-
As shown in the statistics of the State Administration of Foreign Exchange (SAFE), in September 2020, the amount of foreign exchange settlement and sales by banks was RMB 1234.1 billion and RMB 1207.1 billion, respectively, with a surplus of RMB 26.9 billion. In the US dollar terms，the amount of foreign exchange settlement and sales by banks was USD 181.1 billion and USD 177.1 billion, respectively, with a surplus of USD 4.0 billion. During January to September 2020, the accumulative amount of foreign exchange settlement and sales by banks was RMB 10249.6 billion and RMB 9713.9 billion, respectively, with an accumulative surplus of RMB 535.7 billion. In the US dollar terms, the accumulative amount of foreign exchange settlement and sales by banks was USD 1466.3 billion and USD 1390.1 billion, respectively, with an accumulative surplus of USD 76.2 billion. In September 2020, the amount of cross-border receipts and payments by non-banking sectors was RMB 2901.3 billion and RMB 2811.4 billion, respectively, with a surplus of RMB 89.9 billion. During January to September 2020, the accumulative amount of cross-border receipts and payments by non-banking sectors was RMB 21701.0 billion and RMB 21441.1 billion, respectively, with an accumulative surplus of RMB 260.0 billion. In the US dollar terms, in September 2020, the amount of cross-border receipts and payments by non-banking sectors was USD 425.7 billion and USD 412.5 billion, respectively, with a surplus of USD 13.2 billion. During January to September 2020, the accumulative amount of cross-border receipts and payments by non-banking sectors was USD 3105.5 billion and USD 3068.1 billion, respectively, with an accumulative surplus of USD 37.4 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. 2020-10-23/en/2020/1023/1763.html
-
The State Administration of Foreign Exchange (SAFE) has recently released the initial data on the Balance of Payments for the third quarter and the first three quarters of 2020. The SAFE deputy administrator and press spokesperson Wang Chunying answered media questions on relevant issues. Q: Could you brief us on the characteristics of the balance of payments for the third quarter of 2020? A: The initial data on the balance of payments show that, in the first three quarters of 2020, China’s current account registered a surplus of US$170.7 billion, 1.7% of the GDP of the same period, and the balance of payments maintained basic equilibrium. Specifically, the current account of the third quarter recorded a surplus of US$94.2 billion. Driven by the sustained and stable recovery of domestic economy and two-way opening-up of the financial market, the two-way cross-border capital flows have become more active. First, the surplus under trade in goods increased. In the third quarter of 2020, the surplus in trade in goods under balance of payments reached US$155.4 billion, up by 27% year on year. Exports and imports increased by 9% and 5% year on year respectively, indicating that with the effective pandemic control in China and steady economic recovery, trade in goods has continued to improve. Second, trade in services posted a declining deficit. In the third quarter of 2020, the deficit under trade in service was US$40.4 billion, down by 44% year on year. Specifically, tourism posted a deficit of US$28.6 billion, down by 50% year on year; the deficit in transport services was US$11.4 billion, down by 32%. On a quarter-on-quarter basis, travel expenses have risen from the second quarter due to the arrival of overseas back-to-school season, and transport revenue and expenditure have also picked up with the continued improvement of trade in goods. Third, direct investments registered continuous net inflows, and the two-way capital flows on the securities market have become more active. In the third quarter of 2020, direct investments registered a surplus of US$23.9 billion, with outbound direct investments and foreign direct investments in China reaching US$33.2 billion and US$57.1 billion respectively, rising both in year-on-year and quarter-on-quarter terms. With respect to securities market, overseas investments in domestic securities in the third quarter exceeded US$70 billion, while China’s outbound securities investments surpassed US$30 billion. It’s expected that China’s balance of payments will continue to maintain overall stability and basic equilibrium. China has entered a stage of high-quality development with bright long-term economic prospects and strong development resilience. China is accelerating its efforts to build a new development pattern, featured as domination by domestic cycle and mutual promotion between domestic and international cycle, which will provide strong support for the basic equilibrium of the balance of payments. 2020-11-06/en/2020/1006/1770.html
-
Q: The State Administration of Foreign Exchange (SAFE) has just released the latest data on China's foreign exchange reserves. Could you explain why China's foreign exchange reserves changed in September 2020? What will be the future trends? A: By the end of September 2020, China's foreign exchange reserves had recorded US$ 3.1426 trillion, down by US$ 22 billion or 0.7% month on month. In September 2020, the supply and demand of China’s foreign exchange market maintained basic equilibrium, and the cross-border capital flow was generally stable. The US Dollar Index rose slightly and asset prices diverged on the international financial market, due to the repeated outbreak of COVID-19 abroad and the monetary and fiscal policies of major countries. Under the combined impacts of exchange rate conversion and asset price changes, China's foreign exchange reserves decreased in September. Presently, the epidemic outside of China and the world economic situations remain complex and grim, and the destabilizing factors and uncertainties have increased remarkably. However, China has entered into a period of high-quality development, and the economic fundamentals of making progress amid stability and favorable long-term prospects remain unchanged. The basic characteristics of China’s economy – strong potential, great resilience, robust vitality and great space for maneuver as well as a wide array of policy instruments – have remained unchanged. The multi-dimensional advantages and conditions China has for development have not changed, which are conducive to the overall stability of foreign exchange reserves. 2020-10-07/en/2020/1007/1762.html
-
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 October 2020? What would you say about the future trends? A: By the end of October 2020, China's foreign exchange reserves recorded US$3.128 trillion, down by US$14.6 billion or 0.46% month on month. In October, China’s foreign exchange market performed stably, and market transactions were rational and orderly. On the international financial markets, affected by COVID-19 as well as monetary and fiscal policy expectations, the US dollar index increased, while the asset prices of major countries fell. Under the combined impact of exchange rate conversion and asset price changes, China's foreign exchange reserves decreased in October. Currently, the global economic environment is complex, the instability and uncertainty has increased markedly, and the international financial markets have become more volatile. China shows good long-term economic prospects and strong development resilience. In the 14th Five-Year Plan period, China will accelerate building a new development pattern, featured as domination by domestic cycle and mutual promotion between domestic and international cycle, achieve sustained and sound economic development based on significant improvement of quality and benefits, and provide solid support for the overall stability of the foreign exchange reserves. 2020-11-07/en/2020/1107/1771.html
-
China Balance of Payment Report(2019) 2020-10-30/en/2020/1030/1766.html
-
In the second quarter of 2021, China's current account registered a surplus of RMB 340.9 billion, including a surplus of RMB 723 billion under trade in goods, a deficit of RMB 139.7 billion under trade in services, a deficit of RMB 271.3 billion under primary income, and a surplus of RMB 28.9 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of RMB 309.8 billion, and reserve assets increased by RMB 322 billion. In the first half of 2021, China's current account registered a surplus of RMB 791.2 billion, including a surplus of RMB 1492.6 billion under trade in goods, a deficit of RMB 283.6 billion under trade in services, a deficit of RMB 461.9 billion under primary income, and a surplus of RMB 44 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of RMB 800.7 billion, and reserve assets increased by RMB 548.9 billion. In the US dollar terms, in the second quarter of 2021, China's current account recorded a surplus of USD 52.8 billion, including a surplus of USD 111.9 billion under trade in goods, a deficit of USD 21.6 billion under trade in services, a deficit of USD 42 billion under primary income, and a surplus of USD 4.5 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of USD 48 billion, and reserve assets increased by USD 49.9 billion. In the US dollar terms, in the first half of 2021, China's current account recorded a surplus of USD 122.2 billion, including a surplus of USD 230.6 billion under trade in goods, a deficit of USD 43.8 billion under trade in services, a deficit of USD 71.4 billion under primary income, and a surplus of USD 6.8 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of USD 123.7 billion, and reserve assets increased by USD 84.9 billion. In SDR terms, in the second quarter of 2021, China posted a surplus of SDR 36.8 billion under the current account, including a surplus of SDR 78 billion under trade in goods, a deficit of SDR 15.1 billion under trade in services. In the capital and financial accounts, foreign direct investments recorded a surplus of SDR 33.4 billion, and reserve assets increased by SDR 34.7 billion. In SDR terms, in first half of 2021, China posted a surplus of SDR 85.1 billion under the current account, including a surplus of SDR 160.6 billion under trade in goods, a deficit of SDR 30.5 billion under trade in services. In the capital and financial accounts, foreign direct investments recorded a surplus of SDR 86.1 billion, and reserve assets increased by SDR 59.1 billion. (End) China's Balance of Payments ( Preliminary Data) Unit: RMB 100 million Item Line No. 2021 Q2 2021 H1 1. Current account 1 3,409 7,912 Credit 2 60,582 115,266 Debit 3 -57,173 -107,354 1. A Goods and Services 4 5,833 12,090 Credit 5 53,992 103,693 Debit 6 -48,160 -91,603 1.A.a Goods 7 7,230 14,926 Credit 8 49,045 94,057 Debit 9 -41,815 -79,131 1.A.b Services 10 -1,397 -2,836 Credit 11 4,948 9,635 Debit 12 -6,345 -12,471 1.A.b.1 Processing services 13 216 424 Credit 14 227 444 Debit 15 -11 -20 1.A.b.2 Maintenance and Repair Services 16 49 118 Credit 17 113 229 Debit 18 -64 -111 1.A.b.3 Transport 19 -261 -487 Credit 20 1,687 3,166 Debit 21 -1,948 -3,653 1.A.b.4 Travel 22 -1,303 -2,871 Credit 23 200 374 Debit 24 -1,503 -3,245 1.A.b.5 Construction 25 86 116 Credit 26 235 423 Debit 27 -149 -307 1.A.b.6 Insurance and Pension Services 28 -172 -270 Credit 29 83 169 Debit 30 -255 -439 1.A.b.7 Financial Services 31 -8 26 Credit 32 55 146 Debit 33 -63 -120 1.A.b.8 Charges for the Use of Intellectual Property 34 -558 -1,011 Credit 35 203 384 Debit 36 -761 -1,395 1.A.b.9 Telecommunications, Computer, and Information Services 37 182 264 Credit 38 824 1,579 Debit 39 -642 -1,315 1.A.b.10 Other Business Services 40 416 975 Credit 41 1,271 2,629 Debit 42 -855 -1,654 1.A.b.11 Personal, Cultural, and Recreational Services 43 -40 -61 Credit 44 23 43 Debit 45 -63 -104 1.A.b.12 Government Goods and Services n.i.e 46 -5 -58 Credit 47 27 50 Debit 48 -32 -108 1.B Primary Income 49 -2,713 -4,619 Credit 50 5,807 10,115 Debit 51 -8,520 -14,734 1.C Secondary Income 52 289 440 Credit 53 783 1,458 Debit 54 -494 -1,018 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -3,409 -7,916 2.1 Capital Account 56 2 -1 Credit 57 3 5 Debit 58 -2 -6 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -3,410 -7,915 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -191 -2,426 Including: 2.2.1.1 Direct Investment 61 3,098 8,007 2.2.1.1.1 Assets 62 -2,196 -3,617 2.2.1.1.2 Liabilities 63 5,294 11,624 2.2.2 Reserve Assets 64 -3,220 -5,489 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 23 2.2.2.4 Foreign exchange reserves 68 -3,222 -5,511 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / 4 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 USDdenominated BOP statement for the quarter using the quarterly average central parity rate of RMB against USD. 4.The preliminary amount for the first half of 2021 is the sum of the official amounts of the BOP for 2021Q1 and the preliminary amount for 2021Q2. 5.This table employs rounded-off numbers. China's Balance of Payments ( Preliminary Data) Unit: USD 100 million Item Line No. 2021 Q2 2021 H1 1. Current account 1 528 1,222 Credit 2 9,381 17,814 Debit 3 -8,853 -16,591 1. A Goods and Services 4 903 1,868 Credit 5 8,360 16,025 Debit 6 -7,457 -14,157 1.A.a Goods 7 1,119 2,306 Credit 8 7,594 14,536 Debit 9 -6,475 -12,229 1.A.b Services 10 -216 -438 Credit 11 766 1,489 Debit 12 -982 -1,927 1.A.b.1 Processing services 13 33 66 Credit 14 35 69 Debit 15 -2 -3 1.A.b.2 Maintenance and Repair Services 16 8 18 Credit 17 17 35 Debit 18 -10 -17 1.A.b.3 Transport 19 -40 -75 Credit 20 261 489 Debit 21 -302 -565 1.A.b.4 Travel 22 -202 -444 Credit 23 31 58 Debit 24 -233 -501 1.A.b.5 Construction 25 13 18 Credit 26 36 65 Debit 27 -23 -47 1.A.b.6 Insurance and Pension Services 28 -27 -42 Credit 29 13 26 Debit 30 -40 -68 1.A.b.7 Financial Services 31 -1 4 Credit 32 9 23 Debit 33 -10 -19 1.A.b.8 Charges for the Use of Intellectual Property 34 -86 -156 Credit 35 31 59 Debit 36 -118 -216 1.A.b.9 Telecommunications, Computer, and Information Services 37 28 41 Credit 38 128 244 Debit 39 -99 -203 1.A.b.10 Other Business Services 40 64 151 Credit 41 197 406 Debit 42 -132 -256 1.A.b.11 Personal, Cultural, and Recreational Services 43 -6 -9 Credit 44 4 7 Debit 45 -10 -16 1.A.b.12 Government Goods and Services n.i.e 46 -1 -9 Credit 47 4 8 Debit 48 -5 -17 1.B Primary Income 49 -420 -714 Credit 50 899 1,564 Debit 51 -1,319 -2,277 1.C Secondary Income 52 45 68 Credit 53 121 225 Debit 54 -76 -157 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -528 -1,223 2.1 Capital Account 56 0 0 Credit 57 1 1 Debit 58 0 -1 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -528 -1,223 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -30 -374 Including: 2.2.1.1 Direct Investment 61 480 1,237 2.2.1.1.1 Assets 62 -340 -559 2.2.1.1.2 Liabilities 63 820 1,796 2.2.2 Reserve Assets 64 -499 -849 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 0 0 2.2.2.3 Reserve position in the IMF 67 0 4 2.2.2.4 Foreign exchange reserves 68 -499 -852 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / 1 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 2021 is the sum of the official amounts of the BOP for 2021Q1 and the preliminary amount for 2021Q2. 4.This table employs rounded-off numbers. China's Balance of Payments ( Preliminary Data) Unit: SDR 100 million Item Line No. 2021 Q2 2021 H1 1. Current account 1 368 851 Credit 2 6,537 12,407 Debit 3 -6,170 -11,556 1. A Goods and Services 4 629 1,301 Credit 5 5,826 11,161 Debit 6 -5,197 -9,860 1.A.a Goods 7 780 1,606 Credit 8 5,292 10,124 Debit 9 -4,512 -8,518 1.A.b Services 10 -151 -305 Credit 11 534 1,037 Debit 12 -685 -1,342 1.A.b.1 Processing services 13 23 46 Credit 14 24 48 Debit 15 -1 -2 1.A.b.2 Maintenance and Repair Services 16 5 13 Credit 17 12 25 Debit 18 -7 -12 1.A.b.3 Transport 19 -28 -52 Credit 20 182 341 Debit 21 -210 -393 1.A.b.4 Travel 22 -141 -309 Credit 23 22 40 Debit 24 -162 -349 1.A.b.5 Construction 25 9 13 Credit 26 25 46 Debit 27 -16 -33 1.A.b.6 Insurance and Pension Services 28 -19 -29 Credit 29 9 18 Debit 30 -28 -47 1.A.b.7 Financial Services 31 -1 3 Credit 32 6 16 Debit 33 -7 -13 1.A.b.8 Charges for the Use of Intellectual Property 34 -60 -109 Credit 35 22 41 Debit 36 -82 -150 1.A.b.9 Telecommunications, Computer, and Information Services 37 20 28 Credit 38 89 170 Debit 39 -69 -141 1.A.b.10 Other Business Services 40 45 105 Credit 41 137 283 Debit 42 -92 -178 1.A.b.11 Personal, Cultural, and Recreational Services 43 -4 -7 Credit 44 2 5 Debit 45 -7 -11 1.A.b.12 Government Goods and Services n.i.e 46 -1 -6 Credit 47 3 5 Debit 48 -3 -12 1.B Primary Income 49 -293 -497 Credit 50 627 1,089 Debit 51 -919 -1,586 1.C Secondary Income 52 31 47 Credit 53 84 157 Debit 54 -53 -110 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -368 -852 2.1 Capital Account 56 0 0 Credit 57 0 1 Debit 58 0 -1 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -368 -852 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -21 -261 Including: 2.2.1.1 Direct Investment 61 334 861 2.2.1.1.1 Assets 62 -237 -390 2.2.1.1.2 Liabilities 63 571 1,251 2.2.2 Reserve Assets 64 -347 -591 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 0 0 2.2.2.3 Reserve position in the IMF 67 0 3 2.2.2.4 Foreign exchange reserves 68 -348 -593 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / 0 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 2021 is the sum of the official amounts of the BOP for 2021Q1 and the preliminary amount for 2021Q2. 5. This table employs rounded-off numbers. 2021-08-06/en/2021/0806/1847.html
-
The State Administration of Foreign Exchange (SAFE) has recently released the Balance of Payments (BOP) for the first quarter of 2021 as well as the International Investment Position (IIP) at the end of March 2021. 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 quarter of 2021? A: In the first quarter of 2021, China’s current account surplus registered US$69.4 billion, with its ratio to GDP in the same period reaching 1.8%, which fell within a reasonable range. Two-way cross-border investments and financing were relatively active, and the balance of payments remained balanced. First, trade in goods maintained a relatively high surplus. In the first quarter of 2021, due to great achievements in coordinating epidemic prevention and control, China’s economic and social development have reached remarkable results. Its foreign trade maintains a growing momentum and a trade surplus of US$118.7 billion in goods in terms of international payments. The export recorded US$694.2 billion, up by 49% year on year; imports reached US$575.5 billion, up 29% year on year. Second, trade deficit in services narrowed. In the first quarter of 2021, the trade deficit in services registered US$22.2 billion, down by 53% year on year. The travel item deficit recorded US$24.2 billion, down by 42% year on year. The continued spread of the pandemic abroad accounted for the main reason, which resulted in continuous sluggish outbound travel, and the base of travel expenditures in early 2020 was relatively high. Third, direct investment maintained a net inflow. In the first quarter of 2021, the net influx of direct investment registered US$75.7 billion, including US$97.6 billion of foreign direct investment in China, showing foreign investors’ confidence in China’s epidemic prevention and control, as well as its economic development prospects. China’s outward direct investment maintained stable and orderly, reaching US$21.9 billion. Fourth, two-way cross-border securities investment was relatively active. In the first quarter of 2021, China’s outbound investment in securities amounted to US$71.7 billion, and overseas investment in Chinese securities reached US$75.2 billion. The related investment was active, reflecting that the two-way opening of China’s capital market has met the needs of asset allocation of both domestic and foreign investors. At present, the global epidemic prevention and control and the global economic and financial situation are still confronting uncertainties and instabilities. However, with the steady improvement of China’s economy, China will maintain a basic balance of international payments. Q: What would you say about China’s international investment position at the end of March 2021? A: At the end of March 2021, China’s international investment position remained stable, and external financial assets and liabilities increased. First, the total size of China’s external financial assets increased. By the end of March 2021, China posted external assets of US$8.8776 trillion, up by 2% from the end of 2020. Of which, assets under direct investment amounted to US$2.4319 trillion, up by 0.8%; assets under portfolio investment were US$965.8 billion, up by 7.3%; other investment assets, including foreign deposits and loans, hit US$2.1662 trillion, representing an increase of 7.5%; and reserve assets amounted to US$3.2971 trillion, still ranking first in the world. Second, total external liabilities increased. At the end of March 2021, China’s external debt reached US$6.7375 trillion, up by 2.8% from the end of 2020. Of which, liabilities under direct investment amounted to US$3.2386 trillion, up by 1.9 percent; liabilities under portfolio investment reached US$2.0289 trillion, up by 3.8%; and liabilities under other investments including deposits and loans recorded US$1.4596 trillion, rising by 3.7%. 2021-06-25/en/2021/0625/1849.html
-
The State Administration of Foreign Exchange (SAFE) recently released data on foreign exchange settlement and sales by banks and international receipts and payments via banks for May 2021. Wang Chunying, SAFE Deputy Administrator and Press Spokesperson, answered media questions on relevant issues. Q: Could you brief us on the situation of China’s foreign exchange receipts and payments in May 2021? A: China’s foreign exchange market remained stable in May. First, the surplus in foreign exchange settlement and sales by banks amounted to US$22.8 billion, the same as the average level from January to April. Second, the surplus in international receipts and payments by non-banking sectors reached US$19.7 billion, which was narrowed compared to the monthly average of the previous four months. Presently, China’s foreign trade displays an increasing trend. Its import and export recorded surplus, which is the main reason behind the surplus pattern of foreign exchange settlement and sales by banks and international receipts and payments by non-banking sectors in China. Third, foreign exchange reserves are generally stable. By the end of May, foreign exchange reserves stood at US$3.2218 trillion, up by 0.74% month on month, mainly affected by factors including the appreciation of non-US dollar currencies against the US dollar and rising asset prices. Market expectations were generally stable. In May, both the settlement and sales ratios were almost equal to the average of the first four months. The settlement ratio that measures customers’ willingness to settle their foreign exchange recorded 67%, which is the ratio of foreign exchange customers sold to banks to their foreign exchange receipts from foreign-related transactions. The sales ratio that measures customers’ willingness to sell foreign exchange was 66%, which is the ratio of foreign exchange bought by customers from banks to their foreign exchange payments for foreign-related transactions. Two-way cross-border capital investment was in a rational and orderly manner. In May, direct investment maintained a small net inflow. Two-way investment in securities was generally stable, posting a net increase in foreign holdings of domestic stocks and bonds of US$23.7 billion, equivalent to the average level from January to April. Domestic market entities purchased a net 36.6 billion yuan of Hong Kong stocks under the Hong Kong Stock Connect program. At present, there are still many unstable and uncertain factors in the external environment. The COVID-19 pandemic continues to spread, the world economic recovery remains uneven, pressure on major developed economies to adjust monetary policies is mounting, and asset prices in the international financial market remain high. However, China’s economy is stable and improving, the balance of payments is stable, and the foreign exchange market is more mature and rational. In general, China’s foreign exchange market is expected to remain stable, and two-way fluctuations of the renminbi exchange rate will become normal. 2021-06-18/en/2021/0618/1848.html
-
The State Administration of Foreign Exchange (SAFE) recently released the external debt data at the end of March 2021. Wang Chunying, SAFE Deputy Administrator and Press Spokesperson, answered media questions on relevant issues. Q: What is the situation of China’s external debt in the first quarter of 2021? A: The scale of China’s external debt has increased steadily in the first quarter of 2021. As of the end of March 2021, China recorded US$2.5266 trillion in outstanding external debt denominated in both domestic and foreign currencies, an increase of US$125.8 billion or 5% compared with the end of 2020. The growth of external debt was mainly driven by the increase of foreign investors’ holdings of domestic renminbi bonds. The structure of external debt was further optimized. With respect to currency structures, the outstanding external debt in domestic currency accounted for 43%, up by 1 percent compared to the end of 2020. In terms of maturity structure, the outstanding medium-and long-term external debt accounted for 45%, the same as the end of 2020. Q: How do you see the current situation of China’s external debt? A: The improvement of China’s economy was the basis for the steady growth in the scale of its external debt. In the first quarter of 2021, China’s economy got off to a good start, with its GDP growing by 18.3% year on year and the steady operation of the balance of payments and foreign exchange market. These factors were the basis for the steady increase in the scale of external debt. In the first quarter of 2021, foreign investors continued to increase their holdings of renminbi bonds, reflecting the achievements of the opening of the domestic bond market and investors’ confidence in the prospects of China’s economic development. These foreign investors were mainly institutions, such as foreign central banks and sovereign wealth funds, which tend to allocate renminbi assets in the medium and long term and boast good investment stability. It is expected that the scale of external debt will maintain stability. At present, the global epidemic situation is still severe and the world economic recoveries are diverging. However, China’s economy has maintained a steady recovery, and the fundamentals of its long-term economic improvement have not changed. It is expected that the scale of external debt will remain stable in the future. SAFE will continue to serve the real economy and improve the liberalization and facilitation of cross-border trade，investment and financing. At the same time, SAFE will continue to improve the “macro-prudential and micro-regulatory” management framework for the foreign exchange market, actively encourage market players to adopt a “neutral concept of exchange rate risk”, and effectively prevent cross-border financing risks. 2021-06-25/en/2021/0625/1850.html
-
The State Administration of Foreign Exchange (SAFE) has released the preliminary data on the balance of payments for the first quarter of 2021. Wang Chunying, SAFE Deputy Administrator and Press Spokesperson, answered media questions on relevant issues. Q: What are the characteristics of China’s balance of payments in the first quarter of 2021? A: The preliminary data shows that, in the first quarter of 2021, China’s balance of payments was basically balanced, with a current account surplus of US$75.1 billion, which was 2.0% of the GDP in the same period. China’s balance of payments remained within the reasonable range of equilibrium, with continuous net inflow of direct investment. First, trade in goods recorded a relatively high surplus. In the first quarter of 2021, the trade surplus in goods in terms of international payments registered US$118.7 billion. Since 2021, China’s foreign trade has maintained a recovery growth trend. The export of goods in terms of international payments amounted to US$694.2 billion, an increase of 49% year on year. Imports reached US$575.5 billion, up by 29% year on year. Second, trade deficit in services narrowed. In the first quarter of 2021, the trade deficit in services recorded US$22.3 billion, decreasing by 53% year on year. Travel was still the main deficit item, with a deficit of US$24.2 billion, down by 42% year on year. The main reason was that overseas study and tourism continued to shrink due to the impact of the pandemic. Third, direct investment maintained continuous net inflow. In the first quarter of 2021, the net inflow of direct investment reached US$70.5 billion, mainly due to the net influx of direct investment in China of US$93.1 billion, reaching a historical high. It reflected foreign investors’ confidence in China’s epidemic prevention and control as well as economic development prospects. The net outflow of China’s foreign direct investment was US$22.6 billion, and the foreign direct investment of enterprises was stable. At present, China is accelerating the construction of a new development pattern, focusing on promoting high-quality development, and constantly maintaining the highest standards of prevention and control of the pandemic. All the efforts will help keep the economic operation within a reasonable range and the basic balance of international payments. It is expected that China will continue to maintain a reasonable current account surplus in 2021. 2021-05-07/en/2021/0507/1844.html