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The State Administration of Foreign Exchange (SAFE) has recently disseminated the data on banks' foreign exchange settlement and sales as well as their foreign-related receipts and payments for customers for October 2019. The SAFE spokesperson and Chief Economist Wang Chunying answered media questions on foreign exchange receipts and payments for October 2019. Q: What changes occurred in China’s foreign exchange receipts and payments in October 2019? A: In October, the supply and demand of China’s foreign exchange market maintained a basic equilibrium, and the cross-border capital flows remained stable. First, foreign exchange settlement and sales by banks were in an equilibrium. A deficit of USD 4.4 billion was recorded in October, lower than the average of the first 9 months. If other supply and demand factors e.g. forward transactions and options transactions were considered, China's foreign exchange market was in balance in October. Second, foreign-related receipts and payments by banks for their customers represented a surplus. In the month, the non-banking sector, including companies and individuals, registered a surplus of USD 10.9 billion in foreign-related receipts and payments, versus a slight deficit in March to September. Third, the balance of foreign exchange reserves climbed, hitting USD 3,105.2 billion at the end of October, an increase of USD 12.7 billion month on month. Market expectations of foreign exchange stayed stable and cross-border capital flows through major channels increased while maintaining stability. On the one hand, foreign exchange supply through major channels of inflows rose steadily. For example, the surpluses in cross-border receipts and payments and foreign exchange settlement and sales under trade in goods climbed both month-on-month and year-on-year; cross-border capital inflows from FDI and securities investment continued growing on a year-on-year basis. On the other hand, foreign exchange demand through major channels of outflows remained stable. For example, cross-border payments and purchases of foreign exchange under trade in services declined steadily, representing 6% and 14% year-on-year respectively in October due to lower payments for individual trips and for purchases of foreign exchange; cross-border capital outflows and purchases of foreign exchange under ODI remained stable. Despite the complex and challenging external environment, China's economy shows great resilience, potential and vibrancy. The economic performance remains within a reasonable range and the high-level opening up is advanced, laying a solid foundation for the stability of the foreign exchange market. Further, market players are rational and maintain a good order in carrying out foreign exchange transactions, suggesting China's foreign exchange market is maturing, which is favorable for a continued equilibrium in the supply and demand of foreign exchange. 2019-11-19/en/2019/1119/1604.html
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Q: The State Administration of Foreign Exchange has just released the latest data on foreign exchange reserves. Could you explain why those changes occurred in November 2019? What would be the future trends of foreign exchange reserves? A: By the end of November 2019, China's foreign exchange reserves had hit USD 3.0956 trillion, up by USD 22.9 billion or 0.7% from the beginning of the year China's foreign exchange market was in an equilibrium in November, with overall market expectations staying stable. Along with global economic growth, expectations of monetary policies, and trade situations, the US Dollar Index rose slightly and bond prices fell in major countries. The valuation factors like exchange rate conversion and asset price changes were the major contributors to the changes in foreign exchange reserves for the month. In the year to date, China's economy has continued its growth momentum of maintaining overall stability while achieving progress, with major indicators falling in the reasonable ranges, and therefore, China has effectively coped with increasing risks and challenges from global markets. Thanks to this, China's balance of payments has remained in an equilibrium and its foreign exchange reserves have stayed stable. Although the global economic growth is slowing down and there are many destabilizing factors and uncertainties externally, China's economy features ample resilience, enormous potential and large room for strengthening, so our economic fundamentals will remain sound over the long term. We will also adopt the new development concepts to drive the high quality economic growth and advance the higher-level opening up, which will be favorable for stable operations of China's foreign exchange market and underpin the overall stability of foreign exchange reserves. 2019-12-07/en/2019/1207/1606.html
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Q: The latest foreign exchange reserve data from the State Administration of Foreign Exchange (SAFE) shows that China's foreign exchange reserves for October 2019 grew by USD 12.7 billion month-on-month. Could you explain why there is such a change? What would you say about the future trends? A: As at the end of October 2019, China posted USD 3.1052 trillion in foreign exchange reserves, up by USD 12.7 billion or 0.4% month-on-month. China's foreign exchange market performed stably in October. Under the combined impacts of the global trade situations, monetary policies of major central banks and the prospects of Brexit, the US Dollar Index declined and bond prices of major countries dropped. Further, due to exchange rate conversion and asset price changes, China's foreign exchange reserves increased. In the year to date, despite dramatic increases in risks and challenges in global markets, China's economy has maintained stability while achieving progress, with major indicators meeting expectations and structural adjustment stably advanced. As a result, China's cross-border capital flows remained steady, the supply and demand in foreign exchange markets were in a basic equilibrium and foreign exchange reserves rose stably. Looking ahead, as the world economy slows down, the global financial market will continue to be faced with numerous destabilizing factors and uncertainties. But China's economic fundamentals and its long-term positive trends have not changed, with efforts on reform and opening up increased, momentum for organic growth strengthened and resilience against risks and challenges enhanced, which lay a solid foundation for the overall stability of China's foreign exchange reserves. 2019-11-07/en/2019/1205/1603.html
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As at the end of September 2019, China's banking sector recorded external financial assets of USD 1135.5 billion, external liabilities of USD 1315.4 billion, and net external liabilities of USD 179.9 billion including net RMB liabilities of USD 314.0 billion and net foreign currency assets of USD 134.1 billion. Among the external financial assets of the banking sector, deposits and loans were USD 813.3 billion,bonds investment,USD 161.7 billion, and other assets including equity, USD 160.5 billion,accounting for 72 percent, 14 percent and 14 percent of the sector's total external financial assets respectively. By currency, RMB assets were USD 109.7 billion, USD assets, USD 789.0 billion, and other currency assets, USD 236.8 billion,accounting for 10 percent, 69 percent and 21 percent respectively. Among the external financial assets of the banking sector, the amount invested in the overseas banking sector was USD 563.4 billion, accounting for approximately 50 percent; the amount invested in the overseas non-banking sector was USD 572.1 billion,accounting for approximately 50 percent. Among the external liabilities of the banking sector, deposits and loans were USD 727.6 billion,bonds investment, USD 219.6 billion, and other liabilities including equity, USD 368.2 billion, accounting for 55 percent, 17 percent and 28 percent of the sector's total external liabilities respectively. By currency, RMB liabilities were USD 423.7billion, USD liabilities, USD 542.8 billion, and other currency liabilities, USD 348.9 billion, accounting for 32 percent, 41 percent and 27 percent respectively. Of the external liabilities of China’s banking sector, USD 548.1 billion was from overseas banking sector, accounting for 42 percent; while USD 767.4 billion was from overseas non-banking sector, accounting for 58 percent. (End) 2019-12-26/en/2019/1226/1608.html
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External_Financial_Assets_and_Liabilities_of_China's_Banking_Sector_(As_of_September_30_2019) 2019-12-26/en/2019/1226/1611.html
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According to the statistics of the StateAdministration of Foreign Exchange (SAFE), the Chinese foreign exchange market(excluding foreign currency pairs, the same below) recorded total transaction ofRMB 16.08 trillion (equivalent to USD 2.29 trillion) in November 2019. Specifically,the transaction volume of the bank to customer market was RMB 2.36 trillion(equivalent to USD 335.7 billion), the transaction volume of interbank marketwas RMB 13.73 trillion (equivalent to USD 1.96 trillion), the cumulativetransaction volume of the spot market was RMB 6.96 trillion (equivalent to USD 992.3billion), and that of the derivatives market was RMB 9.12 trillion (equivalentto USD 1.30 trillion). From January to November2019, a total of RMB 183.46 trillion (equivalent to USD 26.68 trillion) wastraded in the Chinese foreign exchange market. 2019-12-27/en/2019/1227/1612.html
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On December 5, 2019, Pan Gongsheng, Administrator of the State Administration of Foreign Exchange (SAFE), met with a delegation led by Stanley Fischer, former FED Vice Chairman. Mr. Pan also invited Prof. Fischer to give a lecture at the SAFE on topics covering global macroeconomic conditions, international trade, and monetary policy. 2019-12-06/en/2019/1210/1605.html
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As shown in the statistics of the StateAdministration of Foreign Exchange (SAFE), in December 2019, the amount offoreign exchange settlement and sales by banks was RMB 1260.8 billion and RMB 1245.2billion, respectively, with a settlement of RMB 15.6 billion. In the US dollarterms，the amount of foreign exchange settlement andsales by banks was USD 179.8 billion and USD 177.6 billion, respectively, witha settlement of USD 2.2 billion. In particular, the amount of foreign exchangesettlement and sales by banks for customers was RMB 1189.2 billion and RMB 1163.6billion, respectively, with a settlement of RMB 25.5 billion; the amount offoreign exchange settlement and sales for banks themselves was RMB 71.6 billionand RMB 81.6 billion, respectively, with a deficit of RMB 10 billion. Duringthe period, newly signed contract amount of forward foreign exchange settlementand sales was RMB 142.5 billion and RMB 34.8 billion, respectively, with a net newlysigned contract amount of forward foreign exchange settlement of RMB 107.7billion. At the end of December, outstanding amount of forward foreign exchangesettlement and sales by the end of the current period was RMB 515.8 billion andRMB 421.9 billion, respectively, with a net outstanding amount of forward foreignexchange settlement of RMB 93.8 billion; the net Delta exposure of outstandingoptions was RMB -266.6 billion. During January to December 2019, theaccumulative amount of foreign exchange settlement and sales by banks was RMB 12763.4billion and RMB 13147.7 billion, with an accumulative deficit of RMB 384.3billion. In the US dollar terms, the accumulative amount of foreign exchangesettlement and sales by banks was USD 1849.3 billion and USD 1905.3 billion,with an accumulative deficit of USD 56 billion. In particular, the accumulativeamount of foreign exchange settlement and sales by banks for customers was RMB 11791.8billion and RMB 12089 billion, respectively, with an accumulative deficit ofRMB 297.3 billion; the accumulative amount of foreign exchange settlement andsales for banks themselves was RMB 971.6 billion and RMB 1058.7 billion,respectively, with an accumulative deficit of RMB 87.1 billion. During theperiod, newly signed contract amount of forward foreign exchange settlement andsales was RMB 1551 billion and RMB 551.6 billion, respectively, with a net newlysigned contract amount of forward foreign exchange settlement of RMB 999.4 billion. In December 2019, the amount of cross-border receiptsand payments by non-banking sectors was RMB 2689.9 billion and RMB 2609.3billion, respectively, with a surplus of RMB 80.6 billion.During January to December2019, the amount of cross-border receipts and payments by non-banking sectorswas RMB 24977.2 billion and RMB 24812.8 billion, respectively, with a surplusof RMB 164.4billion. In the US dollar terms, in December 2019, theamount of cross-border receipts and payments by non-banking sectors was USD 383.6billion and USD 372.1 billion, respectively, with a surplus of USD 11.5 billion.DuringJanuary to December 2019, the amount of cross-border receipts and payments by non-bankingsectors was USD 3619.1 billion and USD 3594.6 billion, respectively, with asurplus of USD 24.5 billion. Addendum: Glossary andrelevant definitions Balance of payments(BOP) refers to all economic transactionsbetween residents and non-residents. Foreignexchange settlement and sales by banks refers to settlement and sale transaction that bank executes for customersand for the banks themselves, including statistic data onsettlements of forward contracts for foreign exchange settlementand sales and the exercises of option, and excludingthe transactions in the interbank foreign exchange market. The statistic reporting date of Foreign exchangesettlement and sales by banks should be the trade day of theForeignexchange settlement and sales transaction. By definition, foreignexchange settlement means foreign exchange holders sell foreignexchange to designated foreign exchange bank, and foreignexchange sales means designated bank sells foreign exchange to foreign exchange buyers. The net position of foreign exchange settlement andforeign exchange sales could be position squared throughtransactions on the inter-bank foreign exchange market, and it is one ofthe major contributors to the country’sforeign exchange reserve fluctuation, though it is not equal to netchange in foreign exchange reserves during the same period Unlikethe principle of balance-of-payments statistics, which cover the transactionsbetween residents and non-residents, foreign exchange settlement and sales bybanks only cover transactions of RMB and foreign currencies between banks and customers or on banks for themselves. Thenewly signed contract amount of forward foreign exchange settlement and sales refers to the binding forward contract between designated foreignexchange bank and client that predetermines foreign exchange currency, amount,exchange rate and tenor which to be executed upon maturity. Thenewly signed forward contract enables corporate to lock inadvance the exchange rate for the purchase or sale of a currency on a futuredate to manage relevant foreign exchange risk arising fromRMB 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, bankwill short the equivalent amount of foreign exchange in the Interbank foreignexchange market in advance, or vice versa. Therefore, the newly signedcontract amount of forward foreign exchange settlement and sales is also one of contributors to China’s foreign exchange reserve fluctuation. Theunwind amount of forward foreign exchange settlement and sales refers to, where client is unable to perform the original forwardcontract due to change in its real demand, client to fully or partially closeits forward position by executing another deal with opposite direction to theoriginal contract. Therolling amount of forward foreign exchange settlement and sales refers to client to adjust the settlement date of original contract dueto change in its real demand. Theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period refers to the total amount of forwardcontracts accumulated from all non-matured forward contracts with client. Thenewly signed contractamount and the outstanding amount should satisfy the equationthat: theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period = theoutstanding amount of forward foreign exchange settlement and sales at the endof the previous period + the newly signed contract amount of forward foreignexchange settlement and sales for the period - settlements of forwardcontracts for foreign exchange settlement and sales for the period - the unwindamount of forward foreign exchange settlement and sales for the period. The net Deltaexposure of outstanding options refers to the implied foreignexchange spot risk exposure from outstanding option contracts that bank executedwith client. Bank shall hedge such risk in the foreign exchange market for risk management during deal life cycle. The cross-border receiptsand payments bynon-banking sectors refers to the receipts andpayments between domestic non-banking sectors (including institutional and individual residents)and non-residentsthrough domestic banks, excluding receipts and payments in cash. In particular,the statisticsincludescross-border receipts and payments between non-banking sectors andnon-residents through domestic banks (including RMB and foreign currency), and domesticreceipts and payments between non-banking sectors and non-residents throughdomestic banks (temporarily excluding domestic receipts and payments in RMBbetween individual residents and non-resident individuals). Data are collected whencustomers conduct receipts and payments with non-resident counterparties atdomestic banks. Specifically, the receipts refer to the capitalof non-bankingsectors received fromnon-residents via domestic banks; the payments refer to the capitalof non-bankingsectors paid to non-residents via domestic banks. Thecross-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 statisticsmerely reflects the cashflows between non-banking sectors and non-residents and does not include bartertransactions or transactions with non-residents conducted by the banksthemselves. Therefore,the scope of thestatistics is narrower than that of the Balance of Payments Statistics. 2020-01-17/en/2020/0117/1620.html
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In the third quarter of 2019, China's current account registered asurplus of RMB 343.7 billion, and the capital and financial accounts recorded a deficit of RMB 68.2 billion. The financial account (excluding reserve assets) recorded a deficit of RMB 174.4billion, and reserve assets declined by RMB 107.9 billion. In the first three quarters of 2019,China's current account registered a surplus of RMB 942.1 billion, and the capital and financial accounts recorded a surplus of RMB 223.0 billion. The financial account (excluding reserve assets) recorded a surplus of RMB 133.1billion, and reserve assets declined byRMB 92.2 billion. In the US dollar terms, in the third quarter of 2019,China's current account recorded a surplus of USD 49.2 billion, including a surplus of USD 131.6 billion under trade in goods, a deficit of USD 72.5 billion under trade in services, a deficit of USD 12.1 billion under primary income, and a surplus of USD 2.2 billion under secondary income. The capital and financial accounts recorded a deficit of USD 9.8 billion, including a deficit of USD 0.2 billion under the capital account, a deficit of USD 25.0 billion under the financial account(excluding reserve assets), and a decline of USD 15.4 billion under reserves assets. In the US dollar terms, in the first three quarters of 2019,China's current account recorded a surplus ofUSD 137.4 billion, including a surplus of USD 339.9 billion under trade in goods, a deficit of USD 201.8 billion under trade in services, a deficit of USD 8.3 billion under primary income, and a surplus of USD 7.6 billion under secondary income. The capital and financial accounts recorded a surplus of USD 33.2 billion, including a deficit of USD 0.3 billion under the capital account, a surplus of USD 20.5 billion under the financial account (excluding reserve assets), and a decrease of USD 13.0 billion under reserves assets. In SDR terms, in the third quarter of 2019, China posted a surplus of SDR 35.8 billion under the current account, and a deficit of SDR 7.1 billion under the capital and financial accounts. The financial account (excluding reserve assets) registered a deficit of SDR 18.2 billion, and reserves assets decreased by SDR 11.2 billion. In SDR terms, in first three quarters of 2019, China posted a surplus of SDR 99.4 billion under the current account, and a surplus of SDR 23.8 billion under the capital and financial accounts. The financial account (excluding reserveassets) registered a surplus of SDR 14.5 billion, and a decrease of SDR 9.5 billion under reserves assets. (End) Abridged Balanceof Payments of China, Third Quarterof 2019 Item Line No. RMB 100 million USD 100 million SDR 100 million 1. Current Account 1 3,437 492 358 Credit 2 53,256 7,622 5,546 Debit 3 -49,819 -7,130 -5,189 1. A Goods and Services 4 4,128 591 430 Credit 5 48,554 6,949 5,057 Debit 6 -44,427 -6,358 -4,627 1.A.a Goods 7 9,192 1,316 957 Credit 8 44,375 6,351 4,622 Debit 9 -35,183 -5,035 -3,664 1.A.b Services 10 -5,065 -725 -527 Credit 11 4,179 598 435 Debit 12 -9,244 -1,323 -963 1.B Primary Income 13 -844 -121 -88 Credit 14 4,250 608 443 Debit 15 -5,094 -729 -531 1.C Secondary Income 16 153 22 16 Credit 17 451 65 47 Debit 18 -298 -43 -31 2. Capital and Financial Account 19 -682 -98 -71 2.1 Capital Account 20 -17 -2 -2 Credit 21 3 0 0 Debit 22 -19 -3 -2 2.2 Financial Account 23 -665 -95 -69 Assets 24 -4,406 -631 -459 Liabilities 25 3,741 535 390 2.2.1 Financial Account Excluding Reserve Assets 26 -1,744 -250 -182 2.2.1.1 Direct Investment 27 -355 -51 -37 Assets 28 -1,588 -227 -165 Liabilities 29 1,234 177 128 2.2.1.2 Portfolio Investment 30 1,397 200 146 Assets 31 -1,689 -242 -176 Liabilities 32 3,087 442 321 2.2.1.3 Financial Derivatives (other than reserves) and Employee Stock Options 33 -72 -10 -8 Assets 34 63 9 7 Liabilities 35 -135 -19 -14 2.2.1.4 Other Investment 36 -2,714 -388 -283 Assets 37 -2,270 -325 -236 Liabilities 38 -444 -64 -46 2.2.2 Reserve Assets 39 1,079 154 112 3. Net Errors and Omissions 40 -2,755 -394 -287 Notes: 1.The statement is compiled according to BPM6. Reserve assets are included incapital and financial accounts. 2."Credit" is presented as positive value while "debit" asnegative value, and the balance is the sum of the"Credit" and the "Debit". All items herein refer to balance,unless marked with "Credit" or "Debit". 3.The RMB denominated quarterly BOP data is converted from the USD denominated BOP data,using quarterly average centralparity rate of RMB against USD. The quarterly accumulated RMB denominated BOP data is derived from the sum total of the RMB denominated data for the quarters. 4.The SDR denominated quarterly BOP data is converted from the USD denominated BOP data,using quarterlyaverage exchange rate of SDR against USD. The quarterly accumulated SDRdenominated BOP data is derived from the sum total of the SDR denominated data for the quarters. 5.This statement employs rounded-off numbers. 6.For detailed data, please see “Data and Statistics” at the website of SAFE. Abridged China’s Balanceof Payments, First Three Quarters of 2019 Item Line No. RMB 100 million USD 100 million SDR 100 million 1. Current Account 1 9,421 1,374 994 Credit 2 148,907 21,726 15,705 Debit 3 -139,485 -20,351 -14,711 1. A Goods and Services 4 9,499 1,381 1,000 Credit 5 134,588 19,634 14,194 Debit 6 -125,089 -18,253 -13,194 1.A.a Goods 7 23,330 3,399 2,458 Credit 8 122,369 17,850 12,904 Debit 9 -99,039 -14,451 -10,446 1.A.b Services 10 -13,831 -2,018 -1,459 Credit 11 12,219 1,784 1,289 Debit 12 -26,050 -3,802 -2,748 1.B Primary Income 13 -600 -83 -62 Credit 14 12,990 1,898 1,371 Debit 15 -13,590 -1,981 -1,433 1.C Secondary Income 16 522 76 55 Credit 17 1,328 194 140 Debit 18 -806 -118 -85 2. Capital and Financial Account 19 2,230 332 238 2.1 Capital Account 20 -23 -3 -2 Credit 21 11 2 1 Debit 22 -33 -5 -4 2.2 Financial Account 23 2,253 335 241 Assets 24 -9,559 -1,390 -1,006 Liabilities 25 11,811 1,725 1,247 2.2.1 Financial Account Excluding Reserve Assets 26 1,331 205 145 2.2.1.1 Direct Investment 27 2,023 301 216 Assets 28 -4,758 -695 -502 Liabilities 29 6,781 995 718 2.2.1.2 Portfolio Investment 30 2,955 430 311 Assets 31 -4,337 -632 -457 Liabilities 32 7,291 1,062 768 2.2.1.3 Financial Derivatives (other than reserves) and Employee Stock Options 33 -68 -10 -7 Assets 34 179 26 19 Liabilities 35 -247 -36 -26 2.2.1.4 Other Investment 36 -3,579 -517 -375 Assets 37 -1,564 -220 -161 Liabilities 38 -2,015 -297 -214 2.2.2 Reserve Assets 39 922 130 95 3. Net Errors and Omissions 40 -11,651 -1,706 -1,232 Notes: 1.The statement is compiled according to BPM6. Reserve assets are included incapital and financial accounts. 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 balance,unless marked with "Credit" or "Debit". 3.The RMB denominated quarterly BOP data is converted from the USD denominatedBOP data,using quarterly average central parity rate of RMB against USD. The quarterly accumulated RMB denominated BOP data is derived fromthe sum total of the RMB denominated data for the quarters. 4.The SDR denominated quarterly BOP data is converted from the USD denominated BOP data,using quarterly average exchange rate of SDR against USD. The quarterly accumulated SDR denominated BOP data is derived from the sum total of the SDRdenominated data for the quarters. 5.This statement employs rounded-off numbers. 6.For detailed data, please see “Data and Statistics” at the website of SAFE. 2019-12-27/en/2019/1227/1614.html
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As at end of September 2019, China recorded RMB 14.3756 trillion in outstanding external debt denominated in both domestic and foreign currencies (equivalent to USD 2.0325 trillion, excluding those of Hong Kong SAR, Macao SAR, and Taiwan Province, the same below). With respect to the term structure, the outstanding medium-and long-term external debt was RMB 5.849 trillion (USD 827billion), accounting for 41%; while the outstanding short-term external debt hit RMB 8.5266 trillion (USD 1.2055 trillion), taking up 59%, including 43% trade-related credit. In terms of institutions and sectors, the outstanding debt of government totaled RMB 1.7289 trillion (USD 244.5 billion), accounting for 12%; the outstanding debt of the central bank totaled RMB 257.8 billion (USD 36.5 billion), accounting for 2%; the outstanding debt of banks totaled RMB 6.6113 trillion (USD 934.7 billion), taking up 46%; the outstanding debt of other sectors totaled RMB 4.147 trillion (USD 586.3 billion), taking up 29%; the outstanding debt of inter-company lending under direct investments totaled RMB 1.6306 trillion (USD 230.5 billion), taking up 11%. In terms of debt instruments, the outstanding of loans was RMB 3.2575 trillion (USD 460.6 billion), accounting for 22.5%; the outstanding of trade credit and prepayment was RMB 2.5512 trillion (USD 360.7 billion), accounting for 17.5%; the outstanding of currency and deposits was RMB 3.0896 trillion (USD 436.8 billion), accounting for 21.5%; the outstanding of debt securities was RMB 3.5341 trillion (USD 499.7 billion), accounting for 25%; the Special Drawing Rights (SDR) allocation amounted to RMB 67.4 billion (USD 9.5 billion), accounting for 0.5%. The outstanding debt of inter-company lending under direct investments totaled RMB 1.6306 trillion (USD 230.5 billion), accounting for 11%; and the outstanding of other debt liabilities was RMB 245.2 billion (USD 34.7 billion), making up 2%. With respect to currency structures, the outstanding external debt in domestic currency totaled RMB 4.8287 trillion (USD 682.7 billion), accounting for 34%; the outstanding external debt in foreign currencies (including SDR allocation) totaled RMB 9.5469 trillion (USD 1.3498 trillion), accounting for 66%. In the total outstanding registered external debt in foreign currencies, the USD debt accounted for 83%, the Euro debt accounted for 8%, the HKD debt accounted for 5%, the JPY debt accounted for 2%, the SDR and other foreign currency-denominated external debt accounted for 2%. China’s major external debt metrics were all within the internationally recognized thresholds, indicating that the external debt risk is controllable on the whole. Appendix Definition of terms and interpretations External debt classification by term structure. There are two methods to classify the external debt by term structure. One is on the basis of the contract term, i.e. it is classified as medium- and long-term external debt if the contract term is over one year, and classified as short-term external debt if the contract term is one year or less; the other is on the basis of the remaining term, i.e., on the basis of the contract term classification method above, the medium- and long-term external debt due within one year is classified as short-term external debt. In this news release, external debt is divided into medium- and long-term external debt and short-term external debt based on the contract term. Trade-related credit is a broad concept. In addition to trade credit and prepayment, it also involves other kinds of credit provided for trade activities. As it is defined, trade-related credit includes trade credit and prepayment, bank trade financing, short-term notes related to trade, and so forth. In particular, trade credit and prepayment refer to external liability arising from directly extending credit between the seller and buyer of goods transactions, specifically transactions between residents in the Chinese Mainland and overseas non-residents (including non-residents in Hong Kong SAR, Macao SAR, and Taiwan Province), i.e., the debt incurred due to the difference between the time of payment and the time of the goods ownership transfer, which include credit directly provided by the supplier (e.g., the overseas exporter) for goods and services, and advance payments made by buyers (e.g., overseas importers) for goods, services, and on-going business (or business to be undertaken). Bank trade financing refers to trade related loans that offered by a third party (e.g., banks) to exporters or importers, for instance, loans extended by foreign financial institutions or export credit agencies to buyers. Table: China’s Gross External Debt Position by Sector, End of September 2019 End of September 2019 End of September 2019 （Unit:100 million RMB） （Unit:100 million US dollars） General Government 17289 2445 Short-term 645 91 Currency and deposits 0 0 Debt securities 645 91 Loans 0 0 Trade credit and advances 0 0 Other debt liabilities 0 0 Long-term 16644 2353 Currency and deposits 0 0 Debt securities 0 0 Loans 13339 1886 Trade credit and advances 3305 467 Other debt liabilities 0 0 Currency and deposits 0 0 Central Bank 2578 365 Short-term 1904 269 Currency and deposits 1106 156 Debt securities 798 113 Loans 0 0 Trade credit and advances 0 0 Other debt liabilities 0 0 Long-term 674 95 Special drawing rights 674 95 Currency and deposits 0 0 Debt securities 0 0 Loans 0 0 Trade credit and advances 0 0 Other debt liabilities 0 0 Other Depository Corporations 66113 9347 Short-term 49167 6951 Currency and deposits 29784 4211 Debt securities 3938 557 Loans 15208 2150 Trade credit and advances 0 0 Other debt liabilities 238 34 Long-term 16946 2396 Currency and deposits 0 0 Debt securities 11866 1678 Loans 5025 711 Trade credit and advances 0 0 Other debt liabilities 55 8 Other Sectors 41470 5863 Short-term 30475 4309 Currency and deposits 6 1 Debt securities 185 26 Loans 4112 581 Trade credit and advances 25065 3544 Other debt liabilities 1106 156 Long-term 10995 1555 Currency and deposits 0 0 Debt securities 4570 646 Loans 4925 696 Trade credit and advances 446 63 Other debt liabilities 1054 149 Direct Investment: Intercompany Lending 16306 2305 Debt liabilities of direct investment enterprises to direct investors 10084 1426 Debt liabilities of direct investors to direct investment enterprises 570 81 Debt liabilities to affiliated enterprises 5652 799 Gross External Debt Position 143756 20325 Notes: 1. The short-term and long-term herein are broken down by contractual (original) maturity. 2. The data in this table have been rounded off. 2019-12-27/en/2019/1227/1613.html