-
At the end of March 2010, China's outstanding external debt (excluding that of Hong Kong SAR, Macao SAR, and Taiwan Province) reached USD443.236 billion, of which the outstanding registered external debt was USD276.436 billion and the balance of trade credit was USD166.8 billion. With respect to the terms, the outstanding long- and medium-term external debt (with the remaining term) was USD167.034 billion, accounting for 37.69 percent of the total outstanding external debt. The outstanding short-term external debt (with the remaining term) was USD276.202 billion, accounting for 62.31 percent of the total outstanding external debt. Specifically, the outstanding registered short-term external debt (with the remaining term) was USD109.402 billion and the balance of trade credit was USD166.8 billion. In terms of the type of debtor, outstanding sovereign debt borrowed by ministries under the State Council was USD38.43 billion, accounting for 13.90 percent of the total outstanding registered external debt; outstanding debt of Chinese-funded financial institutions was USD98.655 billion, accounting for 35.69 percent; the outstanding debt of foreign-funded enterprises was USD94.015 billion, accounting for 34.01 percent; outstanding debt of foreign-funded financial institutions in China was USD40.882 billion, accounting for 14.79 percent; the outstanding debt of Chinese-funded enterprises was USD4.145 billion, accounting for 1.50 percent; and outstanding debt of other institutions was USD309 million, accounting for 0.11 percent. With respect to the types of debt, the balance of international commercial loans amounted to USD208.129 billion, accounting for 75.29 percent of the outstanding registered external debt, with proportion rising by 0.87 percentage point compared with that at the end of 2009. The balance of foreign government loans and loans granted by international financial organizations amounted to USD68.307 billion, accounting for 24.71 percent of the outstanding registered external debt. In terms of the currency structure, the debt in U.S. dollars accounted for 70 percent of the outstanding registered external debt, representing an increase of 2.24 percentage points compared with that at the end of 2009. The debt in Japanese yen accounted for 11.04 percent, representing a decline of 0.85 percentage point compared with that at the end of 2009. The debt in euro accounted for 5.49 percent, representing a decline by 0.89 percentage point compared with that at the end of 2009; other kinds of debt including SDRs and HKD accounts accounted for 13.47 percent of the outstanding registered external debt, a decline of 0.5 percentage point compared with the end of 2009. In terms of the sectoral distribution with reference to the Industrial Classifications of the National Economy, USD40.145 billion was invested in the manufacturing sector, accounting for 21.45 percent of the medium- and long-term outstanding registered external debt (based on contract terms); USD24.427 billion was invested in the transportation, warehousing, and postal services sectors, accounting for 13.05 percent; USD16.024 billion was invested in the production and supply of electricity, coal, gas, and water, accounting for 8.56 percent; USD11.911 billion was invested in the information technology services sector, accounting for 6.37 percent; USD11.606 billion was invested in the real estate sector, accounting for 6.20 percent of the medium- and long-term outstanding registered external debt. From January to March 2010, medium- and long-term external borrowing totaled USD8.151 billion, an increase of USD4.347 billion or 114.27 percent over that during the same period of 2009; repayment of the principal was USD5.634 billion, a decrease of USD1.018 billion, or 15.30 percent, over that during the same period of 2009. The interest payment was USD694 million, a decrease of USD111 million, or 13.79 percent. 2010-07-02/en/2010/0702/935.html
-
Recently, the SAFE released Preliminary Data on China's Balance of Payments Statement for the First Quarter of 2010. This is the first time that the Chinese government has released quarterly data on the balance of payments (BOP). In Q1 of 2010 the current account and the capital and financial account posted a "twin surplus" and international reserves maintained a growing momentum. In Q1 of 2010, China's surplus under the current account totaled USD40.9 billion, a decrease of 48 percent year on year. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD29.4 billion, USD21.3 billion, and USD8.3 billion, respectively, whereas the deficit in trade in services amounted to USD18 billion. Meanwhile, China's surplus under the capital and financial account (including net errors and omissions) totaled USD55 billion in Q1 of 2010. Specifically, net inflows of foreign exchange by foreign direct investments amounted to USD17.5 billion. China's international reserves assets posted a change of USD96 billion, a rise of 46 percent year on year as calculated on a comparable basis. Specifically, transactions in foreign exchange reserve assets registered a change of USD95.9 billion (exclusive of the influence by non-transaction value-change factors such as exchange rates and prices), and special drawing rights posted an increase of USD100 million. The release of quarterly data on the BOP is of great significance to enhance the statistical transparency of the BOP and to reflect in a more time manner Chinas state of foreign-related economic development. Balance of Payments1 (Preliminary Data) Q1 of 2010 Unit: 100 million US dollars Items # Amount I. Current Account 1 409 A. Goods and Services 2 113 a. Goods 3 294 Credit 4 3,160 Debit 5 2,866 b. Services 6 -180 B. Income 7 213 C. Current Transfers 8 83 II. Capital and Financial Account2 9 550 Incl.: Direct investment 10 175 III. Reserves Assets 11 -960 3.1 Monetary Gold 12 0 3.2 Special Drawing Rights 13 -1 3.3 Reserves Position in the Fund 14 0 3.4 Foreign Exchange 15 -959 3.5 Other Claims 16 0 Notes: 1. This statement employs rounded-off numbers. 2. The data under the capital and financial accounts in this statement is the balance between Current Account Balance and the amount of change in reserve assets. 2010-05-14/en/2010/0514/930.html
-
According to statistical data released by the State Administration of Foreign Exchange (SAFE), in 2009 the amount of foreign exchange settlement and sales by banks on behalf of clients amounted to USD978.6 billion and USD715.1 billion respectively, representing a decrease of 22 percent and 10 percent as compared to the same period of 2008. The surplus of foreign exchange settlement and sales amounted to USD263.5 billion, representing a decrease of 42 percent as compared to 2008. Foreign-related receipts and payments of domestic banks on behalf of clients amounted to USD1405.4 billion and USD1241.9 billion respectively, a decrease of 22 percent and 13 percent from 2008; the surplus of foreign-related receipts and payments reached USD163.4 billion, a decrease of 56 percent from the previous year. In order to better analyze and examine the foreign exchange situation and to provide a reflection of Chinas development of its foreign-related economy from different perspectives and to increase the transparency of foreign exchange statistical data, the SAFE has decided that beginning in 2010 monthly data on the foreign exchange settlement and sales by banks on behalf of clients and data on foreign-related receipts and payments of banks on behalf of clients will be released on a quarterly basis. Appendix: Glossary Balance of payments (BOP) refers to all economic transactions between residents and non-residents of China, including all financial transactions and barter transactions that result in changes in the assets and liabilities of residents and non-residents. Foreign exchange settlement and sales on behalf of clients by banks refer to the business of foreign exchange settlement and sales conducted by designated foreign exchange banks for their clients, excluding data on foreign exchange settlement and sales conducted by designated foreign exchange banks on their own behalf and data on inter-bank foreign exchange market transactions. The period when the conversion between the Renminbi and the foreign currency occurs shall be regarded as the time point for the statistics. Specifically, foreign exchange settlement refers to the sale of foreign exchange to designated foreign exchange banks by owners of foreign exchange; foreign exchange sales refers to the sale of foreign exchange by designated foreign exchange banks to users of foreign exchange. Foreign-related receipts and payments of banks on behalf of clients refer to the receipts and payments between domestic non-bank residential institutions and individuals (hereinafter referred to as the non-bank sector) and non-residential institutions and individuals via domestic banks, excluding receipts and payments in cash and the foreign-related receipts and payments of the banks themselves. Specifically, they include: cross-border receipts and payments between the non-bank sector and non-residents via domestic banks (including foreign exchange and the Renminbi), and domestic receipts and payments between the non-bank sector and non-residents via domestic banks (currently including receipts and payments in foreign exchange and receipts and payments in RMB under the RMB settlement account for cross-border trade); the time when the clients of banks conduct foreign-related receipts and payments at domestic banks shall be regarded as the time point for the statistics. Specifically, foreign-related receipts of banks on behalf of clients refer to the monetary amounts collected by the non-bank sector from non-residents via domestic banks; foreign-related payments of banks on behalf of clients refer to the monetary amounts paid by the non-bank sector to non-residents via domestic banks. 2010-03-31/en/2010/0331/923.html
-
Recently, the State Administration of Foreign Exchange (SAFE) released data on foreign exchange settlement and sales on behalf of clients by banks and data on foreign-related receipts and payments of banks on behalf of clients. An official of the SAFE was interviewed on relevant issues. Q: What is the difference between foreign exchange settlement and sales by banks on behalf of clients and foreign exchange settlement and sales by banks? A: Foreign exchange settlement and sales by banks on behalf of clients refers to foreign exchange settlement and sales business conducted by designated foreign exchange banks for their clients, which reflects the scale of the foreign exchange settlement and sales by the designated foreign exchange banks for their institutional and individual clients. It excludes data on foreign exchange settlement and sales conducted by designated foreign exchange banks for themselves and data on inter-bank foreign exchange market transactions. Q: What is the relationship between the balance of foreign exchange settlement and sales by banks on behalf of clients and changes in the foreign exchange reserves during the same period? A: The balance of foreign exchange settlement and sales by banks on behalf of clients is the balance by the foreign exchange settlement and foreign exchange sales by banks on behalf of their clients, which will be offset by the banks through transactions on the inter-bank foreign exchange market; it is one of the major factors causing changes in the countrys foreign exchange reserves. However, there are other factors, such as foreign exchange settlement and sales by designated foreign exchange banks for themselves and changes in the composite positions of the foreign exchange settlement and sales by banks, which also contribute to changes in the foreign exchange reserves. Thus, the balance of foreign exchange settlement and sales by banks on behalf of clients is not equivalent to the changes in foreign exchange reserves during the same period. Q: What is the difference between data on foreign exchange settlement and sales on behalf of clients by banks and data on foreign-related receipts and payments of banks on behalf of clients? A: The data on foreign exchange settlement and sales on behalf of clients by banks are differentiated from the data on foreign-related receipts and payments of banks on behalf of clients in terms of both the scope of the statistical data and the time-point for the statistics. The foreign-related receipts and payments of banks on behalf of clients is a component of the balance of payments statistics, which reflects the condition of fund flows between the domestic non-bank sector and non-residents; the time when clients conduct foreign-related receipts and payments at domestic banks is regarded as the time point for the statistics. The statistics of foreign exchange settlement and sales on behalf of clients by banks do not comply with the principle of transactions between residents and non-residents; any transaction between the RMB and the foreign currencies at domestic bank counters (excluding transactions conducted by designated foreign exchange banks themselves) shall be incorporated into the scope of the statistics, and the time when the conversion between the RMB and the foreign currencies occurs shall be regarded as the time point for the statistics. Q: How should we understand the relationship between foreign-related receipts and payments of banks on behalf of clients and the balance of payments statistics? A: The foreign-related receipts and payments of banks on behalf of clients is an integral part of the balance of payments statistics, which reflects the scope of foreign-related receipts and payments between the domestic non-bank sector and non-residents via domestic banks, i.e., the condition of fund flows between the domestic non-bank sector and non-residents. It does not reflect the barter transactions and foreign-related transactions conducted by the banks themselves; the scope of the statistics of foreign-related receipts and payments of banks on behalf of clients is smaller than that of the balance of payments statistics. In addition, the accounting method for statistics on foreign-related receipts and payments of banks on behalf of clients carried out on a cash basis is different from the accrual basis of accounting required by the balance of payments statistics. 2010-03-31/en/2010/0331/924.html
-
For the purposes of adapting to the developments and changes in the business of foreign-related receipts and payments conducted by domestic financial institutions and of improving the BOP statistical declarations, the State Administration of Foreign Exchange (SAFE) has recently issued the Operating Rules for the Balance of Payments Statistical Declarations through Financial Institutions (hereinafter referred to as Operating Rules), which shall supersede the previous trial version of the Operating Rules. These Operating Rules shall go into effect as of the date of promulgation. As compared with the previous trial version, the new Operating Rules mainly include the following adjustments: First, the receipts and payments between domestic residents and domestic non-residents via domestic banks have been incorporated into the statistical scope of foreign-related receipts and payments; second, the threshold for foreign-related personal income declarations has been raised from USD2,000 to USD3,000; third, the online reporting procedures for the foreign-related income of institutions have been clarified to facilitate the reporting of the declared entities in a timely manner; fourth, the filing and retention requirements for foreign-related receipts and payments of domestic banks have been adjusted; fifth, with respect to entities that fail to report in due course, special treatment measures shall be taken, under which payments will be refused in cases of unfulfilled reporting. These Operating Rules feature both convenience and high efficiency. Implementation of these Operating Rules is expected to reduce the administrative costs for both the banks and the declaring entities, and to make Chinas balance of payments statistical declarations more timely, accurate, and complete. 2010-06-08/en/2010/0608/934.html
-
The SAFE recently released the revised data on China's Balance of Payments Statement for Q1 of 2010. The statistics reveal that the current account and the capital and financial account continued to post a "twin surplus" in Q1 of 2010. In Q1 of 2010, China's surplus under the current account totaled USD53.6 billion, a decrease of 32 percent year on year. Specifically, according to the statistical coverage of the balance of payments, the surplus in goods, income, and current transfers reached USD30.3 billion, USD21.1 billion, and USD9.5 billion, respectively, whereas the deficit in services amounted to USD7.2 billion. Meanwhile, the surplus under the capital and financial account totaled USD64.2 billion in Q1 of 2010, compared to a deficit of USD12.8 billion posted during the same period of 2009. In particular, net inflows of direct investments and portfolio investments amounted to USD15.5 billion and USD2.2 billion respectively, whereas net inflows of other investments reached USD45.4 billion. China's international reserve assets posted an increase of USD96 billion. Specifically, foreign exchange reserve assets registered a net increase of USD95.9 billion (exclusive of changes in the value of non-transaction factors such as exchange rates and prices), and special drawing rights posted an increase of USD100 million. 2010-07-05/en/2010/0705/937.html
-
The SAFE recently released China 's Balance of Payments Statement for 2007. The statistics reveal that the current account and the capital and financial account posted a "twin surplus" in 2007 and international reserves increased rapidly. China 's surplus under the current account in 2007 totaled USD 371.8 billion. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD 315.4 billion, USD 25.7 billion, and USD 38.7 billion respectively, whereas the deficit in services amounted to USD 7.9 billion. Meanwhile, China 's surplus under the capital and financial account totaled USD 73.5 billion in 2007. In particular, the net inflows of direct investments and portfolio investments amounted to USD 121.4 billion and USD 18.7 billion respectively, whereas the outflows of other investments reached USD 69.7 billion. Furthermore, China 's international reserves continued to grow. At the end of 2007, China registered a total of USD 1528.2 billion in foreign exchange reserves, an increase of USD 461.9 billion over the end of 2006. In addition, the BOP Analysis Team of the SAFE released China 's Balance of Payments Report for 2007 in order to facilitate an understanding in the society of the data and analysis of China 's balance of payments. Balance of Payments* 2007 US dollars (thousands) Item Line Balance Credit Debit I. Current Account 1 371,832,620 1,467,881,998 1,096,049,377 A. Goods and Services 2 307,476,604 1,342,205,962 1,034,729,358 a. Goods 3 315,381,397 1,219,999,629 904,618,232 b. Services 4 -7,904,793 122,206,333 130,111,126 1.Transportation 5 -11,946,918 31,323,823 43,270,740 2.Travel 6 7,446,953 37,233,000 29,786,047 3.Communication Services 7 92,886 1,174,551 1,081,665 4.Construction Services 8 2,467,280 5,377,097 2,909,817 5.Insurance Services 9 -9,760,431 903,696 10,664,127 6.Financial Services 10 -326,437 230,486 556,924 7.Computer and Information Services 11 2,136,680 4,344,752 2,208,072 8.Royalties and Licensing Fees 12 -7,849,433 342,634 8,192,067 9.Consulting Services 13 724,182 11,580,552 10,856,370 10.Advertising and Public Opinion Polling 14 575,347 1,912,265 1,336,918 11.Audio-visual and Related Services 15 162,569 316,285 153,716 12.Other Business Services 16 8,676,788 26,914,852 18,238,064 13. Government Services, n.i.e. 17 -304,260 552,339 856,599 B. Income 18 25,688,492 83,030,308 57,341,816 1.Employee Compensation 19 4,340,072 6,833,130 2,493,058 2.Investment Income 20 21,348,421 76,197,179 54,848,758 C. Current Transfers 21 38,667,524 42,645,727 3,978,204 1.General Government 22 -165,960 34,947 200,907 2.Other Sectors 23 38,833,484 42,610,780 3,777,297 II. Capital and Financial Account 24 73,509,250 921,960,702 848,451,452 A. Capital Account 25 3,099,075 3,314,699 215,624 B. Financial Account 26 70,410,175 918,646,003 848,235,828 1. Direct Investment 27 121,418,332 151,553,693 30,135,361 1.1 Abroad 28 -16,994,854 1,929,982 18,924,836 1.2 In China 29 138,413,185 149,623,710 11,210,525 2. Portfolio Investment 30 18,671,987 63,969,241 45,297,254 2.1 Assets 31 -2,324,017 42,643,237 44,967,254 2.1.1 Equity Securities 32 -15,188,600 1,753,200 16,941,800 2.1.2 Debt Securities 33 12,864,583 40,890,037 28,025,454 2.1.2.1 Bonds and Notes 34 10,590,583 38,616,037 28,025,454 2.1.2.2 Money Market Instruments 35 2,274,000 2,274,000 0 2.2 Liabilities 36 20,996,004 21,326,004 330,000 2.2.1 Equity Securities 37 18,509,607 18,509,607 0 2.2.2 Debt Securities 38 2,486,397 2,816,397 330,000 2.2.2.1 Bonds and Notes 39 2,486,397 2,816,397 330,000 2.2.2.2 Money Market Instruments 40 0 0 0 3. Other Investment 41 -69,680,144 703,123,069 772,803,213 3.1 Assets 42 -151,485,862 29,879,034 181,364,896 3.1.1 Trade Credits 43 -23,800,000 0 23,800,000 Long-term 44 -1,666,000 0 1,666,000 Short-term 45 -22,134,000 0 22,134,000 3.1.2 Loans 46 -20,805,513 294,330 21,099,842 Long-term 47 -4,119,000 0 4,119,000 Short-term 48 -16,686,513 294,330 16,980,842 3.1.3 Currency and Deposits 49 -2,381,759 15,994,859 18,376,618 3.1.4 Other Assets 50 -104,498,590 13,589,846 118,088,436 Long-term 51 0 0 0 Short-term 52 -104,498,590 13,589,846 118,088,436 3.2 Liabilities 53 81,805,718 673,244,035 591,438,317 3.2.1 Trade Credits 54 29,100,000 29,100,000 0 Long-term 55 2,037,000 2,037,000 0 Short-term 56 27,063,000 27,063,000 0 3.2.2 Loans 57 17,296,028 548,960,080 531,664,053 Long-term 58 6,988,110 20,882,738 13,894,628 Short-term 59 10,307,918 528,077,342 517,769,425 3.2.3 Currency and Deposits 60 34,316,941 91,634,184 57,317,243 3.2.4 Other Liabilities 61 1,092,750 3,549,771 2,457,021 Long-term 62 1,132,310 1,167,941 35,631 Short-term 63 -39,561 2,381,830 2,421,391 III. Reserves Assets 64 -461,744,102 239,766 461,983,869 3.1 Monetary Gold 65 0 0 0 3.2 Special Drawing Rights 66 -78,869 0 78,869 3.3 Reserves Position in the Fund 67 239,766 239,766 0 3.4 Foreign Exchange 68 -461,905,000 0 461,905,000 3.5 Other Claims 69 0 0 0 IV. Net Errors and Omissions 70 16,402,232 16,402,232 0 * The BOP statement employs rounded-off numbers. The SAFE recently released China 's Balance of Payments Statement for 2007. The statistics reveal that the current account and the capital and financial account posted a "twin surplus" in 2007 and international reserves increased rapidly. China 's surplus under the current account in 2007 totaled USD 371.8 billion. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD 315.4 billion, USD 25.7 billion, and USD 38.7 billion respectively, whereas the deficit in services amounted to USD 7.9 billion. Meanwhile, China 's surplus under the capital and financial account totaled USD 73.5 billion in 2007. In particular, the net inflows of direct investments and portfolio investments amounted to USD 121.4 billion and USD 18.7 billion respectively, whereas the outflows of other investments reached USD 69.7 billion. Furthermore, China 's international reserves continued to grow. At the end of 2007, China registered a total of USD 1528.2 billion in foreign exchange reserves, an increase of USD 461.9 billion over the end of 2006. In addition, the BOP Analysis Team of the SAFE released China 's Balance of Payments Report for 2007 in order to facilitate an understanding in the society of the data and analysis of China 's balance of payments. Balance of Payments* 2007 US dollars (thousands) Item Line Balance Credit Debit I. Current Account 1 371,832,620 1,467,881,998 1,096,049,377 A. Goods and Services 2 307,476,604 1,342,205,962 1,034,729,358 a. Goods 3 315,381,397 1,219,999,629 904,618,232 b. Services 4 -7,904,793 122,206,333 130,111,126 1.Transportation 5 -11,946,918 31,323,823 43,270,740 2.Travel 6 7,446,953 37,233,000 29,786,047 3.Communication Services 7 92,886 1,174,551 1,081,665 4.Construction Services 8 2,467,280 5,377,097 2,909,817 5.Insurance Services 9 -9,760,431 903,696 10,664,127 6.Financial Services 10 -326,437 230,486 556,924 7.Computer and Information Services 11 2,136,680 4,344,752 2,208,072 8.Royalties and Licensing Fees 12 -7,849,433 342,634 8,192,067 9.Consulting Services 13 724,182 11,580,552 10,856,370 10.Advertising and Public Opinion Polling 14 575,347 1,912,265 1,336,918 11.Audio-visual and Related Services 15 162,569 316,285 153,716 12.Other Business Services 16 8,676,788 26,914,852 18,238,064 13. Government Services, n.i.e. 17 -304,260 552,339 856,599 B. Income 18 25,688,492 83,030,308 57,341,816 1.Employee Compensation 19 4,340,072 6,833,130 2,493,058 2.Investment Income 20 21,348,421 76,197,179 54,848,758 C. Current Transfers 21 38,667,524 42,645,727 3,978,204 1.General Government 22 -165,960 34,947 200,907 2.Other Sectors 23 38,833,484 42,610,780 3,777,297 II. Capital and Financial Account 24 73,509,250 921,960,702 848,451,452 A. Capital Account 25 3,099,075 3,314,699 215,624 B. Financial Account 26 70,410,175 918,646,003 848,235,828 1. Direct Investment 27 121,418,332 151,553,693 30,135,361 1.1 Abroad 28 -16,994,854 1,929,982 18,924,836 1.2 In China 29 138,413,185 149,623,710 11,210,525 2. Portfolio Investment 30 18,671,987 63,969,241 45,297,254 2.1 Assets 31 -2,324,017 42,643,237 44,967,254 2.1.1 Equity Securities 32 -15,188,600 1,753,200 16,941,800 2.1.2 Debt Securities 33 12,864,583 40,890,037 28,025,454 2.1.2.1 Bonds and Notes 34 10,590,583 38,616,037 28,025,454 2.1.2.2 Money Market Instruments 35 2,274,000 2,274,000 0 2.2 Liabilities 36 20,996,004 21,326,004 330,000 2.2.1 Equity Securities 37 18,509,607 18,509,607 0 2.2.2 Debt Securities 38 2,486,397 2,816,397 330,000 2.2.2.1 Bonds and Notes 39 2,486,397 2,816,397 330,000 2.2.2.2 Money Market Instruments 40 0 0 0 3. Other Investment 41 -69,680,144 703,123,069 772,803,213 3.1 Assets 42 -151,485,862 29,879,034 181,364,896 3.1.1 Trade Credits 43 -23,800,000 0 23,800,000 Long-term 44 -1,666,000 0 1,666,000 Short-term 45 -22,134,000 0 22,134,000 3.1.2 Loans 46 -20,805,513 294,330 21,099,842 Long-term 47 -4,119,000 0 4,119,000 Short-term 48 -16,686,513 294,330 16,980,842 3.1.3 Currency and Deposits 49 -2,381,759 15,994,859 18,376,618 3.1.4 Other Assets 50 -104,498,590 13,589,846 118,088,436 Long-term 51 0 0 0 Short-term 52 -104,498,590 13,589,846 118,088,436 3.2 Liabilities 53 81,805,718 673,244,035 591,438,317 3.2.1 Trade Credits 54 29,100,000 29,100,000 0 Long-term 55 2,037,000 2,037,000 0 Short-term 56 27,063,000 27,063,000 0 3.2.2 Loans 57 17,296,028 548,960,080 531,664,053 Long-term 58 6,988,110 20,882,738 13,894,628 Short-term 59 10,307,918 528,077,342 517,769,425 3.2.3 Currency and Deposits 60 34,316,941 91,634,184 57,317,243 3.2.4 Other Liabilities 61 1,092,750 3,549,771 2,457,021 Long-term 62 1,132,310 1,167,941 35,631 Short-term 63 -39,561 2,381,830 2,421,391 III. Reserves Assets 64 -461,744,102 239,766 461,983,869 3.1 Monetary Gold 65 0 0 0 3.2 Special Drawing Rights 66 -78,869 0 78,869 3.3 Reserves Position in the Fund 67 239,766 239,766 0 3.4 Foreign Exchange 68 -461,905,000 0 461,905,000 3.5 Other Claims 69 0 0 0 IV. Net Errors and Omissions 70 16,402,232 16,402,232 0 * The BOP statement employs rounded-off numbers. 2008-06-05/en/2008/0605/868.html
-
For the purpose of further promoting the healthy development of trade financing, the State Administration of Foreign Exchange (SAFE) issued the Notice on the Examination and Ratification of Short-term External Debt Quotas of Financial Institutions in 2009 (hereinafter referred to as the "Notice"). The following is a transcript of an interview with SAFE officials on the management of the short-term external debt and the relevant contents of the Notice. Question: What is the division of responsibilities for the management of the external debt in China? Answer: According to the division of responsibilities to manage the external debt in China, the National Development and Reform Commission (NDRC) is responsible for management of medium- and long-term external debts (over one year). The SAFE is responsible for management of short-term external debts (one year or less). The SAFE is in charge of examination and ratification of short-term external debt quotas of financial institutions and of approval to sign contracts, withdraw registrations, open accounts, repay principal and interest, and settle relevant foreign exchange as well as approval of sales of all external debts (including medium- and long-term external debts). Question: What are the major changes in the short-term external debt management policies over the past two years? Answer: In order to achieve a general equilibrium in the balance of payments, restrict the scale of the short-term external debt, ensure the security of the national economy and finance, in March 2008 the SAFE made adjustments to the short-term external debt quotas of financial institutions. According to the adjustments, before March 31, 2008 Chinese-funded banks would reduce the short-term external debt quotas to 30 percent of the quotas ratified in 2006. Foreign-funded banks and non-bank financial institutions would adjust the short-term external debt quotas to 60 percent of the quotas ratified in 2006. Foreign-funded banks were encouraged to raise funds by purchasing foreign exchange in Renminbi and borrowing foreign exchange in China. The tightening up policy was continued in 2008. Once again, the SAFE reduced the short-term external debt quotas of Chinese and foreign-funded financial institutions by some 10 percent, based on the quota reductions in 2007. As far as policy implementation is concerned, based on the reduction scheme the financial institutions have achieved the aim of restraining the scale of short-term external debts. With regard to the results of the policy implementation, the excessive growth of the short-term external debt has been basically restrained; the irrational expansion of the foreign exchange credit scale of domestic financial institutions has been checked; the imbalance between supply and demand of domestic foreign exchange has been reduced; and the pressures due to the appreciation of the Renminbi have been diminished. While tightening the short-term external debt quotas, the SAFE is closely monitoring possible increased foreign exchange pressures on financial institutions due to implementation of the policy. Taking into account the support of the financial industry for the growth of the entire economy, the SAFE has excluded the accepted but unpaid letters of credit with a maturity of under 90 days and overseas agency payments with a maturity of under 90 days involved in trading activities so as to ensure sufficient financing support for trading activities. Question: What are the distinct aspects of this year's examination and ratification scheme as compared to the previous scheme? Answer: The 2009 examination and ratification scheme is formulated under the guidance of "maintaining growth, guarding against possible risks, and promoting a balance." When examining and ratifying short-term external debt quotas of national-level Chinese and foreign-funded banks with legal person status and quotas of various regions, we have adopted a methodology of "ensuring the controllability of the increase in the overall scale and taking into account the efficiency and fairness of individual institutions." In 2009, we examined and ratified short-term external debt quotas of financial institutions totaling US$32.9 billion, representing a 12 percent increase over that in 2008. In the 2009 examination and ratification scheme, special importance is attached to financing for trading activities. According to the scheme, Chinese and foreign-funded financial institutions entitled to the incremental quotas should make use of the total quota increment to support financing of imports and exports of domestic enterprises. The quota increment of various regions should be used preferentially to support financial institutions with a larger volume of trade settlement. In order to achieve maximum benefits to promote the development of the regional economy by using foreign exchange, the scheme transfers authority from the SAFE headquarters to its branches to examine and ratify quotas that have a close relation to the development of the local economy and quotas in need of timely adjustment. Question: We note that in the 2009 short-term external debt examination and ratification scheme special importance is attached to trade financing. How is the scheme being mapped out? Answer: In 2009 there will be even greater uncertainty in China's balance of payments. The economic downturn continues to spread in the developed countries, resulting in more uncertainty in future economic conditions. A huge number of multinationals are sliding into financial difficulties as demand on the world market is dropping rapidly. As a result, China will be facing greater challenges in its imports and exports. Cross-border fund flows will be more unpredictable. Taking this into account, we should attach greater importance to the prevention of possible risks based on a complete understanding of China's balance of payments. In response to the rising corporate operational risks and the lowered security of financial credit, we will adhere to the principle of "properly restraining the inflow of funds and prudently handling the prevention of risks," and when examining and ratifying the short-term external debt quotas we will adopt the methodology of "ensuring the controllability of an increase in the overall scale and taking into account the efficiency and fairness of individual institutions". We will impose tight restrictions on the inflow of external debts with high risk uses, a low threshold of outflow channels, and obvious short-term intentions. In 2009 the SAFE will respond actively to the central government's macroeconomic policy of "maintaining economic growth, expanding domestic demand, and adjusting the industrial structure." We will keep a close eye on the changes in the scale of the external debt and the internal structure, with top priority given to risk prevention. We will make adjustments to the short-term external debt quotas of banks to highlight the intermediary functions of banks by encouraging banks to carry out financing business to facilitate trading activities and capital turnover of enterprises. These measures are expected to promote the healthy development of imports and exports and the entire economy. Questions: What policies has the SAFE promulgated with respect to trade financing? Answer: From the perspective of external debt management, the following policies aimed at facilitating financing of trading activities have been put into place: 1.) The incremental short-term external debt quotas shall be used entirely for trade financing. Chinese and foreign-funded financial institutions entitled to the incremental quotas in the 2009 scheme shall use the quotas entirely for import and export financing of domestic enterprises. The SAFE branches shall preferentially use the regional quota increment to serve banks with a larger volume of trading settlement, with the aim of ensuring that all incremental quotas are used for import and export financing of domestic enterprises. 2.) Trade financing with a maturity of under 90 days shall be excluded from the short-term external debt quotas of the banks. The SAFE shall continue to implement the 2008 policy whereby accepted but unpaid letters of credit with a maturity of under 90 days and overseas agency payments with a maturity of under 90 days are excluded from the quota management. This will allow banks to carry out trade financing with a maturity of under 90 days without using the short-term external debt quotas. 3.) The policy whereby a certain proportion of corporate trade financing may employ foreign exchange settlement will continue to be implemented. In parallel with the regulation in which the foreign exchange settlement of domestic foreign exchange loans is strictly prohibited, the SAFE will give a green light to foreign exchange settlement of trade financing that includes export bill purchases and forfeiting without recourse and factoring to facilitate the trade and relevant procedures will be simplified. In 2008 the SAFE increased the benchmark proportion of advances on sales and deferred payments from 10 percent to 25 percent. According to the new regulation, a registered amount of under US$30,000 for single advances on sales and deferred payments shall be excluded from the quota management. For advances on sales or deferred payments with an insufficient proportion or beyond the quotas, the financial institution shall apply for a manual confirmation from the SAFE. 2009-04-17/en/2009/0417/885.html
-
The SAFE recently released China 's International Investment Position for year-end 2007. At the end of 2007, China 's external financial assets reached USD 2288.1 billion, up 39% over the end of 2006; external financial liabilities reached USD 1266.1 billion, a rise of 23% yoy; external net financial assets totaled USD 1022 billion, an increase of 67% yoy. In terms of external financial assets, direct investments abroad totaled USD 107.6 billion, portfolio investments USD 239.5 billion, other investments USD 406.1 billion, and reserves assets USD 1,534.9 billion, accounting for 5%, 10%, 18%, and 67% respectively. In terms of external financial liabilities, foreign direct investments totaled USD 742.4 billion, portfolio investments USD 142.6 billion, and other investments USD 381 billion, accounting for 59%, 11%, and 30% respectively. The International Investment Position (hereafter referred to as the IIP) is a statistical statement which reflects at a specific point the stocks of financial assets and liabilities of one country or region to other countries or regions of the world, and together with the balance of payments statements (BOP statements) constitutes the complete international account system of the country or region indicating the trade flows. The SAFE has adjusted the IIP for year-end 2006 according to the latest data. China 's International Investment Position Unit: USD 100 million Items End of 2006 End of 2007 Net Position 6114 10220 A. Assets 16442 22881 1.Direct Investments Abroad 906 1076 2. Portfolio Investment 2292 2395 2.1 Equity Securities 15 189 2.2 Debt Securities 2278 2206 3. Other Investments 2515 4061 3.1 Trade Credits 1161 1415 3.2 Loans 670 888 3.3 Currency and Deposits 474 503 3.4 Other Assets 210 1255 4. Reserves Assets 10729 15349 4.1 Monetary Gold 43 46 4.2 Special Drawing Rights 11 12 4.3 Reserves Position in the Fund 11 8 4.4 Foreign Exchange 10663 15282 B. Liabilities 10328 12661 1. Foreign Direct Investments 6125 7424 2. Portfolio Investment 1207 1426 2.1 Equity Securities 1065 1250 2.2 Debt Securities 142 176 3. Other Investments 2996 3810 3.1 Trade Credits 1040 1323 3.2 Loans 985 1033 3.3 Currency and Deposits 589 981 3.4 Other Liabilities 382 473 Notes: 1. This IIP employs rounded-off numbers. 2. Net position refers to assets minus liabilities, + means net assets, and -means net liabilities. 3. Since 2006, the IIP has employed the data on stocks of foreign direct investments generated from the annual joint survey of six departments, such as the Ministry of Commerce and the Ministry of Finance, as the source of the data on foreign direct investment. Compilation Principles and Indexes for the IIP I. Compilation Principles for the IIP In accordance with the standards of the Balance of Payment Manual (Fifth Edition) published by the International Monetary Fund (IMF), the IIP is a statistical statement which reflects at a specific point the stocks of financial assets and liabilities of one country or region to other countries or regions of the world. Changes in the IIP can be caused by changes in the transactions, prices, and exchange rates as well as by other adjustments during specific periods. The IIP remains consistent with the BOP statement with regard to the principles of valuation, measurement, and conversion, and together with the BOP statement constitutes a complete international account system of the country or region. Chinas IIP is a statistical statement which reflects at a specific point the stocks of the financial assets and liabilities of China (excluding in the following Hong Kong SAR, Macao SAR, and Taiwan Province ) to other countries or regions of the world. II. Major IIP Indexes According to the standards of the IMF, the items on the IIP are categorized according to assets and liabilities. The assets are divided into Chinas direct investments abroad, portfolio investments, other investments, and reserves assets, whereas the liabilities are divided into foreign direct investments, portfolio investments, and other investments. The net position refers to assets minus liabilities. The items are specifically defined as follows: 1. Direct investment refers to external investment in which an investor of one country operates an enterprise located in another country with the aim of acquiring effective control over the enterprise. It consists of direct investment abroad and foreign direct investment. Direct investment abroad includes the stocks of direct investment abroad conducted by Chinas non-financial sectors, the stocks of the capital funds and working capital appropriated by domestic banks to set up branches overseas, as well as the stocks of loans between parent companies and subsidiaries both in China and abroad and the stocks of other receivables and payables. Foreign direct investment includes the stocks of foreign direct investment absorbed by Chinas non-financial sectors, the stocks of direct investment overseas absorbed by the financial sectors (including foreign investment attracted by branches of foreign financial sectors and Chinese-funded financial sectors, and investments from the foreign party in joint financial sectors), as well as the stocks of loans between parent companies and subsidiaries both in China and abroad and the stocks of other receivables and payables. 2. Portfolio investment includes types of investment such as shares, long- and medium-term bonds, and money market instruments. Portfolio investment assets refer to holdings of negotiable securities, such as shares, bonds, money market instruments, and derivative financial instruments, which are held by Chinese residents but issued by non-resident enterprises. Portfolio investment liabilities refer to shares and bonds held by non-resident enterprises but issued by Chinese residents. 2.1 Equity securities mainly comprise securities in the form of stocks. 2.2 Debt securities include long-term and medium-term bonds, short-term (one year or less) bonds, and money-market instruments or transferable debt instruments such as short-term treasury notes, commercial papers, and large-sum short-term negotiable certificates of deposits. 3. Other investment refers to all financial assets and liabilities, including trade credits, loans, currency, and deposits, as well as other assets and liabilities, but excluding direct investments, portfolio investments, and reserves assets. Long term means the contract period of the relevant financial assets/liabilities is longer than one year, whereas short term means the contract period is one year or less. 3.1 Trade credit refers to direct business credit arising from the import and export of goods between China and other countries. Assets refer to the receivables of Chinas exporters and the advance payments by Chinas importers, whereas liabilities refer to the payables of Chinas importers and the advance receipts of Chinas exporters. 3.2 As to loans, assets refer to the external assets held by domestic institutions through providing loans to overseas institutions; liabilities refer to the loans borrowed by domestic institutions, such as loans from foreign governments, loans from international institutions, loans from foreign banks, and sellerscredits. 3.3 As to currency and deposits, assets refer to the funds deposited abroad and the foreign cash in stock held by China's financial institutions; liabilities refer to the overseas private deposits and short-term funds from foreign banks attracted by China's financial institutions, as well as other short-term funds such as loans from foreign exporters and individuals. 3.4 Other assets/liabilities refer to investments other than trade credits, loans, currency, and deposits, for example, capital paid by non-currency international institutions and other receivables and payables. 4. Reserves assets refer to external assets that can be used at any time and that are effectively controlled by the PBOC, consisting of monetary gold, special drawing rights (SDRs), the reserves position in the Fund, and foreign exchange. 4.1 Monetary gold refers to the gold held by the PBOC as reserve. 4.2 SDR is a kind of ledger assets, which is allocated by the IMF according to the capital share of its members; it can be used to repay the debt to the IMF and make up for the deficit in the balance of payments between the governments of member countries. 4.3 Reserves positions in the Fund refer to assets that are held in the ordinary accounts of the IMF and that can be freely used. 4.4 Foreign exchange refers to current assets and liabilities that are retained by the PBOC and that can be used as a means of international compensation. 2008-06-20/en/2008/0620/869.html
-
The State Administration of Foreign Exchange (SAFE) recently issued the Notice on Examination and Ratification of Short-term External Debt Quotas of Financial Institutions in 2009 (hereinafter referred to as the "Notice"), which discloses the examination and ratification scheme for short-term external debt quotas of financial institutions in 2009. The Notice also clarifies the scale, specifications, and purposes of short-term external debts. In 2009 the management of short-term external debts is implemented under the guidance of "maintaining growth, guarding against possible risks, and promoting balance," using the methodology of "ensuring the controllability of an increase in the overall scale and taking into account the efficiency and fairness of the individual institutions." The SAFE has adjusted the short-term external debt quotas of national-level Chinese and foreign-funded banks with legal person status and the quotas of various regions. The examined and ratified short-term external debt quotas of financial institutions total US$32.9 billion, representing a 12 percent increase over that in 2008. The Notice attaches special importance to the financing of trade activities. According to the scheme, the Chinese and foreign-funded financial institutions entitled to the incremental quotas should make use of the total quota increment to support the financing of imports and exports of domestic enterprises. The quota increment of the various regions shall be used preferentially to support financial institutions with a larger volume of trade settlement. These measures will help facilitate the guidance policy on short-term external debt management, as well as ensure the healthy and stable development of China's foreign trade. The Notice makes clear that the SAFE will transfer authority for examining and ratifying quotas of financial institutions that have a close relation to the development of the local economy and quotas in need of timely adjustment from the SAFE headquarters to its branches, with the purpose of further increasing efficiency in the use of short-term external debt quotas and bolstering regional economic development. 2009-04-17/en/2009/0417/884.html