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Q: The latest data disseminated by the People's Bank of China on foreign exchange reserves show that China's foreign exchange reserves as at the end of June 2018 rose USD 1.5 billion month on month. Could you tell us why such a change occurred? What would you say about the future trends of foreign exchange reserves? A: As at the end of June 2018, China's foreign exchange reserves recorded USD 3.1121 trillion, up by USD 1.5 billion or 0.05% month on month. In June China's foreign exchange market performed stably and the balance of payments found an adaptive equilibrium. But global financial markets were more volatile and the US Dollar Index picked up by a slight 0.5% because major non-USD currencies declined against the US dollars and asset prices changed. As a result, China's foreign exchange reserves climbed marginally. In the year to date, China's economy has maintained stability while ensuring progress and gained momentum for growth. But due to divergence of the global economic recovery and rising trade frictions, some emerging economies have been under the pressure of capital outflows and currency depreciation. Nevertheless, in China, market expectations have been stabilized thanks to the robust fundamentals, and cross-border capital flows have remained steady. Looking ahead, China will focus on the supply-side structural reform, deepening the reform and opening up and strengthening innovation drive, indicating China's economy is sophisticated enough to maintain stable growth, which will provide a fundamental guarantee for the stable operation of the foreign exchange market. On the other hand, as trade protectionism rises, the FED continues to hike interest rates and reduce balance sheets, and global liquidity is tightened, the uncertainties of external environment have been heightened. Under such factors at home and abroad, China's foreign exchange reserves are expected to stay stable amid fluctuations. 2018-07-09/en/2018/0709/1466.html
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The People's Bank of China, the Ministry of Public Security of the PRC and the State Administration of Foreign Exchange issued the following reminder: Recently, some online platforms have been illegally engaged in foreign exchange margin transactions (also called foreign exchange security deposit, generally referring to such circumstance where customers invest in a certain amount of funds as deposit and conduct foreign exchange transactions within expanded investment amount at a certain leverage multiple), which has severely disrupted the financial order, resulted in property loss of the social public, causing adverse impacts and engendering serious potential risks: I. So far, the People's Bank of China, China Banking and Insurance Regulatory Commission, China Securities Regulatory Commission as well as the State Administration of Foreign Exchange and its branches haven't approved any institution to engage in foreign exchange margin business either directly or on an agency basis. II. In accordance with the Circular on Sternly Investigating and Punishing Illegal Foreign Exchange Futures Transactions and Foreign Exchange Margin Trading Activities (Zhengjianfazi No. 165 [1994]), any unauthorized transaction of foreign exchange margin by an unapproved institution is illegal; it is also an offence for a client (organization or individual) to entrust an unapproved institution to conduct foreign exchange margin transactions (whether in foreign currency or renminbi as security deposit). III. The public should be fully aware of the risks involved in foreign exchange margin activities, improve risk prevention awareness and ability, and guard against property losses caused by illegal transactions. IV. The general public should actively report to the relevant authorities if they find clues of illegal and criminal activities. 2018-09-14/en/2018/0914/1464.html
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Q: The latest data on foreign exchange reserves disseminated by the People's Bank of China show that China's foreign exchange reserves as of the end of March 2018 rose by USD 8.3 billion month on month. Could you brief us on the causes of such change? What will be the future trends? A: As at the end of March 2018, China posted USD 3.1428 trillion in foreign exchange reserves, up by USD 8.3 billion or 0.27% month on month. In March, China's foreign exchange supply and demand in major channels found a basic equilibrium, indicating a balanced foreign exchange market. Due to the combined impact of the rising risk aversion in the global financial market, appreciation of major non-USD currency exchange rates against the US dollars and changes in asset prices, China's foreign exchange reserves recovered. Since the beginning of the year, China's economic performance has sustained a strong momentum for growth while maintaining stability, with economic structure upgrading optimized and quality/benefits improving. The RMB exchange rate against the USD has fluctuated in two directions and maintained basic stability. The overall equilibrium in cross-border capital has been strengthened. Going forward, as the global economy continues to recover, the domestic economic stability is consolidated with a strong momentum for growth, and the reform and opening up goes deeper, China's balance of payments will sustain a basic equilibrium and cross-border capital flows will stay stable. Meanwhile, as the global economic and political environments remain complex and changing, the financial market may continue to be uncertain. Under such circumstances, China's foreign exchange reserves are expected to remain stable. 2018-04-08/en/2018/0408/1465.html
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To implement the spirit of the central government on deepening the financial reform and opening up, the State Administration of Foreign Exchange (SAFE) has recently released the Regulations on Foreign Exchange Administration of Domestic Securities Investments by Qualified Foreign Institutional Investors (Announcement No. 1 [2018] of the State Administration of Foreign Exchange, "Regulations"), and issued the Circular of the People's Bank of China and the State Administration of Foreign Exchange on the Management of Domestic Securities Investment by RMB Qualified Foreign Institutional Investors (Yinfa No. 157 [2018], "Circular") together with the People's Bank of China, so as to improve administration of domestic securities investment by QFIIs/RQFIIs and further facilitate cross-border securities investment. Major policies and measures are as follows: first, cancel the requirement that the outward remittances by QFIIs should be no higher than 20%, and they are allowed to entrust a custodian with handling outward remittances. Second, cancel the requirement on the lock-up period of principal for QFIIs/RQFIIs, and they are allowed to remit out principal based on investment situations. Third, QFIIs/RQFIIs are allowed to engage in foreign exchange hedging to offset the risks arising from foreign exchange rate in domestic investment. The Regulations and the Circular will become effective as of issuance. (The end) 2018-06-12/en/2018/0612/1455.html
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On September 28, Pan Gongsheng, administrator of the State Administration of Foreign Exchange (SAFE) met with the former Federal Reserve Chairman Ben Bernanke and his delegation, invited Mr. Bernanke to give a special speech on "Reflection on the 10th Anniversary of the Global Financial Crisis" and exchanged views on topics such as coping with international financial crisis, financial regulatory reform and trend of the US economic and monetary policies. 2018-09-29/en/2018/0929/1467.html
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In first two months of 2020,China’s international trade in goods and services recorded receipts of RMB 2194.3 billion and payments of RMB 2456.9 billion based on statistics of balance of payments (BOP), registering a deficit of RMB 262.6 billion. Specifically, trade in goods registered receipts of RMB 1955.6 billion,payments of RMB 1991.7 billion, recording a deficit of RMB 36.1 billion;trade in services recorded receipts of RMB 238.7 billion,payments of RMB 465.2 billion, resulting in a deficit of RMB 226.6 billion. In the US dollar terms, in first two months of 2020, China's BOP-based receipts and payments of international trade in goods and services were USD 315.3 billion and USD 353.1 billion respectively, registering a deficit of USD 37.7 billion.Specifically, the receipts and payments from trade in goods were USD 281 billion and USD 286.2 billion respectively, resulting in a deficit of USD 5.2 billion. Trade in services registered receipts and payments of USD 34.3 billion and USD 66.9 billion respectively, recording a deficit of USD 32.6 billion. (End) InternationalTrade in Goods and Services of China (Based on the BOP statistics) January to February 2020 Item In 100 million of RMB In 100 million of USD Goods and services -2626 -377 Credit 21943 3153 Debit -24569 -3531 1. Goods -361 -52 Credit 19556 2810 Debit -19917 -2862 2. Services -2266 -326 Credit 2387 343 Debit -4652 -669 2.1Manufacturing services on physical inputs owned by others 158 23 Credit 163 23 Debit -5 -1 2.2Maintenance and repair services n.i.e 42 6 Credit 68 10 Debit -26 -4 2.3Transport -530 -76 Credit 467 67 Debit -997 -143 2.4Travel -2089 -300 Credit 237 34 Debit -2326 -334 2.5Construction 12 2 Credit 101 14 Debit -89 -13 2.6Insurance and pension services -62 -9 Credit 33 5 Debit -95 -14 2.7Financial services 15 2 Credit 38 5 Debit -23 -3 2.8Charges for the use of intellectual property -169 -24 Credit 90 13 Debit -259 -37 2.9Telecommunications, computer and information services 11 2 Credit 347 50 Debit -335 -48 2.10Other business services 388 56 Credit 819 118 Debit -430 -62 2.11Personal, cultural, and recreational services -23 -3 Credit 8 1 Debit -31 -4 2.12Government goods and services n.i.e -19 -3 Credit 17 2 Debit -36 -5 Notes: 1. The trade in goods and services in this table refers to the transactions between residents and non-residents, based on the same standard as that for BOP statement. The monthly data are preliminary and may be inconsistent with the quarterly data in the BOP statement. 2. The data on international trade in goods and services are prepared in USD, and the RMB data for the current month is derived by converting the USD data at the monthly average central parity rate of the RMB against the USD. 3. This table employs rounded-off numbers. Definition ofIndicators: Goods and Services: refers to the trade in goods and services between residents and non-residents, which is based on the same standard as that for the BOP statement. 1. Goods:refers to transactions in goods whereby the economic ownership is transferred between the Chinese residents and non-residents. The credit side records export of goods, while the debit side records import of goods. The data of goods account are mainly from the customs statistics of imports and exports, but differ from the statistics of the customs mainly in the following aspects:first, the goods in the BOP statement only reflect the goods whose ownership has been transferred (e.g. goods under the trade modes such as general tradeand processing trade with imported materials), while the goods whose ownership is not transferred (e.g. manufacturing services with supplied materials or with exported materials) are included in the statistics of trade in services instead of the statistics of trade in goods; second, as required by the BOP statistics, the goods imported and exported are valued on the FOB basis, but as required by the customs, the goods exported are valued on the FOB basis, whereas goods imported are on the CIF basis. Therefore, for the purpose of the BOP statistics, the international transport and insurance premiums are taken out from the value of imported goods and included in the trade inservices; and third, the data on net export of goods in merchanting which are not included in the customs statistics are supplemented. 2. Services:includes manufacturing services on physical inputs owned by others,maintenance and repair services n.i.e, transport, travel,construction, insurance and pension services, financial services, charges for the use of intellectual property, telecommunications, computer and information services, other business services, personal, cultural and recreational services, and government goods and services n.i.e. The credit side records services supplied, while the debit side records services received. 2.1 Manufacturing services on physical owned by others: processor only provides processing, assembly, packaging and other services and charges service fee from the owner, while the ownership of the goods is not transferred between the owner and the processor. The credit side recordsthe manufacturing services supplied by the Chinese residents on physical inputs owned by non-residents, and vice versa for debit side. 2.2 Maintenance and repair services: referto the maintenance and repair services supplied by residents to non-residentsor vice versa on goods and equipment (such as vessel, aircraft, and other transportation facility) owned by the receiving party. The credit side recordsthe maintenance and repair services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.3 Transport:refers to the process of transporting people and goods from one place to another, and the relevant supporting and auxiliary services, as well as postaland delivery services. The credit side records the international transport,postal and delivery services supplied by residents to non-residents, and vice versa for debitside. 2.4 Travel:refers to goods consumed and services purchased by travelers in various economies as non-residents. The credit side records the goods and services provided by the Chinese residents to non-residents who have stayed in China for less than one year, as well as non-residents studying abroad and seeking medical treatment for in definite period of stay. The debit side records the goods and services purchased by the Chinese residents when traveling, studying or seeking medical services abroad from non-residents. 2.5 Construction services:refer to the establishment, renovation, maintenance or expansion of fixed assets in the form of buildings, land improvement, roads, bridges and dams and other engineering buildings of engineering nature, relevant installation,assembly, painting, pipeline construction, demolition and project management,as well as site preparation, measurement and blasting and other special services. The credit side records the construction services provided by the Chinese residents outside the economic territory. The debit side records the construction services received by the Chinese residents in the Chinese economic territory from non-residents. 2.6 Insuranceand pension services: refers to various insurance services and commission to agents related with insurance transaction. The credit side records the life insurance and annuity, non-lifeinsurance, reinsurance, standardized guarantee services and relevant supporting services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.7 Financial services: refer to financial intermediation and supporting services, excluding those covered by insurance and pension services. The credit side records the financial intermediation and supporting services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.8 Charges for the use of intellectual property:refer to licensed use of intangible, non-productive/non-financial assets and exclusive rights between residents and non-residents and the licensed use of existing original works or proto types. The credit side records the intellectual property-related services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.9 Telecommunications, computer and information services: refer to communications services between residents and non-residents and transactions of services related to computer data and news, excluding commercial services delivered via telephone, computer and Internet. The credit side records the telecommunications, computer and information services supplied by residents tonon-residents, andvice versa for debit side. 2.10 Other business services: refer to other types of services between residents and non-residents, including research and development services, professional and management consulting services,technical and trade-related services. The credit side records the other business services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.11 Personal,cultural and recreational services: refer to transactions of personal, cultural and recreational services between residents and non-residents, including audiovisual and related services (films,radio, television programs and music recordings) and other personal, culturaland recreational services (health, education, etc.). The credit side records the related services supplied by the Chinese residents to non-residents, and vice versa for debitside. 2.12Government goods and services n.i.e:refer to various goods and services provided and purchased by governments and international organizations not included in other categories of goods and services. The credit side records the goods and services not included elsewhere and supplied by the Chinese residents to non-residents, and vice versa for debit side. 2020-03-27/en/2020/0327/1661.html
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As at the end of 2019, China recorded RMB 14.3519 trillion in outstanding external debt denominated in both domestic and foreign currencies (equivalent to USD 2.0573trillion, 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 5.9435 trillion (USD 852.0 billion), accounting for 41%; while the outstanding short-term external debt was RMB 8.4084 trillion (USD 1.2053trillion), taking up 59%, including 43% trade-related credit. In terms of institutions and sectors, the outstanding debt of government totaled RMB1.8901 trillion(USD 270.9billion), accounting for 13%; the outstanding debt of the central bank totaled RMB 253.4 billion (USD 36.3 billion), accounting for 2%; the outstanding debt of banks totaled RMB 6.4037 trillion (USD 918.0 billion), taking up 45%; the outstanding debt of other sectors(including inter-company lending under direct investments) totaled RMB 5.8047 trillion (USD 832.1 billion), taking up 40%; In terms of debt instruments, the outstanding of loans was RMB 3.1784 trillion (USD 455.6 billion), accounting for 22%; the outstanding of trade credit and prepayment was RMB 2.5417 trillion (USD 364.3billion), accounting for 18%; the outstanding of currency and deposits was RMB 2.9467 trillion (USD 422.4 billion), accounting for 20%; the outstanding of debt securities was RMB 3.6928 trillion (USD 529.3 billion), accounting for 25.5%; the Special Drawing Rights (SDR) allocation amounted to RMB 67.4 billion (USD 9.7billion), accounting for 0.5%. The outstanding debt of inter-company lending under direct investments totaled RMB 1.6725 trillion (USD 239.8 billion), accounting for12%; and the outstanding of other debt liabilities was RMB 252.4billion (USD 36.2 billion), making up 2%. With respect to currency structures, the outstanding external debt in domestic currency totaled RMB 5.078 trillion (USD 727.9 billion), accounting for 35%; the outstanding external debt in foreign currencies (including SDR allocation) totaled RMB 9.2739 trillion (USD 1.3294 trillion), accounting for 65%. 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 for5%, the JPY debt accounted for 2%, the SDR and other foreign currency-denominated external debt accounted for 2%. As at the end of 2019，the liability ratio was 14.3 percent, the debt ratio was 77.8 percent, the debt servicing ratio was 6.7 percent, and the ratio of short-term external debt to foreign exchange reserves was 38.8 percent. China’s major external debt metrics were all within the internationally recognized thresholds,indicating that the external debt risk is controllable on the whole. In addition, SAFE revised the outstanding external debt data from the end of 2018 to the end of September 2019 based on the latest data of the distributed and unremitted profits of foreign-invested enterprises, and released it in the "Data and Statistics" column of the SAFE's official website. For the interpretation of China's outstanding external debt data at the end of 2019, please refer to the "Balance of Payments Report of China (2019)". Appendix Definition of terms and interpretations External debt classificationby 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 contractterm 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 tothe difference between the time of payment and the time of the goods ownership transfer, which include credit directly provided by the supplier (e.g., theoverseas 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. Liability ratio refers to the ratio of outstanding external debt as of the end of the year to the GDP for the year. Debt ratio refers to the ratio of the outstanding external debt as of the end of the year to the export revenue from trade in goods and services for the year in the balance of payments. Debt servicing ratio refers to the ratio of the repayment of the principal and payment of interest on external debt for the year (the sum of the repayment of the principal and payment of interest on medium- and long-term external debt and the payment of the interest of short-term external debt) to the export revenue from trade ingoods and services for the year in the balance of payments. The internationally recognized thresholds for external debt risk indicators - liability ratio, debtratio, debt servicing ratio and ratio of short-term external debt to foreign exchange reserves are 20 percent, 100 percent, 20 percent and 100 percent respectively. Annexed table：China’s Gross External Debt Position by Sector, End of December 2019 End of December 2019 End of December 2019 （Unit:100 million RMB） （Unit:100 million US dollars） General Government 18901 2709 Short-term 709 102 Currency and deposits 0 0 Debt securities 709 102 Loans 0 0 Trade credit and advances 0 0 Other debt liabilities 0 0 Long-term 18192 2607 Currency and deposits 0 0 Debt securities 0 0 Loans 14966 2145 Trade credit and advances 3226 462 Other debt liabilities 0 0 Currency and deposits 0 0 Central Bank 2534 363 Short-term 1773 254 Currency and deposits 755 108 Debt securities 1018 146 Loans 0 0 Trade credit and advances 0 0 Other debt liabilities 0 0 Long-term 761 109 Special drawing rights 674 97 Currency and deposits 0 0 Debt securities 0 0 Loans 0 0 Trade credit and advances 0 0 Other debt liabilities 87 12 Other Depository Corporations 64037 9180 Short-term 47598 6823 Currency and deposits 28691 4113 Debt securities 3733 535 Loans 14996 2150 Trade credit and advances 0 0 Other debt liabilities 178 25 Long-term 16439 2357 Currency and deposits 0 0 Debt securities 11393 1633 Loans 4985 715 Trade credit and advances 0 0 Other debt liabilities 62 9 Other Sectors 41322 5923 Short-term 29916 4288 Currency and deposits 21 3 Debt securities 188 27 Loans 3785 543 Trade credit and advances 24973 3580 Other debt liabilities 948 136 Long-term 11406 1635 Currency and deposits 0 0 Debt securities 4920 705 Loans 4792 687 Trade credit and advances 445 64 Other debt liabilities 1249 179 Direct Investment: Intercompany Lending 16725 2398 Debt liabilities of direct investment enterprises to direct investors 10341 1482 Debt liabilities of direct investors to direct investment enterprises 695 100 Debt liabilities to affiliated enterprises 5688 816 Gross External Debt Position 143519 20573 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. 2020-03-27/en/2020/0327/1658.html
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In the fourth quarter of 2019, China's current account registered a surplus of RMB 285.0 billion, and the capital and financial accounts recorded a surplus of RMB 155.0 billion. The financial account (excluding reserve assets) recorded a surplus of RMB 111.0 billion, and reserve assets decreased by RMB 44.0 billion. In 2019, China's current account registered a surplus of RMB 976.8 billion, and the capital and financial accounts recorded a surplus of RMB 388.4 billion.The financial account ( excluding reserve assets) recorded a surplus of RMB 254.5 billion, and reserve assets decreased by RMB 136.2 billion. In the US dollar terms, in the fourth quarter, China's current account recorded a surplus of USD 40.5 billion, including a surplus of USD 122.0 billion under trade in goods, a deficit of USD 59.4 billion under trade in services, a deficit of USD 24.7 billion under primary income and a surplus of USD 2.6 billion under secondary income. The capital and financial accounts registered a surplus of USD 22.0 billion, including a deficit of USD 2 million under the capital account, and a surplus of USD 15.8 billion under the financial account (excluding reserve assets), and reserves assets decreased by USD 6.3 billion. In the US dollar terms, in 2019, China's current account recorded a surplus of USD 141.3 billion, including a surplus of USD 425.3 billion under trade in goods, a deficit of USD 261.1 billion under trade in services, a deficit of USD 33.0 billion under primary income and a surplus of USD 10.3 billion under secondary income. The capital and financial accounts recorded a surplus of USD 56.7 billion, including a deficit of USD 300 million under the capital account, a surplus of USD 37.8 billion under the financial account (excluding reserve assets), and reserves assets decreased by USD 19.3 billion. In SDR terms, in the fourth quarter, China posted a surplus of SDR 29.5 billion under the current account, and a surplus of SDR 16.0 billion under the capital and financial accounts. The financial account (excluding reserve assets) registered a surplus of SDR 11.5 billion, and reserves assets decreased by SDR 4.5 billion. In SDR terms, in 2019, China posted a surplus of SDR 102.4 billion underthe current account, and a surplus of SDR 40.9 billion under the capital and financial accounts. The financial account (excluding reserve assets) registered a surplus of SDR 27.1 billion, and reserves assets decreased by SDR 14.1 billion. The SAFE has revised the BOP data for each quarter since 2018 according to the latest data and released it through the section of "Data andStatistics" at the official website of the SAFE. In addition, in order to facilitate understanding of the data of Balance of Payments among all social groups, the BOP Analysis Team of the SAFE released China’s Balance of Payments Report 2019. (End) AbridgedBalance of Payments, Q4 2019 Item Line No. RMB 100 million USD 100 million SDR 100 million 1. Current Account 1 2,850 405 295 Credit 2 53,943 7,672 5,579 Debit 3 -51,093 -7,266 -5,284 1. A Goods and Services 4 4,402 626 455 Credit 5 50,246 7,146 5,196 Debit 6 -45,845 -6,520 -4,741 1.A.a Goods 7 8,578 1,220 887 Credit 8 45,608 6,486 4,717 Debit 9 -37,030 -5,266 -3,830 1.A.b Services 10 -4,176 -594 -432 Credit 11 4,639 660 480 Debit 12 -8,814 -1,254 -912 1.B Primary Income 13 -1,736 -247 -180 Credit 14 3,238 461 335 Debit 15 -4,974 -707 -514 1.C Secondary Income 16 184 26 19 Credit 17 458 65 47 Debit 18 -274 -39 -28 2. Capital and Financial Account 19 1,550 220 160 2.1 Capital Account 20 0 0 0 Credit 21 4 1 0 Debit 22 -4 -1 0 2.2 Financial Account 23 1,550 220 160 Assets 24 -4,305 -612 -445 Liabilities 25 5,854 833 605 2.2.1 Financial Account Excluding Reserve Assets 26 1,110 158 115 2.2.1.1 Direct Investment 27 1,971 280 204 Assets 28 -1,986 -282 -205 Liabilities 29 3,957 563 409 2.2.1.2 Portfolio Investment 30 1,048 149 108 Assets 31 -1,844 -262 -191 Liabilities 32 2,892 411 299 2.2.1.3 Financial Derivatives (other than reserves) and Employee Stock Options 33 -96 -14 -10 Assets 34 -84 -12 -9 Liabilities 35 -12 -2 -1 2.2.1.4 Other Investment 36 -1,812 -258 -187 Assets 37 -830 -118 -86 Liabilities 38 -983 -140 -102 2.2.2 Reserve Assets 39 440 63 45 3. Net Errors and Omissions 40 -4,399 -626 -455 Notes: 1. Thestatement is compiled according to BPM6. Reserve assets are included in capitaland financial accounts. 2."Credit" is presented as positive value while "debit" asnegative value, and the difference is the sum of the "Credit" and the"Debit". All items herein refer to difference, unless marked with"Credit" or "Debit". 3. The RMBdenominated quarterly BOP data is converted from the USD denominated BOP datafor the quarter using the quarterly average middle rate of RMB against USD. Thequarterly accumulated RMB denominated BOP data is derived from the sum total ofthe RMB denominated data for the quarters. 4. The SDRdenominated quarterly BOP data is converted from the USD denominated BOP datafor the quarter using the quarterly average middle rate of SDR against USD. Thequarterly accumulated SDR denominated BOP data is derived from the sum total ofthe SDR denominated data for the quarters. 5. Thisstatement employs rounded-off numbers. 6. Fordetailed data, please see the section of “Dataand Statistics” atthe website of the SAFE. Abridged Balance of Payments, 2019 Item Line No. RMB 100 million USD 100 million SDR 100 million 1. Current Account 1 9,768 1,413 1,024 Credit 2 200,485 29,051 21,033 Debit 3 -190,717 -27,638 -20,009 1. A Goods and Services 4 11,398 1,641 1,191 Credit 5 182,470 26,434 19,140 Debit 6 -171,072 -24,793 -17,949 1.A.a Goods 7 29,405 4,253 3,081 Credit 8 165,612 23,990 17,371 Debit 9 -136,207 -19,737 -14,290 1.A.b Services 10 -18,007 -2,611 -1,890 Credit 11 16,858 2,444 1,769 Debit 12 -34,864 -5,055 -3,659 1.B Primary Income 13 -2,336 -330 -241 Credit 14 16,228 2,358 1,706 Debit 15 -18,565 -2,688 -1,947 1.C Secondary Income 16 706 103 74 Credit 17 1,787 259 188 Debit 18 -1,080 -157 -113 2. Capital and Financial Account 19 3,884 567 409 2.1 Capital Account 20 -23 -3 -2 Credit 21 15 2 2 Debit 22 -38 -5 -4 2.2 Financial Account 23 3,907 570 412 Assets 24 -13,759 -1,987 -1,440 Liabilities 25 17,665 2,558 1,852 2.2.1 Financial Account Excluding Reserve Assets 26 2,545 378 271 2.2.1.1 Direct Investment 27 3,994 581 420 Assets 28 -6,744 -977 -707 Liabilities 29 10,738 1,558 1,127 2.2.1.2 Portfolio Investment 30 4,003 579 420 Assets 31 -6,181 -894 -648 Liabilities 32 10,184 1,474 1,067 2.2.1.3 Financial Derivatives (other than reserves) and Employee Stock Options 33 -165 -24 -17 Assets 34 94 14 10 Liabilities 35 -259 -37 -27 2.2.1.4 Other Investment 36 -5,287 -759 -551 Assets 37 -2,290 -323 -236 Liabilities 38 -2,997 -437 -315 2.2.2 Reserve Assets 39 1,362 193 141 3. Net Errors and Omissions 40 -13,652 -1,981 -1,433 Notes: 1. Thestatement is compiled according to BPM6. Reserve assets are included in capitaland financial accounts. 2."Credit" is presented as positive value while "debit" asnegative value, and the difference is the sum of the "Credit" and the"Debit". All items herein refer to difference, unless marked with"Credit" or "Debit". 3. The RMBdenominated quarterly BOP data is converted from the USD denominated BOP datafor the quarter using the quarterly average middle rate of RMB against USD. Thequarterly accumulated RMB denominated BOP data is derived from the sum total ofthe RMB denominated data for the quarters. 4. The SDRdenominated quarterly BOP data is converted from the USD denominated BOP datafor the quarter using the quarterly average exchange rate of SDR against USD.The quarterly accumulated SDR denominated BOP data is derived from the sumtotal of the SDR denominated data for the quarters. 5. Thisstatement employs rounded-off numbers. 6. Fordetailed data, please see the section of “Dataand Statistics” atthe website of the SAFE. 2020-03-27/en/2020/0327/1659.html
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As at the end of 2019, China’s external financial assets reached USD 7714.5 billion, external financial liabilities reached USD 5590.5 billion, and net external assets totaled USD 2124.0 billion. In the external financial assets, direct investment assets amounted to USD 2094.5 billion, portfolio investment assets, USD 646.0 billion, financial derivative assets, USD 6.7 billion, other investment assets, USD 1744.3 billion, and reserves assets, USD 3222.9 billion, accounting for 27 percent, 8 percent, 0.1 percent, 23 percent and 42 percent of external financial assets respectively. In external liabilities, direct investment liabilities were USD 2928.1 billion, portfolio investment liabilities, USD 1364.6 billion, financial derivative liabilities, USD 6.5 billion and other investment liabilities, USD 1291.3 billion, accounting for 52 percent, 24 percent, 0.1 percent and 23 percent of the external financial liabilities respectively. In SDR terms, China’s external financial assets and liabilities reached SDR 5578.7 billion and SDR 4042.8 billion respectively, and external net assets totaled SDR 1536.0 billion at the end of 2019. The SAFE has revised the IIP data for each quarter since 2018 according to the latest data，and released it through the section of "Data and Statistics" at the official website of the SAFE. In addition, in order to facilitate understanding of China’s International Investment Position among all social groups, the BOP Analysis Team of the SAFE released China's Balance of Payments Report 2019. (End) China's International Investment Position, End of 2019 Item Line No. Position in 100 million USD Position in 100 million SDR Net Position 1 21,240 15,360 Assets 2 77,145 55,787 1 Direct Investment 3 20,945 15,147 1.1 Equity and Investment Fund Shares 4 17,811 12,880 1.2 Debt Instruments 5 3,135 2,267 1.a Financial Sectors 6 2,839 2,053 1.1.a Equity and Investment Fund Shares 7 2,739 1,981 1.2.a Debt Instruments 8 100 72 1.b Non-financial Sectors 9 18,107 13,094 1.1.b Equity and Investment Fund Shares 10 15,072 10,899 1.2.b Debt Instruments 11 3,035 2,195 2 Portfolio Investment 12 6,460 4,671 2.1 Equity and Investment Fund Shares 13 3,738 2,703 2.2 Debt Securities 14 2,722 1,968 3 Financial Derivatives (other than reserves) and Employee Stock Options 15 67 49 4 Other Investment 16 17,443 12,614 4.1 Other Equity 17 84 61 4.2 Currency and Deposits 18 4,179 3,022 4.3 Loans 19 6,963 5,035 4.4 Insurance, Pension, and Standardized Guarantee Schemes 20 135 97 4.5 Trade Credit and Advances 21 5,604 4,053 4.6 Others 22 479 346 5 Reserve Assets 23 32,229 23,307 5.1 Monetary Gold 24 954 690 5.2 Special Drawing Rights 25 111 80 5.3 Reserve Position in the IMF 26 84 61 5.4 Foreign Exchange Reserves 27 31,079 22,475 5.5 Other Reserve Assets 28 0 0 Liabilities 29 55,905 40,428 1 Direct Investment 30 29,281 21,175 1.1 Equity and Investment Fund Shares 31 26,748 19,343 1.2 Debt Instruments 32 2,533 1,832 1.a Financial Sectors 33 1,605 1,161 1.1.a Equity and Investment Fund Shares 34 1,426 1,031 1.2.a Debt Instruments 35 179 129 1.b Non-financial Sectors 36 27,676 20,014 1.1.b Equity and Investment Fund Shares 37 25,321 18,311 1.2.b Debt Instruments 38 2,354 1,703 2 Portfolio Investment 39 13,646 9,868 2.1 Equity and Investment Fund Shares 40 8,617 6,231 2.2 Debt Securities 41 5,029 3,636 3 Financial Derivatives (other than reserves) and Employee Stock Options 42 65 47 4 Other Investment 43 12,913 9,338 4.1 Other Equity 44 0 0 4.2 Currency and Deposits 45 4,245 3,070 4.3 Loans 46 4,605 3,330 4.4 Insurance, Pension, and Standardized Guarantee Schemes 47 135 97 4.5 Trade Credit and Advances 48 3,644 2,635 4.6 Others 49 189 136 4.7 Special Drawing Rights 50 97 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. 2020-03-27/en/2020/0327/1660.html
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The State Administration of Foreign Exchange (SAFE) has recently released the initial data in the Balance of Payments for the third quarter and the first three quarters of 2019. Wang Chunying, SAFE press spokesperson and chief economist, answered related questions from the press. Q: Could you brief us on the features of China's balance of payments for the first three quarters of 2019? A: The initial data in the Balance of Payments shows that China's current account registered a surplus and cross-border capital flows stayed stable in the first three quarters of 2019, suggesting China's balance of payments was in a basic equilibrium. First, the current account was in surplus, with a rising surplus under trade in goods and a narrowing deficit under the trade in services. In the first three quarters of 2019, the current account recorded a surplus of USD 143.2 billion, versus a deficit of USD 5.5 billion the same period a year earlier. Specifically, in the Balance of Payments, trade in goods registered a surplus of USD 343.5 billion, up by 34% year-on-year, but trade in services recorded a deficit of USD 201.7 billion, down by 12% year-on-year. Under trade in services, the deficits of travel, transportation and use of IP rights decreased by 8%, 15% and 10% year-on-year, respectively. Second, FDI remained high. In the first three quarters, direct investment registered a net inflow of USD 27.7 billion. ODI recorded a net outflow of USD 69.3 billion, and FDI, a net inflow of 97 billion, which was high. Third, portfolio investment reached a surplus and two-way capital flows were striking. Initial statistics show that China posted a surplus of USD 40 billion under portfolio investment in the first three quarters. Specifically, China's outward portfolio investment exceeded USD 60 billion, and foreign portfolio investment in China surpassed USD 100 billion. Fourth, reserve assets stayed generally stable. In the first three quarters, China's reserve assets contracted by USD 13 billion due to transactions in the Balance of Payments. Impacted by non-transaction factors including foreign exchange rate and pricing, the balance of China's reserve assets hit USD 3.2045 trillion by the end of September, up by USD 36.5 billion from the end of 2018. Overall, as China's economic fundamentals remain sound over the long term and all-round opening up is pushed ahead, China's balance of payments is expected to stay generally stable and remain in a basic equilibrium throughout the year. 2019-11-08/en/2019/1108/1662.html