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FILE: Catalogue of Existing Effective Laws аnd Regulations on Foreign Exchange Administration (as of July 31, 2012) 2012-09-05/en/2012/0905/735.html
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Branches and Foreign Exchange Administration Departments of the various provinces, autonomous regions, and municipalities directly under the central government and the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all national banks: In order to further streamline administration and to delegate power to lower levels, diversify market players, promote the development of the foreign exchange market, adjust the relevant management policies regarding entry into inter-bank foreign exchange market by financial institutions, the Regulations of the People’s Republic of China on Foreign Exchange Administration are hereby notified as follows: I. After qualifying for spot foreign exchange settlement and sales business upon the approval of the State Administration of Foreign Exchange (SAFE) and qualifying for derivative product trading business upon the approval of the relevant financial regulatory departments, domestic financial institutions can, based on the prerequisite of meeting the technical specifications for the relevant inter-bank foreign exchange market business, become members of the inter-bank foreign exchange market and conduct spot trading and derivative product trading of RMB against foreign exchange. The SAFE will not require ex-ante qualifying approvals for entry into the inter-bank foreign exchange market. Financial institutions are required to submit for the record their internal operational procedures and risk management system for spot trading and derivative product trading of RMB against foreign exchange to the China Foreign Exchange Trade System (CFETS). II. The trading of RMB against foreign exchange conducted by financial institutions in the inter-bank foreign exchange market shall be conducted for the purpose of hedging risks arising from the exchange settlement and sale business for clients and for themselves, conducting market-making and proprietary transactions within the limit of the overall position of the foreign exchange settlements and sales, as well as engaging in hedging activities for themselves pursuant to the relevant regulations. Such financial institutions shall observe the laws and regulations, rules on inter-bank foreign exchange market transactions, clearing, and information, as well as the stipulations of the relevant financial regulatory authorities. III. Currency brokerage companies (including branches) incorporated with the approval of the banking regulatory authorities can, as specified by the foreign exchange administration, conduct foreign exchange brokerage business, such as derivative product trading of RMB against foreign exchange and trading of foreign exchange against foreign exchange and foreign exchange lending, and the SAFE will not require ex-ante qualifying approvals. When conducting foreign exchange brokerage business, the currency brokerage companies shall observe the relevant rules and regulations for the inter-bank foreign exchange market. IV. The Trading Center and the Inter-bank Market Clearing House Co., Ltd. (the “Shanghai Clearing House”) shall, in line with the requirements of this Circular, adjust the relevant business rules and systems accordingly, and shall provide effective technical support and services. The Trading Center and the Shanghai Clearing House shall be responsible for the daily monitoring of inter-bank trading and clearing of RMB against foreign exchange and shall promptly report to the SAFE whenever any abnormal transactions or clearing situations are discovered. V. Financial institutions shall observe professional ethics and follow market practices so as to promote self-disciplined management and standardized development of the foreign exchange market. VI. This Circular will come into force as of January 1, 2015. At the same time, the Reply of the SAFE on Relevant Issues Concerning the Conduct of RMB and Foreign Currency Swap Transactions by the Bank of China on the Inter-bank Foreign Exchange Market (Huifu No. 61[2006]), the Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Introduction of Renminbi-Against-Foreign Exchange Options Trading (Huifa No. 8 [2011]), the Circular of the State Administration of Foreign Exchange on Adjustments to the Administration of Some Businesses in the Inter-bank Foreign Exchange Market (Huifa No. 30 [2012]), and the Circular of the State Administration of Foreign Exchange on Adjustments to the Administration of the Renminbi-against-Foreign Exchange Derivatives Business (Huifa No.46 [2013]) will be repealed. Relevant issues involving management of entry into the inter-bank foreign exchange market in other documents shall be subject to this Circular. Upon receipt, the branches and the Foreign Exchange Administration Departments of the SAFE shall promptly distribute this Circular to the financial institutions within their respective jurisdictions. State Administration of Foreign Exchange December 5, 2014 2014-12-17/en/2014/1217/751.html
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FILE: Directory of the Major Existing Laws аnd Regulations in Effect on Foreign Exchange Administration (as of July 31,2013) 2013-08-12/en/2013/0812/738.html
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Pursuant to the Regulations of the People’s Republic of China on Foreign Exchange Administration and the relevant regulations, the State Administration of Foreign Exchange has formulated the Regulations on Foreign Exchange Administration of Overseas Portfolio Investments by Qualified Domestic Institutional Investors, which are hereby promulgated and shall enter into effect as of the date of promulgation. Attachment: Regulations on Foreign Exchange Administration for Overseas Portfolio Investments by Qualified Domestic Institutional Investors State Administration of Foreign Exchange August 21, 2013 FILE: Regulations on Foreign Exchange Administration for Overseas Portfolio Investments by Qualified Domestic Institutional Investors 2013-08-27/en/2013/0827/739.html
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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
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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
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In order to strengthen supervision of cross-border capital flows, perfect examination of the authenticity and conformity of export transactions and foreign exchange collection and settlement, the State Administration of Foreign Exchange (SAFE), the Ministry of Commerce, and the General Administration of Customs (GACC) recently jointly promulgated the "Measures for the Online Inspection of Foreign Exchange Collection and Settlement of Export Proceeds" (hereinafter referred to as "the Measures"), and decided to implement management of online inspection of foreign exchange collection and settlement of export proceeds beginning from July 14, 2008. The SAFE also published the "Notice on Issues regarding Implementation of the Measures for the Online Inspection of Foreign Exchange Collection and Settlement of Export Proceeds." Implementation of online inspection of foreign exchange collection and settlement of export proceeds will check on conditions regarding foreign exchange collection and settlement of export proceeds of enterprises under the condition that their exported goods go through customs, with a view to effectively determining the actual trade background of capital flows under the item of trade in goods so as to ensure the authenticity and conformity of exports and foreign exchange collection and settlement. The Measures stipulate that the foreign exchange collected by an enterprise from exports (including the advance receipts) shall first be put into a to-be-checked account for foreign exchange collected from exports. When an enterprise sells or transfers foreign exchange from the to-be-checked account, the bank shall log onto the online inspection system for foreign exchange collection and settlement of export proceeds and make a note regarding the receivable amount of foreign exchange under the corresponding trade category in the inspection system. The online inspection system for foreign exchange collection and settlement of export proceeds was established by the SAFE, the Ministry of Commerce, and the General Administration of Customs, relying on the China E-port and drawing on the successful experience of online inspection of import payments in foreign exchange in 1998. The online inspection system uses electronic information networking to replace the traditional paper vouchers and certificates to check and supervise foreign exchange collection and settlement under the item of trade in goods. This approach is convenient for banks and enterprises in terms of operations, saving them considerable time, raising efficiency, and also improving regulatory efficacy. In order to continue providing conveniences for legal and standardized operations of trading activities for enterprises, adequate consideration will be given to the different features of each trading category and each industry by providing differential treatment in identifying the corresponding relationship between authenticity and conformity between exports and foreign exchange collection and settlement. To facilitate implementation of the online inspection system for foreign exchange collection and settlement of export proceeds, to perfect statistical supervision of the external debt, to restrict the scale of the short-term external debt, the SAFE simultaneously released the "Circular on Issues concerning Implementation of External Debt Registration and Management under the Item of Corporate Trade in Goods," mandating registration and management of corporate export advance receipts and import deferred payments. Strengthening of the follow-up monitoring of the advance receipts and prospective actual exports is necessary to prevent capital without a real trade background from flowing into China through trade channels to obtain speculative income, while the improvement in the supervision and management of import deferred payments is conducive to controlling potential debt risks and preventing huge capital outflows in the future. While strengthening management of trade credits, the administration will give adequate consideration to the actual needs of special industries and enterprises, such as large complete-sets of equipment and the shipping industry. The online inspection system for foreign exchange collection and settlement of export proceeds will run on a trial basis as of July 14, 2008 and will be put into formal operation as of August 4, 2008. Registration of export advance receipts and import deferred payments will be implemented as of July 14, 2008 and October 1, 2008 respectively. Enforcement of the above two policies will further perfect the methods for inspecting the authenticity of trade in goods, which will help improve China's foreign trade environment, regulate capital inflows and outflows of foreign exchange under the item of trade in goods, resolve the problem of discrepancies between exports and foreign exchange collection and settlement, promote the smooth and healthy development of our country's foreign economy, prevent international economic risks, and create a more favorable environment for further reform and opening-up. (End) 2008-07-02/en/2008/0702/871.html
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Hu Xiaolian, Deputy Governor of the People's Bank of China and Administrator of the State Administration of Foreign Exchange (SAFE), recently visited Dalian , Suzhou , and Wuhan to carry out onsite investigations on the current foreign exchange situation and on work to strengthen supervision over cross-border capital flows. Taking part in the investigations were comrades from the Ministry of Commerce, the General Administration of Customs, and other relevant departments. Ms.Hu held individual study meetings with the foreign exchange administrative departments in Northeast China, East China, and Central China . She also held informal discussions with import and export enterprises and conducted a field survey of foreign-related enterprises. Ms.Hu pointed out that although the domestic economy maintained rapid development this year, uncertainties are increasing and the macro-control situation remains serious, thus requiring adherence to the guideline of the "Two Preventions and One Tightening Measure," as set out by the central government to implement its instructions on strengthening supervision over cross-border capital inflows and outflows in foreign exchange administrative work and to improve the status of the balance of payments, thus ensuring China's economic and financial security. As a result of the aftermath of the U.S. subprime lending crisis and the impact of the currency adjustments in the major countries, the world economy witnessed a recession this year, with international financial markets becoming increasingly unstable. The changing exchange rates of the major currencies and prices of international energy and grain have had an extensive effect on the direction and scale of international capital flows. China 's efforts to avoid the impact of international short-term speculative capital and to safeguard the security of the national economy face greater challenges. In order to improve the performance of national macro-control, measures should be taken to strengthen the management of cross-border capital flows; one major action is to prevent speculative money from being transferred across borders through trade, commercial credits, and other channels. We should strengthen and improve verification of the authenticity and consistency of foreign exchange receipts and expenditures under the current account and actual trade deals and focus on enhancing control and management over short-term external debt by improving management of trade-related foreign exchange collection and sales and trade credits. Ms.Hu emphasized that improvements in the management of trade-related foreign exchange collection and sales and trade credits will promote convenient trade by adopting advanced information technology to fully achieve the effects of management, to simplify procedures, to raise efficiency, and to carry out various and proper measures for different industries and enterprises. She also pointed out that the policy adjustments according to the changing situations to ensure the authenticity of cross-border capital flows and its consistency with trade deals will help foster a good business environment for enterprises and will promote the smooth development of China 's economy and finance. During the investigation, Hu fully affirmed the efforts made by local foreign exchange administrations to carefully implement the requirements by the central government to strengthen supervision over cross-border capital flows. She added that the current work to facilitate the balance of payments equilibrium still faces great challenges and every foreign exchange administrative department at all levels should work hard to fulfill its duties and to enhance the overall level of foreign exchange administration. 2008-06-24/en/2008/0624/870.html
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Press Release of the SAFE October 10, 2009 For the purpose of further improving foreign exchange administration of cross-border securities investment, steadily promoting implementation of the qualified institutional investor (QII) system, facilitating the regulated opening-up of Chinas capital market, and guiding funds in an orderly two-way flow, the State Administration of Foreign Exchanges (SAFE) currently is promulgating the Regulations for Foreign Exchange Administration of Domestic Securities Investments by Qualified Foreign Institutional Investors (QFII) (hereinafter referred to as the Regulations) and the Circular of the State Administration of Foreign Exchange (SAFE) on Relevant Issues Concerning Foreign Exchange Administration of Overseas Securities Investments by Fund Management Companies and Securities Companies (hereinafter referred to as the Circular). Based on a summary of previous supervisory experience, the Regulations and the Circular revise and regulate the system of foreign exchange administration of QIIs, and specify the relevant regulatory requirements. First, they further simplify the relevant operations in light of investment facilitation, including simplifying the investment quota application procedures and required materials, facilitating the opening of the relevant accounts, and managing the remittance/exchange of funds, and so forth. Second, they encourage foreign institutional investors to make medium- and long-term securities investments in China. The Regulations adjust the limit on the investment quota for a single qualified foreign institutional investor (QFII) from USD 800 million to USD 1 billion, and reduce to 3 months the principal lock-up period for pension funds, insurance funds, Chinas open-ended funds, and so forth for medium- and long-term investments. Third, in order to guarantee consistency between institutions that are awarded an investment quota and the actual user of the quota, they specifically stipulate that QIIs shall not in any form transfer or resell their investment quotas. Fourth, for the purpose of avoiding the risks of cross-border securities investments and promoting the regulated opening-up of the capital market, they further enhance the relevant requirements for statistical monitoring and post-event supervision, as well as the reporting and filing responsibilities of the respective QIIs and their custodians. Meanwhile, in order to further improve the transparency of administrative licensing, the SAFE also issued a statement on the approvals of QII investment quotas up to the end of September, 2009, and in the future it will issue such quarterly statements on the SAFE government Web site. (End.) 2009-11-13/en/2009/1113/904.html
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At the end of 2007, China 's outstanding external debt (excluding that of Hong Kong SAR, Macao SAR, and Taiwan Province ) reached USD 373.618 billion, an increase of USD 50.63 billion or 15.68% compared with that at the end of 2006. Specifically, the outstanding long- and medium-term external debt (with the remaining term) reached USD 153.534 billion, an increase of USD 14.174 billion or 10.17% compared with that at the end of 2006, accounting for 41.09% of the total outstanding external debt. The outstanding short-term external debt totaled USD 220.084 billion, an increase of USD 36.456 billion or 19.85% compared with that at the end of 2006, accounting for 58.91% of the total outstanding external debt. In terms of China 's total outstanding external debt, the outstanding registered external debt reached USD240.518 billion and the balance of trade credit was USD 133.1 billion. In terms of the outstanding registered external debt, the outstanding sovereign debt borrowed by ministries under the State Council was USD 34.886 billion, accounting for 14.51%; the outstanding debt of Chinese-funded financial institutions was USD 80.317 billion, accounting for 33.39%; the outstanding debt of foreign-funded enterprises was USD 74.004 billion, accounting for 30.77%; the outstanding debt of foreign-funded financial institutions in China was USD 46.307 billion, accounting for 19.25%; the outstanding debt of Chinese-funded enterprises was USD 4.685 billion, accounting for 1.95%; and the outstanding debt of other institutions was USD 319 million, accounting for 0.13%. The amount of registered long- and medium-term external borrowing in 2007 was USD 36.016 billion, an increase of USD 9.983 billion or 38.35% over that in the previous year. The principal repayment under the long- and medium-term debt was USD 20.267 billion, an increase of USD 2.368 billion or 13.23% over that in the previous year. The interest payment was USD 4.958 billion, an increase of USD 1.853 billion or 59.68% over that in the previous year. Initial calculations reveal that the debt service ratio in 2007 was 1.98%, the ratio of outstanding external debts to foreign exchange income was 27.84%, the ratio of outstanding external debts to GDP was 11.52%, and the ratio of short-term external debts to foreign exchange reserves was 14.40%. All of these indexes are within the safe range of international standards. 2008-04-09/en/2008/0409/865.html