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In the third quarter of 2022, China's current account registered a surplus of RMB 982.1 billion, including a surplus of RMB 1372.5 billion under trade in goods, a deficit of RMB199.8 billion under trade in services, a deficit of RMB 228.2 billion under primary income, and a surplus of RMB 37.5 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a deficit of RMB 184.2 billion, and reserve assets increased by RMB 256.4 billion. In the first three quarters of 2022, China's current account registered a surplus of RMB 2059.8 billion, including a surplus of RMB 3458.0 billion under trade in goods, a deficit of RMB 436.3 billion under trade in services, a deficit of RMB 1071.0 billion under primary income, and a surplus of RMB 109.1 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of RMB 287.8 billion, and reserve assets increased by RMB 382.3 billion. In the US dollar terms, in the third quarter of 2022, China's current account recorded a surplus of USD 144.0 billion, including a surplus of USD 200.8 billion under trade in goods, a deficit of USD 29.2 billion under trade in services, a deficit of USD 33.1 billion under primary income, and a surplus of USD 5.5 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a deficit of USD 27.1 billion, and reserve assets increased by USD 37.3 billion. In the US dollar terms, in the first three quarters of 2022, China's current account recorded a surplus of USD 310.4 billion, including a surplus of USD 521.6 billion under trade in goods, a deficit of USD 65.6 billion under trade in services, a deficit of USD 162.2 billion under primary income, and a surplus of USD 16.5 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of USD 46.9 billion, and reserve assets increased by USD 57.7 billion. In SDR terms, in the third quarter of 2022, China posted a surplus of SDR 110.0 billion under the current account, including a surplus of SDR 153.5 billion under trade in goods, a deficit of SDR 22.3 billion under trade in services. In the capital and financial accounts, foreign direct investments recorded a deficit of SDR 20.7 billion, and reserve assets increased by SDR 28.7 billion. In SDR terms, in the first three quarters of 2022, China posted a surplus of SDR 231.3 billion under the current account, including a surplus of SDR 388.1 billion under trade in goods, a deficit of SDR 48.9 billion under trade in services. In the capital and financial accounts, foreign direct investments recorded a surplus of SDR 32.7 billion, and reserve assets increased by SDR 42.9 billion. (End) China's Balance of Payments (Preliminary Data) Unit:RMB 100 million Item Line No. 2022 Q3 2022 First Three Quarters 1. Current account 1 9821 20598 Credit 2 71927 197437 Debit 3 -62106 -176839 1. A Goods and Services 4 11727 30217 Credit 5 66993 185895 Debit 6 -55265 -155678 1.A.a Goods 7 13725 34580 Credit 8 60595 167217 Debit 9 -46870 -132638 1.A.b Services 10 -1998 -4363 Credit 11 6398 18678 Debit 12 -8396 -23041 1.A.b.1 Processing services 13 228 652 Credit 14 245 695 Debit 15 -17 -43 1.A.b.2 Maintenance and Repair Services 16 79 195 Credit 17 153 396 Debit 18 -75 -201 1.A.b.3 Transport 19 -446 -613 Credit 20 2595 7768 Debit 21 -3041 -8381 1.A.b.4 Travel 22 -1948 -5255 Credit 23 178 469 Debit 24 -2126 -5724 1.A.b.5 Construction 25 99 282 Credit 26 242 674 Debit 27 -143 -392 1.A.b.6 Insurance and Pension Services 28 -296 -815 Credit 29 61 198 Debit 30 -357 -1013 1.A.b.7 Financial Services 31 10 44 Credit 32 86 245 Debit 33 -77 -201 1.A.b.8 Charges for the Use of Intellectual Property 34 -541 -1575 Credit 35 279 684 Debit 36 -821 -2260 1.A.b.9 Telecommunications, Computer, and Information Services 37 301 894 Credit 38 940 2813 Debit 39 -638 -1919 1.A.b.10 Other Business Services 40 609 2007 Credit 41 1572 4578 Debit 42 -963 -2571 1.A.b.11 Personal, Cultural, and Recreational Services 43 -25 -50 Credit 44 23 69 Debit 45 -48 -119 1.A.b.12 Government Goods and Services n.i.e 46 -67 -129 Credit 47 24 88 Debit 48 -91 -216 1.B Primary Income 49 -2282 -10710 Credit 50 4035 9027 Debit 51 -6317 -19737 1.C Secondary Income 52 375 1091 Credit 53 899 2515 Debit 54 -523 -1424 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -9821 -17568 2.1 Capital Account 56 -8 -21 Credit 57 3 11 Debit 58 -11 -32 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -9813 -17547 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -7249 -13724 Including: 2.2.1.1 Direct Investment 61 -1842 2878 2.2.1.1.1 Assets 62 -2753 -7511 2.2.1.1.2 Liabilities 63 911 10389 2.2.2 Reserve Assets 64 -2564 -3823 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 103 176 2.2.2.3 Reserve position in the IMF 67 1 48 2.2.2.4 Foreign exchange reserves 68 -2668 -4046 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / -3031 Note:1. The table is compiled according to BPM6. 2."Credit" is presented as positive value while "debit" as negative value, and the balance is the sum of the "Credit" and the "Debit". All items herein refer to balances, unless marked with "Credit" or "Debit". 3.The RMB denominated BOP statement is converted from the USD denominated BOP statementfor the quarter using the period average central parity rate of RMB against USD. 4.Thepreliminary amount for the first three quarters of 2022 is the sum of the official amounts of the BOP for 2022H1 and the preliminary amount for 2022Q3. China's Balance of Payments (Preliminary Data) Unit: USD 100 million Item Line No. 2022 Q3 2022 First Three Quarters 1. Current account 1 1440 3104 Credit 2 10530 29884 Debit 3 -9089 -26780 1. A Goods and Services 4 1717 4560 Credit 5 9805 28140 Debit 6 -8089 -23579 1.A.a Goods 7 2008 5216 Credit 8 8869 25306 Debit 9 -6860 -20090 1.A.b Services 10 -292 -656 Credit 11 937 2833 Debit 12 -1229 -3489 1.A.b.1 Processing services 13 33 99 Credit 14 36 105 Debit 15 -2 -7 1.A.b.2 Maintenance and Repair Services 16 12 29 Credit 17 22 60 Debit 18 -11 -30 1.A.b.3 Transport 19 -65 -89 Credit 20 380 1179 Debit 21 -445 -1268 1.A.b.4 Travel 22 -285 -797 Credit 23 26 71 Debit 24 -311 -868 1.A.b.5 Construction 25 14 42 Credit 26 35 102 Debit 27 -21 -60 1.A.b.6 Insurance and Pension Services 28 -43 -123 Credit 29 9 30 Debit 30 -52 -153 1.A.b.7 Financial Services 31 1 7 Credit 32 13 37 Debit 33 -11 -30 1.A.b.8 Charges for the Use of Intellectual Property 34 -79 -238 Credit 35 41 104 Debit 36 -120 -342 1.A.b.9 Telecommunications, Computer, and Information Services 37 44 136 Credit 38 138 427 Debit 39 -93 -291 1.A.b.10 Other Business Services 40 89 306 Credit 41 230 695 Debit 42 -141 -389 1.A.b.11 Personal, Cultural, and Recreational Services 43 -4 -7 Credit 44 3 10 Debit 45 -7 -18 1.A.b.12 Government Goods and Services n.i.e 46 -10 -19 Credit 47 4 13 Debit 48 -13 -33 1.B Primary Income 49 -331 -1622 Credit 50 593 1363 Debit 51 -924 -2985 1.C Secondary Income 52 55 165 Credit 53 131 381 Debit 54 -76 -215 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -1440 -2653 2.1 Capital Account 56 -1 -3 Credit 57 0 2 Debit 58 -2 -5 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -1439 -2649 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -1066 -2073 Including: 2.2.1.1 Direct Investment 61 -271 469 2.2.1.1.1 Assets 62 -402 -1139 2.2.1.1.2 Liabilities 63 130 1608 2.2.2 Reserve Assets 64 -373 -577 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 15 26 2.2.2.3 Reserve position in the IMF 67 0 7 2.2.2.4 Foreign exchange reserves 68 -388 -610 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / -452 Note:1. The table is compiled according to BPM6. 2."Credit" is presented as positive value while "debit" as negative value, and the balance is the sum of the "Credit" and the "Debit". All items herein refer to balances,unless marked with "Credit" or "Debit". 3. The preliminary amount for the first three quarters of 2022 is the sum of the official amounts of the BOP for 2022H1 and the preliminary amount for 2022Q3. 4.This table employs rounded-off numbers. China's Balance of Payments (Preliminary Data) Unit:SDR 100 million Item Line No. 2022 Q3 2022 First Three Quarters 1. Current account 1 1100 2313 Credit 2 8048 22176 Debit 3 -6948 -19863 1. A Goods and Services 4 1312 3391 Credit 5 7495 20879 Debit 6 -6183 -17488 1.A.a Goods 7 1535 3881 Credit 8 6779 18781 Debit 9 -5244 -14900 1.A.b Services 10 -223 -489 Credit 11 716 2099 Debit 12 -939 -2588 1.A.b.1 Processing services 13 26 73 Credit 14 27 78 Debit 15 -2 -5 1.A.b.2 Maintenance and Repair Services 16 9 22 Credit 17 17 44 Debit 18 -8 -23 1.A.b.3 Transport 19 -50 -68 Credit 20 290 873 Debit 21 -340 -941 1.A.b.4 Travel 22 -218 -590 Credit 23 20 53 Debit 24 -238 -643 1.A.b.5 Construction 25 11 32 Credit 26 27 76 Debit 27 -16 -44 1.A.b.6 Insurance and Pension Services 28 -33 -91 Credit 29 7 22 Debit 30 -40 -114 1.A.b.7 Financial Services 31 1 5 Credit 32 10 28 Debit 33 -9 -23 1.A.b.8 Charges for the Use of Intellectual Property 34 -61 -177 Credit 35 31 77 Debit 36 -92 -254 1.A.b.9 Telecommunications, Computer, and Information Services 37 34 101 Credit 38 105 316 Debit 39 -71 -216 1.A.b.10 Other Business Services 40 68 226 Credit 41 176 514 Debit 42 -108 -289 1.A.b.11 Personal, Cultural, and Recreational Services 43 -3 -6 Credit 44 3 8 Debit 45 -5 -13 1.A.b.12 Government Goods and Services n.i.e 46 -7 -14 Credit 47 3 10 Debit 48 -10 -24 1.B Primary Income 49 -254 -1201 Credit 50 452 1014 Debit 51 -706 -2215 1.C Secondary Income 52 42 123 Credit 53 100 283 Debit 54 -58 -160 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -1100 -1977 2.1 Capital Account 56 -1 -2 Credit 57 0 1 Debit 58 -1 -4 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -1099 -1975 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -812 -1546 Including: 2.2.1.1 Direct Investment 61 -207 327 2.2.1.1.1 Assets 62 -308 -844 2.2.1.1.2 Liabilities 63 101 1171 2.2.2 Reserve Assets 64 -287 -429 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 12 20 2.2.2.3 Reserve position in the IMF 67 0 5 2.2.2.4 Foreign exchange reserves 68 -298 -454 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / -335 Notes: 1. The table is compiled according to BPM6. 2."Credit" is presented as positive value while "debit" as negative value, and the balance is the sum of the "Credit" and the "Debit". All items herein refer to balances, unless marked with "Credit" or "Debit". 3. The SDR denominated quarterly BOP statement is converted from the USD denominated BOP statement for the quarter using the period average exchange rate of SDR against USD. 4. The preliminary amount for the first three quarters of 2022 is the sum of the official amounts of the BOP for 2022H1 and the preliminary amount for 2022Q3. 5. This table employs rounded-off numbers. 2022-11-04/en/2022/1104/2011.html
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In September 2022, the export and import of China’s international trade in goods and services totalled RMB 4283.3 billion, up 10 percent over the same time last year. Of this, the export of goods recorded RMB 2129.1 billion and the import recorded RMB 1645.4 billion, resulting in a surplus of RMB 483.7 billion. The export of services recorded RMB 213.1 billion and the import recorded RMB 295.7 billion, resulting in a deficit of RMB 82.6 billion. In terms of the major items, the export and import of transport, other business services, travel and telecommunications, computer and information services registered RMB 185.4 billion, RMB 89.0 billion, RMB 81.3 billion and RMB 51.7 billion respectively. In the US dollar terms, in September 2022, the export and import of China’s international trade in goods and services were USD 336.4 billion and USD 278.8 billion respectively, with a surplus of USD 57.6 billion.(End) International Trade in Goods and Services of China September 2022 Item In 100 million of RMB In 100 million of USD Goods and services 4011 576 Credit 23422 3364 Debit -19411 -2788 1. Goods 4837 695 Credit 21291 3058 Debit -16454 -2363 2. Services -826 -119 Credit 2131 306 Debit -2957 -425 2.1Manufacturing services on physical inputs owned by others 83 12 Credit 88 13 Debit -5 -1 2.2Maintenance and repair services n.i.e 29 4 Credit 57 8 Debit -28 -4 2.3Transport -207 -30 Credit 824 118 Debit -1030 -148 2.4Travel -678 -97 Credit 67 10 Debit -746 -107 2.5Construction 47 7 Credit 90 13 Debit -43 -6 2.6Insurance and pension services -156 -22 Credit 34 5 Debit -189 -27 2.7Financial services 9 1 Credit 33 5 Debit -24 -3 2.8Charges for the use of intellectual property -207 -30 Credit 83 12 Debit -290 -42 2.9Telecommunications, computerand information services 106 15 Credit 311 45 Debit -205 -29 2.10Other business services 168 24 Credit 529 76 Debit -361 -52 2.11Personal, cultural, and recreational services -11 -2 Credit 8 1 Debit -20 -3 2.12Government goods and services n.i.e -8 -1 Credit 8 1 Debit -16 -2 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 of Indicators: 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 trade and 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 in services; 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 records the 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: refer to the maintenance and repair services supplied by residents to non-residents or vice versa on goods and equipment (such as vessel, aircraft, and other transportation facility) owned by the receiving party. The credit side records the 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 postal and delivery services. The credit side records the international transport, postal and delivery services supplied by residents to non-residents, and vice versa for debit side. 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 indefinite 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 Insurance and 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 prototypes. 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 tocommunications 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 to non-residents, and vice 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, cultural and recreational services (health, education, etc.). The credit side records the related services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.12 Government 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. 2022-10-28/en/2022/1028/2009.html
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The State Administration of Foreign Exchange (SAFE) recently released the data of China’s balance of payments (BOP) for the first half of 2022, and issued the Report on China’s balance of payments for the First Half of 2022. Wang Chunying, SAFE Deputy Administrator and Press Spokesperson, answered media questions on the situation of China’s balance of payments since 2022. I. What are the characteristics of China’s BOP in the first half of 2022? How about its recent performance? A: China maintained a basic equilibrium in its BOP, and both the current account and direct investment showed relatively high surpluses. In the first half of 2022, the current account registered a surplus of USD 166.4 billion, a year-on-year increase of 43%. And its ratio to Gross Domestic Product (GDP) reached 1.9%, which maintained within a reasonable and balanced range. To be specific, the surplus in trade in goods increased by 36%, while the deficit in trade in services narrowed by 30%. In the first half of the year, the surplus in direct investment was USD 74 billion. The basic balance of payments surplus formed by direct investment and the current account totaled USD 240.4 billion, a year-on-year increase of 3%, which stayed at a relatively high level in the same period in history. It effectively played a fundamental role in balancing cross-border capital flows and stabilizing the foreign exchange market. In the third quarter, China’s balance of payments was generally stable, and the basic balance of payments surplus continued to play a leading role. At present, the balance of payments data for the third quarter is still in collection. According to the relevant data, the basic balance of payments still shows a certain scale of surplus. In terms of the current account, according to customs statistics, the surplus in import and export from July to August increased by 57% year on year, reflecting that China’s complete industrial chain and supply chain system as well as policies to stabilize foreign trade and protect market entities have played a supporting role. The SAFE data shows that the deficit in service trade narrowed by 3% year-on-year from July to August, mainly due to a 14% increase in revenue from transportation, computer information services, and business services. In terms of direct investment, according to the statistics of the Ministry of Commerce, China’s actual utilization of foreign capital increased by 14% year-on-year from July to August, indicating a steady performance of medium and long-term investment channels under the capital account. In addition, since September, China’s cross-border capital flow has remained stable, as the foreign exchange settlement and sales by banks as well as cross-border receipts and payments by non-banking sectors have maintained basic balance. Various data show that China’s balance of payments operated generally stable. II. What would you say about the trend of China’s BOP in the future? A: The surplus of China’s current account will maintain a reasonable scale. In the recent period, under the complex international economic situation, China’s current account surplus keeps growing, which is outstanding among the major surplus countries in the world. It fully reflects the stability, resilience, and strong sustainability of China’s current account balance, such as trade in goods. Firstly, in recent years, the structure of China’s trade in goods has been constantly optimized, and the new growth drivers for exports have gradually emerged. In the first eight months of this year, the export of traditional advantage items mechanical and electrical products increased by 9% year on year, the export growth rate of textiles and clothing was higher than 10%, and the export of automobiles and other kinds of trade increased by 56%. New forms of trade like cross-border e-commerce have become an important engine to promote the development of foreign trade. At the same time, the diversification and expansion of trading partners have achieved positive results. Europe and the United States were still important traditional markets of China, and the growth of foreign trade was also seen with ASEAN and Latin America. Secondly, the development of trade in services will continue to upgrade. With the deep integration of manufacturing and service industries as well as the digital transformation and upgrading of service industries, emerging producer services such as computer information services are injecting new growth momentum into service trade. Cross-border two-way investment will develop in a more balanced manner. Firstly, direct investment maintained a surplus pattern. China’s business environment continues to improve and its consumer market has huge potential, which will continue to attract foreign investment and business. At the meantime, China’s outward foreign investment will still maintain a reasonable and orderly development trend. Secondly, RMB assets have stable investment returns and diversified investment value globally. In the long run, international investors are still willing to allocate RMB assets. In general, China’s economy will continue to recover in the future. China is firmly determined to continue with a higher level of opening-up, it has more obvious advantages in price stability, and the transformation and upgrading of its manufacturing sector is gradually showing results. Moreover, the internal foundation of China’s balance of payments remains solid, which is also the fundamental support for the stability of China’s foreign exchange market and RMB exchange rate. 2022-09-29/en/2022/0929/2005.html
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As shown in the statistics of the State Administration of Foreign Exchange (SAFE), in September 2022, the amount of foreign exchange settlement and sales by banks was RMB 1541.6 billion and RMB 1484.0 billion, respectively. During January to September 2022, the accumulative amount of foreign exchange settlement and sales by banks was RMB 13234.7 billion and RMB 12461.9 billion, respectively. In the US dollar terms, in September 2022, the amount of foreign exchange settlement and sales by banks was USD 221.4 billion and USD 213.2 billion, respectively. During January to September 2022, the accumulative amount of foreign exchange settlement and sales by banks was USD 2005.8 billion and USD 1887.3 billion, respectively. In September 2022, the amount of cross-border receipts and payments by non-banking sectors was RMB 3796.3 billion and RMB 3881.0 billion, respectively. During January to September 2022, the accumulative amount of cross-border receipts and payments by non-banking sectors was RMB 31564.6 billion and RMB 31114.5 billion, respectively. In the US dollar terms, in September 2022, the amount of cross-border receipts and payments by non-banking sectors was USD 545.3 billion and USD 557.4 billion, respectively. During January to September 2022, the accumulative amount of cross-border receipts and payments by non-banking sectors was USD 4781.5 billion and USD 4710.2 billion, respectively. Since 2022, China’s foreign-related economic activities have remained active and the cross-border capital flows have been genenally stable and orderly. In the first three quarters of this year, the accumulative surplus of foreign exchange settlement and sales by banks was USD 118.5 billion, and the accumulative surplus of foreign-related receipts and payments registered USD 71.4 billion. At present, China’s economy is recovering gradually, the structure of balance of payments is becoming more robust, and the foreign exchange market is significantly resilient. In the long run, with these advantages, the cross-border capital flows will remain stable. Addendum: Glossary and relevant definitions Balance of payments (BOP) refers to all economic transactions between residents and non-residents. Foreign exchange settlement and sales by banks refers to settlement and sale transaction that bank executes for customers and for the banks themselves, including statistic data on settlements of forward contracts for foreign exchange settlement and sales and the exercises of option, and excluding the transactions in the interbank foreign exchange market. The statistic reporting date of Foreign exchange settlement and sales by banks should be the trade day of the Foreign exchange settlement and sales transaction. By definition, foreign exchange settlement means that foreign exchange holders sell foreign exchange to banks, and foreign exchange sales means that banks sell foreign exchange to foreign exchange buyers. The newly signed contract amount of forward foreign exchange settlement and sales refers to the binding forward contract between a bank and its client that predetermines foreign exchange currency, amount, exchange rate and tenor which to be executed upon maturity. The unwind amount of forward foreign exchange settlement and sales refers to, where client is unable to perform the original forward contract due to change in its real demand, client to fully or partially close its forward position by executing another deal with opposite direction to the original contract. The rolling amount of forward foreign exchange settlement and sales refers to client to adjust the settlement date of original contract due to change in its real demand. The outstanding amount of forward foreign exchange settlement and sales by the end of the current period refers to the total amount of forward contracts accumulated from all non-matured forward contracts with client. The net Delta exposure of outstanding options refers to the implied foreign exchange spot risk exposure from outstanding option contracts that bank executed with client. The cross-border receipts and payments by non-banking sectors refers to the receipts and payments between domestic non-banking sectors (including institutional and individual residents) and non-residents through domestic banks, excluding receipts and payments in cash. In particular, the statistics includes cross-border receipts and payments between non-banking sectors and non-residents through domestic banks (including RMB and foreign currency), and domestic receipts and payments between non-banking sectors and non-residents through domestic banks (temporarily excluding domestic receipts and payments in RMB between individual residents and non-resident individuals). Data are collected when customers conduct receipts and payments with non-resident counterparties at domestic banks. Specifically, the receipts refer to the capital of non-banking sectors received from non-residents via domestic banks; the payments refer to the capital of non-banking sectors paid to non-residents via domestic banks. 2022-10-28/en/2022/1028/2008.html
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As shown in the statistics of the State Administration of Foreign Exchange (SAFE), in October 2022, the amount of foreign exchange settlement and sales by banks was RMB 1212.5 billion and RMB 1297.1 billion, respectively. During January to October 2022, the accumulative amount of foreign exchange settlement and sales by banks was RMB 14447.1 billion and RMB 13759.0 billion, respectively. In the US dollar terms, in October 2022, the amount of foreign exchange settlement and sales by banks was USD 170.1 billion and USD 182.0 billion, respectively. During January to October 2022, the accumulative amount of foreign exchange settlement and sales by banks was USD 2175.9 billion and USD 2069.3 billion, respectively. In October 2022, the amount of cross-border receipts and payments by non-banking sectors was RMB 3099.1 billion and RMB 3159.7 billion, respectively. During January to October 2022, the accumulative amount of cross-border receipts and payments by non-banking sectors was RMB 34663.7 billion and RMB 34274.3 billion, respectively. In the US dollar terms, in October 2022, the amount of cross-border receipts and payments by non-banking sectors was USD 434.7 billion and USD 443.2 billion, respectively. During January to October 2022, the accumulative amount of cross-border receipts and payments by non-banking sectors was USD 5216.3 billion and USD 5153.4 billion, respectively. Addendum: Glossary and relevant definitions Balance of payments (BOP) refers to all economic transactions between residents and non-residents. Foreign exchange settlement and sales by banks refers to settlement and sale transaction that bank executes for customers and for the banks themselves, including statistic data on settlements of forward contracts for foreign exchange settlement and sales and the exercises of option, and excluding the transactions in the interbank foreign exchange market. The statistic reporting date of Foreign exchange settlement and sales by banks should be the trade day of the Foreign exchange settlement and sales transaction. By definition, foreign exchange settlement means that foreign exchange holders sell foreign exchange to banks, and foreign exchange sales means that banks sell foreign exchange to foreign exchange buyers. The newly signed contract amount of forward foreign exchange settlement and sales refers to the binding forward contract between a bank and its client that predetermines foreign exchange currency, amount, exchange rate and tenor which to be executed upon maturity. The unwind amount of forward foreign exchange settlement and sales refers to, where client is unable to perform the original forward contract due to change in its real demand, client to fully or partially close its forward position by executing another deal with opposite direction to the original contract. The rolling amount of forward foreign exchange settlement and sales refers to client to adjust the settlement date of original contract due to change in its real demand. The outstanding amount of forward foreign exchange settlement and sales by the end of the current period refers to the total amount of forward contracts accumulated from all non-matured forward contracts with client. The net Delta exposure of outstanding options refers to the implied foreign exchange spot risk exposure from outstanding option contracts that bank executed with client. The cross-border receipts and payments by non-banking sectors refers to the receipts and payments between domestic non-banking sectors (including institutional and individual residents) and non-residents through domestic banks, excluding receipts and payments in cash. In particular, the statistics includes cross-border receipts and payments between non-banking sectors and non-residents through domestic banks (including RMB and foreign currency), and domestic receipts and payments between non-banking sectors and non-residents through domestic banks (temporarily excluding domestic receipts and payments in RMB between individual residents and non-resident individuals). Data are collected when customers conduct receipts and payments with non-resident counterparties at domestic banks. Specifically, the receipts refer to the capital of non-banking sectors received from non-residents via domestic banks; the payments refer to the capital of non-banking sectors paid to non-residents via domestic banks. 2022-11-15/en/2022/1115/2012.html
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The State Administration of Foreign Exchange (SAFE) has released the preliminary data on the balance of payments (BOP) of the third quarter and the first three quarters of 2022. Wang Chunying, SAFE Deputy Administrator and Press Spokesperson, answered media questions on relevant issues. Q: What are the characteristics of China’s BOP of the first three quarters of 2022? A: The preliminary data shows that, in the first three quarters of 2022, China maintained a basic equilibrium in its BOP. Specifically, the current account reached a surplus of USD 310.4 billion, which was the highest in history for the same period, with a year-on-year increase of 56%. The surplus accounted for 2.4% of GDP during the period and remained within a reasonable range. The direct investment showed a net inflow and the cross-border capital flows were stable and orderly. First, the trade surplus in goods hit a record high for the same period. In the first three quarters of 2022, trade in goods on BOP basis posted a surplus of USD 521.6 billion, a year-on-year increase of 37%. To be specific, the export of goods reached USD 2.5306 trillion, a year-on-year increase of 10%; the import of goods registered USD 2.009 trillion, a year-on-year increase of 5%. Second, the trade deficit in services narrowed year on year. In the first three quarters of 2022, the trade deficit in services recorded USD 65.6 billion, a year-on-year decrease of 23%. To be specific, the travel deficit was USD 79.7 billion, up by 18% year on year, mainly due to an increase in expenditures of overseas study. The deficit in intellectual property royalties was USD 23.8 billion, a year-on-year decrease of 8%. The revenue on intellectual property royalties increased by 21%, reflecting the continuous improvement in the service level of China’s intellectual property. The deficit in transportation registered USD 8.9 billion, a year-on-year decrease of 62%, as revenue from transportation services grew faster than expenditure. Third, the overall direct investment remained in surplus. In the first three quarters of 2022, the net inflow of foreign direct investments was USD 46.9 billion. The net inflow of direct investment to China reached USD 160.8 billion, showing that China’s economic prospects are positive in the long term and continue to attract foreign investment in China. On the other hand, China’s outward direct investment (ODI) saw a net outflow of USD 113.9 billion, which was generally in a stable and orderly manner. In general, the fundamentals of China's economy－strong resilience, ample potential, wide room for maneuver and long-term improvement－will not change, and at the meantime the positive momentum of China’s economic recovery will be further consolidated, which will provide fundamental support for China to remain an equilibrium in its BOP. 2022-11-04/en/2022/1104/2013.html
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The State Administration of Foreign Exchange (SAFE) has recently released the data on external debt at the end of June 2022. The SAFE Deputy Administrator and Press Spokesperson Wang Chunying answered media questions on the relevant issues. Q: Could you brief us on China’s external debt in the second quarter of 2022? A: China’s external debt declined in the second quarter of 2022. By the end of June 2022, the full-scale outstanding external debt (including domestic and foreign currencies) reached USD 2.636 trillion, representing a decrease of USD 74.2 billion or 3% from the end of March this year. To be more specific, the factor of exchange rate translation contributed about 90% to the decline in outstanding foreign debt. The external debt structure remained basically stable. With respect to currency structures, at the end of June 2022, the outstanding external debt in domestic currency accounted for 44% of China’s full-scale external debt. In terms of maturity structure, the outstanding medium and long-term external debt accounted for 46%. Both the proportion of the outstanding external debt in domestic currency and that of the outstanding medium and long-term external debt decreased by 1 percent point from the end of March this year. Q: What would you say about current China’s external debt situations? A: The foundation for long-term stability of China’s external debt remains solid. As previously mentioned, the decline in external debt in the second quarter was mainly due to the factor of exchange rate translation. In general, China has effectively coordinated epidemic prevention and control as well as economic and social development, and at the mean time China has sustained its strong resilience, enormous potential, and vast room for maneuver in economy with its fundamentals of sound long-term growth unchanged. Besides, Chinese assets, including RMB-denominated bonds, remain attractive to foreign investors. As a result, the basis for maintaining the overall stability in the scale of China’s external debt remains solid. The fluctuation in the scale of China’s external debt is expected to remain in a narrow range in the short term, and China’s external debt risks are generally under control. At present, with the external environment becoming more complex and severe, the downward pressure on the global economy has increased and the turbulence in the international financial market has intensified. It is thus expected that, in the near future, the fluctuation in the scale of China’s external debt will maintain in a narrow range. In addition, the main indicators of China’s external debt are currently all within the internationally recognized thresholds, and the risks of external debt are generally under control. 2022-09-30/en/2022/0930/2007.html
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Q: The State Administration of Foreign Exchange (SAFE) has just released the latest data regarding China’s foreign exchange reserves. Could you explain the causes for the changes in foreign exchange reserves of September 2022? What will be the future trends? A: By the end of September 2022, China’s foreign exchange reserves stood at USD 3.029 trillion, down by USD 25.9 billion, or 0.85%, from the end of August. In September, China’s cross-border capital flows were stable as a whole, and the domestic supply and demand of foreign exchange remained in basic balance. In the international financial market, influenced by factors like monetary and fiscal policies as well as macroeconomic data of major countries, the US dollar index rose further and the global financial asset prices fell sharply. China’s foreign exchange reserves declined slightly this month due to the combined effects of currency translation and asset price changes. At present, with the external environment becoming more complex and severe, destabilizing factors and uncertainties are on the rise in the global economy and the international financial market is highly volatile. However, China’s economy has continued with its steady recovery, and China sustained its strong resilience, enormous potential, and vast room for maneuver in economy with its fundamentals of sound long-term growth unchanged, which will support the overall stability of the foreign exchange reserves. 2022-10-07/en/2022/1007/2006.html
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According to the statistics of the State Administrationof Foreign Exchange (SAFE), the Chinese foreign exchange market (excluding foreign currency pairs, the same below) recorded total transactions of RMB 23.42 trillion (equivalent to USD 3.36 trillion) in September 2022. In terms of markets, the transactions volume of client market was RMB 3.67 trillion (equivalent to USD 0.53 trillion), and the transactions volume of interbank market was RMB 19.75 trillion (equivalent to USD 2.84 trillion). In terms of products, the cumulative transactions volume of the spot market was RMB 8.45 trillion (equivalent to USD 1.21 trillion), and that of the derivatives market was RMB 14.97 trillion (equivalent to USD 2.15 trillion). From January to September 2022, a total of RMB 180.27 trillion (equivalent to USD 27.29 trillion) was traded in the Chinese foreign exchange market. 2022-10-28/en/2022/1028/2010.html
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Distinguished Party Secretary Chen, Mayor Gong, President Rousseff, and dear guests, Good morning! The topic of my speech today is “Global Financial Cycle: Trends and Implications”. Since the 1990s, the financial indicators such as asset prices, credit growth, bank leverage ratio, and cross-border capital flows have resonated with each other across the world, especially in some developed economies such as the United States and Europe. Over the medium and long term, financial activities witness obvious periodic fluctuations. Since the 1990s, financial markets have experienced three major downturns, namely the dot-com bubble burst in 2000-2002, the global financial crisis in 2008-2009, and the plunge in the global stock, bond and foreign exchange markets in 2022. The financial indicators such as stocks, bonds, and exchange rates together constitute a Financial Conditions Index (FCI) that reflects the overall financial situation, and such an index has undergone rapid and sharp tightening during these three downturns. Because of the dollar’s dominance in the international monetary system, the Federal Reserve (Fed)’s monetary policy has become an important driver of the global financial cycle. The Fed’s three rounds of interest rate hikes respectively in 1999-2000, 2004-2006, and 2022 have led to the three downturns in the global financial cycle. In 2022, the global stock, bond and foreign exchange markets suffered heavily. The global stock market fell by about 20 percent for the whole year, bonds also saw a double-digit decline, cross-border capital flows dropped sharply, and bank credit standards were generally tightened. These are all typical characteristics of a downturn in the global financial cycle. In 2022, the FCI of the United States rose from an extremely low level in history, and the tightening regarding degree and speed was second only to that of the global financial crisis in 2008. The reason for this is Fed’s monetary policy, which experienced drastic tightening after drastic easing. Whenever financial conditions in the United States are tightened, some emerging economies with relatively fragile economic fundamentals and high dependence on external financing will face massive capital outflows, currency depreciation, external debt repayment pressures, and even a financial crisis. Since 2022, with the rapid tightening of financial conditions in the United States, the global financial cycle has moved into a downward phase, and emerging economies have once again faced pressures such as the depreciation of their currencies. From May 2021 to September 2022, the US dollar index rose from 89 to 114, an increase of 28 percent, on a par with the rise from mid-2014 to early 2017. During the same period, the JP Morgan Emerging Markets Currency Index declined 17 percent, a significantly smaller drop than the 29 percent decline between mid-2014 and early 2017. This round of currency depreciation in emerging economies is relatively small, and there are three main reasons. First, the foreign exchange reserves of emerging economies have continued to grow, offering a thicker buffer against capital outflows. Second, many central banks of emerging economies have won the initiative by starting their interest rate hiking cycles ahead of the Fed. Third, commodity-exporting emerging economies have been lifted by the rising global commodity prices. Although the current downturn in the financial cycle has a weaker impact on emerging economies than the previous ones, some emerging economies with weak economic strength and high dependence on external financing are still under great pressure to repay their debts. In recent years, China’s financial cycle has remained relatively stable. Since 2020, the yield on 10-year government bonds has fluctuated within a narrow range between 2.4 percent and 3.4 percent. The difference between the highest and lowest points is less than 100 basis points, which is significantly smaller than the nearly 400 basis points in the United States during the same period. Besides, the aggregate financing to the real economy (AFRE) in China has maintained a growth rate of around 10 percent. The reason behind the relative stability of China’s financial cycle is that the country has maintained a sound monetary policy for a long term. China’s monetary policy focuses on domestic conditions while balancing internal and external equilibria with proper intertemporal adjustments. Instead of following the Fed’s policy, we avoid great volatility in releasing or draining liquidity, and do not advocate competitive zero interest rates or quantitative easing. China’s stable financial cycle creates a suitable environment for its economic performance and financial market operation. The market liquidity remains adequate at a reasonable level, providing sufficient and stable financing for the real economy. Credit impulse is an important indicator to reflect changes in the financial cycle, including the direction of marginal changes in the cycle. Measured by the marginal change in the ratio of newly added credit to gross domestic product (GDP), China’s credit impulse has turned positive and upward since 2023, indicating that the credit is playing an increasingly important role in supporting the economy. Since the beginning of 2023, the forecasts for China’s economic growth have been revised upward in general. The International Monetary Fund (IMF) revised its forecast for China’s economic growth this year from 4.4 percent to 5.2 percent. And just two days ago, the World Bank raised its forecast from 4.3 percent to 5.6 percent. The competitive real interest rate of RMB assets is conducive to the value preservation of the RMB held by China’s trade and investment partners. Measured by the difference between the yield on 2-year government bonds and the core consumer price index (CPI), China’s real interest rate is around 1.7 percent, which is similar to that in the United States after a sharp hike, and is significantly higher than that of developed economies such as Germany and Japan. Amidst the worldwide elevated inflation, the value of RMB bonds as a portfolio diversifier is highlighted. Since 2022, both the government bonds and equities have experienced an obvious decline in developed countries, representing a shift from negative correlation to positive, so the benefits of bonds as a portfolio diversifier for equities have decreased sharply. As for emerging markets, their bonds are always highly correlated with global equities, as they are risky assets. In contrast, Chinese bonds maintains a negative correlation with the global equities, hence a better diversifier. Since 2023, our foreign exchange market has been generally stable. Cross-border capital flows have maintained a basic equilibrium, compared with a relatively high surplus at the beginning of the year. Foreign exchange reserves have witnessed steady growth, and the RMB exchange rate has remained basically stable at an adaptive and equilibrium level. Since mid-April, affected by various internal and external factors, especially the strengthening of the US dollar index due to the US debt ceiling issue, the rising risk aversion driven by small and medium-sized bank risks, and the heightened expectations for Fed rate hikes, and considering that the foundation for the economic recovery in China is not yet solid, the RMB exchange rate has experienced some fluctuations. However, our foreign exchange market has remained stable overall, and the market expectations on the exchange rate and the cross-border capital flows have also remained relatively stable. Looking forward, China’s economy will generally maintain a steady and upward trend, while some market institutions are predicting that the US economy may face a mild recession. At the same time, as the Fed’s rate hike cycle draws to a close, it will be difficult for the US dollar to continue going strong, and its spillover effect is expected to be weaker. Overall, China’s foreign exchange market is expected to remain stable. After years of reform and development, China’s foreign exchange market has taken on new features in recent years: the market has become more resilient, as the market players are more mature and their trading behaviors are more rational. The exchange rate risk hedging instruments have been widely used, and the large increase in the cross-border use of RMB has also greatly reduced China’s exchange rate risk exposure. Meanwhile, the regulators of China’s foreign exchange market have become more composed, mature, and experienced in dealing with market changes. Over the years, we have accumulated a great deal of experience in coping with external shocks, and the macro-prudential policy instruments in our foreign exchange market have also become more abundant. Therefore, we are confident, prepared and capable of maintaining the stability of China’s foreign exchange market. Finally, I wish this year’s Lujiazui Forum a complete success. Thank you! 2023-06-08/en/2023/0608/2094.html