit of USD 29.4 billion under trade in services, a deficit of USD 13.3 billion under primary income, and a surplus of USD 0.9 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of USD 2.4 billion, and reserve assets increased by USD 19.1 billion. In the US dollar terms, in the first half of 2020, China's current account recorded a surplus of USD 85.9 billion, including a surplus of USD 184.4 billion under trade in goods, a deficit of USD 76.5 billion under trade in services, a deficit of USD 24.6 billion under primary income, and a surplus of USD 2.5 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of USD 18.7 billion, and reserve assets decreased by USD 5.9 billion. In SDR terms, in the second quarter of 2020, China posted a surplus of SDR 87.3 billion under the current account, includinga surplus of SDR 117.8 billion under trade in goods, a deficit of SDR 21.5 billion under trade in services, a deficit of SDR 9.7 billion under primary income, and a surplus of SDR 0.7 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of SDR 1.7 billion, and reserve assets increased by SDR 14 billion. In SDR terms, in first half of 2020, China posted a surplus of SDR 62.3 billion under the current account, including a surplus of SDR 135 billion under trade in goods, a deficit of SDR 56.4 billion under trade in services. In the capital and financial accounts, foreign direct investments recorded a surplus of SDR 13.8 billion, and reserve assets decreased by SDR 4.6 billion. (End) China's Balance of Payments (Preliminary Data) Unit: RMB 100 million Item Line No. 2020 Q2 2020 H1 1. Current account 1 8,470 6,119 Credit 2 52,457 91,254 Debit 3 -43,987 -85,136 1. A Goods and Services 4 9,342 7,671 Credit 5 46,749 83,061 Debit 6 -37,407 -75,390 1.A.a Goods 7 11,426 13,038 Credit 8 42,776 75,289 Debit 9 -31,350 -62,251 1.A.b Services 10 -2,084 -5,367 Credit 11 3,973 7,772 Debit 12 -6,056 -13,139 1.A.b.1 Processing services 13 222 454 Credit 14 228 469 Debit 15 -7 -15 1.A.b.2 Maintenance and Repair Services 16 54 147 Credit 17 119 254 Debit 18 -65 -108 1.A.b.3 Transport 19 -526 -1,342 Credit 20 994 1,713 Debit 21 -1,520 -3,055 1.A.b.4 Travel 22 -1,428 -4,328 Credit 23 299 620 Debit 24 -1,728 -4,948 1.A.b.5 Construction 25 82 100 Credit 26 206 372 Debit 27 -124 -272 1.A.b.6 Insurance and Pension Services 28 -142 -223 Credit 29 94 163 Debit 30 -236 -387 1.A.b.7 Financial Services 31 12 37 Credit 32 68 137 Debit 33 -56 -100 1.A.b.8 Charges for the Use of Intellectual Property 34 -556 -912 Credit 35 157 311 Debit 36 -714 -1,222 1.A.b.9 Telecommunications, Computer, and Information Services 37 56 88 Credit 38 656 1,249 Debit 39 -600 -1,162 1.A.b.10 Other Business Services 40 141 685 Credit 41 1,062 2,344 Debit 42 -921 -1,659 1.A.b.11 Personal, Cultural, and Recreational Services 43 -34 -67 Credit 44 16 31 Debit 45 -51 -98 1.A.b.12 Government Goods and Services n.i.e 46 36 -6 Credit 47 72 107 Debit 48 -36 -114 1.B Primary Income 49 -939 -1,730 Credit 50 5,115 6,960 Debit 51 -6,054 -8,690 1.C Secondary Income 52 67 178 Credit 53 593 1,233 Debit 54 -527 -1,056 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -8,470 -7,696 2.1 Capital Account 56 -1 -7 Credit 57 3 4 Debit 58 -4 -11 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -8,469 -7,689 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -7,114 -8,082 Including: 2.2.1.1 Direct Investment 61 169 1,307 2.2.1.1.1 Assets 62 -2,067 -3,323 2.2.1.1.2 Liabilities 63 2,236 4,630 2.2.2 Reserve Assets 64 -1,356 393 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 11 8 2.2.2.3 Reserve position in the IMF 67 -104 -86 2.2.2.4 Foreign exchange reserves 68 -1,262 471 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / 1,577 Note:1. The table is compiled according to BPM6. 2."Credit" is presented as positive value while "debit" as negative value, and the balance is the sum of the "Credit" and the "Debit". All items herein refer to balances, unless marked with "Credit" or "Debit". 3.The RMB denominated BOP statement is converted from the USD denominated BOP statementfor the quarter using the quarterly average central parity rate of RMB against USD. 4.The preliminary amount for the first half of 2020 is the sum of the official amounts of the BOP for 2020Q1 and the preliminary amount for 2020Q2. 5.This table employs rounded-off numbers. China's Balance of Payments ( Preliminary Data) Unit: USD 100 million Item Line No. 2020 Q2 2020 H1 1. Current account 1 1,196 859 Credit 2 7,405 12,964 Debit 3 -6,209 -12,105 1. A Goods and Services 4 1,319 1,079 Credit 5 6,599 11,802 Debit 6 -5,280 -10,723 1.A.a Goods 7 1,613 1,844 Credit 8 6,038 10,697 Debit 9 -4,425 -8,853 1.A.b Services 10 -294 -765 Credit 11 561 1,105 Debit 12 -855 -1,870 1.A.b.1 Processing services 13 31 65 Credit 14 32 67 Debit 15 -1 -2 1.A.b.2 Maintenance and Repair Services 16 8 21 Credit 17 17 36 Debit 18 -9 -15 1.A.b.3 Transport 19 -74 -191 Credit 20 140 243 Debit 21 -215 -434 1.A.b.4 Travel 22 -202 -617 Credit 23 42 88 Debit 24 -244 -705 1.A.b.5 Construction 25 12 14 Credit 26 29 53 Debit 27 -17 -39 1.A.b.6 Insurance and Pension Services 28 -20 -32 Credit 29 13 23 Debit 30 -33 -55 1.A.b.7 Financial Services 31 2 5 Credit 32 10 19 Debit 33 -8 -14 1.A.b.8 Charges for the Use of Intellectual Property 34 -79 -129 Credit 35 22 44 Debit 36 -101 -174 1.A.b.9 Telecommunications, Computer, and Information Services 37 8 12 Credit 38 93 178 Debit 39 -85 -165 1.A.b.10 Other Business Services 40 20 98 Credit 41 150 334 Debit 42 -130 -236 1.A.b.11 Personal, Cultural, and Recreational Services 43 -5 -10 Credit 44 2 4 Debit 45 -7 -14 1.A.b.12 Government Goods and Services n.i.e 46 5 -1 Credit 47 10 15 Debit 48 -5 -16 1.B Primary Income 49 -133 -246 Credit 50 722 986 Debit 51 -855 -1,232 1.C Secondary Income 52 9 25 Credit 53 84 175 Debit 54 -74 -150 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -1,196 -1,085 2.1 Capital Account 56 -0.1 -1 Credit 57 0 1 Debit 58 0 -2 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -1,196 -1,084 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -1,004 -1,143 Including: 2.2.1.1 Direct Investment 61 24 187 2.2.1.1.1 Assets 62 -292 -472 2.2.1.1.2 Liabilities 63 316 659 2.2.2 Reserve Assets 64 -191 59 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 2 1 2.2.2.3 Reserve position in the IMF 67 -15 -12 2.2.2.4 Foreign exchange reserves 68 -178 70 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / 226 Note:1. The table is compiled according to BPM6. 2."Credit" is presented as positive value while "debit" as negative value, and the balance is the sum of the "Credit" and the "Debit". All items herein refer to balances, unless marked with "Credit" or "Debit". 3. The preliminary amount for the first half of 2020 is the sum of the official amounts of the BOP for 2020Q1 and the preliminary amount for 2020Q2. 4.This table employs rounded-off numbers. China's Balance of Payments (PreliminaryData) Unit: SDR 100 million Item Line No. 2020 Q2 2020 H1 1. Current account 1 873 623 Credit 2 5,409 9,537 Debit 3 -4,536 -8,914 1. A Goods and Services 4 963 785 Credit 5 4,820 8,684 Debit 6 -3,857 -7,899 1.A.a Goods 7 1,178 1,350 Credit 8 4,411 7,870 Debit 9 -3,233 -6,521 1.A.b Services 10 -215 -564 Credit 11 410 814 Debit 12 -624 -1,378 1.A.b.1 Processing services 13 23 48 Credit 14 24 49 Debit 15 -1 -2 1.A.b.2 Maintenance and Repair Services 16 6 15 Credit 17 12 27 Debit 18 -7 -11 1.A.b.3 Transport 19 -54 -141 Credit 20 102 179 Debit 21 -157 -320 1.A.b.4 Travel 22 -147 -456 Credit 23 31 65 Debit 24 -178 -521 1.A.b.5 Construction 25 8 10 Credit 26 21 39 Debit 27 -13 -29 1.A.b.6 Insurance and Pension Services 28 -15 -23 Credit 29 10 17 Debit 30 -24 -40 1.A.b.7 Financial Services 31 1 4 Credit 32 7 14 Debit 33 -6 -10 1.A.b.8 Charges for the Use of Intellectual Property 34 -57 -95 Credit 35 16 33 Debit 36 -74 -128 1.A.b.9 Telecommunications, Computer, and Information Services 37 6 9 Credit 38 68 131 Debit 39 -62 -122 1.A.b.10 Other Business Services 40 15 72 Credit 41 109 246 Debit 42 -95 -173 1.A.b.11 Personal, Cultural, and Recreational Services 43 -4 -7 Credit 44 2 3 Debit 45 -5 -10 1.A.b.12 Government Goods and Services n.i.e 46 4 -1 Credit 47 7 11 Debit 48 -4 -12 1.B Primary Income 49 -97 -181 Credit 50 527 724 Debit 51 -624 -905 1.C Secondary Income 52 7 19 Credit 53 61 129 Debit 54 -54 -111 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -873 -791 2.1 Capital Account 56 -0.1 -1 Credit 57 0 0 Debit 58 0 -1 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -873 -790 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -734 -837 Including: 2.2.1.1 Direct Investment 61 17 138 2.2.1.1.1 Assets 62 -213 -347 2.2.1.1.2 Liabilities 63 231 485 2.2.2 Reserve Assets 64 -140 46 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 1 1 2.2.2.3 Reserve position in the IMF 67 -11 -9 2.2.2.4 Foreign exchange reserves 68 -130 54 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / 168 Notes: 1. The table is compiled according to BPM6. 2."Credit" is presented as positive value while "debit" as negative value, and the balance is the sum of the "Credit" and the "Debit". All items herein refer to balances, unless marked with "Credit" or "Debit". 3. The SDR denominated quarterly BOP statement is converted from the USD denominated BOP statement for the quarter using the quarterly average exchange rate of SDR against USD. 4. The preliminary amount for the first half of 2020 is the sum of the official amounts of the BOP for 2020Q1 and the preliminary amount for 2020Q2. 5. This table employs rounded-off numbers. 2020-08-07/en/2020/0807/1734.html
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In June 2020, China’s international trade in goods and services recorded receipts of RMB 1572.7 billion and payments of RMB 1328.8 billion based on statistics of balance of payments (BOP), registering a surplus of RMB 243.9 billion. Specifically, trade in goods registered receipts of RMB 1441.7 billion, payments of RMB 1123.9 billion, recording a surplus of RMB 317.8 billion; trade in services recorded receipts of RMB 131 billion, payments of RMB 204.9 billion, resulting in a deficit of RMB 73.9 billion. In the US dollar terms, in June 2020, China's BOP-based receipts and payments of international trade in goods and services were USD 221.9 billion and USD 187.5 billion respectively, registering a surplus of USD 34.4 billion. Specifically, the receipts and payments from trade in goods were USD 203.4 billion and USD 158.6 billion respectively, resulting in a surplus of USD 44.9 billion. Trade in services registered receipts and payments of USD 18.5 billion and USD 28.9 billion respectively, recording a deficit of USD 10.4 billion.(End) International Trade in Goods and Services of China (Based on the BOP statistics) June 2020 Item In 100 million of RMB In 100 million of USD Goods and services 2439 344 Credit 15727 2219 Debit -13288 -1875 1. Goods 3178 449 Credit 14417 2034 Debit -11239 -1586 2. Services -739 -104 Credit 1310 185 Debit -2049 -289 2.1Manufacturing services on physical inputs owned by others 69 10 Credit 71 10 Debit -2 0 2.2Maintenance and repair services n.i.e 15 2 Credit 45 6 Debit -29 -4 2.3Transport -217 -31 Credit 331 47 Debit -548 -77 2.4Travel -481 -68 Credit 115 16 Debit -595 -84 2.5Construction 25 4 Credit 62 9 Debit -36 -5 2.6Insurance and pension services -26 -4 Credit 43 6 Debit -69 -10 2.7Financial services 4 1 Credit 22 3 Debit -18 -3 2.8Charges for the use of intellectual property -193 -27 Credit 45 6 Debit -238 -34 2.9Telecommunications, computer and information services 33 5 Credit 207 29 Debit -174 -25 2.10Other business services 32 5 Credit 347 49 Debit -315 -45 2.11Personal, cultural, and recreational services -13 -2 Credit 5 1 Debit -18 -3 2.12Government goods and services n.i.e 13 2 Credit 18 3 Debit -5 -1 Notes: 1. The trade in goods and services in this table refers to the transactions between residents andnon-residents, based on the same standard as that for BOP statement. The monthly data are preliminary and may be inconsistent with the quarterly data in the BOP statement. 2. The data on international trade in goods and services are prepared in USD, and the RMB data for the current month is derived by converting the USD data at the monthly average central parity rate of the RMB against the USD. 3. This table employs rounded-off numbers. Definition of Indicators: Goods and Services: refers to the trade in goods and services between residents and non-residents, which is based on the same standard as that for the BOP statement. 1. Goods: refers to transactions in goods whereby the economic ownership is transferred between the Chinese residents and non-residents. The credit side records export of goods, while the debit side records import of goods. The data of goods account are mainly from the customs statistics of imports and exports, but differ from the statistics of the customs mainly in the following aspects: first, the goods in the BOP statement only reflect the goods whose ownership has been transferred (e.g. goods under the trade modes such as general tradeand processing trade with imported materials), while the goods whose ownership is not transferred (e.g. manufacturing services with supplied materials or with exported materials) are included in the statistics of trade in services instead of the statistics of trade in goods; second, as required by the BOP statistics, the goods imported and exported are valued on the FOB basis, but as required by the customs, the goods exported are valued on the FOB basis, whereas goods imported are on the CIF basis. Therefore, for the purpose of the BOP statistics, the international transport and insurance premiums are taken out from the value of imported goods and included in the trade in services; and third, the data on net export of goods in merchanting which are not included in the customs statistics are supplemented. 2. Services: includes manufacturing services on physical inputs owned by others, maintenance and repair services n.i.e, transport, travel, construction, insurance and pension services, financial services, charges for the use of intellectual property, telecommunications, computer and information services, other business services, personal, cultural and recreational services, and government goods and services n.i.e. The credit side records services supplied, while the debit side records services received. 2.1 Manufacturing services on physical owned by others: processoronly provides processing, assembly, packaging and other services and charges service fee from the owner, while the ownership of the goods is not transferred between the owner and the processor. The credit side records the manufacturing services supplied by the Chinese residents on physical inputs owned by non-residents, and vice versa for debit side. 2.2 Maintenance and repair services: refer to the maintenance and repair services supplied by residents to non-residentsor vice versa on goods and equipment (such as vessel, aircraft, and other transportation facility) owned by the receiving party. The credit side records the maintenance and repair services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.3 Transport: refers to the process of transporting people and goods from one place to another, and the relevant supporting and auxiliary services, as well as postal and delivery services. The credit side records the international transport,postal and delivery services supplied by residents to non-residents, and vice versa for debitside. 2.4 Travel:refers to goods consumed and services purchased by travelers in various economies as non-residents. The credit side records the goods and services provided by the Chinese residents to non-residents who have stayed in China for less than one year, as well as non-residents studying abroad and seeking medical treatment for indefinite period of stay. The debit side records the goods and services purchased by the Chinese residents when traveling, studying or seeking medical services abroad from non-residents. 2.5 Construction services:refer to the establishment, renovation, maintenance or expansion of fixed assets in the form of buildings, land improvement, roads, bridges and dams and other engineering buildings of engineering nature, relevant installation, assembly,painting, pipeline construction, demolition and project management, as well as site preparation, measurement and blasting and other special services. The credit side records the construction services provided by the Chinese residents outside the economic territory. The debit side records the construction services received by the Chinese residents in the Chinese economic territory from non-residents. 2.6 Insurance and pension services: refers to various insurance services and commission to agents related with insurance transaction. The credit side records the life insurance and annuity, non-life insurance, reinsurance, standardized guarantee services and relevant supporting services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.7 Financial services: refer to financial intermediation and supporting services, excluding those covered by insurance and pension services. The credit side records the financial intermediation and supporting services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.8 Charges for the use of intellectual property:refer to licensed use of intangible, non-productive/non-financial assets and exclusive rights between residents and non-residents and the licensed use of existing original works or prototypes. The credit side records the intellectual property-related services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.9 Telecommunications, computer and information services: refer to communications services between residents and non-residents and transactions of services related to computer data and news, excluding commercial services delivered via telephone, computer and Internet. The credit side records the telecommunications, computer and information services supplied by residents to non-residents, and vice versa for debit side. 2.10 Other business services: refer to other types of services between residents and non-residents, including research and development services, professional and management consulting services,technical and trade-related services. The credit side records the other business services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.11 Personal, cultural and recreational services: refer to transactions of personal, cultural and recreational services between residents and non-residents, including audiovisual and related services (films, radio, television programs and music recordings) and other personal, cultural and recreational services (health, education, etc.). The credit side records the related services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.12 Government goods and services n.i.e: refer to various goods and services provided and purchased by governments and international organizations not included in other categories of goods and services. The credit side records the goods and services not included elsewhere and supplied by the Chinese residents to non-residents, and vice versa for debit side. 2020-07-31/en/2020/0731/1732.html
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As shown in the statistics of the State Administration of ForeignExchange (SAFE), in June 2020, the amount of foreign exchange settlement andsales by banks was RMB 1081.6 billion and RMB 1075.5 billion, respectively,with a settlement of RMB 6.0 billion. In the US dollar terms，the amount of foreignexchange settlement and sales by banks was USD 152.6 billion and USD 151.8billion, respectively, with a settlement of USD 0.9 billion. In particular, the amount of foreign exchange settlementand sales by banks for customers was RMB 957.4 billion and RMB 979.1 billion,respectively, with a deficit of RMB 21.7 billion; the amount of foreignexchange settlement and sales for banks themselves was RMB 124.1 billion andRMB 96.5 billion, respectively, with a settlement of RMB 27.6 billion. Duringthe period, newly signed contract amount of forward foreign exchange settlementand sales was RMB 104.3 billion and RMB 66.1 billion, respectively, with a net newlysigned contract amount of forward foreign exchange settlement of RMB 38.2billion. At the end of June, outstanding amount of forward foreign exchange settlementand sales by the end of the current period was RMB 580.9 billion and RMB 464.4billion, respectively, with a net outstanding amount of forward foreignexchange settlement of RMB 116.4 billion; the net Delta exposure of outstandingoptions was RMB -320.6 billion. During January to June 2020, the accumulative amount of foreignexchange settlement and sales by banks was RMB 6702.5 billion and RMB 6149.4billion, with an accumulative settlement of RMB 553.1 billion. In the US dollarterms, the accumulative amount of foreign exchange settlement and sales bybanks was USD 953.5 billion and USD 874.9 billion, with an accumulativesettlement of USD 78.6 billion. In particular, the accumulative amount offoreign exchange settlement and sales by banks for customers was RMB 5696.0billion and RMB 5346.6 billion, respectively, with an accumulative settlementof RMB 349.4 billion; the accumulative amount of foreign exchange settlementand sales for banks themselves was RMB 1006.5 billion and RMB 802.9 billion,respectively, with an accumulative settlement of RMB 203.6 billion. During theperiod, newly signed contract amount of forward foreign exchange settlement andsales was RMB 804.0billion and RMB 393.6 billion, respectively, with a net newlysigned contract amount of forward foreign exchange settlement of RMB 410.4 billion. In June 2020, the amount of cross-border receipts and payments by non-bankingsectors was RMB 2563.8 billion and RMB 2412.4 billion, respectively, with a surplusof RMB 151.5 billion. DuringJanuary to June 2020, the accumulative amount of cross-border receipts and paymentsby non-banking sectors was RMB 13407.0 billion and RMB 13391.4 billion,respectively, with an accumulative surplus of RMB 15.6 billion. In the US dollar terms, in June 2020, the amount of cross-border receiptsand payments by non-banking sectors was USD 361.8 billion and USD 340.4billion, respectively, with a surplus of USD 21.4 billion. During January to June 2020, the accumulative amount of cross-borderreceipts and payments by non-banking sectors was USD 1906.6 billion and USD 1904.5billion, respectively, with an accumulative surplus of USD 2.0 billion. In addition, the State Administrationof Foreign Exchange revised the data on cross-border receipts and payments bynon-banking sectors from January to May 2020 based on the latest data, andreleased it through the “Data and Statistics” section of the official websiteof the State Administration of Foreign Exchange. Addendum: Glossaryand relevant definitions Balance of payments(BOP) refers to all economic transactionsbetween residents and non-residents. Foreignexchange settlement and sales by banks refers to settlement and sale transaction that bank executes for customersand for the banks themselves, including statistic data onsettlements of forward contracts for foreign exchange settlementand sales and the exercises of option, and excludingthe transactions in the interbank foreign exchange market. The statistic reporting date of Foreign exchangesettlement and sales by banks should be the trade day of theForeignexchange settlement and sales transaction. By definition, foreignexchange settlement means foreign exchange holders sell foreignexchange to designated foreign exchange bank, and foreignexchange sales means designated bank sells foreign exchange to foreign exchange buyers. The net position of foreign exchange settlement andforeign exchange sales could be position squared throughtransactions on the inter-bank foreign exchange market, and it is one ofthe major contributors to the country’sforeign exchange reserve fluctuation, though it is not equal to netchange in foreign exchange reserves during the same period Unlikethe principle of balance-of-payments statistics, which cover the transactionsbetween residents and non-residents, foreign exchange settlement and sales bybanks only cover transactions of RMB and foreign currencies between banks and customers or on banks for themselves. Thenewly signed contract amount of forward foreign exchange settlement and sales refers to the binding forward contract between designated foreignexchange bank and client that predetermines foreign exchange currency, amount,exchange rate and tenor which to be executed upon maturity. Thenewly signed forward contract enables corporate to lock inadvance the exchange rate for the purchase or sale of a currency on a futuredate to manage relevant foreign exchange risk arising fromRMB volatility. In general, bank will hedge its foreign exchange risk exposures arise from the newly signed forward contract in the Interbank foreign exchange market. For example,when bank has net foreign exchange long position, bankwill short the equivalent amount of foreign exchange in the Interbank foreignexchange market in advance, or vice versa. Therefore, the newly signedcontract amount of forward foreign exchange settlement and sales is also one of contributors to China’s foreign exchange reserve fluctuation. Theunwind amount of forward foreign exchange settlement and sales refers to, where client is unable to perform the original forwardcontract due to change in its real demand, client to fully or partially closeits forward position by executing another deal with opposite direction to theoriginal contract. Therolling amount of forward foreign exchange settlement and sales refers to client to adjust the settlement date of original contract dueto change in its real demand. Theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period refers to the total amount of forwardcontracts accumulated from all non-matured forward contracts with client. Thenewly signed contractamount and the outstanding amount should satisfy the equationthat: theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period = theoutstanding amount of forward foreign exchange settlement and sales at the endof the previous period + the newly signed contract amount of forward foreignexchange settlement and sales for the period - settlements of forwardcontracts for foreign exchange settlement and sales for the period - the unwindamount of forward foreign exchange settlement and sales for the period. The net Deltaexposure of outstanding options refers to the implied foreignexchange spot risk exposure from outstanding option contracts that bank executedwith client. Bank shall hedge such risk in the foreign exchange market for risk management during deal life cycle. The cross-borderreceipts and payments bynon-banking sectors refers to the receipts andpayments between domestic non-banking sectors (including institutional and individual residents)and non-residentsthrough domestic banks, excluding receipts and payments in cash. In particular,the statisticsincludescross-border receipts and payments between non-banking sectors andnon-residents through domestic banks (including RMB and foreign currency), and domesticreceipts and payments between non-banking sectors and non-residents throughdomestic banks (temporarily excluding domestic receipts and payments in RMBbetween individual residents and non-resident individuals). Data are collected whencustomers conduct receipts and payments with non-resident counterparties atdomestic banks. Specifically, the receipts refer to the capitalof non-bankingsectors received fromnon-residents via domestic banks; the payments refer to the capitalof non-bankingsectors paid to non-residents via domestic banks. Thecross-border receipts and payments bynon-banking sectors is basedon cash basis, different from the accrual basis required by the Balance of Payments Statistics. The statistics merely reflectsthe cash flows between non-bankingsectors and non-residents and doesnot include barter transactions or transactions with non-residents conducted by the banks themselves. Therefore, the scope of the statistics is narrower than thatof the Balance of Payments Statistics. 2020-07-17/en/2020/0717/1727.html
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The State Administration of Foreign Exchange (SAFE) has recently released the Balance of Payments (BOP) for the first quarter of 2020 and the International Investment Position (IIP) at the end of March 2020. Wang Chunying, press spokesperson and chief economist of the SAFE, answered media questions on relevant issues. Q: Could you brief us on China's balance of payments for the first quarter of 2020? A: In the first quarter of 2020, due to the economic, trade and investment impact of the COVID-19 pandemic, global financial markets were very volatile. In this context, China recorded a slight deficit under the current account in the first quarter, with its ratio to GDP reaching -1.1%, which was relatively balanced and reasonable though. The cross-border capital flows stayed generally stable and the balance of payments maintained general equilibrium, showing strong stability. First, a surplus was registered under trade in goods and a narrower deficit was recorded under trade in services. In the first quarter, China posted a surplus of US$ 23.1 billion under trade in goods. Due to the impact of the COVID-19 outbreak and the Chinese New Year Holiday, a slight deficit was recorded under trade in goods in January and February. But in March, with the steady progress of the resumption of work and production and the policy to stabilize foreign trade took effect, a surplus was registered under trade in goods again. China posted a deficit of US$ 47 billion under trade in services, down by 26% year on year. In particular, a deficit of US$ 41.5 billion was recorded under tourism, down by 28% year on year, and a deficit of US$ 11.7 billion was posted under transport, down by 6% year on year, which were chiefly because of reduced travel expenses caused by less overseas trips and decreased transport expenses resulting from declining imports under trade in goods during the COVID-19 epidemic. Second, surpluses were registered in direct investment and other investments, and portfolio investment became stabilized after short-term fluctuations. In the first quarter, a net inflow of US$ 16.3 billion was registered in direct investment, a net outflow of US$ 53.2 billion was recorded in portfolio investment and a net inflow of US$ 27.7 billion was recorded in other investments including deposits and loans. Firstly, China posted a net inflow of US$ 34.3 billion in FDI, showing foreign capital had a strong desire to invest in China despite sluggish absorption of direct investments in global markets. Secondly, a net outflow was recorded in portfolio investment, suggesting that global financial markets were more volatile in March due to the global spread of COVID-19 and domestic investors were attracted to invest overseas since the prices of some overseas assets plummeted. Moreover, a net inflow of US$ 8.9 billion was registered in bond investment under foreign portfolio investment that was aimed to allocate mid and long-term RMB assets. Since late March, a net inflow has been recorded in foreign investment in China's capital market again and investments of domestic investors in overseas capital markets have been evidently stabilized. Overall, China's epidemic control has yielded positive results, resumption of work and production has been promoted in an orderly manner, our economic fundamentals are stable and sound and will remain so over the long term, and our confidence and determination in opening up have not changed, all of which have laid a solid foundation for China's balance of payments to maintain general equilibrium. Q: What would you say about China's international investment position as at the end of March 2020? A: Since the beginning of 2020, China has witnessed robust international investment position, with inbound and outbound investments carried out in a good order. As at the end of March, China was ranked the world's No. 1 by reserve assets. First, China's external financial assets and liabilities fell slightly against the end of 2019. Due to a combination of factors like asset prices and exchange rate conversion, China recorded US$ 7.6354 trillion in external financial assets by the end of March, down by a slight 1% quarter on quarter, and registered US$ 5.4981 trillion in external liabilities, down by a slight 1.7%. Second, China's net external assets rose slightly. By the end of March, China posted US$ 2.1373 trillion in net external assets (assets minus liabilities), up by a slight 1% quarter on quarter. Overall, China's net external assets have remained stable, and our reserve assets have been around US$ 3.1 trillion. 2020-06-24/en/2020/0624/1719.html