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The State Administration of Foreign Exchange (SAFE) has recently disseminated the data on banks' foreign exchange settlement and sales as well as their foreign-related receipts and payments for customers for February 2019. The SAFE spokesperson and Chief Economist Wang Chunying answered media questions on foreign exchange receipts and payments for February 2019. Q: Could you brief us on the characteristics of China’s foreign exchange receipts and payments in February 2019? A: Since the beginning of 2019, China’s foreign exchange market has maintained sound situations. However, the monthly data show that there were considerable fluctuations due to the influence of seasonal factors of the Spring Festival. Therefore, comprehensive analysis of the foreign exchange receipts and payments data of January and February would produce more objective and accurate results. Specifically: China’s foreign exchange market has been running more smoothly since the beginning of 2019. Firstly, the deficit of foreign exchange settlement and sales of banks narrowed, and the supply and demand on the foreign exchange market has maintained basic equilibrium. From January to February, banks posted a monthly average deficit of USD 1.5 billion in foreign exchange settlement and sales, down by 87% from the monthly average of the second half of 2018. Secondly, non-banking sectors such as enterprises and individuals recorded a large surplus in foreign-related receipts and payments. From January to February, the monthly surplus of non-banking sectors in foreign-related receipts and payments reached USD 28.3 billion, while the monthly deficit in the second half of 2018 was over USD 10 billion. Thirdly, the balance of foreign exchange reserves has risen steadily. At the end of February, the balance of foreign exchange reserves increased by USD 17.5 billion from the end of 2018. The balance of supply and demand in the foreign exchange market serves as the basis for the stability of reserves, and the rising asset price of reserve investment and other factors helped increase the valuation and balance of foreign exchange reserves. The cross-border capital flows of major channels have further improved. First, the net inflow of foreign exchange and the net settlement of foreign exchange under trade in goods increased. From January to February, the surplus of foreign-related receipts and payments and foreign exchange settlement and sales of banks on behalf of clients under trade in goods both showed a rising trend, with monthly surplus up by 1.9 times and 25% respectively as compared with that of the second half of 2018. Second, the net foreign exchange settlement under direct investment and securities investment increased to certain extent. From January to February, the monthly net foreign exchange settlement for direct investment and securities investment by banks on behalf of clients reached USD 4 billion and USD 1.5 billion respectively, an increase of 4.5 times and 4% year on year. Third, individual foreign exchange settlement and sales remained basically stable, with net foreign exchange purchase in January and February down by 19% year on year. Fourth, the value of contracts for forward settlement and sales of foreign exchange has maintained a surplus for six months consecutively, with a monthly surplus of USD 8.1 billion from January to February, against a deficit in the same period of 2018. Looking ahead, the foundation for the smooth operation of the foreign exchange market will continue to exist. In terms of the main influencing factors, first of all, China’s economic development is resilient enough and boasts of huge potential, the macro policies will strengthen countercyclical adjustment, and the proactive fiscal policy and prudent monetary policy will continue to be implemented. As a result, the macro leverage ratio is basically stable, the fiscal and financial risks are controllable on the whole, and the foreign exchange reserves are adequate, which have laid a sound economic foundation for the stability of the foreign exchange market. Besides, China has been promoting the opening-up in an all-round manner, which has provided a solid policy foundation for overseas capital to make investment in domestic market. In addition, substantial progress has been made in China-US economic and trade negotiations, and the expected interest rate hike of the FED has weakened remarkably, which are also conducive to stabilizing market expectations. As a matter of fact, there are still uncertainties in external environment, and we will continue to strengthen monitoring, conduct thorough analysis of the situation changes, refine the exchange rate formulation scheme on an ongoing basis, maintain basic equilibrium of the RMB exchange rate at a rational and balanced level, and improve the two-pronged “macro prudential + micro regulatory” management framework of cross-border capital flows, so as to safeguard the national economic and financial security. 2019-03-18/en/2019/0404/1502.html
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The State Administration of Foreign Exchange (SAFE) has recently disseminated China's external debt data as at the end of December 2018. The SAFE spokesperson and Chief Economist Wang Chunying answered media questions on China’s recent external debt situations. Q: Could you brief us on China's external debt for the year of 2018? A: China’s external debt continued to increase in 2018, while the overall growth rate slowed down. As at the end of December, the full-scale outstanding external debt (including domestic and foreign currencies) hit USD 1.9652 trillion, representing an increase of USD 207.3 billion from the end of 2017, up by 12%. In the four quarters of 2018, the quarter-on-quarter change of China’s external debt was 7.5%, 1.5%, 2.7% and -0.2% respectively. Specifically, the first quarter registered the fastest growth, while the second and third quarters witnessed obvious slowdown of growth rate. The structure of external debt has continued to improve. With respect to currency structure, the external debt in domestic currency increased by 16% year on year, which is higher than the 10% increase in foreign currency external debt. In terms of term structure, the medium- and long-term external debt increased by 13% year on year, slightly faster than that of short-term debts, which posted an 11% growth rate. As regards debt instruments, it is mainly attributed to increase of debt securities, currency and deposits, as well as trade credit and advance payment, which contributed to 44%, 23% and 20% respectively to the increase of external debt. Q: How shall we view the external debt risks facing China now? A: China’s national economic operation in 2018 was generally stable. The SAFE has deepened foreign exchange administration reform on an ongoing basis, steadily promoted the opening-up of the financial market, therefore the demand of overseas investors for allocating domestic RMB bonds has continued to rise, and the structure of debt instruments has become more stable. At the end of 2018, the outstanding debt securities accounted for 22% of the full-scale outstanding external debt, up by 2.6 percentage points from the end of 2017. The external debt risks facing China are controllable on the whole. As at the end of 2018, the external debt/GDP ratio, or the ratio of outstanding external debt to GDP was 14.4%; the debt ratio, or the ratio of outstanding external debt to export income from trade in goods and services was 74.1%; the debt servicing ratio, or the ratio of payments of principal and interest on external debt in the middle and long term and payments of interest on external debt in the short term to export income from trade in goods and services, was 5.5%, and the ratio of short-term external debt to foreign exchange reserves was 41.4%. All of the above indicators are within the internationally accepted safe range. In the future, the SAFE will further refine the two-pronged administration framework featuring macro-prudential and micro-regulatory approaches for cross-border capital flow, keep a keen eye on the changes in external debt situations, and strengthen the prevention of external debt risks while persisting in serving the real economy with foreign exchange administration, so as to safeguard China's economic and financial security. 2019-03-29/en/2019/0404/1501.html
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The State Administration of Foreign Exchange (SAFE) has recently disseminated the preliminary data in the Balance of Payments for the first quarter of 2019. The SAFE spokesperson and Chief Economist Wang Chunying answered media questions on relevant issues. Q: Could you brief us on the characteristics of the balance of payments for the first quarter of 2019? A: On the whole, in the first quarter of 2019, China’s balance of payments maintained basic equilibrium, registering a surplus in the current account, continuous net inflow of direct investment and securities investment and steady increase of reserve assets. The foundation for the overall equilibrium of balance of payments in the future remains solid. First, the surplus of trade in goods remains the basis for the current account surplus. In the first quarter, the current account recorded a surplus of USD 58.6 billion, with a surplus of USD 94.5 billion under trade in goods in the Balance of Payments, up by 83% year on year. To be specific, export of goods was USD 540.4 billion, up by 2% year on year, and import of goods was USD 445.9 billion, down by 7% year on year. Second, the deficit under trade in services shrank. In the first quarter of 2019, the deficit under trade in service was USD 63.4 billion, down by 14% year on year. Tourism and transport remain the major deficit items. Specifically, tourism posted a deficit of USD 57.6 billion, down by 9% year on year; the deficit in transport services was USD 12.5 billion, down by 14%. Third, direct investment and securities investment maintained net inflow. In the first quarter of 2019, the net inflow of direct investment reached USD 21.4 billion, which is mainly resulted from the net inflow of FDI of USD 44 billion and net outflow of China’s ODI of USD 22.6 billion. According to incomplete statistics, in the first quarter of 2019, China’s net inflow under securities investment was about USD 15 billion registering sustained year-on-year growth. Fourth, reserve assets continued to increase slightly, resulting in an adaptive equilibrium in the balance of payments. In the first quarter of 2019, China's reserve assets rose by USD 10 billion as a result of the BOP transactions (excluding the impact of non-transaction factors such as exchange rate and price), among which, foreign exchange reserves increased by USD 10 billion. 2019-05-10/en/2019/0604/1513.html
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Q: The latest data on foreign exchange reserves disseminated by the State Administration of Foreign Exchange (SAFE) show that China's foreign exchange reserves as of the end of March 2019 rose by USD 8.6 billion month on month. Could you brief us on the causes of such changes? What will be the future trends of foreign exchange reserves? A: As at the end of March 2019, China posted USD 3.0988 trillion in foreign exchange reserves, up by USD 8.6 billion or 0.3% month on month. In March, under the impact of China-US economic and trade negotiations, expected monetary policy adjustment of European and US central banks as well as the uncertainty of Brexit of the UK, the US dollar index rose slightly. However, the prices of financial assets also rose. Due to the combined impact of exchange rate translation and changes in asset prices etc., China’s foreign exchange reserves increased modestly. Since the beginning of this year, despite the imbalance of external environment and a number of uncertainties, China’s economy has sustained the development trend of overall stable growth while ensuring progress, and the future prospects tend to be positive. China's foreign exchange market is running more smoothly and the cross-border capital flow through major channels has been further improved, which provides a solid foundation for the stability of the foreign exchange reserves. Looking forward, the global political and economic situations will be complex with rising uncertainties. Economic growth will be confronted with downward pressure, prices of financial assets will remain high, and the international financial market is expected to become more volatile. However, China's economy will operate within a reasonable range. As the flexibility of RMB exchange rate increases, the function of exchange rate as "automatic stabilizer" will gradually become evident, which is generally conducive to maintaining the stability of China's foreign exchange reserves. 2019-04-07/en/2019/0412/1503.html
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Q: The latest data on foreign exchange reserves disseminated by the State Administration of Foreign Exchange (SAFE) show that China's foreign exchange reserves by the end of February 2019 rose by USD 2.3 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: By the end of February 2019, China's foreign exchange reserves stood at USD 3,090.2 billion, up by USD 2.3 billion or 0.1% from the end of January. In February, China's foreign exchange market maintained smooth operation. On the international financial market, the US Dollar Index rose by 0.6%, and the prices of financial assets were mixed with both rise and fall. Under the combined impact of exchange rate translation and changes in asset prices and other factors, the foreign exchange reserves rose slightly. Since the beginning of this year, the global political and economic environment has still faced many uncertainties, the momentum of economic growth has weakened, and the international financial market has witnessed considerable fluctuations. However, China's economy has maintained sound development, the foreign exchange market expectations continue to improve, cross-border capital flow through major channels and foreign exchange receipts and payments situations have both witnessed positive changes, and foreign exchange reserves has remained stable on the whole. Looking forward, in the face of the complex and volatile international economic and financial situations, China will continue to deepen the structural reform on the supply side, keep the economy operating within a reasonable range, so as to lay a solid foundation for maintaining the stability of cross-border capital flows and independent equilibrium of balance of payments. Under such factors at home and abroad, China's foreign exchange reserves are expected to remain stable on the whole amid fluctuations. 2019-03-07/en/2019/0402/1497.html
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On March 21, 2019, Pan Gongsheng, Administrator of the State Administration of Foreign Exchange (SAFE) met with Ray Dalio, the founder, Board Chairman and co-CIO of the US-based Bridgewater Associates and his delegation. The two sides exchanged views on the global economic and financial market situations as well as the opening-up of China's financial sector, and other issues. 2019-03-27/en/2019/0402/1499.html
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On March 22, Pan Gongsheng, Administrator of the State Administration of Foreign Exchange (SAFE) met with Peter T. Grauer, Board Chairman of Bloomberg L.P. and his delegation. The two sides exchanged views on such issues as the global economic situations, the development of the bond market as well as the inclusion of Chinese bonds into the Bloomberg Barclays Bond Index. 2019-03-27/en/2019/0402/1500.html
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2019-10-25 14:16 Moderator Liu Fang Good afternoon, friends from the press. Welcome to today's press conference on foreign exchange receipts and payments data for the first three quarters of 2019. I am Liu Fang, deputy director of the General Affairs Department of the SAFE. We are pleased to have with us Ms. Wang Chunying, press spokesperson, chief economist, and director of the Department of Balance of Payments of the SAFE. She will first brief us on foreign exchange receipts and payments for the first three quarters of 2019. 2019-10-25 14:17 Wang Chunying Good afternoon, everybody. Welcome to today's press conference. I will first present to you China's foreign exchange receipts and payments data for the first three quarters of 2019 and then take your questions. 2019-10-25 14:17 Wang Chunying Over the first three quarters of 2019, due to the slowing global economy and mounting downside pressure, global financial markets have become more volatile. Nevertheless, China's economy has remained within a reasonable range, with major economic indicators meeting expectations and economic structure being optimized. Despite the heightened two-way fluctuations of the RMB exchange rate against the dollar, expectations have stayed stable. As a result, China has posted stable cross-border capital flows and balanced supply and demand in foreign exchange markets for the first three quarters of 2019. 2019-10-25 14:17 Wang Chunying In the same period, banks settled USD 1.38 trillion and sold USD 1.43 trillion in foreign exchange, representing a deficit of USD 48.2 billion; and banks received USD 2.632 trillion and paid USD 2.629 trillion in foreign exchange for customers in foreign-related transactions, representing a surplus of USD 2.6 billion. 2019-10-25 14:17 Wang Chunying China's foreign exchange receipts and payments presented the following features in the period: first, a shrinking deficit has been observed in banks' settlements and sales of foreign exchange while a surplus has been recorded in banks' foreign exchange receipts and payments for customers for foreign-related transactions. Since the second half of 2018, despite a complex external environment and increased uncertainty, a contracting deficit has been observed in China's foreign exchange sales and settlements. In the first three quarters, a deficit of USD 48.2 billion was recorded in banks' foreign exchange settlements and sales, down by 54% from the second half of 2018 by monthly average. In the same period, a surplus of USD 2.6 billion was registered in banks' foreign-related foreign exchange receipts and payments for customers, versus a deficit for the second half of 2018. 2019-10-25 14:18 Wang Chunying Second, the supply and demand in foreign exchange markets have been in balance. In the first three quarters, a monthly average deficit of USD 5.4 billion was recorded in banks' foreign exchange settlements and sales, but with forward settlements and sales and options considered, the supply and demand were in an equilibrium. The deficit for the third quarter contracted by 38% from that of the second quarter, or by 64% year-on-year, which is a strong indicator of increased stability of foreign exchange markets. 2019-10-25 14:18 Wang Chunying Third, the foreign exchange sales ratio has stayed stable and foreign exchange financing by enterprises has become steadier. In the first three quarters, the foreign exchange sales ratio that measures customers' desire to buy foreign exchange, or the ratio of foreign exchange customers bought from banks to their foreign-related foreign exchange payments, stood at 67%, consistent with that of the second half of 2018. Meanwhile, the decline in domestic foreign exchange loans by enterprises narrowed. As at the end of September, the outstanding foreign exchange loans in Chinese banks fell by USD 12.3 billion from the figure of the beginning of the year, compared with a drop of USD 59.9 billion in the second half of 2018. Further, foreign exchange financing under foreign trade has stabilized. As at the end of September, the balance of cross-border financing for imports denominated in foreign currencies including refinancing and usance letter of credit contracted by a slight USD 1 billion from the end of 2018, versus a drop of USD 13.2 billion in the second half of 2018. 2019-10-25 14:18 Wang Chunying Fourth, the settlement ratio has risen steadily and market players' foreign exchange deposits have fallen. In the first three quarters, the settlement ratio that measures customers' desire to settle their foreign exchange, or the ratio of foreign exchange customers sold to banks to their receipts of foreign exchange from foreign-related transactions, was 65%, up by 0.6 percentage point from the second half of 2018. Foreign exchange deposits of market players, companies and individuals alike, have dropped. By the end of September, the balance of domestic foreign exchange deposits with banks was USD 32.4 billon lower than that of the end of 2018. 2019-10-25 14:18 Wang Chunying Fifth, a surplus has been observed in banks' forward settlements and sales of foreign exchange. In the first three quarters, banks' forward settlements and sales of foreign exchange represented a surplus of USD 105.5 billion, versus a deficit of USD 45.3 billion in the same period last year. A surplus in the contract amount for forward settlements and sales of foreign exchange reached USD 34.5 billion, USD 43.2 billion, and USD 27.8 billion in the first, second and third quarter respectively. 2019-10-25 14:18 Wang Chunying Sixth, the balance of foreign exchange reserves has risen steadily. By the end of September 2019, the balance of foreign exchange reserves amounted to USD 3.0924 trillion, USD 19.7 billion more than that of the beginning of the year. 2019-10-25 14:18 Wang Chunying These are what I am supposed to present today. Now I would like to answer your questions. 2019-10-25 14:38 Xinhua News Agency As the global economy slows down and global financial markets become more volatile, how have China's cross-border capital flows performed? What would you say about the future trends? 2019-10-25 14:39 Wang Chunying In the year to date, China's foreign exchange markets have stayed stable amid the complex and changing external environment. First, the supply and demand has been in balance. According to the data released just now, banks' settlements and sales of foreign exchange for the first three quarters represented a monthly average deficit of USD 5.4 billion, much lower than those of the previous years and accounting for only 1.8% of the monthly average of banks' sales and settlements of foreign exchange, indicating an equilibrium. The non-banking sector's cross-border receipts and payments represented a slight surplus and foreign exchange reserves rose steadily. All these indicators, whether for supply and demand, cross-border receipts and payments, or the balance of payments, show that China's foreign exchange markets have been generally stable and balanced in the year to date. 2019-10-25 14:39 Wang Chunying Second, the RMB exchange rate has remained stable against other currencies. In the first three quarters, the central parity rate of the yuan against the dollar depreciated by 3.0%, and the CFETS RMB Index fell by 1.9%. In the meanwhile, the USD index rose by 3.3% while the EMCI index dropped by 3.1%. All of these show that the RMB exchange rate is still stable. 2019-10-25 14:39 Wang Chunying Third, market players' cross-border investing and financing activities and their desire to settle or sell foreign exchange have remained stable. On the one hand, foreign capital has continued to flow in. According to the statistics of the Ministry of Commerce, for example, China used USD 100.8 billion in foreign capital under direct investment in the first three quarters, up by 2.9% year-on-year. Statistics from the SAFE show that, under securities investment, overseas investors bought an extra USD 71.3 billion in bonds net and an extra USD 18.5 billion in listed stocks net in the first three quarters. On the other hand, China's outbound investment has been stable and in a good order. Statistics from the Ministry of Commerce show that the non-financial sector made ODI of USD 81 billion in the first three quarters, consistent with that of the same period last year. Besides, statistics from the SAFE show that foreign exchange purchased by individuals contracted by 20% net year-on-year. 2019-10-25 14:39 Wang Chunying Now I would like to share with you my ideas why China's foreign exchange markets could sustain stability in the year to date. First, economic fundamentals have provided a strong support. While the global economy is slowing down, China's economy has delivered a good performance. It continues adopting the positive fiscal policy and robust monetary policy and deepens the supply-side structural reform, effectively shoring up economic stability. 2019-10-25 14:39 Wang Chunying Second, the policies that encourage opening wider to the outside world have continued to take positive effects. Since the beginning of this year, a range of policies for opening wider to the outside world have been introduced such as the new foreign investment law, the updated negative list for market access of foreign investment, and the removal of foreign shareholding restrictions for securities and fund companies, which have provided a strong boost to market confidence. In the global business environment ranking unveiled by the World Bank yesterday, China has moved up by a further 15 places from last year's position, which climbed by 32 places year-on-year. 2019-10-25 14:39 Wang Chunying Third, the foreign exchange market's self-adjustment capability has been improving. Recent data shows China's foreign exchange markets have been maturing and market players have become more sensible. For example, as the RMB exchange rate became increasingly fluctuating in the past few months, market players settled their foreign exchange when the RMB foreign exchange rate was high and purchased foreign exchange when the rate was low, which helped to regulate the supply and demand of foreign exchange and curb the exchange rate volatility and in turn facilitate market stability. Despite the complexities of the external environment, we have observed some positive factors, such as loose monetary policies around the world, moderate spread between domestic and overseas interest rates, and continued China-US trade talks, which are positive signs to the market. 2019-10-25 14:40 Wang Chunying Overall, we believe these factors including strong economic fundamentals, continuity of the policies that encourages opening wider to the outside world, and the maturing markets will dominate the performance of China's foreign exchange markets in the future and help to maintain stability in China's cross-border capital flows. 2019-10-25 14:53 People.cn The current account surplus increased in the first half of 2019. Could you explain why? And what will be the future trends? 2019-10-25 14:53 Wang Chunying Generally speaking, China's current account has maintained a basic equilibrium amid small fluctuations. In the first half, a surplus of USD 88.2 billion was observed under the current account, accounting for 1.3% of China's GDP. In comparison, a deficit of USD 28.8 billion was observed in the first half of 2018 and a surplus of USD 77.9 billion in the second half. But actually, they were all within the reasonable range of a basic equilibrium. As a result, despite the complex external environment, China's current account has shown strong adaptability and stability recently. 2019-10-25 14:54 Wang Chunying The increasing balance of the current account in the year to date is a result of the combined changes in trade in goods, trade in services and returns on investment. First, a larger surplus was registered under trade in goods, amounting to USD 208.4 billion in the Balance of Payments in the first half, up by 34% year-on-year. Second, a lower deficit was recorded under trade in services, reaching USD 129.3 billion in the first half, down by 12% year-on-year. Third, returns on investment were improved, representing a slight surplus of USD 1.5 billion in the first half, versus a deficit for the same period last year. 2019-10-25 14:54 Wang Chunying In the near future, China's current account is expected to remain in the reasonable range. First, trade in goods will maintain a reasonable surplus. A host of factors can help to sustain export stability in China: first, the diversification of export markets is delivering impacts. In dollar terms, China's export to ASEAN grew by 9.5% and to Africa, rose by 5.9% in the first three quarters, which are much higher than its overall export growth, indicating companies are proactively expanding their markets and optimizing their global presence. Second, trade facilitation and the initiatives to boost foreign trade growth such as the requirements to implement the reform of "combining power delegation with regulation & optimizing services", the incubation of new growth dynamics for foreign trade and the strengthening of core competitiveness, will continue to take effect. Third, the manufacturing sector, featuring a wide variety of sub-sectors, sound supporting facilities, increasing productivity and deep integration into the global industry chain, is being transitioned and upgraded, and will continue to lay a solid foundation for China-made products to sustain their competitiveness. In addition, China and the US have moved on with their trade talks. 2019-10-25 14:54 Wang Chunying A review of trade in service and returns on investment shows that the deficits are shrinking, which will enable them to continue to shore up the current account stability. On the one hand, the history of major countries shows that, with the changes in residents' concept of consumption and the strengthening of a country's soft power, expenditures for trade in service like overseas tourism will grow and then stabilize, and therefore, the deficit in trade in service will not grow as quickly as before. On the other hand, China has been committed to optimizing its foreign investment structure in recent years. With a growing share, direct investment will help drive up returns on outbound investment and in turn increase returns on investment. 2019-10-25 14:54 Wang Chunying Overall, China's current account is now in a basic equilibrium, and will possibly continue and sustain this pattern in the future. 2019-10-25 15:11 CBN Daily The Balance of Payments shows high net errors and omission in the first half of 2019. Could you tell us why? Does this point to high capital outflows? 2019-10-25 15:11 Wang Chunying Thank you for your questions. As the preparer and analyst of the Balance of payments and policymaker, we have also paid close attention to this issue. 2019-10-25 15:11 Wang Chunying "Net errors and omission" is a standard component of the Balance of Payments. By nature it is a netting item that is susceptible to the impact from the current account, and the capital and financial account. According to international practices, the Balance of Payments is a double-entry accounting statement, with "net errors and omission" created to balance debits and credits therein. In fact, "net errors and omission" is a residual item since all items in the Balance of Payments may have "net errors and omission". 2019-10-25 15:11 Wang Chunying For an economy frequently involved in foreign-related businesses, the large size and high frequency of cross-border transactions poses a great challenge to statistical work, leaving high "net errors and omission" sometimes. This challenge is not confronted by China alone. Any economies that are engaged in large and frequent cross-border transactions are facing this challenge. In the US, for example, the "net errors and omission" hit USD 99.5 billion in the first quarter of this year, accounting for 9% of the total trade in goods in the Balance of Payments. With increasing communications with the rest of the world, China's foreign-related economy has grown rapidly, in terms of both the number of declarers and the size of foreign-related transactions. In 2018, millions of players declared a total of nearly 50 million foreign-related transactions. Such fragmented distribution has rarely been seen in the world. As a result, long-term careful efforts are needed in the promotion of concepts on the declarations of the BOP statistics, data collection and improvement of data quality. Moreover, the preparation of BOP is also a complex and systematic task. Apart from the breakdown data or aggregate data collected by banks, we also use the data collected in corporate sample surveys as well as from other departments. These data, with different concepts, coverage, and recording principles, may result in "net errors and omission" when synthesized in the Balance of Payments. 2019-10-25 15:11 Wang Chunying Therefore, you can understand that "net errors and omission" is a statistical issue occurring in preparing the Balance of Payments, not about cross-border capital flows. The SAFE has surely paid close attention to this issue and been studying a more scientific statistical approach, with a view to ensuring the integrity, timeliness and accuracy of BOP statistics at a lower cost and in a more reliable way by reducing misjudgment based on "net errors and omission". We also expect you to do objective analysis instead of blindly mistaking "net- errors and omission" for capital flows. In addition, the SAFE will continue to oversee data collection, processing and cleaning to improve data quality further. Thank you. 2019-10-25 15:26 China News Service China's full-scale outstanding external debt is nearing USD 2 trillion. What would you say about this? How to assess the risks ensued? 2019-10-25 15:26 Wang Chunying China's outstanding external debt for the second quarter reportedly amounted to USD 1.9980 trillion, which is close to USD 2 trillion. But based on our judgment, China's external debt risk is controllable on the whole. I would explain this in several dimensions. 2019-10-25 15:27 Wang Chunying First, China's external debt is modest compared with other major countries, in both absolute and relative terms. Along with economic growth and the advance of globalization, it is natural that one country's external debt will grow steadily, especially in a large economy whose debt is huge too. This is an indication of a country's comprehensive use of both domestic and foreign resources for reasonable and effective resource allocation. For China, its debt is modest in absolute terms and at a lower-middle level in relative terms, as compared with other major countries. In absolute terms, China was ranked No. 12 globally by outstanding external debt by the end of 2018, which was 10 times lower than that of the US, 4 times lower than the UK, and 2 times lower than Japan, according to the World Bank's statistics. In relative terms, China's outstanding external debt accounted for 14% of national income by the end of 2018, ranking below No. 150 globally, according to incomplete statistics. Further, the liability ratio and debt ratio of its external debt are within the internationally recognized safe ranges and lower than the overall levels of developed and emerging market economies. 2019-10-25 15:27 Wang Chunying Second, China's external debt and external assets have both grown in an orderly and coordinated way. International experience shows that to measure external debt risk and external vulnerabilities, focus should be on the size and solvency of external assets. In the International Investment Position released by the SAFE, China's external assets totaled USD 7.4 trillion by the end of June 2019, up by 16% from the end of 2014; its external debt reached USD 5.4 trillion, up by 12% from the end of 2014, a bit lower than that of assets. What's more, its external debt growth is slowing down. By the end of June 2019, its outstanding external debt rose by 1.7% from that of the end of 2018, much lower than those of the previous years. 2019-10-25 15:27 Wang Chunying Third, as for growth trends, China's external debt, with a remarkably optimized structure, has been further stabilized, which is indicated in several aspects. By maturity, China's external debt growth has chiefly stemmed from middle and long-term debt in recent years. By the end of June 2019, outstanding middle and long-term external debt rose by 63% from the figure of the end of 2014, and its share in total outstanding debt was 12 percentage points higher than that of the end of 2014, while outstanding short-term external debt dropped 6% at the same time. By debt instrument, increase in debt securities has been the main driver of the stable growth in external debt. At the end of June, the balance of debt securities was 2.3 times more than that of the end of 2014, and its share was 24%. As foreign investors invest in debt securities mainly to diversify their asset allocation, debt securities grew and stayed stable in 2015 despite shrinking external debt. By currency, the recent external debt increased is chiefly denominated in RMB. As at the end of June, outstanding RMB external debt rose by USD 38.7 billion from the end of 2018 while external debt denominated in foreign currencies fell by USD 5.9 billion. For the moment, the RMB external debt accounts for one third of China's total external debt, indicating foreign investors' confidence and recognition in China's economic growth and RMB assets. 2019-10-25 15:27 Wang Chunying Therefore, we would say China's external debt risk is basically controllable. 2019-10-25 15:34 China Securities Journal What would you say about the impact of the recent reform to QFII and RQFII programs by the SAFE on China's cross-border capital flows and balance of payments? How to mitigate relevant risks? 2019-10-25 15:34 Wang Chunying With the approval of the State Council, we have decided to remove the investment quota limits on qualified foreign investors. As a key reformative initiative during the course of financial liberalization in China, this will facilitate stable cross-border capital flows and structural optimization of the balance of payments. 2019-10-25 15:34 Wang Chunying First, this will help to attract more foreign capital into China. With the removal of investment quota limits on QFIIs and RQFIIs, qualified foreign investors will only need to register with foreign exchange authorities and then can remit money to invest in securities in compliance with regulations. As a result, it will be much more convenient for foreign investors to invest in China's financial markets, and China's bond markets and equity markets will be recognized by the international community to a larger extent. 2019-10-25 15:34 Wang Chunying Second, this will increase the stability of foreign investments in China. Our dozen years of observation and monitoring shows that those investing in China's capital markets through QFII and RQFII programs are mostly value-oriented long-term investors. With a robust investment philosophy, they pursue middle and long-term returns, rather than short-term gains through frequent transactions. Even when cross-border capital flows fluctuated sharply, foreign investment through QFII and RQFII programs remained stable. The removal of quota limits on these quality investors will facilitate capital inflows and further attraction of long-term quality investors to invest in China. 2019-10-25 15:35 Wang Chunying Third, this will provide a boost to the development of China's financial markets. In a broader sense, this reform will continue to help improve the structure of domestic investors and their transaction style, and contribute to the long-term evolution of China's financial markets. 2019-10-25 15:35 Wang Chunying As the financial market is being liberalized, we are confident in keeping China's foreign exchange market stable. I would like to share with you a couple of figures. With the increase in the balance of payments and the optimization of transaction structure, China's risk resilience is improving. For example, from 2002 when the QFII program was launched to the current removal of quota limits, China's balance of payments expanded from USD 810 billion to more than USD 6.6 trillion in 2018, which is sufficient to offset the impact from the opening up of securities markets. Certainly the capital account is opened up in a proactive, step-by-step and controllable manner, and we will continue to intensify monitoring, early warning and analysis. We will assess market conditions in prompt response to domestic and overseas developments, to guard against risks arising from cross-border capital flows. 2019-10-25 15:35 Moderator Liu Fang Thank you, Ms. Wang. Also thanks to the friends from the press for your attention and participation. Thank you all for your support for the SAFE. This is the end of today's press conference. Thank you for coming. (The original text is available on people.cn) 2019-10-25/en/2019/1025/1587.html
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In the third quarter of 2019, China's current account registered a surplus of RMB 383.8 billion, including a surplus of RMB 944.5 billion under trade in goods, a deficit of RMB 506.0 billion under trade in services, a deficit of RMB 70.0 billion under primary income and a surplus of RMB 15.3 billion under secondary income. In the capital and financial accounts, foreign direct investment recorded a deficit of RMB 52.1 billion. In the first three quarters of 2019, China's current account registered a surplus of RMB 982.2 billion, including a surplus of RMB 2358.3 billion under trade in goods, a deficit of RMB 1382.7 billion under trade in services, a deficit of RMB 45.6 billion under primary income and a surplus of RMB 52.2 billion under secondary income. In the capital and financial accounts, foreign direct investment recorded a surplus of RMB 185.6 billion. In the US dollar terms, in the third quarter of 2019, China's current account registered a surplus of USD 54.9 billion, including a surplus of USD 135.2 billion under trade in goods, a deficit of USD 72.4 billion under trade in services, a deficit of USD 10.0 billion under primary income and a surplus of USD 2.2 billion under secondary income. In the capital and financial accounts, foreign direct investment recorded a deficit of USD 7.5 billion. In the US dollar terms, in the first three quarters of 2019, China's current account registered a surplus of USD 143.2 billion,including a surplus of USD 343.5 billion under trade in goods, a deficit of USD 201.7 billion under trade in services, a deficit of USD 6.3 billion under primary income and a surplus of USD 7.6 billion under secondary income. In the capital and financial accounts, foreign direct investment recorded a surplus of USD 27.7 billion. In SDR terms, in the third quarter of 2019, China's current account registered a surplus of SDR 40.0 billion, including a surplus of SDR 98.4 billion under trade in goods, and a deficit of SDR 52.7 billion under trade in services. In the capital and financial accounts, foreign direct investment recorded a deficit of SDR 5.4 billion. In SDR terms, in the first three quarters of 2019, China's current account registered a surplus of SDR 103.5 billion, includinga surplus of SDR 248.5 billion under trade in goods, and a deficit of SDR 145.8 billion under trade in services. In the capital and financial accounts, foreign direct investment recorded a surplus of SDR 19.9 billion. China's Balance of Payments (Preliminary Data) Unit:RMB 100 million Item Line No. Q3 2019 First 3 quarters, 2019 1. Current account 1 3,838 9,822 Credit 2 53,209 148,860 Debit 3 -49,372 -139,038 1. A Goods and Services 4 4,385 9,756 Credit 5 48,559 134,593 Debit 6 -44,174 -124,836 1.A.a Goods 7 9,445 23,583 Credit 8 44,375 122,369 Debit 9 -34,930 -98,787 1.A.b Services 10 -5,060 -13,827 Credit 11 4,183 12,223 Debit 12 -9,244 -26,050 1.A.b.1 Processing services 13 264 790 Credit 14 272 808 Debit 15 -8 -18 1.A.b.2 Maintenance and Repair Services 16 48 347 Credit 17 123 530 Debit 18 -75 -183 1.A.b.3 Transport 19 -1,153 -3,022 Credit 20 813 2,312 Debit 21 -1,966 -5,334 1.A.b.4 Travel 22 -4,003 -11,484 Credit 23 624 1,790 Debit 24 -4,627 -13,274 1.A.b.5 Construction 25 68 237 Credit 26 233 709 Debit 27 -165 -472 1.A.b.6 Insurance and Pension Services 28 -111 -333 Credit 29 80 218 Debit 30 -192 -551 1.A.b.7 Financial Services 31 17 65 Credit 32 56 184 Debit 33 -39 -119 1.A.b.8 Charges for the Use of Intellectual Property 34 -496 -1,455 Credit 35 109 342 Debit 36 -605 -1,796 1.A.b.9 Telecommunications, Computer, and Information Services 37 143 355 Credit 38 637 1,731 Debit 39 -494 -1,376 1.A.b.10 Other Business Services 40 301 970 Credit 41 1,197 3,474 Debit 42 -897 -2,504 1.A.b.11 Personal, Cultural, and Recreational Services 43 -61 -160 Credit 44 13 44 Debit 45 -74 -203 1.A.b.12 Government Goods and Services n.i.e 46 -76 -139 Credit 47 26 82 Debit 48 -102 -221 1.B Primary Income 49 -700 -456 Credit 50 4,199 12,939 Debit 51 -4,900 -13,396 1.C Secondary Income 52 153 522 Credit 53 451 1,328 Debit 54 -298 -806 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -3,838 -926 2.1 Capital Account 56 -17 -23 Credit 57 3 11 Debit 58 -19 -33 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -3,821 -903 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -4,900 -1,825 Including: 2.2.1.1 Direct Investment 61 -521 1,856 2.2.1.1.1 Assets 62 -1,578 -4,749 2.2.1.1.2 Liabilities 63 1,057 6,605 2.2.2 Reserve Assets 64 1,079 922 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 -13 -21 2.2.2.3 Reserve position in the IMF 67 -24 -8 2.2.2.4 Foreign exchange reserves 68 1,115 951 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / -8,896 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 statement for the quarter using the quarterly average central parity rate of RMB against USD. 4. The preliminary data for the first three quarters of 2019 is the sum of the formal data of the BOP for Q1 and Q2 2019 and the preliminary data for Q3 2019. 5. This table employs rounded-off numbers. China's Balance of Payments (Preliminary Data) Unit:USD 100 million Item Line No. Q3 2019 First 3 quarters, 2019 1. Current account 1 549 1,432 Credit 2 7,615 21,719 Debit 3 -7,066 -20,287 1. A Goods and Services 4 628 1,418 Credit 5 6,949 19,635 Debit 6 -6,322 -18,217 1.A.a Goods 7 1,352 3,435 Credit 8 6,351 17,850 Debit 9 -4,999 -14,415 1.A.b Services 10 -724 -2,017 Credit 11 599 1,785 Debit 12 -1,323 -3,802 1.A.b.1 Processing services 13 38 115 Credit 14 39 118 Debit 15 -1 -3 1.A.b.2 Maintenance and Repair Services 16 7 51 Credit 17 18 78 Debit 18 -11 -27 1.A.b.3 Transport 19 -165 -441 Credit 20 116 337 Debit 21 -281 -778 1.A.b.4 Travel 22 -573 -1,676 Credit 23 89 261 Debit 24 -662 -1,938 1.A.b.5 Construction 25 10 35 Credit 26 33 104 Debit 27 -24 -69 1.A.b.6 Insurance and Pension Services 28 -16 -49 Credit 29 11 32 Debit 30 -27 -80 1.A.b.7 Financial Services 31 2 10 Credit 32 8 27 Debit 33 -6 -17 1.A.b.8 Charges for the Use of Intellectual Property 34 -71 -212 Credit 35 16 50 Debit 36 -87 -262 1.A.b.9 Telecommunications, Computer, and Information Services 37 21 52 Credit 38 91 253 Debit 39 -71 -201 1.A.b.10 Other Business Services 40 43 142 Credit 41 171 507 Debit 42 -128 -365 1.A.b.11 Personal, Cultural, and Recreational Services 43 -9 -23 Credit 44 2 6 Debit 45 -11 -30 1.A.b.12 Government Goods and Services n.i.e 46 -11 -20 Credit 47 4 12 Debit 48 -15 -32 1.B Primary Income 49 -100 -63 Credit 50 601 1,890 Debit 51 -701 -1,953 1.C Secondary Income 52 22 76 Credit 53 65 194 Debit 54 -43 -118 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -549 -120 2.1 Capital Account 56 -2 -3 Credit 57 0 2 Debit 58 -3 -5 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -547 -116 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -701 -247 Including: 2.2.1.1 Direct Investment 61 -75 277 2.2.1.1.1 Assets 62 -226 -693 2.2.1.1.2 Liabilities 63 151 970 2.2.2 Reserve Assets 64 154 130 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 -2 -3 2.2.2.3 Reserve position in the IMF 67 -3 -1 2.2.2.4 Foreign exchange reserves 68 160 134 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / -1,312 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 2019 is the sum of the formal data of the BOP for Q1 and Q2 2019 and the preliminary data for Q3 2019. 4. This table employs rounded-off numbers. China's Balance of Payments (Preliminary Data) Unit:SDR 100 million Item Line No. Q3 2019 First 3 quarters, 2019 1. Current account 1 400 1,035 Credit 2 5,542 15,700 Debit 3 -5,142 -14,665 1. A Goods and Services 4 457 1,027 Credit 5 5,057 14,194 Debit 6 -4,601 -13,167 1.A.a Goods 7 984 2,485 Credit 8 4,622 12,904 Debit 9 -3,638 -10,420 1.A.b Services 10 -527 -1,458 Credit 11 436 1,290 Debit 12 -963 -2,748 1.A.b.1 Processing services 13 27 83 Credit 14 28 85 Debit 15 -1 -2 1.A.b.2 Maintenance and Repair Services 16 5 37 Credit 17 13 56 Debit 18 -8 -19 1.A.b.3 Transport 19 -120 -319 Credit 20 85 244 Debit 21 -205 -562 1.A.b.4 Travel 22 -417 -1,212 Credit 23 65 189 Debit 24 -482 -1,400 1.A.b.5 Construction 25 7 25 Credit 26 24 75 Debit 27 -17 -50 1.A.b.6 Insurance and Pension Services 28 -12 -35 Credit 29 8 23 Debit 30 -20 -58 1.A.b.7 Financial Services 31 2 7 Credit 32 6 19 Debit 33 -4 -13 1.A.b.8 Charges for the Use of Intellectual Property 34 -52 -153 Credit 35 11 36 Debit 36 -63 -189 1.A.b.9 Telecommunications, Computer, and Information Services 37 15 37 Credit 38 66 183 Debit 39 -51 -145 1.A.b.10 Other Business Services 40 31 102 Credit 41 125 367 Debit 42 -93 -264 1.A.b.11 Personal, Cultural, and Recreational Services 43 -6 -17 Credit 44 1 5 Debit 45 -8 -21 1.A.b.12 Government Goods and Services n.i.e 46 -8 -15 Credit 47 3 9 Debit 48 -11 -23 1.B Primary Income 49 -73 -47 Credit 50 437 1,366 Debit 51 -510 -1,412 1.C Secondary Income 52 16 55 Credit 53 47 140 Debit 54 -31 -85 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -400 -90 2.1 Capital Account 56 -2 -2 Credit 57 0 1 Debit 58 -2 -4 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -398 -88 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -510 -183 Including: 2.2.1.1 Direct Investment 61 -54 199 2.2.1.1.1 Assets 62 -164 -501 2.2.1.1.2 Liabilities 63 110 700 2.2.2 Reserve Assets 64 112 95 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 -1 -2 2.2.2.3 Reserve position in the IMF 67 -3 -1 2.2.2.4 Foreign exchange reserves 68 116 98 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / -945 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 statementis converted from the USD denominated BOP statement for the quarter using the quarterly average exchange rate of SDR against USD. 4. The preliminary data for the first three quarters of 2019 is the sum of the formal data of the BOP for Q1 and Q2 2019 and the preliminary data for Q3 2019. 5. This table employs rounded-off numbers. 2019-11-08/en/2019/1108/1589.html
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In September 2019, China’s international trade in goods and services recorded receipts of RMB 1668.9 billion and payments of RMB 1493.6 billion based on statistics of balance of payments (BOP), registering a surplus of RMB 175.3 billion. Specifically, trade in goods registered receipts of RMB 1529.2 billion,payments of RMB 1199.2 billion, recording a surplus of RMB 330 billion; trade in services recorded receipts of RMB 139.7 billion,payments of RMB 294.4 billion, resulting in a deficit of RMB 154.7 billion. In the US dollar terms, in September 2019, China's BOP-based receipts and payments of international trade in goods and services were USD 235.8 billion and USD 211 billion respectively, registering a surplus of USD 24.8 billion. Specifically, the receipts and payments from trade in goods were USD 216 billion and USD 169.4 billion respectively, resulting in a surplus of USD 46.6 billion. Trade in services registered receipts and payments of USD 19.7 billion and USD 41.6 billion respectively, recording a deficit of USD 21.9 billion. (End) International Trade in Goods and Services of China (Based on the BOP statistics) September 2019 Item In 100 million of RMB In 100 million of USD Goods and services 1,753 248 Credit 16,689 2358 Debit -14,936 -2110 1. Goods 3,300 466 Credit 15,292 2160 Debit -11,992 -1694 2. Services -1,547 -219 Credit 1,397 197 Debit -2,944 -416 2.1 Manufacturing services on physical inputs owned by others 94 13 Credit 96 14 Debit -3 0 2.2 Maintenance and repair services n.i.e 5 1 Credit 35 5 Debit -30 -4 2.3 Transport -375 -53 Credit 275 39 Debit -650 -92 2.4 Travel -1,206 -170 Credit 214 30 Debit -1,420 -201 2.5 Construction 20 3 Credit 65 9 Debit -45 -6 2.6 Insurance and pension services -23 -3 Credit 23 3 Debit -46 -7 2.7 Financial services 5 1 Credit 19 3 Debit -14 -2 2.8 Charges for the use of intellectual property -150 -21 Credit 41 6 Debit -191 -27 2.9 Telecommunications, computer and information services 44 6 Credit 216 30 Debit -172 -24 2.10 Other business services 87 12 Credit 399 56 Debit -312 -44 2.11 Personal, cultural, and recreational services -30 -4 Credit 4 1 Debit -34 -5 2.12Government goods and services n.i.e -18 -3 Credit 9 1 Debit -26 -4 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 ownershipis not transferred (e.g. manufacturing services with supplied materials or with exported materials) are included in the statistics of tradein 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 forthe 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 records the maintenance and repair services supplied by the Chinese residents to non-residents, andvice 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 forless 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, studyingor 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 debitside. 2.7 Financialservices: 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 Chargesfor the use of intellectual property:refer to licensed use of intangible, non-productive / non-financialassets and exclusive rights between residents and non-residents and the licenseduse of existing original works or prototypes. The credit side records theintellectual property-related services supplied by the Chinese residents tonon-residents, andvice versa for debit side. 2.9 Telecommunications, computer andinformation 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, and vice versa for debit side. 2.10 Other business services: refer to other types of services between residents and non-residents, including researchand 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: referto 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. 2019-10-31/en/2019/1031/1585.html