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The State Administration of Foreign Exchange (SAFE) recently released the data on foreign exchange settlement and sales by banks and international receipts and payments via banks for April 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 April 2021? A: China saw a steady performance of its foreign exchange market in April. Major indicators showed that foreign exchange settlement and sales by banks were roughly the same, with a surplus of US$2.2 billion; while the import and export of goods maintained a certain surplus, the non-banking sector’s foreign-related receipts and payments registered a continuation of net inflow, with a surplus of US$16 billion. By the end of April, foreign exchange reserves stood at US$3.1982 trillion, up by 0.89% on a month-to-month basis, mainly due to the appreciation of non-US dollar currencies and rising asset prices. Two-way cross-border capital investments were rational and orderly. In terms of inflow channels, the receipt of foreign direct investment maintained steady growth, and the net increase in foreign holdings of domestic stocks and bonds was US$19.5 billion, a year-on-year increase of 3%. In terms of outflow channels, the net outflow scale of China’s outward foreign direct investment was basically the same as that of the same period last year. The net purchase of Hong Kong stocks by domestic entities under the “Hong Kong Stock Connect” amounted to US$5.7 billion with an orderly manner. At present, it is observed that uncertainties still exist in the development of the global epidemic and the recovery of the world economy is uneven. However, China’s economic performance has maintained a steady recovery, and new momentums of growth have continued to gain strength, which will provide a solid foundation for the balanced flow of cross-border capital and the basic balance of international payments. 2021-05-21/en/2021/0521/1845.html
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Q: The State Administration of Foreign Exchange (SAFE) has just released the latest data on China’s foreign exchange reserves. Could you explain why China’s foreign exchange reserves for April 2021 changed? What would you say about the future trends of China’s foreign exchange reserves? A: By the end of April 2021, China’s foreign exchange reserves recorded US$3.1982 trillion, up by US$28.2 billion or 0.89% month on month. We saw a stable performance in foreign exchange market in April, featuring balanced supply and demand. In global financial markets, due to the COVID-19 pandemic and progress in vaccine development, as well as monetary policy expectations of the major countries and their macroeconomic data, non-US dollar currencies rose against the US dollar, and the overall price of financial assets of major countries have increased. China’s foreign exchange reserves climbed in the month, under the combined effect of foreign exchange rate conversion and asset price changes. As the rest of the world continue to grapple with COVID-19, the global economic recovery and global financial markets still face many uncertainties and destabilizing factors. However, since the beginning of this year, China’s economy has got off to a good start. The high-quality development has made new achievements and the renminbi exchange rate has become more flexible, which will be favorable for maintaining the general stability of China’s foreign exchange reserves. 2021-05-07/en/2021/0507/1843.html
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Q: The State Administration of Foreign Exchange (SAFE) has just released the latest data on China’s foreign exchange reserves. Could you explain the causes of changes in foreign exchange reserves for May 2021? What will be the future trends? A: By the end of May 2021, China’s foreign exchange reserves recorded US$3.2218 trillion, up by US$23.6 billion or 0.74% month on month. In May 2021, China’s foreign exchange market remained stable, witnessing rational and orderly market transactions. In global financial markets, non-US dollar currencies generally strengthened, and the financial asset prices of major countries rose, due to the impact of COVID-19 pandemic and vaccinations, monetary policies of major countries, inflation expectations, and macroeconomic data. Under the combined effect of foreign exchange rate conversion and asset price changes, China’s foreign exchange reserves which are priced by US dollar increased in this month. As the rest of the world still battle against COVID-19, the global economic and financial situation will continue to face rising uncertainties. But China’s economy will continue to recover steadily this year and the momentum of development will continue to strengthen, which will provide support for a generally stable foreign exchange reserve level. 2021-06-07/en/2021/0607/1846.html
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Q: The State Administration of Foreign Exchange (SAFE) has just released the latest data on China’s foreign exchange reserves. Could you explain the causes of changes in foreign exchange reserves for June 2021? What will be the future trends? A: By the end of June 2021, China’s foreign exchange reserves recorded US$3.214 trillion, down by US$7.8 billion or 0.24% month on month. In June, China’s foreign exchange market operated smoothly, and market transactions remained rational. In global financial markets, the US dollar index has fluctuated upward, and the financial asset prices of major countries have generally risen due to the development in COVID-19 vaccine and the expectation of monetary and fiscal policies of major countries. Under the combined effect of foreign exchange rate conversion and asset price changes, China’s foreign exchange reserves dropped in this month. Looking ahead, the rest of the world still grapples with COVID-19, and the global economic situation and the international financial market still face many risk factors. However, China’s economic performance has been strengthened and improved, and the internal driving force has been gradually strengthened, which will help keep foreign exchange reserves stable. 2021-07-07/en/2021/0707/1851.html
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In July 2021, China’s international trade in goods and services recorded receipts of RMB 1883 billion and payments of RMB 1635.8 billion based on statistics of balance of payments (BOP), registering a surplus of RMB 247.2 billion. Specifically, trade in goods registered receipts of RMB 1703.2 billion, payments of RMB 1412.7 billion, recording a surplus of RMB 290.4 billion; trade in services recorded receipts of RMB 179.8 billion, payments of RMB 223.1 billion, resulting in a deficit of RMB 43.3 billion. In the US dollar terms, in July 2021, the receipts and payments of China's international trade in goods and services were USD 290.8 billion and USD 252.7 billion respectively, registering a surplus of USD 38.2 billion. Specifically, the receipts and payments from trade in goods were USD 263.1 billion and USD 218.2 billion respectively, resulting in a surplus of USD 44.9 billion. Trade in services registered receipts and payments of USD 27.8 billion and USD 34.5 billion respectively, recording a deficit of USD 6.7 billion.(End) International Trade in Goods and Services of China (Based on the BOP statistics) July 2021 Item In 100 million of RMB In 100 million of USD Goods and services 2472 382 Credit 18830 2908 Debit -16358 -2527 1. Goods 2904 449 Credit 17032 2631 Debit -14127 -2182 2. Services -433 -67 Credit 1798 278 Debit -2231 -345 2.1Manufacturing services on physical inputs owned by others 69 11 Credit 73 11 Debit -4 -1 2.2Maintenance and repair services n.i.e 21 3 Credit 43 7 Debit -22 -3 2.3Transport -4 -1 Credit 715 110 Debit -719 -111 2.4Travel -539 -83 Credit 62 10 Debit -600 -93 2.5Construction 12 2 Credit 74 11 Debit -61 -9 2.6Insurance and pension services -41 -6 Credit 23 3 Debit -63 -10 2.7Financial services 1 0 Credit 15 2 Debit -14 -2 2.8Charges for the use of intellectual property -180 -28 Credit 53 8 Debit -233 -36 2.9Telecommunications, computerand information services 77 12 Credit 271 42 Debit -194 -30 2.10Other business services 176 27 Credit 453 70 Debit -278 -43 2.11Personal, cultural, and recreational services -11 -2 Credit 7 1 Debit -18 -3 2.12Government goods and services n.i.e -14 -2 Credit 9 1 Debit -23 -4 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 Insuranceand 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 audio visual 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. 2021-08-27/en/2021/0827/1857.html
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As shown in the statistics of the State Administration of Foreign Exchange (SAFE), in August 2021, the amount of foreign exchange settlement and sales by banks was RMB 1354.7 billion and RMB 1266.3 billion, respectively, with a surplus of RMB 88.4 billion. During January to August 2021, the accumulative amount of foreign exchange settlement and sales by banks was RMB 10572.8 billion and RMB 9545.3 billion, respectively, with an accumulative surplus of RMB 1027.5 billion. In the US dollar terms, in August 2021, the amount of foreign exchange settlement and sales by banks was USD 209.1 billion and USD 195.5 billion, respectively, with a surplus of USD 13.6 billion. During January to August 2021, the accumulative amount of foreign exchange settlement and sales by banks was USD 1633.9 billion and USD 1475.0 billion, respectively, with an accumulative surplus of USD 159.0 billion. In August 2021, the amount of cross-border receipts and payments by non-banking sectors was RMB 3312.4 billion and RMB 3169.7 billion, respectively, with a surplus of RMB 142.7 billion. During January to August 2021, the accumulative amount of cross-border receipts and payments by non-banking sectors was RMB 25016.8 billion and RMB 23532.8 billion, respectively, with an accumulative surplus of RMB 1484.1 billion. In the US dollar terms, in August 2021, the amount of cross-border receipts and payments by non-banking sectors was USD 511.4 billion and USD 489.4 billion, respectively, with a surplus of USD 22.0 billion. During January to August 2021, the accumulative amount of cross-border receipts and payments by non-banking sectors was USD 3865.7 billion and USD 3636.4 billion, respectively, with an accumulative surplus of USD 229.3 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 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 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 net Delta exposure of outstanding options refers to the implied foreign exchange spot risk exposure from outstanding option contracts that bank executed with client. 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. 2021-09-17/en/2021/0916/1863.html
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As shown in the statistics of the State Administration of Foreign Exchange (SAFE), in July 2021, the amount of foreign exchange settlement and sales by banks was RMB 1390.0 billion and RMB 1326.8 billion, respectively, with a surplus of RMB 63.2 billion. During January to July 2021, the accumulative amount of foreign exchange settlement and sales by banks was RMB 9218.1 billion and RMB 8279.0 billion, respectively, with an accumulative surplus of RMB 939.2 billion. In the US dollar terms, in July 2021, the amount of foreign exchange settlement and sales by banks was USD 214.7 billion and USD 204.9 billion, respectively, with a surplus of USD 9.8 billion. During January to July 2021, the accumulative amount of foreign exchange settlement and sales by banks was USD 1424.8 billion and USD 1279.5 billion, respectively, with an accumulative surplus of USD 145.3 billion. In July 2021, the amount of cross-border receipts and payments by non-banking sectors was RMB 3317.4 billion and RMB 3198.8 billion, respectively, with a surplus of RMB 118.6 billion.During January to July 2021, the accumulative amount of cross-border receipts and payments by non-banking sectors was RMB 21704.4 billion and RMB 20363.0 billion, respectively, with an accumulative surplus of RMB 1341.4billion. In the US dollar terms, in July 2021, the amount of cross-border receipts and payments by non-banking sectors was USD 512.4 billion and USD 494.1 billion, respectively, with a surplus of USD 18.3billion.During January to July 2021, the accumulative amount of cross-border receipts and payments by non-banking sectors was USD 3354.3 billion and USD 3147.0 billion, respectively, with an accumulative surplus of USD 207.3 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 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 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 net Delta exposure of outstanding options refers to the implied foreign exchange spot risk exposure from outstanding option contracts that bank executed with client. 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. 2021-08-20/en/2021/0820/1854.html
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The State Administration of Foreign Exchange (SAFE) recently released the preliminary data of the balance of payments for the second quarter and the first half 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 half of 2021? A: The preliminary data shows that, in the first half of 2021, China maintained a basic equilibrium in its balance of payments. The current account reached surplus of US$122.2 billion, accounting for 1.5% of its gross domestic product during the period, which remained within the reasonable equilibrium range. Direct investment witnessed a net inflow. First, the trade surplus in goods increased year on year. In the first half of 2021, trade in goods on BOP basis posted a surplus of US$230.6 billion, up 35% year on year. Specifically, the export of goods reached US$1.4536 trillion, an increase of 36% year on year, reflecting the combined influence of improved domestic production capacity and pick-up in external demand. The import of goods registered US$1.2229 trillion, a year-on-year increase of 37%, which was mainly attributed to the recovery of the domestic demand and high international commodity prices. Second, the trade deficit in services narrowed year on year. In the first half of 2021, the trade deficit in services recorded US$43.8 billion, a year-on-year decrease of 43%. Travel, intellectual property royalties, and transportation were the main deficit items. Specifically, the deficit in travel declined 28% from a year ago to US$44.4 billion as cross-border tourism and study abroad were affected by the spread of COVID-19 overseas. The deficit in intellectual property royalties was US$15.6 billion, up 21% year on year, with both revenue and expenditure on intellectual property royalties increased, reflecting the mutual benefit and win-win results of China’s efforts to expand international cooperation in the field of intellectual property. The deficit in transportation registered US$7.5 billion, down 61% from the same period last year, as revenue from transportation services grew faster than expenditure. Third, China saw a relatively high surplus in foreign direct investment. In the first half of 2021, the net inflow of foreign direct investments was US$123.7 billion. The net inflow of direct investment to China reached US$179.6 billion, among which the net inflow was US$97.6 billion and US$82 billion, respectively, in the first quarter and the second quarter, both maintaining at a relatively high level. The net outflow of China’s foreign direct investment was US$55.9 billion, indicating that the outward foreign direct investment of enterprises was in a stable and orderly manner. China is accelerating the construction of a new development paradigm with domestic circulation as the mainstay and domestic and international circulations reinforcing each other. The basis of internal and external economic development is much stronger, which lays a solid foundation for the stability and basic balance of China’s current account and is conducive to maintaining equilibrium in the balance of payments. 2021-08-06/en/2021/0806/1855.html
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The State Administration of Foreign Exchange (SAFE) has recently released data on surrender and purchase of foreign exchange and banks’ foreign-related receipts and payments on behalf of clients for July 2021. The SAFE Deputy Administrator and Press Spokesperson Wang Chunying answered media questions on foreign exchange receipts and payments for July 2021. Q: Could you brief us on the changes in China’s foreign exchange receipts and payments for July 2021? A: The supply and demand of foreign exchange market were generally balanced in July. Major indicators showed that surrender and purchase of foreign exchange and non-banking sector’s foreign-related receipts and payments posted surpluses of US$9.8 billion and US$18.3 billion respectively, both lower than the monthly average level of the first half of the year, indicating that more equilibrium has been reached in China’s foreign exchange receipts and payments as well as in its foreign exchange supply and demand. By the end of July, foreign exchange reserves stood at US$3.2359 trillion, up by 0.68% over the end of June, mainly due to such factors as the appreciation of non-US dollar currencies against the US dollar and rising global asset prices. The willingness of market entities to surrender and purchase foreign exchange was generally stable. In July, both the surrender and purchase ratios maintained the average levels of recent months, indicating that the transactions and expectations of market entities were basically stable. Among them, the surrender ratio that measures clients’ willingness to sell their foreign exchange, i.e., the ratio of foreign exchange clients sold to banks to their foreign exchange receipts from foreign-related transactions, recorded 69%; the purchase ratio that measures clients’ willingness to buy foreign exchange, i.e., the ratio of foreign exchange bought by clients from banks to their foreign exchange payments for foreign-related transactions was 64%. Cross-border capital flows through major channels were rational, orderly and generally balanced. Cross-border receipts and payments under trade in goods continued to register a surplus in July, and the net inflow of foreign direct investment in China remained high. The increased net holdings of domestic bonds by foreign investors indicated that the renminbi-denominated assets remained attractive. On the other hand, corporate dividend payouts reached the seasonal peak, roughly the same level as the same period of the previous years. The net payment of service trade continued to run low, and the foreign direct investment by domestic entities remained generally stable. At present, the global epidemic is still evolving and the recovery of the world economy is uneven, indicating a more complex and severe external environment. However, China has achieved a stable and sustained economic recovery, and momentum of development is gathering. Steady progress has been made in the two-way opening-up of financial market and the foreign exchange market has become more mature, which will provide a strong support for the steady development of China’s foreign exchange receipts and payments. 2021-08-20/en/2021/0820/1862.html
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On the morning of July 26, the State Administration of Foreign Exchange (SAFE) held a video conference on foreign exchange administration for the second half of 2021. The meeting conveyed the study and implementation of the essential arrangements of the CPC Central Committee and the State Council on economic and financial work. It reviewed the work in the first half of the year and analyzed the economic, financial, and foreign exchange situation at home and abroad. The meeting also carried out research and deployment on key tasks for the second half of the year. Pan Gongsheng, Secretary of the CPC Leadership and Administrator of the SAFE, delivered the work report. Members of the SAFE CPC Leadership and the Chief Accountant also attended the meeting. The meeting believed that, in the year to date, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, SAFE has been earnestly implementing the decisions and arrangements of the CPC Central Committee and the State Council, ensuring “stability on the six fronts” and “security in the six areas.” It has continuously promoted reforms and opening-up in the foreign exchange sector. SAFE has also effectively maintained the basic stability of the foreign exchange market and China’s economic and financial security. This helped create a favorable foreign exchange market environment for the celebration of the 100th anniversary of the founding of the Communist Party of China (CPC). First, SAFE has promoted high-quality development of Party building. Through thorough study and implementation of the guiding principles in General Secretary Xi Jinping’s Keynote Speech at the Party History Study and Education Mobilization Conference, SAFE has made solid progress in party history study and education, and further promoted the practical activities of “I do practical work for the masses”. The Administration has also launched a series of activities to celebrate the 100th anniversary of the founding of the CPC. Led by the political building of the Party, the Administration will step up to further rigorous self-discipline of the Party. Second, SAFE has deepened the reform and opening-up in the foreign exchange sector and facilitated cross-border trade and investment. SAFE has promoted pilot projects to facilitate foreign exchange receipts and payments of trade, improved foreign exchange transactions for individuals, supported the healthy development of new forms of trade, carried out pilot projects to integrate local and foreign currency capital pools for multinational corporations, and enriched the application scenarios of cross-border financial blockchain service platforms. Third, SAFE has achieved positive results in preventing risks of cross-border capital flows. It has strengthened the macro-prudential management and expectation management, and provided guidance to enterprises in establishing the concept of “exchange rate risk neutrality”. SAFE has also effectively addressed breaches of laws and regulations in the foreign exchange field and maintained healthy order in the foreign exchange market. Fourth, SAFE has continuously improved the operation and management of foreign exchange reserves. Foreign exchange reserves have remained stable at around US$3.2 trillion. The meeting stressed that, in the second half of 2021, SAFE should continue to base themselves on the new development stage, implement the new development concept, build a new development pattern, better coordinate development and security, constantly reform and improve the foreign exchange management system and mechanism that are compatible with the new system of a higher-level open economy, and promote the high-quality development of foreign exchange management. The meeting set out the key tasks for foreign exchange administration in the second half of 2021. First, SAFE will step up to comprehensively govern the Party with strict discipline. Through earnest study and implementation of the spirit of General Secretary Xi Jinping’s important speech at the celebration of the 100th anniversary of the founding of the CPC, SAFE will closely link the study and education of the Party’s history with the work of the foreign exchange management, and make sure the full and effective implementation of “I do practical work for the masses” task list. SAFE will accentuate Party conducts and uphold integrity, perform strict supervision and management of cadres, and build a high-quality and professional foreign exchange management team who are loyal, incorruptible and responsible. Second, SAFE will unswervingly promote reform and opening-up in the foreign exchange field. It will ensure the comprehensive implementation of all the existing facilitation policies and further expand the scope of facilitation pilot projects such as receipts and payments of foreign exchange in trade, cross-border investment by private equity funds, and fund pools with integrated domestic and foreign currency for multinational enterprises. SAFE will also actively support new forms and models of foreign trade, facilitate foreign exchange transactions for individuals, and provide support mechanisms for regional openness and innovation. Third, SAFE will improve the integrated management framework of “macro-prudence and micro-regulation” in the foreign exchange market. It will improve cross-border capital flows by strengthening macro-prudential measures, improve the micro-regulation of the foreign exchange market by transforming the regulatory approach. SAFE will delve into establishing the authenticity check management mechanism mainly with due diligence in advance, monitoring in the process, spot check after the event, and substantive review and exemption with due diligence. SAFE will severely crack down on illegal activities in the foreign exchange field, such as underground banks and cross-border gambling. Fourth, SAFE will deepen reform to “streamline administration and delegate power, improve regulation, and upgrade services”. It will continue to streamline administrative licensing matters, standardize the handling of administrative licensing matters, encourage more foreign exchange administration to be conducted online, and upgrade “Internet + government services”. Fifth, SAFE will improve the ability to operate and manage foreign exchange reserves, promote the capability construction of scientific and technological operation and management, and ensure the safety and flow of foreign exchange reserves, as well as the maintenance and appreciation of their value. Sixth, SAFE will consolidate the essential work of foreign exchange administration. It will strengthen research around the “14th Five-Year” foreign exchange administration reform plan and revision of the Regulations on Foreign Exchange System, build a high-level statistical system of balance of payments, and promote the construction of “digital foreign exchange administration” and “safe foreign exchange administration”. Officials at or above the director level from all departments and subsidiaries of the SAFE attended the meeting in the main venue. Comrades in charge of the Discipline Inspection and Supervision Office of the CPC Central Commission for Discipline Inspection and the National Commission of Supervision in the PBOC, the Financial Audit Bureau I of the National Audit Office, and relevant departments of the PBOC were invited to attend the meeting. SAFE branches (administrative offices) participated in the meeting at the branch venues. (End) 2021-07-26/en/2021/0726/1853.html