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The State Administration of Foreign Exchange (SAFE) has recently released the data on external debt at the end of March 2020. Wang Chunying, press spokesperson and chief economist of the SAFE, answered media questions on recent situations of China's external debt. Q: Could you brief us on China's external debt for the first quarter of 2020? A: China witnessed steady growth in external debt in the first quarter of 2020. It posted US$ 2.0946 trillion in full-scale outstanding external debt (including domestic and foreign currencies) at the end of March 2020, up by US$ 37.3 billion or 1.8% quarter on quarter. The increase, primarily driven by the upswings in the balances of bank currencies and deposits, is represented in the balances of deposits of non-resident institutions and interbank placements. The external debt structure continued to be optimized. As for the type of currency and term structure, external debt denominated in domestic currency accounted for 38% and mid and long-term external debt made up 42%, up by three percentage points and one percentage point quarter on quarter, respectively. Q: What would you look at current situations of China's external debt? A: China's external debt has grown steadily in recent years, which is in sync with China's economic growth, reform and opening up. As the two-way opening up of the capital market is advanced, the Chinese market has been further recognized among international investors. On February 28, 2020, China's treasury bond was officially included in JP Morgan Government Bond Index-Emerging Markets. China's external debt is expected to remain stable in the future. Since the COVID-19 outbreak, the People's Bank of China and the SAFE have introduced a series of facilitation policies for cross-border financing to expand the borrowing space for external debt and facilitate financing by enterprises through utilization of domestic and foreign resources and markets, so as to expand access to financing and reduce financing costs. First, the macro-prudential regulation parameter for cross-border financing has risen up from 1 to 1.25, expanding the borrowing space for enterprises from two times to 2.5 times of net assets. Second, a pilot program has been expanded for external debt facilitation, allowing high-tech enterprises in the pilot regions to autonomously borrow external debt within a certain quota and expanding the pilot scope for one-off external debt registration. Third, easy access has been established, allowing enterprises to apply for external debt registration online. Data shows that these facilitation measures have not caused significant increase in external debts and external debt risk has been kept under control. As these policies take effect, it is expected that external debts will remain stable in the future. Currently China's economy still features high potential, strong resilience, great leeway and abundant policy instruments and the foundation for the overall equilibrium of the balance of payments remains strong, which is favorable for external debt to stay stable. Next, the SAFE will continue to deepen reform in foreign exchange administration, advance the opening up of the financial market, and further reduce the financing costs of the real economy while effectively mitigating cross-border financing risks, in an attempt to boost the healthy growth of the real economy. 2020-06-24/en/2020/0624/1718.html
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Q: The State Administration of Foreign Exchange (SAFE) has just released the latest data on China's foreign exchange reserves. Could you explain why China's foreign exchange reserves changed in June 2020? What will be the future trends? A: By the end of June 2020, China posted US$ 3.1123 trillion in foreign exchange reserves, up by US$ 10.6 billion or 0.3% month on month. In June, China's foreign exchange market witnessed balanced supply and demand. Due to the COVID-19 pandemic, and the monetary and fiscal stimulus policies in major countries, the US Dollar Index dropped slightly on the international financial market and asset prices in major countries rose. Under the combined impact of exchange rate conversion and asset price changes, China's foreign exchange reserves increased in the month. Currently, as the pandemic still rages abroad, and the world economic conditions are complicated and challenging, global financial markets are becoming increasingly volatile. Yet China's efforts to coordinate epidemic control and resumption of work and production have yielded positive results, and economic indicators have achieved marginal improvements. As a result, the economic conditions are changing for the better. Looking ahead, China will stay committed to deepening reforms and expanding opening-up. Our economic growth will remain resilient and our economic fundamentals will remain sound over the long term, which will be favorable for sustaining overall stability in foreign exchange reserves. 2020-07-07/en/2020/0707/1726.html
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According to the statisticsof the State Administration of Foreign Exchange (SAFE), the Chinese foreignexchange market (excluding foreign currency pairs, the same below) recorded totaltransactions of RMB 17.70 trillion (equivalent to USD 2.50 trillion) in June 2020. Specifically,the transactions volume of the bank to customer market was RMB 2.38 trillion (equivalent toUSD 336.5 billion), the transactionsvolume of interbank market was RMB 15.32 trillion (equivalent to USD 2.16 trillion), the cumulativetransactions volume of the spot market was RMB 6.55 trillion (equivalent to USD 924.7 billion), and that ofthe derivatives market was RMB 11.15 trillion (equivalent to USD 1.57 trillion). From January to June 2020, a total of RMB 92.66 trillion (equivalent to USD 13.17 trillion) was traded in the Chinese foreignexchange market. 2020-07-24/en/2020/0724/1728.html
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Q: The State Administration of Foreign Exchange (SAFE) has just released the latest data on China's foreign exchange reserves. Could you explain why China's foreign exchange reserves changed in July 2020? What will be the future trends? A: By the end of July 2020, China's foreign exchange reserves had reached US$ 3.1544 trillion, up by US$ 42.1 billion or 1.4% month on month. In July, China’s foreign exchange market witnessed smooth operation and maintained basic equilibrium in foreign exchange supply and demand. Major economies including the US and Europe increased the fiscal stimulus and maintained ultra-loose monetary policies. Non-dollar currencies rallied against the US dollar on the international financial market on the whole, with overall rise of asset prices in major countries. Under the combined impact of exchange rate conversion and asset price changes, China's foreign exchange reserves increased in the month. So far, China has made great achievements in epidemic prevention and control as well as economic and social development. However, international economic and financial situations remain complex and severe, showing considerable instability and uncertainty. Looking ahead, China has entered into the high-quality development stage with high economic resilience, and the new development pattern, featured as domination by domestic cycle and mutual promotion between domestic and international cycle, is expected to take shape with a faster pace. The new pattern is conducive to providing continued support for the overall stability of foreign exchange reserves. 2020-08-07/en/2020/0807/1737.html
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In November 2020, China’s international trade in goods and services recorded receipts of RMB 1838 billion and payments of RMB 1453.5 billion based on statistics of balance of payments (BOP), registering a surplus of RMB 384.5 billion. Specifically, trade in goods registered receipts of RMB 1708.2 billion, payments of RMB 1252 billion, recording a surplus of RMB 456.2 billion; trade in services recorded receipts of RMB 129.8 billion, payments of RMB 201.5 billion, resulting in a deficit of RMB 71.7 billion. In the US dollar terms, in November 2020, China's BOP-based receipts and payments of international trade in goods and services were USD 278.2 billion and USD 220 billion respectively, registering a surplus of USD 58.2 billion. Specifically, the receipts and payments from trade in goods were USD 258.5 billion and USD 189.5 billion respectively, resulting in a surplus of USD 69.1 billion. Trade in services registered receipts and payments of USD 19.6 billion and USD 30.5 billion respectively, recording a deficit of USD 10.9 billion.(End) International Trade in Goods and Services of China (Based on the BOP statistics) November 2020 Item In 100 million of RMB In 100 million of USD Goods and services 3845 582 Credit 18380 2782 Debit -14535 -2200 1. Goods 4562 691 Credit 17082 2585 Debit -12520 -1895 2. Services -717 -109 Credit 1298 196 Debit -2015 -305 2.1Manufacturing services on physical inputs owned by others 67 10 Credit 71 11 Debit -3 0 2.2Maintenance and repair services n.i.e 21 3 Credit 42 6 Debit -21 -3 2.3Transport -209 -32 Credit 365 55 Debit -573 -87 2.4Travel -513 -78 Credit 68 10 Debit -581 -88 2.5Construction 22 3 Credit 53 8 Debit -32 -5 2.6Insurance and pension services -42 -6 Credit 28 4 Debit -71 -11 2.7Financial services 3 0 Credit 23 3 Debit -20 -3 2.8Charges for the use of intellectual property -168 -25 Credit 36 6 Debit -205 -31 2.9Telecommunications, computer and information services 2 0 Credit 188 28 Debit -186 -28 2.10Other business services 112 17 Credit 410 62 Debit -298 -45 2.11Personal, cultural, and recreational services -12 -2 Credit 4 1 Debit -15 -2 2.12Government goods and services n.i.e 0 0 Credit 10 2 Debit -10 -2 Notes: 1. The trade in goods and services in this table refers to the transactions between residents and non-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 trade and 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: processor only 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-residents or 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 debit side. 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. 2020-12-30/en/2020/1230/1784.html
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As shown in the statistics of the State Administration of Foreign Exchange (SAFE), in December 2020, the amount of foreign exchange settlement and sales by banks was RMB 1659.7 billion and RMB 1224.0 billion, respectively, with a surplus of RMB 435.8 billion. In the US dollar terms, the amount of foreign exchange settlement and sales by banks was USD 253.7 billion and USD 187.1 billion, respectively, with a surplus of USD 66.6 billion. During January to December 2020, the accumulative amount of foreign exchange settlement and sales by banks was RMB 14100.8 billion and RMB 13022.5 billion, respectively, with an accumulative surplus of RMB 1078.3 billion. In the US dollar terms, the accumulative amount of foreign exchange settlement and sales by banks was USD 2049.3 billion and USD 1890.5 billion, respectively, with an accumulative surplus of USD 158.7 billion. In December 2020, the amount of cross-border receipts and payments by non-banking sectors was RMB 3435.1 billion and RMB 3081.5 billion, respectively, with a surplus of RMB 353.6 billion. During January to December 2020, the accumulative amount of cross-border receipts and payments by non-banking sectors was RMB 30339.4 billion and RMB 29554.8 billion, respectively, with an accumulative surplus of RMB 784.6 billion. In the US dollar terms, in December 2020, the amount of cross-border receipts and payments by non-banking sectors was USD 525.1 billion and USD 471.0 billion, respectively, with a surplus of USD 54.0 billion. During January to December 2020, the accumulative amount of cross-border receipts and payments by non-banking sectors was USD 4412.4 billion and USD 4295.5 billion, respectively, with an accumulative surplus of USD 116.9 billion. Addendum: Glossary and relevant definitions Balance of payments (BOP) refers to all economic transactions between residents and non-residents. Foreign exchange settlement and sales by banks refers to settlement and sale transaction that bank executes for customers and for the banks themselves, including statistic data on settlements of forward contracts for foreign exchange settlement and sales and the exercises of option, and excluding the transactions in the interbank foreign exchange market. The statistic reporting date of Foreign exchange settlement and sales by banks should be the trade day of the Foreign exchange settlement and sales transaction. By definition, foreign exchange settlement means foreign exchange holders sell foreign exchange to designated foreign exchange bank, and foreign exchange sales means designated bank sells foreign exchange to foreign exchange buyers. The net position of foreign exchange settlement and foreign exchange sales could be position squared through transactions on the inter-bank foreign exchange market, and it is one of the major contributors to the country’s foreign exchange reserve fluctuation, though it is not equal to net change in foreign exchange reserves during the same period Unlike the principle of balance-of-payments statistics, which cover the transactions between residents and non-residents, foreign exchange settlement and sales by banks only cover transactions of RMB and foreign currencies between banks and customers or on banks for themselves. The newly signed contract amount of forward foreign exchange settlement and sales refers to the binding forward contract between designated foreign exchange bank and client that predetermines foreign exchange currency, amount, exchange rate and tenor which to be executed upon maturity. The newly signed forward contract enables corporate to lock in advance the exchange rate for the purchase or sale of a currency on a future date to manage relevant foreign exchange risk arising from RMB 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, bank will short the equivalent amount of foreign exchange in the Interbank foreign exchange market in advance, or vice versa. Therefore, the newly signed contract amount of forward foreign exchange settlement and sales is also one of contributors to China’s foreign exchange reserve fluctuation. The unwind amount of forward foreign exchange settlement and sales refers to, where client is unable to perform the original forward contract due to change in its real demand, client to fully or partially close its forward position by executing another deal with opposite direction to the original contract. The rolling amount of forward foreign exchange settlement and sales refers to client to adjust the settlement date of original contract due to change in its real demand. The outstanding amount of forward foreign exchange settlement and sales by the end of the current period refers to the total amount of forward contracts accumulated from all non-matured forward contracts with client. The newly signed contract amount and the outstanding amount should satisfy the equation that: the outstanding amount of forward foreign exchange settlement and sales by the end of the current period = the outstanding amount of forward foreign exchange settlement and sales at the end of the previous period + the newly signed contract amount of forward foreign exchange settlement and sales for the period - settlements of forward contracts for foreign exchange settlement and sales for the period - the unwind amount of forward foreign exchange settlement and sales for the period. The net Delta exposure of outstanding options refers to the implied foreign exchange spot risk exposure from outstanding option contracts that bank executed with client. Bank shall hedge such risk in the foreign exchange market for risk management during deal life cycle. The cross-border receipts and payments by non-banking sectors refers to the receipts and payments between domestic non-banking sectors (including institutional and individual residents) and non-residents through domestic banks, excluding receipts and payments in cash. In particular, the statistics includes cross-border receipts and payments between non-banking sectors and non-residents through domestic banks (including RMB and foreign currency), and domestic receipts and payments between non-banking sectors and non-residents through domestic banks (temporarily excluding domestic receipts and payments in RMB between individual residents and non-resident individuals). Data are collected when customers conduct receipts and payments with non-resident counterparties at domestic banks. Specifically, the receipts refer to the capital of non-banking sectors received from non-residents via domestic banks; the payments refer to the capital of non-banking sectors paid to non-residents via domestic banks. The cross-border receipts and payments by non-banking sectors is based on cash basis, different from the accrual basis required by the Balance of Payments Statistics. The statistics merely reflects the cash flows between non-banking sectors and non-residents and does not include barter transactions or transactions with non-residents conducted by the banks themselves. Therefore, the scope of the statistics is narrower than that of the Balance of Payments Statistics. 2021-01-22/en/2021/0121/1791.html
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The State Administration of Foreign Exchange (SAFE) has recently released the Balance of Payments (BOP) for the third quarter and the first three quarters of 2020 as well as the International Investment Position (IIP) as at the end of September 2020. The SAFE deputy administrator and press spokesperson Wang Chunying answered media questions on relevant issues. Q: Could you brief us on China's balance of payments for the first three quarters of 2020? A: In the first three quarters, the current account surplus hit US$168.7 billion, with its ratio to GDP reaching 1.6%, which fell within a reasonable and balanced range. Cross-border capital flows remained generally stable, and investment and financing continued to be fairly stable. First, trade in goods recorded a higher surplus and trade in services registered a narrower deficit. Trade in goods in the Balance of Payments recorded a surplus of US$340.2 billion, up by 12% year on year, mainly driven by the better-than-expected imports and exports under trade in goods. Trade in services registered a deficit of US$116.8 billion, down by 42% year on year, primarily driven by less cross-border trips during COVID-19 outbreak, with deficit in travel narrowing by 46% from the same period last year. Second, outbound investment and foreign investment in China (excluding reserve assets) were both robust. Inflows and outflows were witnessed under cross-border transactions like direct investment, portfolio investment, deposits and loans. Transactions by foreign investors to hold renminbi assets and by domestic players to allocate global assets were both brisk. In the first three quarters, outbound investment outgrew foreign investment. Assets under the financial account excluding reserve assets grew by US$408 billion net, or an increase of 1.7 times year on year, while external liabilities grew by US$337.6 billion net and became twice that of a year earlier. Overall, China is the only major economy sustaining positive growth this year, but due to considerable uncertainties in COVID-19 and external environment, the foundation for economic recovery has not been solid enough. China’s balance of payments is expected to remain generally stable and balanced throughout the year. Q: What would you say about China's international investment position at the end of 2020? A: By the end of September 2020, China’s international investment position was generally robust. Driven by transactions, changes in asset prices and foreign exchange rate conversion, external financial assets and liabilities both grew and reserve assets remained generally stable. Firstly, the total size of external financial assets increased. By the end of September 2020, China posted external assets of US$8.1666 trillion, up by 3.9% quarter on quarter. Among this, assets under direct investment were US$2.1643 trillion, gaining 1.9%; assets under portfolio investment were US$772.8 billion, up by 10.3%; assets under other investments including overseas deposits and loans hit US$1.9340 trillion, representing an increase of 8.5%; and reserve assets amounted to US$3.2812 trillion, rising by 1.2%. Secondly, total external liabilities went up. By the end of September 2020, China recorded external liabilities of US$6.0128 trillion, up by 6.2% quarter on quarter. Among this, liabilities under direct investment were US$3.1068 trillion, an increase of 5.4%; liabilities under portfolio investment were US$1.5069 trillion, up by 9.3%; and liabilities under other investments including deposits and loans absorbed reached US$1.3878 trillion, rising by 4.8%. 2020-12-25/en/2020/1225/1788.html
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The State Administration of Foreign Exchange (SAFE) has recently released the data on foreign exchange settlement and sales by banks and cross-border receipts and payments by non-banking sectors for November 2020. Wang Chunying, the SAFE’s deputy administrator and press spokesperson, answered media questions on foreign exchange receipts and payments for November 2020. Q: Could you brief us on the changes in China's foreign exchange receipts and payments for November 2020? A: China’s foreign exchange market remained robust in November, with cross-border receipts and payments at an adaptive, balanced level. The major indicators show that banks registered a surplus of US$3 billion in foreign exchange settlement and sales, and non-banking sectors recorded a surplus of US$400 million in cross-border receipts and payments. This indicates transactions on the foreign exchange market are rational and orderly at present with generally balanced cross-border capital flows. By the end of November, the balance of foreign exchange reserves was US$3.1785 trillion, which was basically stable. Generally, market players’ willingness to settle and sell foreign exchange remained stable. In November, the foreign exchange settlement ratio that measures the willingness to settle foreign exchange, or the ratio of foreign exchange sold by customers to banks to customers’ foreign-related foreign exchange receipts, was 63%, consistent with that for the same period of the previous year. The foreign exchange sales ratio, a measure of market players' willingness to purchase foreign exchange, or the ratio of purchase of foreign exchange by customers from banks to the customers' foreign-related foreign exchange payments, was 65%, down slightly by one percentage point year on year. Cross-border capital flows through major channels registered both increases and decreases, showing rational differentiation. In November, driven by foreign trade surplus recorded by the customs, the surplus in foreign exchange settlement and sales under trade in goods registered gains of US$5.5 billion on a year-on-year basis; and the deficit in foreign exchange settlement and sales under trade in services decreased by US$5.6 billion year on year and remained low. Cross-border two-way direct investment remained robust, with net capital inflows consistent with the level of the same period of the previous year. Two-way stock investments stayed stable. Foreign investors bought A-shares worth renminbi 57.9 billion net through northbound trading, and domestic residents bought H-shares worth renminbi 60.1 billion net through southbound trading. Currently the foreign exchange market is stable and orderly, with cross-border capital flows in two-way equilibrium. However, given the spread of COVID-19 and considerable uncertainties in external environment, financial institutions and enterprises need to raise the risk-neutral awareness and effectively manage their operational risks. 2020-12-18/en/2020/1218/1787.html
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The State Administration of Foreign Exchange (SAFE) has recently released the data on external debt at the end of September 2020. The SAFE deputy administrator and press spokesperson Wang Chunying answered media questions on China’s recent external debt situations. Q: Could you brief us on China's external debt for the third quarter of 2020? A: China witnessed continuous growth in external debt for the third quarter of 2020. By the end of September, the full-scale outstanding external debt (including domestic and foreign currencies) hit US$2.2944 trillion, up by US$162 billion or 7.6% quarter on quarter. The growth in external debt was primarily driven by the increase in debt securities. The external debt structure continued to be optimized. As for the type of currency and term structure, the external debt denominated in domestic currency accounted for 39% and mid and long-term external debt, 44%, both rising by one percentage point quarter on quarter. Q: What would you say about China's external debt situations? A: The increase in external debt is aligned with China’s efforts to constantly expand opening-up and its gradual economic recovery. First, international investors have increased their holdings of domestic bonds in a continuous and stable manner, driving external debt under debt securities to rise. In September 2020, FTSE Russell announced to include Chinese Government Bonds in the FTSE World Government Bond Index (WGBI). As for investor entities in debt securities, mainly overseas central banks who allocate long-term assets, are stable to a certain extent. Second, China’s foreign trade has been stabilized with good momentum quarter by quarter, growing at 7.5% in the third quarter year on year, turning its cumulative growth rate from negative to positive. The associated trade credit and prepayment increased by US$25.7 billion, or 8% on a quarterly basis. External debt is expected to stay stable in the future. Despite COVID-19 pandemic and considerable uncertainties in the external environment, China’s economic fundamentals remain favorable for long-term growth, and a general equilibrium is maintained in its balance of payments, which is favorable for the stability of external debt position. Going forward, while advancing reform and opening-up in foreign exchange field, the SAFE will take solid steps to prevent risks arising from cross-border capital flows and safeguard China’s economic and financial security. 2020-12-25/en/2020/1225/1789.html
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As at the end of September 2020, China's banking sector recorded external financial assets of USD 1335.4 billion, external liabilities of USD 1415.2 billion, and net external liabilities of USD 79.8 billion including net RMB liabilities of USD 378.2 billion and net foreign currency assets of USD 298.4 billion. Among the external financial assets of the banking sector, by instrument, deposits and loans were USD 976 billion, bonds investment, USD 179.5 billion, and other assets including equity, USD 179.9 billion, accounting for 73 percent, 13 percent and 13 percent of the sector's total external financial assets respectively. By currency, RMB assets were USD 143.3 billion, USD assets were USD 904.8 billion, and other currency assets were USD 287.4 billion, accounting for 11 percent, 68 percent and 22 percent respectively. By counterpart sector, the amount invested in the overseas banking sector was USD 700 billion, accounting for 52 percent; the amount invested in the overseas non-banking sector was USD 635.5 billion, accounting for 48 percent. Among the external liabilities of the banking sector, by instrument, deposits and loans were USD 821.1 billion, bonds investment, USD 264.6 billion, and other liabilities including equity, USD 329.5 billion, accounting for 58 percent, 19 percent and 23 percent of the sector's total external liabilities respectively. By currency, RMB liabilities were USD 521.5 billion, USD liabilities, USD 582.2 billion, and other currency liabilities, USD 311.6 billion, accounting for 37 percent, 41 percent and 22 percent respectively. By counterpart sector, USD 623.8 billion was from overseas banking sector, accounting for 44 percent; while USD 791.4 billion was from overseas non-banking sector, accounting for 56 percent. (End) 2020-12-30/en/2020/1230/1785.html