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As at the end of September 2019,China’s external financial assets reached USD 7468.1 billion, external financial liabilities reached USD 5311.9billion, and net external assets totaled USD 2156.2billion. In the external financial assets, direct investment assets amounted to USD 1969.5 billion, portfolio investment assets, USD 584.9 billion, financial derivative assets, USD 7.4 billion, other investment assets, USD 1701.9 billion, and reserves assets,USD 3204.5 billion, accounting for 26 percent, 8 percent, 0.1 percent, 23 percent and 43 percent of external financial assets respectively. In external liabilities, direct investment liabilities were USD 2777.3 billion,portfolio investment liabilities, USD 1220.8 billion, financial derivative liabilities, USD 11.4 billion and other investment liabilities, USD 1302.5billion, accounting for 52 percent, 23 percent, 0.2 percent and 25 percent of the external financial liabilities respectively. In SDR terms, China’s external financial assets and liabilities reached SDR 5477.9 billion and SDR 3896.4 billion respectively, and external net assets totaled SDR 1581.6 billion at the end of September 2019. (End) China's International Investment Position, End of September 2019 Item Line No. Position in 100 million USD Position in 100 million SDR Net Position 1 21,562 15,816 Assets 2 74,681 54,779 1 Direct Investment 3 19,695 14,447 1.1 Equity and Investment Fund Shares 4 16,968 12,447 1.2 Debt Instruments 5 2,727 2,000 1.a Financial Sectors 6 2,681 1,966 1.1.a Equity and Investment Fund Shares 7 2,564 1,881 1.2.a Debt Instruments 8 117 86 1.b Non-financial Sectors 9 17,015 12,480 1.1.b Equity and Investment Fund Shares 10 14,404 10,566 1.2.b Debt Instruments 11 2,610 1,915 2 Portfolio Investment 12 5,849 4,290 2.1 Equity and Investment Fund Shares 13 3,189 2,339 2.2 Debt Securities 14 2,659 1,951 3 Financial Derivatives (other than reserves) and Employee Stock Options 15 74 54 4 Other Investment 16 17,019 12,483 4.1 Other Equity 17 69 51 4.2 Currency and Deposits 18 3,880 2,846 4.3 Loans 19 6,748 4,950 4.4 Insurance, Pension, and Standardized Guarantee Schemes 20 118 86 4.5 Trade Credit and Advances 21 5,656 4,149 4.6 Others 22 548 402 5 Reserve Assets 23 32,045 23,505 5.1 Monetary Gold 24 930 682 5.2 Special Drawing Rights 25 108 79 5.3 Reserve Position in the IMF 26 84 62 5.4 Foreign Exchange Reserves 27 30,924 22,683 5.5 Other Reserve Assets 28 -2 -2 Liabilities 29 53,119 38,964 1 Direct Investment 30 27,773 20,371 1.1 Equity and Investment Fund Shares 31 25,494 18,700 1.2 Debt Instruments 32 2,278 1,671 1.a Financial Sectors 33 1,533 1,124 1.1.a Equity and Investment Fund Shares 34 1,385 1,016 1.2.a Debt Instruments 35 147 108 1.b Non-financial Sectors 36 26,240 19,247 1.1.b Equity and Investment Fund Shares 37 24,109 17,684 1.2.b Debt Instruments 38 2,131 1,563 2 Portfolio Investment 39 12,208 8,955 2.1 Equity and Investment Fund Shares 40 7,470 5,479 2.2 Debt Securities 41 4,738 3,475 3 Financial Derivatives (other than reserves) and Employee Stock Options 42 114 84 4 Other Investment 43 13,025 9,554 4.1 Other Equity 44 0 0 4.2 Currency and Deposits 45 4,322 3,171 4.3 Loans 46 4,641 3,404 4.4 Insurance, Pension, and Standardized Guarantee Schemes 47 123 91 4.5 Trade Credit and Advances 48 3,607 2,646 4.6 Others 49 236 173 4.7 Special Drawing Rights 50 95 70 Notes:1. This table employs rounded-off numbers. 2.Net International Investment Position refers to assets minus liabilities. Positive figure refers to net assets, and negative figure refers to net liabilities. 3.The SDR denominated data is converted from the USD denominated data, using the exchange rate of SDR against USD at the end of the quarter. 2019-12-27/en/2019/1227/1615.html
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The State Administration of Foreign Exchange has recently released data on banks' foreign exchange sales and settlements and banks' foreign-related receipts and payments for customers for November 2019. SAFE Press Spokesperson and Chief Economist Wang Chunying answered media questions on foreign exchange receipts and payments for the month. Q: Could you brief us on China's foreign exchange receipts and payments for November 2019? A: Banks' foreign exchange sales and settlements and foreign-related receipts and payments remained stable in the month, indicating a continued equilibrium in the foreign exchange market. First, banks' foreign exchange sales and settlements stayed stable at large. Although a deficit of USD 5.6 billion was recorded in banks' foreign exchange sales and settlements in the month, which was consistent with the monthly average in the year to date, yet with other supply and demand factors considered, including forward foreign exchange sales and settlements and options, China's foreign exchange market remained in an equilibrium. Second, banks' foreign-related receipts for customers were basically offset by their foreign-related payments for customers. Also in the month the non-banking sectors including enterprises and individuals registered a deficit of USD 500 million in foreign-related receipts and payments. Market players' desire to settle foreign exchange was strengthened and cross-border capital flows through major channels were further stabilized. In the month, the foreign exchange settlement ratio, a measure of customers' desire to settle foreign exchange, or the ratio of customers' sales of foreign exchange to banks to their foreign-related foreign exchange receipts, hit 63%, up by 3 percentage points year on year; the foreign exchange sales ratio, a measure of customers' desire to purchase foreign exchange, or the ratio of customers' purchases of foreign exchange from banks to their foreign-related foreign exchange payments, was 67%, flat with the same period last year. As far as major channels of cross-border capital flows are concerned, foreign exchange supply and demand were more stable. Also in the month, cross-border receipts and payments under trade in goods represented a surplus of USD 6.9 billion, vs. a deficit of USD 700 million for the same period last year; the surplus in foreign exchange sales and settlements under trade in goods grew 2.1 times year on year; net foreign exchange settlements for direct investment grew remarkably; but individuals' net purchases of foreign exchange went down by 16% year on year. Currently, China's economic fundamentals are stable and sound, and will remain sound over the long term. Guided by the new development philosophy, we will pursue supply-side structural reform as our main task and work for high-quality development, fueled by reform and opening up. We will endeavor to keep major economic indicators within an appropriate range, and promote all-round opening up to solidify the foundation for stable operations of China's foreign exchange markets. Further, China-US Phase-1 trade talks have achieved progress, which will be favorable for the benign economic and trade growth across the world and provide a more stable external environment for the operations of China's foreign exchange market. 2019-12-20/en/2019/1220/1617.html
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The State Administration of Foreign Exchange has recently released data on banks' foreign exchange sales and settlements and banks' foreign-related receipts and payments for customers for November 2019. SAFE Press Spokesperson and Chief Economist Wang Chunying answered media questions on foreign exchange receipts and payments for the month. Q: Could you brief us on China's foreign exchange receipts and payments for November 2019? A: Banks' foreign exchange sales and settlements and foreign-related receipts and payments remained stable in the month, indicating a continued equilibrium in the foreign exchange market. First, banks' foreign exchange sales and settlements stayed stable at large. Although a deficit of USD 5.6 billion was recorded in banks' foreign exchange sales and settlements in the month, which was consistent with the monthly average in the year to date, yet with other supply and demand factors considered, including forward foreign exchange sales and settlements and options, China's foreign exchange market remained in an equilibrium. Second, banks' foreign-related receipts for customers were basically offset by their foreign-related payments for customers. Also in the month the non-banking sectors including enterprises and individuals registered a deficit of USD 500 million in foreign-related receipts and payments. Market players' desire to settle foreign exchange was strengthened and cross-border capital flows through major channels were further stabilized. In the month, the foreign exchange settlement ratio, a measure of customers' desire to settle foreign exchange, or the ratio of customers' sales of foreign exchange to banks to their foreign-related foreign exchange receipts, hit 63%, up by 3 percentage points year on year; the foreign exchange sales ratio, a measure of customers' desire to purchase foreign exchange, or the ratio of customers' purchases of foreign exchange from banks to their foreign-related foreign exchange payments, was 67%, flat with the same period last year. As far as major channels of cross-border capital flows are concerned, foreign exchange supply and demand were more stable. Also in the month, cross-border receipts and payments under trade in goods represented a surplus of USD 6.9 billion, vs. a deficit of USD 700 million for the same period last year; the surplus in foreign exchange sales and settlements under trade in goods grew 2.1 times year on year; net foreign exchange settlements for direct investment grew remarkably; but individuals' net purchases of foreign exchange went down by 16% year on year. Currently, China's economic fundamentals are stable and sound, and will remain sound over the long term. Guided by the new development philosophy, we will pursue supply-side structural reform as our main task and work for high-quality development, fueled by reform and opening up. We will endeavor to keep major economic indicators within an appropriate range, and promote all-round opening up to solidify the foundation for stable operations of China's foreign exchange markets. Further, China-US Phase-1 trade talks have achieved progress, which will be favorable for the benign economic and trade growth across the world and provide a more stable external environment for the operations of China's foreign exchange market. 2019-12-20/en/2019/1220/1618.html
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The State Administration of Foreign Exchange (SAFE) has recently released the data on external debt as at the end of September 2019. The SAFE spokesperson and Chief Economist Wang Chunying answered media questions on China’s recent external debt situations. Q: Could you brief us on China's external debt for the third quarter of 2019? A: China's external debt increased in the third quarter of 2019. As at the end of September, the full-scale outstanding external debt (including domestic and foreign currencies) hit USD 2.0325 trillion, up by USD 34.5 billion or 1.7% quarter on quarter. The external debt structure was further optimized. The domestic currency denominated and mid and long-term external debt increased steadily. By the end of September 2019, the external debt denominated in domestic currency accounted for 34% of the full-scale outstanding external debt, and mid and long-term external debt claimed 41%, up by 3 and 6 percentage points from the end of 2017 respectively. Driven by the increase in domestic currency denominated and mid and long-term external debt, especially debt securities as risk-sharing capital inflows, the external debt structure maintained stability. The external debt risk indicators remained robust. As far as the annual debt is concerned, China was ranked No. 13 worldwide by outstanding external debt as at the end of 2018. In comparison, those of the US, the UK and Japan were 10, 4, and 2 times as much as ours, respectively. As at the end of 2018, the external debt ratio was 14% (i.e., the ratio of the outstanding external debt to GDP, vs. internationally accepted safe level of 20%), the debt ratio was 74% (i.e., the ratio of outstanding external debt to export revenue, vs. internationally accepted safe level of 100%), and the debt servicing ratio was 5.5% (i.e., the ratio of payments of principal and interest on external debt to export revenue, vs. internationally accepted safe level of 20%), and the ratio of short-term external debt to foreign exchange reserves was 41% (vs. internationally accepted safe level of 100%). These indicators are expected to remain little changed within the internationally accepted ranges by the end of 2019, staying well below the overall levels of advanced and emerging economies. In the year to date, facing the much intensified risks in and outside China, China, however, has continued to witness sound economic fundamentals, which will remain sound over the long term, with the balance of payments in a basic equilibrium and external debt structure further optimized. Going forward, the SAFE will deepen reform and opening up further in foreign exchange administration and refine the two-faceted administration framework of "macro prudence + micro regulation" for the foreign exchange market to guard against risks arising from cross-border capital flows and safeguard China's economic and financial security. 2019-12-27/en/2019/1227/1619.html
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To further facilitate cross-border investment and financing by Macao-funded enterprises in Hengqin, the State Administration of Foreign Exchange (SAFE) has introduced relevant policy initiatives as we are celebrating the 20th anniversary of Macao's return to China. The highlights are as follows: first, piloting for the external debt registration and management reform. Macao-funded enterprises in Hengqin will be allowed to register with local foreign exchange authorities their external debt that can be twice as much as net assets, and to go through outward and inward remittances, foreign exchange settlement and purchase processes with banks directly. Second, flexibly adjusting the borrowing model. Macao-funded enterprises in Hengqin can flexibly adjust their borrowing model based on their needs. For example, they can shift from the investment-registered capital difference model to the macro-prudential model. Third, loosening restrictions on currencies for external debt. Macao-funded enterprises in Hengqin will be allowed to use different currencies for contracting from currencies for withdrawals and repayment. Fourth, piloting outbound transfers of domestic credit assets. The scope of outbound transfers of domestic credit assets will be expanded in terms of players and channels. Fifth, facilitating the use of revenues under the capital account by Macao-funded enterprises in Hengqin. Macao-funded enterprises in Hengqin will not need to provide authenticity supporting materials to banks on a transaction-by-transaction basis when using revenues under the capital account for domestic payments. Sixth, further simplifying relevant transaction processes. Macao-funded enterprises in Hengqin can make combined payments based on payment order letter and application letter for domestic remittances for transactions under the capital account. Next, the SAFE will promote the implementation of beneficial policies for Macao-funded enterprises to support the economic, trade, investment and financing growth in Macao. 2019-12-20/en/2019/1220/1616.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 17.10 trillion (equivalent to USD 2.44 trillion) in December 2019. Specifically,the transaction volume of the bank to customer market was RMB 2.71 trillion(equivalent to USD 387.1 billion), the transaction volume of interbank marketwas RMB 14.38 trillion (equivalent to USD 2.05 trillion), the cumulativetransaction volume of the spot market was RMB 6.78 trillion (equivalent to USD 966.5billion), and that of the derivatives market was RMB 10.32 trillion (equivalentto USD 1.47 trillion). From January to December 2019, a total of RMB 200.56 trillion(equivalent to USD 29.12 trillion) was traded in the Chinese foreign exchangemarket. 2020-01-17/en/2020/0117/1621.html
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To implement the decisions and arrangements of the CPC Central Committee and the State Council to boost the building of Shanghai into an International Financial Hub, step up financial support for the construction of the Lin-gang Special Area in China (Shanghai) Pilot Free Trade Zone (Lin-gang Special Area) and for the integrated development of the Yangtze River Delta, deepen the supply-side structural reform in the financial community and drive the higher-level opening up and innovation in finance, we put forward our opinions as follows, with approval from the State Council: I. General requirements 1. Serving the high-quality growth of the real economy. Based on the functional positioning and industrial system of Lin-gang Special Area, Shanghai shall pilot more open and convenient financial policies to stably boost RMB internationalization and introduce green financial policies. Shanghai shall accelerate the building of an international financial hub to push ahead with the opening up of the financial industry, optimize the allocation of financial resources and improve the quality and effectiveness of financial services. Shanghai shall also play its leading and radiating role as an international financial hub to improve the systems and mechanisms for financially supporting the integrated development of the Yangtze River Delta and intensify key national strategies such as financial support for coordinated regional development and innovation-driven development. 2. Deepening the reform of financial systems and mechanisms. With a focus on system innovation, Shanghai shall revitalize financial innovation and explore more flexible financial policy systems, regulatory models and management systems. It shall improve the environment for rule of law in finance, and adopt the pre-access national treatment plus negative list management system in all respects. It shall impose equal regulatory requirements on domestic and foreign-funded financial institutions and integrate with the international high-standard rules to boost the high-level opening up of the financial industry. 3. Guarding against systematic financial risks. While ensuring compliance with laws and regulations, risk controllability and business voluntarity, Shanghai shall systematically press ahead with the introduction of innovative measures for financial opening-up and pilot a selection of them in Lin-gang Special Area. It shall also build and refine the financial regulation and coordination mechanisms, improve the prevention and control system against financial risks and apply more financial technology in regulation to ensure our bottom line that systematic financial risks will not occur. II. Boosting financial piloting in Lin-gang Special Area 1. Supporting the development of key industries with global competitiveness in Lin-gang Special Area. (1) Shanghai shall pilot the building of wealth management subsidiaries by eligible commercial banks. It shall encourage them to set up professional subsidiaries in Shanghai in line with the business voluntarity principle to invest in key construction projects and companies that are not listed in Lin-gang Special Area and the Yangtze River Delta. Shanghai shall also encourage insurers to invest in technical innovation investment funds or directly in technical innovation companies in Lin-gang Special Area in compliance with laws and regulations. (2) Shanghai shall support qualified commercial banks in establishing financial asset and investment companies in Shanghai in line with the business voluntarity principle. It shall pilot the creation of professional investment subsidiaries in Shanghai by qualified financial asset and investment companies to participate in business reorganization, equity investment and direct investment in relation to the construction of Lin-gang Special Area and economic restructuring, industry optimization and upgrading, and coordinated development in the Yangtze River Delta. (3) Shanghai shall encourage financial institutions to provide market-based long-term credit for the development of key industries like high-tech and shipping industries in Lin-gang Special Area, to support key technical innovation and R&D projects in the area. Further, it shall encourage financial institutions to provide efficient and convenient financial services for companies in the area to engage in novel foreign trading activities based on the "three business principles", so as to support the development of novel foreign trade. (4) Shanghai shall support financial institutions and large tech companies to incorporate fintech players in the area in compliance with laws to explore the applications of AI, big data, cloud computing and block chain in finance and stress fintech talent development. 2. Promoting trade and investment liberalization and facilitation. (5) For eligible strong companies in Lin-gang Special Area, banks inside the area can follow the "three business principles" to directly handle RMB settlement for cross-border trade and domestic payment with RMB revenues from FDI, cross-border financing and overseas listing based on companies' receipt and payment orders. (6) In Lin-gang Special Area, Shanghai can attempt the cancellation of special RMB capital accounts under FDI and pilot the cross-border cash pool for both foreign and domestic currencies. It shall support eligible multinationals to centralize deficiency transfers and collection of foreign and domestic currencies among domestic and overseas members with funds exchanged based on real demand and shall adopt two-way macro-prudential management of cross-border capital flows. It can also explore transformation and upgrading of foreign exchange administration. (7) In Lin-gang Special Area, Shanghai can pilot cross-border transfers of domestic trade finance assets. It can drive the building of platforms relying on Shanghai Commercial Paper Exchange and relevant digital technology R&D support institutions to handle cross-border transfers of trade finance assets and boost the development of cross-border RMB trade finance. III. Accelerating the opening up of the financial industry in Shanghai at a higher level 1. Boosting high-level opening-up of finance. (8) In compliance with laws and regulations and the business voluntarity principle, Shanghai shall encourage eligible commercial banks to set up wealth management subsidiaries in Shanghai, pilot wealth management JVs between foreign institutions and large banks, and support commercial banks and their wealth management subsidiaries to choose eligible assets managers that are registered in Shanghai as their partners for wealth management and investment. (9) Shanghai shall encourage foreign institutions to set up securities operators and asset managers in Shanghai or to acquire majority stakes in them. It shall push ahead with the relaxation of restrictions on foreign shareholdings in personal insurance from 51% to 100% in Shanghai first. (10) If foreign financial institutions apply for incorporating or minority investment in pension fund managers in Shanghai, Shanghai shall approve them once they are mature. In addition, Shanghai shall encourage insurance asset managers to establish professional asset management subsidiaries, and pilot minority investment of insurance asset managers in wealth management companies incorporated by foreign asset managers in Shanghai. It shall also attempt the piloting of investing in bulk commodities like gold and oil by insurance funds through relevant exchanges in Shanghai. (11) Shanghai shall support eligible non-financial groups to establish financial holding companies in Shanghai. It shall encourage multinationals to establish headquarters-like institutions in Shanghai such as global or regional fund management centers, which can be approved to trade in the interbank foreign exchange markets. Further, Shanghai shall allow financial leasing parent companies and their subsidiaries that are registered in China (Shanghai) Pilot Free Trade Zone to share the external debt quotas. 2. Boosting the building of RMB financial asset allocation and risk management centers. (12) Shanghai shall open up the bond market wider, and further facilitate filing and entry into the market by foreign investors to diversify the type and number of foreign investors. It also shall boost the transformation of domestic settlement correspondent banks towards custodian banks to provide diversified services for foreign investors accessing the interbank bond market. (13) Shanghai shall develop the RMB interest rate and foreign exchange derivatives markets, study and launch RMB interest rate options to diversify foreign exchange options. (14) Shanghai shall optimize the foreign exchange rate risk management under financial investment for foreign institutions to facilitate trading by such institutions in interbank foreign exchange markets to square the position generated by their investments in domestic bond markets. (15) Shanghai shall study how to ramp up the efficiency of integration with laws and systems for global financial markets as an international financial hub, and allow foreign institutions to sign master agreements on derivatives with National Association of Financial Market Institutional Investors (NAFMII), China Securities and Futures Market (SAC) or International Swaps and Derivatives Association (ISDA). 3. Building the high-quality financial business environment by international standards. (16) Shanghai shall accelerate the adoption of the rule of law in finance and the establishment of financial rules and systems integrated with global ones. It shall intensify punishments for illegal financial activities and encourage the piloting of fintech innovations. (17) Shanghai shall boost the reforms that delegate power, improve regulation, and upgrade services, screen documents unfavorable for the growth of private players in Shanghai and dismantle the "hidden doors" for market access. It needs to take a multi-faceted approach to incubating a level playing field. (18) Shanghai shall study and boost Shanghai Financial Court and Shanghai Bankruptcy Court to adapt to the trends in financial markets, step up capability building, increase professionalism in case hearing and strengthen credibility and influence in upholding justice across the world, based on global high-standard practices. IV. Financially supporting the integrated development of the Yangtze River Delta 1. Driving cross-regional collaboration among financial institutions. (19) Shanghai shall take the lead in improving cross-province (city) mobile payment services in the Yangtze River Delta and fueling payment connectivity for public services in the Delta in compliance with laws and regulations. (20) Shanghai shall drive every corporate bank in the Yangtze River Delta to integrate with the exclusive validation channels of legally licensed clearing institutions for opening personal banking accounts and provide cross-validation services for information of connected accounts. (21) Shanghai shall work to strengthen collaboration among financial institutions in the banking sector in the Yangtze River Delta in project planning, project review and rating, credit line verification, repayment arrangements, credit management and risk mitigation, and explore cross-province (city) credit extension mechanisms in the Delta to drive credit flows. It shall support commercial banks to offer merger loans to players in the Delta. Under the existing policy framework, it shall support financial institutions to leverage refinance and rediscount to issue more credit to agricultural firms, rural areas and farmers, pollution control players, tech innovation companies, high-end manufacturers, micro and small businesses and private firms in the Delta. 2. Improving supporting services for finance. (22) Shanghai shall boost institutions related to the G60 High-tech Corridor to issue VC-like bonds, and debt financing instruments, financial bonds, and corporate bonds for starting businesses and innovation, in interbank bond markets and exchange bond markets. (23) Shanghai shall support eligible tech innovation companies to go public, encourage IP service and assessment institutions to develop patent value assessment models or instruments to promote IP transactions and flows. Shanghai also needs to study and provide convenient exchange services to support foreign investors to directly participate in issuance and trading on the STAR market. (24) Shanghai shall establish the integrated and market-based credit system for the Yangtze River Delta to provide professional credit services for society. Relying on the national credit information sharing platform, Shanghai shall further refine the cross-regional credit information sharing mechanism, step up information collection, sharing, development and utilization to serve credit financing by micro and small businesses. It shall also support the Credit Reference Center of the People's Bank of China to fully cover lending information of firms and individuals in the Delta. It shall conduct regulatory cooperation and pilot the building of an off-site regulatory platform for credit institutions in the Delta. (25) Shanghai shall drive the integrated construction of the green financial service platform for the Delta. It shall promote the application of the green financial information management system, boost the connectivity of regional markets for trading environmental rights and accelerate the building of a green project library in the Delta. 3. Building and refining the financial policy coordination and information sharing mechanism in the Yangtze River Delta. (26) Shanghai shall build a unified financial stability assessment system, develop financial stability indices and establish an information sharing mechanism for financial stability in the Delta. It shall build an information sharing platform against financial risks and an information communication mechanism for anti-money laundering. It shall also stress data protection and management and strengthen cooperation on alternative dispute resolution (ADR) of disputes over financial consumption. (27) Shanghai shall boost sharing of financial statistical information in the Delta, and study the centralized detection and analysis framework to perform more forward-looking analysis on the economy and finance. (28) Shanghai shall promote communication on inclusive finance in the Delta, build an inclusive finance index system and prepare analysis reports on inclusive finance index together with other cities in the Delta. V. Protective measures (29) The People's Bank of China Shanghai Head Office shall organize the piloting of strengthening payment and settlement regulatory capabilities, and boost its credit system to build a same-city active-active disaster recovery center in Shanghai. The PBC shall study and drive the building of the Report Library on Trading in China's Financial Markets in Shanghai, integrate trading information on financial markets, improve detection capabilities and interface with relevant construction efforts in Xiong'an New Area. (30) The financial policies already introduced and to be introduced that are applicable to China (Shanghai) Pilot Free Trade Zone, and policy measures for financially supporting trade and investment liberalization and facilitation introduced by the national financial management authorities, if suitable for meeting Shanghai's real needs, can be piloted in Shanghai first. The People's Bank of China Shanghai Head Office shall develop the implementation rules based on the Opinions together with the Shanghai Office of the China Banking and Insurance Regulatory Commission and submit the rules to the competent authority for filing. The People's Bank of China China Banking and Insurance Regulatory Commission China Securities Regulatory Commission State Administration of Foreign Exchange Shanghai Municipal People's Government February 14, 2020 2020-02-14/en/2020/0214/1650.html
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Asshown in the statistics of the State Administration of Foreign Exchange (SAFE),in February 2020, the amount of foreign exchange settlement and sales by bankswas RMB 1020.0 billion and RMB 920.8 billion, respectively, with a settlementof RMB 99.1 billion. In the US dollar terms，the amount of foreign exchange settlement and sales bybanks was USD 145.9 billion and USD 131.7 billion, respectively, with a settlementof USD 14.2 billion. In particular, the amount of foreign exchange settlementand sales by banks for customers was RMB 754.6 billion and RMB 749.5 billion,respectively, with a settlement of RMB 5.1 billion; the amount of foreignexchange settlement and sales for banks themselves was RMB 265.4 billion andRMB 171.3 billion, respectively, with a settlement of RMB 94.1 billion. Duringthe period, newly signed contract amount of forward foreign exchange settlementand sales was RMB 158.6 billion and RMB 48.5 billion, respectively, with a net newlysigned contract amount of forward foreign exchange settlement of RMB 110.1billion. At the end of February, outstanding amount of forward foreign exchangesettlement and sales by the end of the current period was RMB 549.3 billion andRMB 421.3 billion, respectively, with a net outstanding amount of forward foreignexchange settlement of RMB 127.9 billion; the net Delta exposure of outstandingoptions was RMB -259.9 billion. DuringJanuary to February 2020, the accumulative amount of foreign exchangesettlement and sales by banks was RMB 2026.6 billion and RMB 1883.3 billion,with an accumulative settlement of RMB 143.3 billion. In the US dollar terms, theaccumulative amount of foreign exchange settlement and sales by banks was USD 291.4billion and USD 270.8 billion, with an accumulative settlement of USD 20.6billion. In particular, the accumulative amount of foreign exchange settlementand sales by banks for customers was RMB 1668.5 billion and RMB 1606.2 billion,respectively, with an accumulative settlement of RMB 62.4 billion; theaccumulative amount of foreign exchange settlement and sales for banksthemselves was RMB 358.1 billion and RMB 277.2 billion, respectively, with anaccumulative settlement of RMB 80.9 billion. During the period, newly signed contractamount of forward foreign exchange settlement and sales was RMB 257.8 billionand RMB 85.5 billion, respectively, with a net newly signed contract amount offorward foreign exchange settlement of RMB172.3 billion. InFebruary 2020, the amount of cross-border receipts and payments by non-banking sectorswas RMB 1921.2 billion and RMB 1854.1 billion, respectively, with a surplus ofRMB 67.1 billion.During January to February 2020, the accumulative amount of cross-borderreceipts and payments by non-banking sectors was RMB 3923.1 billion and RMB 3792.9billion, respectively, with an accumulative surplus of RMB 130.2 billion. Inthe US dollar terms, in February 2020, the amount of cross-border receipts and paymentsby non-banking sectors was USD 274.8 billion and USD 265.2 billion,respectively, with a surplus of USD 9.6 billion.During January to February 2020,the accumulative amount of cross-border receipts and payments by non-banking sectorswas USD 564.2 billion and USD 545.4 billion, respectively, with an accumulativesurplus of USD 18.7 billion. Please note that: a.Foreign exchange settlement and sales data forfew banks is incomplete due to the disease caused byCOVID-19. b.The StateAdministration of Foreign Exchange has revised the data on cross-borderreceipts and payments by non-banking sectors in January 2020 based on thelatest data, and released it through the “Data and Statistics” section of the official website ofthe State Administration of Foreign Exchange. Addendum: Glossaryand relevant 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-borderreceipts and 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. The cross-border receiptsand payments by non-banking sectors is based on cash basis, different from the accrual basis required by the Balance of Payments Statistics. The statistics merely reflects the cash flows between non-bankingsectors and non-residents and does not include bartertransactions or transactions with non-residents conducted by the banks themselves. Therefore, the scope of the statistics is narrowerthan that of the Balance of Payments Statistics. 2020-03-20/en/2020/0320/1648.html
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The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government, and the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and commercial banks in China, To implement the arrangements of the CPC Central Committee and the State Council, and make all-out efforts to control the NCP epidemic, the SAFE notifies as follows relevant issues on offering convenient foreign exchange policy in the epidemic prevention and control period: First, all the SAFE branches and sub-branches shall start the emergency response mechanism, and in line with the principle of handling special cases with special methods, guide the banks within their respective jurisdictions to streamline processes and materials for purchase and payment of foreign exchange for imports of epidemic prevention and control supplies needed by relevant authorities and local governments, so as to practically improve efficiency. Second, for foreign exchange donations for fighting the epidemic from domestic and foreign donors alike, banks can recognize the receipts and settle foreign exchange via the beneficiary's existing foreign exchange settlement account under the current account. The requirement of opening up separate foreign exchange account for donations has been suspended. Third, while handling foreign exchange settlement and payment of receipts related with prevention and control of the epidemic under the capital account, enterprises are not required to submit documents or certificates for each transaction beforehand. Banks will intensify ex-post random inspection on the authenticity of fund use of such enterprises. Fourth, external debt quota for enterprises can be removed, in case that it is really required for epidemic prevention and control. To facilitate cross-border financing, such enterprises can apply for external debt registration via the “Online Application System of Government Services of the SAFE” at http://zwfw.safe.gov.cn/asone. Fifth, banks shall keep a keen eye on individuals' demand for foreign exchange and encourage them to go through individual foreign exchange transactions via online channels like mobile banking. Sixth, for other special foreign exchange services in connection with epidemic prevention and control, banks can handle them first and report them to local foreign exchange authorities for filing. In addition, the effective date of the Circular of the State Administration of Foreign Exchange on Streamlining Foreign Exchange Accounts (Huifa No. 29, [2019]) will be extended from February 1 to March 2, 2020. Therefore, banks shall report relevant data using the original account type code before 8pm on February 28, make preparations in accordance with the above Circular from 8pm on February 28 to 8pm on March 1, and then use the updated account code to submit relevant data starting from March 2. This Circular will be effective as of the date of issuance. The branches and foreign exchange administrative departments of the SAFE shall forward this Circular to the central sub-branches and sub-branches of the SAFE and banks in their jurisdictions as soon as possible; and commercial banks shall also forward this Circular to their branches and sub-branches as quickly as possible. Please contact the SAFE for any problems arising during implementation. Tel: 010-68402416, 68402365 General Affairs Department of the State Administration of Foreign Exchange January 27, 2020 2020-01-27/en/2020/0127/1652.html
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The State Administration of Foreign Exchange (SAFE) has recently released the data on banks' sales and settlements of foreign exchange and their foreign-related receipts and payments for customers for February 2020. SAFE Press Spokesperson and Chief Economist Wang Chunying answered media questions on foreign exchange receipts and payments for the month. Q: Could you brief us on the characteristics of China's foreign exchange receipts and payments for February 2020? A: China's foreign exchange market, despite the impact of the epidemic of COVID-19, stayed generally stable in February, with key highlights as follows: first, the supply and demand remained balanced in the foreign exchange market. Banks' sales and settlements of foreign exchange registered a surplus of USD 14.2 billion in the month, indicating a basic equilibrium in the supply and demand in China's foreign exchange market considering other supply and demand factors including forward foreign exchange sales and settlements and options. Second, non-banking foreign-related receipts and payments continued to record net inflows. In the month, non-banking sectors including firms and individuals registered a surplus of USD 9.6 billion in foreign-related receipts and payments, up by 5% month-on-month. Third, China's foreign exchange reserves remained generally stable, with changes in size being a result of valuation factors like exchange rate conversion and asset price changes. Fourth, the RMB exchange rate fluctuated in two ways within the reasonable range and its expectations remained stable. China's foreign exchange market has become more rational, systematic and mature, with cross-border capital flows through major channels staying generally stable. On one hand, players' desire to settle and sell foreign exchange remained stable. In February, the settlement ratio, a measure of the desire to settle foreign exchange or the ratio of customers' selling foreign exchange to banks to their foreign-related foreign exchange receipts, hit 59%, up by 5 percentage points year-on-year; the sales ratio, a measure of the desire to buy foreign exchange, or the ratio of customers' buying of foreign exchange from banks to their foreign-related foreign exchange payments, was 62%, down by 3 percentage points year-on-year. On the other hand, foreign exchange sales and settlements and foreign-related receipts and payments under trade in goods and direct investment remained in surplus in February; and foreign investors increased their net holdings of domestic bonds by USD 14 billion, compared with a net increase of USD 1.4 billion in January. For the moment, epidemic prevention and control is gaining momentum, businesses are reopening in a systematic way, and policy measures to keep foreign trade and investment stable have been introduced one after another in China, suggesting the fundamentals sustaining long-term economic growth and the aspiration for development have not been changed. Moreover, China is opening its markets wider to the outside, keeps improving its business environment, and further internationalizes the capital market, with its RMB assets highly attractive in the globe, thus laying a solid foundation for the stability of China's foreign exchange market. 2020-03-20/en/2020/0320/1654.html