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Since the beginning of this year, government financial agencies and relevant departments have taken actions quickly and proactively to implement the decisions and arrangements of the Communist Party of China Central Committee and the State Council. While efforts have been made to keep financial market liquidity adequate at a reasonable level, a series of measures have been introduced, which are primarily aimed at easing the impact of COVID-19 on micro, small, and medium enterprises (MSMEs). As a result, targeted financial services have been provided for epidemic control, work and production resumption, and the development of the real economy. To further adapt financial support policies to the needs of market entities, the People’s Bank of China, jointly with the China Banking and Insurance Regulatory Commission, the National Development and Reform Commission, the Ministry of Industry and Information Technology, the Ministry of Finance, the State Administration for Market Regulation, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange, recently issued the Guiding Opinions on Further Strengthening Financial Services for MSMEs (Yinfa No.120 [2020], hereinafter referred to as the Opinions). The Opinions sets down 30 policy measures on seven aspects, i.e., implementing the policies that provide credit support for MSMEs in their resumption of work and production, launching a project on enhancing commercial banks’ capability to provide financial services for MSMEs, carrying out reform to improve the external policy environment and the incentive and restraint mechanism, giving play to the role of the multi-tiered capital market in providing financial support, stepping up efforts to build the MSME credit system, optimizing local financing environment, and enhancing the organization and implementation of relevant work. It is required in the Opinions that financial institutions fully implement the policies that provide credit support for MSMEs resuming work and production, and launch a project on enhancing their capability to provide financial services for MSMEs. National banks will play a leading role by offering preferential pricing rates at least 50 basis points lower for internal transfers; inclusive loans issued to micro and small businesses (MSBs) by the five state-owned large commercial banks will grow at a rate higher than 40 percent; and development banks and policy banks will ensure that the RMB350 billion of special credit quota is put in place and that preferential interest rates are offered to MSMEs to support their resumption of work and production. Commercial banks will revise up the weight of inclusive finance to over 10 percent in the overall performance appraisal of their branches and sub-branches while significantly increasing credit-based loans and first-time loans to MSBs as well as renewed MSB loans not conditioned on the repayment of the principal due. Insurance companies will be encouraged to explore the role of insurance by offering targeted insurance products to provide loan guarantees. It is noted in the Opinions that reform will be carried out to improve the external policy environment and the incentive and restraint mechanism for banking financial institutions. A mix of monetary policy tools will be used to enhance countercyclical adjustment and structural adjustment in monetary policy and to guide the ramp-up of credit support for MSMEs by financial institutions. Work will be done to establish or improve the regulatory assessment of commercial banks’ financial services for MSBs, the administrative measures for performance appraisal of financial enterprises, and the assessment of government-backed financing guaranties, and to enhance external assessment and incentive mechanisms. With efforts made to bring out the role of local government-backed financing guaranty agencies in credit enhancement, the coverage of government-backed financing guaranties will be expanded considerably and guaranty fees reduced markedly. The National Financing Guaranty Fund will try to achieve the goal of expanding its re-guarantee business by RMB400 billion in 2020. Moreover, it will cooperate with banking financial institutions on guaranteed bulk lending and increase its share of risk liabilities in the cooperation to 30 percent. As stated in the Opinions, the multi-tiered capital market will play its part in providing financing support. Measures will be taken to raise net financing via corporate debenture bonds, which is expected to see a year-on-year increase of RMB1 trillion. Financial institutions will issue special financial bonds worth RMB300 billion for MSBs so as to release more resources to support MSB loans. Work will to done to support the listing of qualified small and medium-sized enterprises, accelerate the reform of the ChiNext board, and launch the pilot registration-based system. The rules on issuance and financing on the National Equities Exchange and Quotations, the so-called “new third board”, will be optimized, while venture capital enterprises and angel investors will be guided and encouraged to focus their investments on MSMEs as well as innovative enterprises. 2020-06-02/en/2020/0602/1702.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 foreign-related receipts and payments by banks for customers for April 2020. Wang Chunying, press spokesperson and chief economist of the SAFE, answered media questions on foreign exchange receipts and payments for April 2020. Q: What were the changes in foreign exchange receipts and payments for April 2020? A: Overall, China's foreign exchange market remained steady in April. The supply and demand were in balance in the foreign exchange market and foreign exchange reserves remained stable. First, foreign exchange settlement and sales by banks remained in surplus. In April, foreign exchange settlement and sales by banks recorded a surplus of US$ 14.8 billion, including a surplus of US$ 12 billion in foreign exchange settlement and sales by banks for customers. China's foreign exchange market was in a basic equilibrium in terms of supply and demand, when other supply and demand factors like forward foreign exchange settlement and sales and options were considered. Second, foreign-related receipts and payments of the non-banking sectors registered a net inflow again. In the month, China's non-banking sectors including enterprises and individuals posted a surplus of US$ 4.9 billion in foreign-related receipts and payments, versus a deficit for March. Third, China's foreign exchange reserves rose steadily. By the end of April, China registered US$ 3.0915 trillion in the balance of foreign exchange reserves, representing an increase of US$ 30.8 billion from that of the end of March. Market players' expectations stayed steady and cross-border capital flows increased stably. First, market players maintained a stable desire to settle foreign exchange but a weakening desire to buy foreign exchange. In April, the foreign exchange settlement rate, a measure of customers' desire to settle foreign exchange, or the ratio of foreign exchange sold by customers to banks to customers' foreign-related foreign exchange receipts, reached 66%, consistent with that of the first quarter. The foreign exchange sales rate, a measure of market players' desire to purchase foreign exchange, or the ratio of foreign exchange purchased by customers from banks to customers' foreign-related foreign exchange payments, was 61%, down by 2% from that of the first quarter. Second, China posted a net inflow of cross-border capital through major channels. In April, cross-border receipts and payments under trade in goods registered a surplus of US$ 13.5 billion, up by 76% year on year; and a net inflow of cross-border capital was resumed under securities investments. In particular, foreign investors increased their holdings of China's bonds and listed shares by US$ 18.9 billion net. China's epidemic response continues to yield positive changes, with resumption of work and production being accelerated and the economy recovering and returning to normalcy, playing a critical role in stabilizing market expectations and boosting market confidence. China's economic fundamentals are sound and stable, and will remain so over the long term, China's confidence and determination to stay committed to opening its door wider to the world have not been changed, and the reform of cross-border trade and investment liberalization and facilitation has been deepened, which have laid a foundation for the stable performance of China's foreign exchange market. On the other hand, China's foreign exchange market is maturing and has shown strong resilience and stability under the COVID-19 epidemic, with market expectations staying generally stable, which are also helpful for maintaining basic stability in China's foreign exchange market. 2020-05-22/en/2020/0522/1699.html
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To better support the development of new forms of trade, improve quality and efficiency in foreign trade, ensure stability in employment, financial operations, foreign trade, foreign investment, domestic investment, and expectations, and maintain security in job, basic living needs, operations of market entities, food and energy security, stable industrial and supply chains, and the normal functioning of primary-level governments (known as “six priorities”), the State Administration of Foreign Exchange has recently published the Circular of the State Administration of Foreign Exchange on Supporting the Development of New Forms of Trade (SAFE Document No. 11 〔2020〕) ("Circular") to facilitate relevant foreign exchange business handling. The Circular is outlined as follows: first, expanding settlement channels for new forms of trade. Eligible banks will be supported to handle foreign exchange businesses based on electronic transaction information. Second, facilitating the settlement for exports by cross-border ecommerce players. Cross-border ecommerce players can conduct netting settlement between expenses on overseas warehousing, logistics and taxes and export proceeds. Third, optimizing cross-border advance payment for relevant taxes and fees for cross-border ecommerce players. Enterprises will be allowed to pay relevant warehousing and logistics charges, taxes and fees for their overseas customers in advance. Fourth, meeting individuals' needs for foreign exchange settlement under foreign trade. Individuals will be allowed to handle foreign exchange settlement under cross-border ecommerce and market procurement trade through the foreign exchange account. Fifth, improving settlement for market procurement trade. For market players filed with a market procurement trade platform, banks can handle foreign exchange receipts and settlement with customs declaration entrusted to a third party by the market player, based on the information available on the platform. Sixth, supporting comprehensive foreign trade service providers to handle foreign exchange receipts from exports on a commission basis. Any technically eligible comprehensive foreign trade service provider can handle for its customers foreign exchange receipts from exports on a commission basis, via a bank that is capable of verifying the electronic transaction information. Seventh, facilitating remote handling of foreign exchange businesses by enterprises. Enterprises will be given direct access to the SAFE system to handle more foreign exchange businesses online. Eighth, optimizing declarations of foreign-related receipts and payments for micro-transactions. Enterprises will be enabled to make summary declarations of small-amount foreign-related receipts and payments in their names to meet their requirements for declaration for export tax refunding and financing. Ninth, tracking innovative development in new forms of trade continuously. Following the requirements of "serving the real economy, facilitating opening up, tracking transactions and keeping risks under control", the SAFE will actively respond to new demand of market players for foreign exchange businesses. In addition, the SAFE will intensify mid- and post-transaction regulations and guide banks and payment institutions to improve internal control and strengthen risk prevention and control. The Circular will become effective from the date of issuance. 2020-05-20/en/2020/0520/1701.html
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Q: The latest data disseminated by the State Administration of Foreign Exchange (SAFE) on foreign exchange reserves show that China’s foreign exchange reserves as at the end of December 2018 increased by USD 11 billion month on month. Could you tell us why such a change occurred? What would you say about the future trends of foreign exchange reserves? A: As at the end of December 2018, China’s foreign exchange reserves stood at USD 3,072.7 billion, up by USD 11 billion or 0.4% month on month. China’s balance of payments continued to maintain stable operation in December, and the supply and demand in the foreign exchange market was basically balanced. At the end of the year, the exchange rate of non-US dollar currencies against the US dollar rose slightly, bond prices of major countries went up to certain extent, and exchange rate translation and asset prices changed, which worked together to lead to slight rise of China’s foreign exchange reserves. For the whole year of 2018, China’s foreign exchange reserves fluctuated slightly, but remained stable on the whole. Against the backdrop of differentiated global economic growth and significantly increasing financial market volatility, China’s economy maintained sustained and sound development, the RMB exchange rate and market expectations remained stable, and the cross-border capital flows and balance of payments remained basically balanced, providing a solid foundation for the stability of China’s foreign exchange reserves. The year 2019 marks the 70th anniversary of the founding of the People’s Republic of China, and it’s a crucial year for building a well-off society in an all-around way. The current international environment is complicated and tough, the uncertainty of global economic situations and financial market has increased, but China’s economic development is resilient enough and has tremendous potential, and the optimistic trend of economic development will remain unchanged in the long run. China is able to withstand external shocks and market fluctuations, maintain overall stability of cross-border capital flows and basic equilibrium between supply and demand in the foreign exchange market. Under such factors at home and abroad, China’s foreign exchange reserves are expected to stay stable. 2019-01-07/en/2020/0604/1697.html
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China's External Portfolio Investment Assets (by Country or Region) at the End of 2019 2020-05-29/en/2020/0529/1692.html
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Q: The State Administration of Foreign Exchange (SAFE) has just released the latest foreign exchange reserve data. Could you explain why foreign exchange reserves changed in May 2020? What will be the future trends? A: China posted US$ 3.1017 trillion in foreign exchange reserves as at the end of May 2020, up by US$ 10.2 billion or 0.3% from the end of April. In May, China's foreign exchange market performed stably, featuring balanced supply and demand. In global financial markets, the US Dollar Index dropped slightly, and asset prices of major countries climbed. Due to a combination of factors such as exchange rate differences and changes in asset prices, China's foreign exchange reserves increased slightly in the month. Currently the pandemic and the world economic conditions remain complex and challenging, the geopolitical risks grow and global financial markets are becoming increasingly volatile. As positive impacts are achieved in China's epidemic response efforts and its economic and social development, China's economic performance is gradually back to normalcy. Looking ahead, China's economy, still featuring high potential, strong resilience, great leeway and various policy instruments, will continue to sustain general stability of foreign exchange reserves. 2020-06-07/en/2020/0607/1703.html
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In the third quarter of 2020, China's current account registered a surplus of RMB 652.1 billion, including a surplus of RMB 1075.8 billion under trade in goods, a deficit of RMB 279.5 billion under trade in services, a deficit of RMB 165.2 billion under primary income, and a surplus of RMB 21 billion under secondary income. In the capital and financial accounts, direct investments recorded a surplus of RMB 165.3 billion, and reserve assets increased by RMB 64.2 billion. In the first three quarters of 2020, China's current account registered a surplus of RMB 1197.4 billion, including a surplus of RMB 2379.6 billion under trade in goods, a deficit of RMB 816.9 billion under trade in services, a deficit of RMB 404 billion under primary income, and a surplus of RMB 38.6 billion under secondary income. In the capital and financial accounts, direct investments recorded a surplus of RMB 312.4 billion, and reserve assets increased by RMB 24.9 billion. In the US dollar terms, in the third quarter of 2020, China's current account recorded a surplus of USD 94.2 billion, including a surplus of USD 155.4 billion under trade in goods, a deficit of USD 40.4 billion under trade in services, a deficit of USD 23.9 billion under primary income, and a surplus of USD 3 billion under secondary income. In the capital and financial accounts, direct investments recorded a surplus of USD 23.9 billion, and reserve assets increased by USD 9.3 billion. In the US dollar terms, in the first three quarters of 2020, China's current account recorded a surplus of USD 170.7 billion, including a surplus of USD 339.8 billion under trade in goods, a deficit of USD 116.9 billion under trade in services, a deficit of USD 57.8 billion under primary income, and a surplus of USD 5.5 billion under secondary income. In the capital and financial accounts, direct investments recorded a surplus of USD 44.9 billion, and reserve assets increased by USD 3.4 billion. In SDR terms, in the third quarter of 2020, China posted a surplus of SDR 67 billion under the current account, including a surplus of SDR 110.6 billion under trade in goods, a deficit of SDR 28.7 billion under trade in services. In the capital and financial accounts, direct investments recorded a surplus of SDR 17 billion, and reserve assets increased by SDR 6.6 billion. In SDR terms, in first three quarters of 2020, China posted a surplus of SDR 122.5 billion under the current account, including a surplus of SDR 245.6 billion undertrade in goods, a deficit of SDR 85.2 billion under trade in services. In the capital and financial accounts, direct investments recorded a surplus of SDR 32.5 billion, and reserve assets increased by SDR 2 billion. (End) China's Balance of Payments (Preliminary Data) Unit:RMB 100 million Item Line No. 2020 Q3 2020 First Three Quarters 1. Current account 1 6,521 11,974 Credit 2 57,308 148,551 Debit 3 -50,787 -136,577 1. A Goods and Services 4 7,963 15,628 Credit 5 51,443 134,483 Debit 6 -43,481 -118,856 1.A.a Goods 7 10,758 23,796 Credit 8 47,471 122,761 Debit 9 -36,714 -98,965 1.A.b Services 10 -2,795 -8,169 Credit 11 3,972 11,722 Debit 12 -6,767 -19,890 1.A.b.1 Processing services 13 205 659 Credit 14 215 684 Debit 15 -11 -25 1.A.b.2 Maintenance and Repair Services 16 78 224 Credit 17 138 392 Debit 18 -60 -168 1.A.b.3 Transport 19 -789 -2,127 Credit 20 990 2,706 Debit 21 -1,778 -4,833 1.A.b.4 Travel 22 -1,980 -6,321 Credit 23 189 778 Debit 24 -2,170 -7,099 1.A.b.5 Construction 25 83 186 Credit 26 212 587 Debit 27 -130 -401 1.A.b.6 Insurance and Pension Services 28 -164 -387 Credit 29 96 260 Debit 30 -260 -646 1.A.b.7 Financial Services 31 5 44 Credit 32 71 212 Debit 33 -65 -168 1.A.b.8 Charges for the Use of Intellectual Property 34 -607 -1,519 Credit 35 123 433 Debit 36 -730 -1,952 1.A.b.9 Telecommunications, Computer, and Information Services 37 184 273 Credit 38 710 1,960 Debit 39 -526 -1,687 1.A.b.10 Other Business Services 40 291 976 Credit 41 1,184 3,528 Debit 42 -892 -2,552 1.A.b.11 Personal, Cultural, and Recreational Services 43 -30 -97 Credit 44 19 51 Debit 45 -49 -148 1.A.b.12 Government Goods and Services n.i.e 46 -71 -79 Credit 47 25 131 Debit 48 -96 -210 1.B Primary Income 49 -1,652 -4,040 Credit 50 5,180 12,165 Debit 51 -6,832 -16,205 1.C Secondary Income 52 210 386 Credit 53 684 1,903 Debit 54 -474 -1,517 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -6,521 -8,189 2.1 Capital Account 56 -1 -8 Credit 57 3 7 Debit 58 -4 -15 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -6,520 -8,181 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -5,877 -7,931 Including: 2.2.1.1 Direct Investment 61 1,653 3,124 2.2.1.1.1 Assets 62 -2,296 -5,619 2.2.1.1.2 Liabilities 63 3,949 8,743 2.2.2 Reserve Assets 64 -642 -249 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 3 11 2.2.2.3 Reserve position in the IMF 67 11 -75 2.2.2.4 Foreign exchange reserves 68 -656 -185 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / -3,785 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 three quarters of 2020 is the sum of the official amounts of the BOP for 2020Q1 and 2020 Q2, and the preliminary amount for 2020Q3. 5.This table employs rounded-off numbers. China's Balance of Payments (Preliminary Data) Unit: USD 100 million Item Line No. 2020 Q3 2020 First Three Quarters 1. Current account 1 942 1,707 Credit 2 8,281 21,243 Debit 3 -7,339 -19,536 1. A Goods and Services 4 1,151 2,229 Credit 5 7,433 19,232 Debit 6 -6,283 -17,003 1.A.a Goods 7 1,554 3,398 Credit 8 6,859 17,556 Debit 9 -5,305 -14,158 1.A.b Services 10 -404 -1,169 Credit 11 574 1,676 Debit 12 -978 -2,845 1.A.b.1 Processing services 13 30 94 Credit 14 31 98 Debit 15 -2 -4 1.A.b.2 Maintenance and Repair Services 16 11 32 Credit 17 20 56 Debit 18 -9 -24 1.A.b.3 Transport 19 -114 -305 Credit 20 143 387 Debit 21 -257 -691 1.A.b.4 Travel 22 -286 -905 Credit 23 27 111 Debit 24 -314 -1,016 1.A.b.5 Construction 25 12 27 Credit 26 31 84 Debit 27 -19 -57 1.A.b.6 Insurance and Pension Services 28 -24 -55 Credit 29 14 37 Debit 30 -38 -92 1.A.b.7 Financial Services 31 1 6 Credit 32 10 30 Debit 33 -9 -24 1.A.b.8 Charges for the Use of Intellectual Property 34 -88 -217 Credit 35 18 62 Debit 36 -105 -279 1.A.b.9 Telecommunications, Computer, and Information Services 37 27 39 Credit 38 103 280 Debit 39 -76 -241 1.A.b.10 Other Business Services 40 42 140 Credit 41 171 505 Debit 42 -129 -365 1.A.b.11 Personal, Cultural, and Recreational Services 43 -4 -14 Credit 44 3 7 Debit 45 -7 -21 1.A.b.12 Government Goods and Services n.i.e 46 -10 -11 Credit 47 4 19 Debit 48 -14 -30 1.B Primary Income 49 -239 -578 Credit 50 749 1,738 Debit 51 -987 -2,316 1.C Secondary Income 52 30 55 Credit 53 99 272 Debit 54 -69 -217 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -942 -1,176 2.1 Capital Account 56 -0.1 -1 Credit 57 0 1 Debit 58 -1 -2 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -942 -1,175 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -849 -1,141 Including: 2.2.1.1 Direct Investment 61 239 449 2.2.1.1.1 Assets 62 -332 -803 2.2.1.1.2 Liabilities 63 571 1,252 2.2.2 Reserve Assets 64 -93 -34 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 0 2 2.2.2.3 Reserve position in the IMF 67 2 -11 2.2.2.4 Foreign exchange reserves 68 -95 -25 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / -531 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 three quarters of 2020 is the sum of the official amounts of the BOP for 2020Q1 and 2020 Q2, and the preliminary amount for 2020Q3. 4.This table employs rounded-off numbers. China's Balance of Payments (Preliminary Data) Unit:SDR 100 million Item Line No. 2020 Q3 2020 First Three Quarters 1. Current account 1 670 1,225 Credit 2 5,892 15,428 Debit 3 -5,222 -14,204 1. A Goods and Services 4 819 1,604 Credit 5 5,289 13,971 Debit 6 -4,471 -12,368 1.A.a Goods 7 1,106 2,456 Credit 8 4,881 12,751 Debit 9 -3,775 -10,296 1.A.b Services 10 -287 -852 Credit 11 408 1,220 Debit 12 -696 -2,072 1.A.b.1 Processing services 13 21 69 Credit 14 22 71 Debit 15 -1 -3 1.A.b.2 Maintenance and Repair Services 16 8 23 Credit 17 14 41 Debit 18 -6 -17 1.A.b.3 Transport 19 -81 -222 Credit 20 102 281 Debit 21 -183 -503 1.A.b.4 Travel 22 -204 -661 Credit 23 19 81 Debit 24 -223 -742 1.A.b.5 Construction 25 9 19 Credit 26 22 61 Debit 27 -13 -42 1.A.b.6 Insurance and Pension Services 28 -17 -40 Credit 29 10 27 Debit 30 -27 -67 1.A.b.7 Financial Services 31 1 5 Credit 32 7 22 Debit 33 -7 -17 1.A.b.8 Charges for the Use of Intellectual Property 34 -62 -158 Credit 35 13 45 Debit 36 -75 -203 1.A.b.9 Telecommunications, Computer, and Information Services 37 19 28 Credit 38 73 204 Debit 39 -54 -176 1.A.b.10 Other Business Services 40 30 102 Credit 41 122 368 Debit 42 -92 -265 1.A.b.11 Personal, Cultural, and Recreational Services 43 -3 -10 Credit 44 2 5 Debit 45 -5 -15 1.A.b.12 Government Goods and Services n.i.e 46 -7 -8 Credit 47 3 14 Debit 48 -10 -22 1.B Primary Income 49 -170 -419 Credit 50 533 1,259 Debit 51 -702 -1,678 1.C Secondary Income 52 22 40 Credit 53 70 198 Debit 54 -49 -158 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -670 -840 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 -670 -839 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -604 -819 Including: 2.2.1.1 Direct Investment 61 170 325 2.2.1.1.1 Assets 62 -236 -583 2.2.1.1.2 Liabilities 63 406 908 2.2.2 Reserve Assets 64 -66 -20 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 0 1 2.2.2.3 Reserve position in the IMF 67 1 -8 2.2.2.4 Foreign exchange reserves 68 -67 -13 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / -385 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 three quarters of 2020 is the sum of the official amounts of the BOP for 2020Q1 and 2020 Q2, and the preliminary amount for 2020Q3. 5. This table employs rounded-off numbers. 2020-11-06/en/2020/1106/1768.html
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In September 2020, China’s international trade in goods and services recorded receipts of RMB 1716.1 billion and payments of RMB 1558.8 billion based on statistics of balance of payments (BOP), registering a surplus of RMB 157.3 billion. Specifically, trade in goods registered receipts of RMB 1575.8 billion, payments of RMB 1321 billion, recording a surplus of RMB 254.8 billion; trade in services recorded receipts of RMB 140.3 billion, payments of RMB 237.7 billion, resulting in a deficit of RMB 97.4 billion. In the US dollar terms, in September 2020, China's BOP-based receipts and payments of international trade in goods and services were USD 251.8 billion and USD 228.7 billion respectively, registering a surplus of USD 23.1 billion. Specifically, the receipts and payments from trade in goods were USD 231.2 billion and USD 193.8 billion respectively, resulting in a surplus of USD 37.4 billion. Trade in services registered receipts and payments of USD 20.6 billion and USD 34.9 billion respectively, recording a deficit of USD 14.3 billion.(End) International Trade in Goods and Services of China (Based on the BOP statistics) September 2020 Item In 100 million of RMB In 100 million of USD Goods and services 1573 231 Credit 17161 2518 Debit -15588 -2287 1. Goods 2548 374 Credit 15758 2312 Debit -13210 -1938 2. Services -974 -143 Credit 1403 206 Debit -2377 -349 2.1Manufacturing services on physical inputs owned by others 71 10 Credit 74 11 Debit -4 -1 2.2Maintenance and repair services n.i.e 23 3 Credit 45 7 Debit -22 -3 2.3Transport -270 -40 Credit 336 49 Debit -607 -89 2.4Travel -679 -100 Credit 70 10 Debit -749 -110 2.5Construction 54 8 Credit 98 14 Debit -44 -6 2.6Insurance and pension services -40 -6 Credit 39 6 Debit -79 -12 2.7Financial services 3 0 Credit 24 3 Debit -21 -3 2.8Charges for the use of intellectual property -236 -35 Credit 51 8 Debit -287 -42 2.9Telecommunications, computer and information services 43 6 Credit 226 33 Debit -183 -27 2.10Other business services 120 18 Credit 424 62 Debit -304 -45 2.11Personal, cultural, and recreational services -8 -1 Credit 8 1 Debit -15 -2 2.12Government goods and services n.i.e -56 -8 Credit 8 1 Debit -64 -9 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. 2020-10-30/en/2020/1030/1767.html
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In October 2020, China’s international trade in goods and services recorded receipts of RMB 1660.1 billion and payments of RMB 1344.9 billion based on statistics of balance of payments (BOP), registering a surplus of RMB 315.2 billion. Specifically, trade in goods registered receipts of RMB 1536.6 billion, payments of RMB 1159.3 billion, recording a surplus of RMB 377.3 billion; trade in services recorded receipts of RMB 123.5 billion, payments of RMB 185.6 billion, resulting in a deficit of RMB 62.1 billion. In the US dollar terms, in October 2020, China's BOP-based receipts and payments of international trade in goods and services were USD 247.4 billion and USD 200.4 billion respectively, registering a surplus of USD 47 billion. Specifically, the receipts and payments from trade in goods were USD 229 billion and USD 172.7 billion respectively, resulting in a surplus of USD 56.2 billion. Trade in services registered receipts and payments of USD 18.4 billion and USD 27.7 billion respectively, recording a deficit of USD 9.3 billion.(End) International Trade in Goods and Services of China (Based on the BOP statistics) October 2020 Item In 100 million of RMB In 100 million of USD Goods and services 3152 470 Credit 16601 2474 Debit -13449 -2004 1. Goods 3773 562 Credit 15366 2290 Debit -11593 -1727 2. Services -621 -93 Credit 1235 184 Debit -1856 -277 2.1Manufacturing services on physical inputs owned by others 65 10 Credit 67 10 Debit -2 0 2.2Maintenance and repair services n.i.e 30 4 Credit 42 6 Debit -12 -2 2.3Transport -215 -32 Credit 312 46 Debit -527 -78 2.4Travel -545 -81 Credit 62 9 Debit -607 -90 2.5Construction 23 3 Credit 78 12 Debit -55 -8 2.6Insurance and pension services -27 -4 Credit 29 4 Debit -56 -8 2.7Financial services 2 0 Credit 27 4 Debit -25 -4 2.8Charges for the use of intellectual property -120 -18 Credit 39 6 Debit -159 -24 2.9Telecommunications, computer and information services 41 6 Credit 209 31 Debit -169 -25 2.10Other business services 135 20 Credit 354 53 Debit -219 -33 2.11Personal, cultural, and recreational services -10 -2 Credit 5 1 Debit -15 -2 2.12Government goods and services n.i.e 1 0 Credit 10 2 Debit -9 -1 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. 2020-11-27/en/2020/1127/1773.html
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As shown in the statistics of the State Administration of Foreign Exchange (SAFE), in October 2020, the amount of foreign exchange settlement and sales by banks was RMB 1027.9 billion and RMB 940.8 billion, respectively, with a surplus of RMB 87.1 billion. In the US dollar terms, the amount of foreign exchange settlement and sales by banks was USD 153.2 billion and USD 140.2 billion, respectively, with a surplus of USD 13.0 billion. During January to October 2020, the accumulative amount of foreign exchange settlement and sales by banks was RMB 11277.5 billion and RMB 10654.7 billion, respectively, with an accumulative surplus of RMB 622.8 billion. In the US dollar terms, the accumulative amount of foreign exchange settlement and sales by banks was USD 1619.4 billion and USD 1530.3 billion, respectively, with an accumulative surplus of USD 89.1 billion. In October 2020, the amount of cross-border receipts and payments by non-banking sectors was RMB 2402.3 billion and RMB 2233.6 billion, respectively, with a surplus of RMB 168.8 billion. During January to October 2020, the accumulative amount of cross-border receipts and payments by non-banking sectors was RMB 24103.4 billion and RMB 23674.6 billion, respectively, with an accumulative surplus of RMB 428.7 billion. In the US dollar terms, in October 2020, the amount of cross-border receipts and payments by non-banking sectors was USD 358.0 billion and USD 332.8 billion, respectively, with a surplus of USD 25.1 billion. During January to October 2020, the accumulative amount of cross-border receipts and payments by non-banking sectors was USD 3463.4 billion and USD 3400.9 billion, respectively, with an accumulative surplus of USD 62.5 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. 2020-11-20/en/2020/1120/1772.html