-
Q: According to the latest foreign exchange reserves data disseminated by the State Administration of Foreign Exchange, could you brief us on the causes of the changes for July 2019? What would you say about the future trends? A: By the end of July 2019, China's foreign exchange reserves amounted to USD 3.1037 trillion, up by USD 31 billion or 1% from the beginning of the year. China's foreign exchange market remained stable in July. In the global financial markets, due to the impacts from global trade situations, central banks' monetary policies in major countries, the prospects of Brexit and geopolitics, the exchange rates of major currencies against the dollar declined and the bond indexes increased. The foreign exchange reserves were affected by a combination of factors, e.g., foreign exchange rate conversions and asset price changes. In the year to date, despite heightening risks and challenges from global markets, China's economy has grown steadily, with major macroeconomic indicators falling within the reasonable ranges. As a result, China has witnessed stable cross-border capital flows, supply-demand balance in the domestic foreign exchange market and steady foreign exchange reserves with normal monthly fluctuations. Going forward, the global political and economic environments will remain challenging and trade protectionism and populism will rise, which will pose heavier downside pressure on the world economy and lead to more fluctuating financial markets. But as China's fundamentals stay robust and real economic sectors and financial markets feature strong resilience and potential, China will withstand external shocks and continue to advance reform and opening up in all respects, which will underpin the overall stability of its foreign exchange reserves. 2019-08-07/en/2019/0919/1556.html
-
Q: According to the latest foreign exchange reserves data disseminated by the State Administration of Foreign Exchange, China's foreign exchange reserves for August 2019 rose by USD 3.5 billion month-on-month. Could you brief us on the causes of the changes? What would you say about the future trends? A: By the end of August 2019, China's foreign exchange reserves amounted to USD 3.1072 trillion, up by USD 3.5 billion or 0.1% month on month, and by USD 34.5 billion or 1.1% from the beginning of the year. In the month, China's foreign exchange market was in a good order, with supply and demand reaching a basic equilibrium. Due to the impacts from global economic growth, trade situations and geopolitics, the US Dollar Index went up slightly and bond prices in major countries climbed. The foreign exchange reserves rose under the impact of a combination of factors, e.g., foreign exchange rate conversions and asset price changes. In the year to date, in the face of complex and challenging external environment, China has witnessed stable economic growth, stronger steadiness and resilience, and constant optimization of the economic structure. Therefore, China posted stable balance of payments and steady increase in foreign exchange reserves. Going forward, the world economy and global financial markets will face heightening risks and challenges. But with great leeway for growth, strong dynamics and vibrancy, China's economy will remain robust in the long run, and it will continue to advance the reform and opening up in all respects, which will lay a solid foundation for the stability of China's foreign exchange reserves. 2019-09-07/en/2019/0907/1555.html
-
As at the end of June 2019, China's banking sector recorded external financial assets of USD 1145.9 billion, external liabilities of USD 1343.0 billion, and net external liabilities of USD 197.1 billion including net RMB liabilities of USD 318.1 billion and net foreign currency assets of USD 121.0 billion. Among the external financial assets of the banking sector, deposits and loans were USD 831.9 billion,bonds investment, USD 154.1billion, and other assets including equity, USD 159.8 billion, accounting for 73 percent, 13 percent and 14 percent of the sector's total external financial assets respectively. By currency, RMB assets were USD 112.5billion, USD assets, USD 791.2 billion, and other currency assets, USD 242.1billion, accounting for 10 percent, 69 percent and 21 percent respectively. Among the external financial assets of the banking sector, the amount invested in the overseas banking sector was USD 570.4 billion, accounting for 50 percent; the amount invested in the overseas non-banking sector was USD 575.5 billion, accounting for 50 percent. Among the external liabilities of the banking sector, deposits and loans were USD 738.3 billion, bonds investment, USD 213.9 billion, and other liabilities including equity, USD 390.7 billion, accounting for 55 percent, 16 percent and 29 percent of the sector's total external liabilities respectively. By currency, RMB liabilities were USD 430.6billion, USD liabilities, USD 538.2 billion, and other currency liabilities, USD 374.2billion, accounting for 32 percent, 40 percent and 28 percent respectively. Of the external liabilities of China’s banking sector, USD 554.9 billion was from overseas banking sector, accounting for 41 percent; whileUSD 788.1billion was from overseas non-banking sector, accounting for 59 percent. (End) 2019-09-26/en/2019/0926/1565.html
-
External_Financial_Assets_and_Liabilities_of_China's_Banking_Sector_(As_of_June_30_2019) 2019-09-26/en/2019/0926/1566.html
-
According to the statistics of the State Administration of Foreign Exchange (SAFE), the Chinese foreign exchange market (excluding foreign currency pairs, the same below) recorded total transaction of RMB 18.14 trillion (equivalent to USD 2.58 trillion) in August 2019. Specifically, the transaction volume of the bank to client market was RMB 2.80 trillion(equivalent to USD 399.3 billion), the transaction volume of interbank market was RMB 15.34 trillion (equivalent to USD 2.18 trillion), the cumulative transaction volume of the spot market was RMB 7.57 trillion (equivalent to USD 1.08 trillion), and that of the derivatives market was RMB 10.57 trillion (equivalent to USD 1.51 trillion). From January to August 2019, a total of RMB 138.81 trillion (equivalent to USD 20.35 trillion) was traded in the Chinese foreign exchange market. 2019-09-20/en/2019/0920/1563.html
-
The State Administration of Foreign Exchange (SAFE) has recently convened the 2022 National Foreign Exchange Administration Work Conference via video. At the conference, participants thoroughly studied and implemented the spirit of the Sixth Plenary Session of the 19th Central Committee of the Communist Party of China (CPC) and the Central Economic Work Conference, summarized the foreign exchange administration work in 2021, analyzed the current foreign exchange situation, held discussions and made arrangements for the key tasks for 2022. Pan Gongsheng, Secretary of the CPC Leadership Group and Administrator of the SAFE, delivered a work report. Members of the CPC Leadership Group of the SAFE and the Chief Accountant also attended the conference. According to the conference, in the year of 2021, the SAFE adhered to the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and earnestly implemented the decisions and arrangements of the CPC Central Committee and the State Council; under the specific guidance of the Financial Stability and Development Committee under the State Council, the SAFE coordinated development and safety by ensuring “stability on the six fronts” and “security in the six areas”, and constantly promoted the reform and opening-up of the foreign exchange sector as well as the modernization of management system and governance capacity; besides, the SAFE maintained basic stability of the foreign exchange market and China’s economic and financial security, ensuring a good start of the 14th Five-Year Plan. First, the SAFE constantly improved the liberation and convenience of cross-border trade and investment. To this end, the SAFE launched pilot projects on higher level of opening-up in foreign trade and investment, expanded the scale and improved the quality of pilot projects of cross-border trade payment facilitation, and promoted the healthy development of new forms and models of foreign trade. At the meantime, the SAFE supported private equity funds in making cross-border industrial investments, launched a pilot cash-pooling service integrating domestic and foreign currency management for multinational corporations, and enriched the application scenarios of cross-border financial service platforms. Besides, the SAFE further facilitated individuals’ use of foreign exchange and actively prepared for the entry into force of the Regional Comprehensive Economic Partnership (RCEP). Second, the SAFE achieved positive results in preventing and controlling cross-border capital flow risks. To this end, the SAFE strengthened macro-prudential management and expectation management, and encouraged enterprises to use exchange rate hedging tools more extensively. Meanwhile, the SAFE also improved the off-site supervision capabilities, severely cracked down on illegal activities in the foreign exchange sector, and maintained a healthy order in the foreign exchange market. Third, the SAFE constantly improved the operation and management of foreign exchange reserves, and the volume of China’s foreign exchange reserves remained stable at around US$3.2 trillion. Fourth, the SAFE made further efforts in exercising full and strict governance over the Party. The SAFE made solid progress in learning and education of the Party’s history, further promoted the practical activities by the name of “I do practical work for the masses”, and launched a series of activities to celebrate the 100th anniversary of the founding of the CPC. In addition, the SAFE, actively cooperated in the discipline inspections by the CPC Central Committee, further strengthened work style construction and enhanced the awareness of discipline and law among the Party members and cadres. The conference stressed that, in the year of 2022, foreign exchange administration will follow the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, and fully implement the guiding principles from the 19th CPC National Congress and each plenary session of the 19th CPC Central Committee, as well as the arrangements made at the Central Economic Work Conference. The SAFE will enhance the “Four Consciousnesses”, affirm the “Four Matters of Confidence”, and ensure the “Two Upholds”, correctly understand and grasp major theoretical and practical issues in the new development stage. The SAFE will prioritize stability while pursuing progress, fully apply the new development philosophy, and integrate into the new development paradigm. In addition, the SAFE will coordinate development and security by maintaining the steady operation of the foreign exchange market and the proper scale of foreign exchange reserves, and deepening reform and opening-up in the foreign exchange sector for the stability of the macro-economy. The SAFE will also strive to maintain a healthy order in the foreign exchange market by further ensuring “stability on the six fronts” and “security in the six areas”, so as to promote the high-quality economic development, and welcome the successful convening of the 20th National Congress of the CPC with outstanding achievements. The conference outlined key tasks for foreign exchange administration in 2022. First, the SAFE will make further efforts to exercise full and strict governance over the Party. To be specific, the SAFE will further understand the decisions of the CPC on Comrade Xi Jinping’s core position on the Party Central Committee and in the Party as a whole and the guiding role of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era. The SAFE will comprehensively improve the quality of Party building under the leadership of the Party’s political construction, implement the people-centered philosophy of development, and continuously consolidate and expand the achievements in learning and education of the Party’s history. The SAFE will also resolutely rectify the problems discovered by the discipline inspection, and turn the rectification results into a powerful driving force for the high-quality development of foreign exchange administration. In addition, the SAFE will encourage the branch offices to strictly implement the principle of “two duties for one post”, and build a contingent of competent and professional officials who are loyal, honest and responsible. Second, the SAFE will guard against and defuse the risks of external shocks. To be specific, the SAFE will enhance the monitoring, research and judgment of the foreign exchange market and macro-prudential management, strengthen risk prevention and control in key areas of foreign exchange, and maintain the stable operation of the foreign exchange market. Third, the SAFE will deepen reform and opening-up in the foreign exchange sector. To be specific, the SAFE will steadily promote the high-level opening-up of the capital account, expand the pilot cash-pooling service integrating domestic and foreign currency management for multinational corporations, advance the pilot projects for cross-border investment of private equity funds, and accelerate the reform of external debt facilitation. The SAFE will develop an open, diversified, well-functioning and standardized foreign exchange market. The SAFE will deepen reform to facilitate foreign exchange management in traditional forms of trade, promote the standardized and innovative development of new forms of foreign trade, and improve foreign exchange services for individuals. The SAFE will also optimize foreign exchange services by focusing on small and medium-sized import and export enterprises, guide enterprises to better manage exchange rate risks, and expand the application scenarios of cross-border financial service platforms. Fourth, the SAFE will improve micro-regulation of the foreign exchange market. To be specific, the SAFE will improve the authenticity audit methods of banks’ foreign exchange business, and gradually establish a management mechanism featuring substantial truth, diversified methods, due diligence, as well as safety and high efficiency. The SAFE will strengthen cross-departmental cooperation and capacity building for off-site supervision, adhere to the cross-cycle consistency, stability and predictability of law enforcement standards for micro-regulation of the foreign exchange market, and crack down on violations of laws and regulations in the foreign exchange sector with “zero tolerance”. Fifth, the SAFE will improve the management of foreign exchange reserves. To be specific, the SAFE will ensure the safety and liquidity of foreign exchange reserve assets while maintaining and increasing their value, and promote capacity building in terms of professional investment, scientific and technological operation and management, and market-oriented institutional governance. Sixth, the SAFE will consolidate the foundation of foreign exchange administration. To be specific, the SAFE will strengthen the construction of the rule of law in the foreign exchange market, advance the revision of the Regulations on Foreign Exchange Administration, develop a high-level statistical system on the balance of payments, increase research efforts on key projects in the foreign exchange sector, and further promote the “digital foreign exchange administration” and “safe foreign exchange administration”. Leading officials of relevant departments, affiliated enterprises and institutions of the SAFE attended the conference at the main venue in Beijing. Attendees from each bureau (Foreign Exchange Management Department) participated in the conference at the branch venues. Relevant comrades from the Organization Department of the CPC Central Committee, Office of the Central Commission for Financial and Economic Affairs, General Office of the State Council, National Audit Office, those accredited to the Discipline Inspection and Supervision Team, and representatives of veteran cadres of the SAFE attended the conference upon invitation. (End) 2021-12-27/en/2021/1227/1915.html
-
As at the end of September 2021, China recorded RMB 17.4877 trillion in outstanding external debt denominated in both domestic and foreign currencies(equivalent to USD 2696.5 billion, excluding those of Hong Kong SAR, Macao SAR, and Taiwan Province of China, the same below). In terms of maturity structure, the outstanding medium-and long-term external debt was RMB 8156.6 billion (equivalentto USD 1257.7 billion), accounting for 47 percent; while the outstanding short-term external debt was RMB 9331.1 billion (equivalent to USD 1438.8 billion), taking up 53 percent,of which 39 percent was trade-related credit. In terms of institutional sectors, the outstanding debt of general government totaled RMB 2939.2 billion (equivalent to USD 453.2 billion), accounting for 17 percent;the outstanding debt of the central bank totaled RMB546.8 billion(equivalent to USD 84.3 billion), accounting for 3 percent;the outstanding debt of banks totaled RMB 7688.4 billion (equivalent to USD 1185.5 billion), accounting for 44 percent;the outstanding debt of other sectors (including inter-company lending under direct investments) totaled RMB 6313.3 billion (equivalent to USD 973.5 billion), accounting for 36 percent. In terms of debt instruments, the balance of loans was RMB 2892.6 billion (equivalent to USD 446 billion), accounting for 17 percent;the outstanding trade credits and advances was RMB 2542.3 billion (equivalent to USD 392 billion), accounting for 14 percent;the outstanding currency and deposits was RMB 3780.9 billion (equivalent to USD 583 billion), accounting for 22 percent;the outstanding debt securities was RMB 5496.2 billion (equivalent to USD 847.5 billion), accounting for 31 percent;the Special Drawing Rights (SDR) allocation amounted to RMB 330.8 billion (equivalent to USD 51 billion), accounting for 2 percent; the balance of inter-company lending under direct investments totaled RMB 1972.5 billion (equivalent to USD 304.2 billion),accounting for 11 percent;and the balance of other debt liabilities was RMB 472.4 billion (equivalent to USD 72.8 billion), accounting for 3 percent. With respect to currency structures, the outstanding external debt in domestic currency totaled RMB 7643.5 billion (equivalent to USD 1178.6 billion), accounting for 44 percent;the outstanding external debt in foreign currencies (including SDR allocation) totaled RMB 9844.2 billion (equivalent to USD 1517.9 billion), accounting for 56 percent. In the outstanding registered external debt in foreign currencies, the USD debt accounted for 85 percent, the Euro debt accounted for 7 percent, the HKD debt accounted for 4 percent, the JPY debt accounted for 2 percent, the SDR and other foreign currency-denominated external debt accounted for 2 percent. Since all major external debt indicators were within the internationally recognized thresholds, China’s external debt risk is undercontrol. Appendix Definitionof terms and interpretations External debt classification by maturity structure. There are two methods to classify the external debt by maturity structure. One is on the basis of the contractual maturity, i.e. it is classified as medium- and long-term external debt if the contractual maturity is overone year, and classified as short-term external debt if the contractual maturity is one year or less;the other is on the basis of the remaining maturity, i.e., on the basis of the contractual maturity classification method above, the medium- and long-termexternal debt due within one year is classified as short-term external debt. In this news release, external debt is divided into medium- and long-term external debt and short-term external debt based on the contractual maturity. Trade-related credit is a broad concept. In addition to trade credit and advances, it also involves other kinds of credit provided for trade activities. According to its definition,trade-related credit includes trade credit and advances, bank trade financing, trade related bills, and so forth. In particular, trade credit and advances refer to external liability arising from directly extending credit between the seller and buyer of goods transactions,specifically transactions between residents in the Chinese Mainland and overseas non-residents (including non-residents in Hong Kong SAR, Macao SAR,and Taiwan Province of China), i.e., the debt incurred due to the difference between the time of payment and the time of the goods ownership transfer, which include credit directly provided by the supplier (e.g., the overseas exporter)for goods and services, and prepayments made by buyers (e.g., overseas importers) for goods, services, and work that is in progress (or work to be undertaken). Bank trade financing refers to trade related loans that offered by a third party (e.g., banks) to exporters or importers, for instance, loans extended by foreign financial institutions or export credit agencies to buyers. Annexed table：China’s Gross External Debt Position by Sector, End of September 2021 End of September 2021 End of September 2021 （Unit:100 million RMB） （Unit:100 million US dollars） General Government 29392 4532 Short-term 913 141 Currency and deposits 0 0 Debt securities 913 141 Loans 0 0 Trade credit and advances 0 0 Other debt liabilities 0 0 Long-term 28479 4391 Special drawing rights (allocations) 0 0 Currency and deposits 0 0 Debt securities 24927 3844 Loans 3552 548 Trade credit and advances 0 0 Other debt liabilities 0 0 Central Bank 5468 843 Short-term 1785 275 Currency and deposits 983 152 Debt securities 802 124 Loans 0 0 Trade credit and advances 0 0 Other debt liabilities 0 0 Long-term 3683 568 Special drawing rights (allocations) 3308 510 Currency and deposits 0 0 Debt securities 0 0 Loans 0 0 Trade credit and advances 0 0 Other debt liabilities 375 58 Other Depository Corporations 76884 11855 Short-term 55328 8531 Currency and deposits 36819 5677 Debt securities 3960 611 Loans 14004 2159 Trade credit and advances 0 0 Other debt liabilities 545 84 Long-term 21556 3324 Currency and deposits 0 0 Debt securities 17652 2722 Loans 3797 586 Trade credit and advances 0 0 Other debt liabilities 107 17 Other Sectors 43408 6693 Short-term 29877 4607 Currency and deposits 7 1 Debt securities 100 15 Loans 3458 533 Trade credit and advances 24978 3851 Other debt liabilities 1334 206 Long-term 13531 2086 Currency and deposits 0 0 Debt securities 6609 1019 Loans 4115 635 Trade credit and advances 445 69 Other debt liabilities 2363 364 Direct Investment: Intercompany Lending 19725 3042 Debt liabilities of direct investment enterprises to direct investors 11783 1817 Debt liabilities of direct investors to direct investment enterprises 1094 169 Debt liabilities to fellow enterprises 6848 1056 Gross External Debt Position 174877 26965 Notes: 1. The short-term and long-term herein are broken down by contractual (original) maturity. 2. The data in this table have been rounded off. 2021-12-31/en/2021/1231/1913.html
-
The State Administration of Foreign Exchange (SAFE) has recently released the Balance of Payments (BOP) for the third quarter and the first three quarters of 2021 as well as the International Investment Position (IIP) as at the end of September 2021. The SAFE deputy administrator and press spokesperson Wang Chunying answered media questions on relevant issues. Q: Could you brief us on China’s BOP for the first three quarters of 2021? A: In the first three quarters, China maintained a basic balance in its international payments. The current account surplus stood at US$196.3 billion, with its ratio to Gross Domestic Product (GDP) reaching 1.5%, which continued to fall within a reasonable and balanced range. The cross-border two-way investment remained active. First, trade in goods recorded a higher surplus and trade in services registered a narrower deficit. In the first three quarters of this year, trade in goods in terms of BOP recorded a surplus US$374.2 billion, up by 15% year on year. It is mainly because the sustained recovery of China’s economy and increased international demand have led to growth in both imports and exports compared with the same period of the previous year. Trade in services registered a deficit of US$82.5 billion, down by 29% year on year. This was mainly due to a 20% decrease in the travel deficit as the repeated global pandemic continued to curb cross-border movement of people. Besides, revenue from transport services grew faster than spending, and the transport deficit shrank by 41% year on year. Second, outward investment and foreign investment in China were both robust. In the first three quarters, China’s outward direct investment remained stable at US$85.4 billion, while the foreign direct investment in China reached US$249.5 billion, reflecting overseas investors’ confidence in prospects of China’s economic development and their investment in China. Under the item of portfolio investment, China’s outward investment reached US$99.2 billion and attracted US$143.7 billion of inward investment. It showed that the two-way opening of China’s capital market has run smoothly and has met the needs of domestic and foreign investors for asset allocation. Under other investment items such as loans and deposits, China’s outward investment registered US$313.4 billion and the inward investment reached US$143 billion, both of which recorded historically high levels. In general, with the external environment becoming more complex and grim, China has done well in coordinating the prevention and control of the COVID-19 with economic and social development. China’s economy is resilient, and the fundamentals of long-term positive development remain unchanged, which will help China maintain overall stability and basic balance in the international payments. Q: What would you say about China’s IIP at the end of September 2021? A: By the end of September 2021, China’s IIP remained stable. The external financial assets increased, and reserve assets continued to rank first in the world. First, China’s total external financial assets increased. By the end of September 2021, China posted external assets of US$9.0566 trillion, up by 0.3% from the end of June; of that, assets under direct investment amounted to US$2.4685 trillion, rising by 0.3%; assets under portfolio investment were US$966.9 billion, declining by 4.6% due to changes in valuation; assets under other investments including overseas deposits and loans reached US$2.2344 trillion, increasing by 1.9%; and reserve assets reached US$3.373 trillion, up by 0.8%. Second, total external liabilities slightly decreased. By the end of September 2021, China recorded external liabilities of US$7.0314 trillion, down by 0.1% from the end of June, mainly affected by exchange rate translation and changes in valuation. Liabilities under direct investment in China amounted to US$3.4223 trillion, with an increase of 1.7%; liabilities under portfolio investment were US$2.0548 trillion, down by 2.6%; and liabilities under other investments including deposits and loans absorbed reached US$1.5439 trillion, declining by 1%. 2021-12-31/en/2021/1231/1917.html
-
As shown in the statistics of the State Administration of Foreign Exchange (SAFE), in December 2021, the amount of foreign exchange settlement and sales by banks was RMB 1781.5 billion and RMB 1488.7 billion, respectively, with a surplus of RMB 292.9 billion. During January to December 2021, the accumulative amount of foreign exchange settlement and sales by banks was RMB 16523.5 billion and RMB 14799.9 billion, respectively, with an accumulative surplus of RMB 1723.6 billion. In the US dollar terms, in December 2021, the amount of foreign exchange settlement and sales by banks was USD 279.7 billion and USD 233.7 billion, respectively, with a surplus of USD 46.0 billion. During January to December 2021, the accumulative amount of foreign exchange settlement and sales by banks was USD 2561.6 billion and USD 2294.0 billion, respectively, with an accumulative surplus of USD 267.6 billion. In December 2021, the amount of cross-border receipts and payments by non-banking sectors was RMB 3998.1 billion and RMB 3656.3 billion, respectively, with a surplus of RMB 341.8 billion. During January to December 2021, the accumulative amount of cross-border receipts and payments by non-banking sectors was RMB 38951.0 billion and RMB 36654.5 billion, respectively, with an accumulative surplus of RMB 2296.5 billion. In the US dollar terms, in December 2021, the amount of cross-border receipts and payments by non-banking sectors was USD 627.6 billion and USD 574.0 billion, respectively, with a surplus of USD 53.7 billion. During January to December 2021, the accumulative amount of cross-border receipts and payments by non-banking sectors was USD 6039.9 billion and USD 5683.5 billion, respectively, with an accumulative surplus of USD 356.4 billion. 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 foreign exchange holders sell foreign exchange to designated foreign exchange bank, and foreign exchange sales means designated bank sells 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 designated foreign exchange bank and 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. 2022-01-21/en/2022/0119/1921.html
-
The State Administration of Foreign Exchange (SAFE) has recently released data on foreign exchange settlement and sales by banks as well as cross-border receipts and payments by non-banking sectors for November 2021. The SAFE Deputy Administrator and Press Spokesperson Wang Chunying answered media questions on China’s foreign exchange receipts and payments of November 2021. Q: Could you brief us on China’s foreign exchange receipts and payments of November 2021? A: China’s cross-border receipts and payments and foreign exchange market transactions remained active in November, and the foreign exchange market remained generally stable. In terms of total amount, in November, the foreign exchange settlement and sales by banks reached up to US$446.8 billion, while the foreign-related receipts and payments of non-banking sectors totaled US$1,075.2 billion, recording a month-on-month growth of 26% and 23% respectively, which continued the trend of overall growth since 2020. In terms of the balance, the foreign exchange settlement and sales by banks recorded a surplus of US$25.2 billion, higher than that in October. This was mainly accounted for by the increase of foreign exchange settlement of export earnings under trade items. The foreign-related receipts and payments of non-banking sectors also posted a surplus of US$33.1 billion, roughly at the same level as in October. By the end of November, China’s foreign exchange reserves stood at US$3.2224 trillion, which remained basically stable compared with the end of October. The foreign exchange market expectations were generally stable. According to the willingness to purchase and sell foreign exchange which reflects market expectations, in November, the sales ratio (the ratio of foreign exchanges sold by clients to banks to their foreign-related foreign exchange receipts) recorded 65%, almost the same as compared with the average monthly level from July to October. The purchase ratio (the ratio of foreign exchange bought by clients from banks to their foreign-related foreign exchange payments) reached 64%, 0.9% higher than the average monthly level from July to October. This indicated that the willingness of market entities to sell and purchase foreign exchange remained stable. The cross-border two-way investment was maintained in a reasonable and orderly manner. In November, the net inflow of foreign direct investment capital has remained at a certain scale, and the net outflow of foreign direct investment capital has registered a steady increase. The net increase in foreign holdings of domestic bonds and stocks totaled US$24.4 billion, indicating that foreign investors’ willingness to hold renminbi assets remained stable. At present, uncertainties and unstable factors in the external environment are increasing. The COVID-19 pandemic is still evolving around the world while inflation remains high in some countries and major developed economies may accelerate the adjustment of monetary policies. However, China’s economy is resilient. Its macro policies are sound and effective, and the fundamentals of China’s long-term sound economic growth have not changed. Therefore, there is still a solid foundation for the smooth operation of the foreign exchange market. 2021-12-24/en/2021/1224/1914.html