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As shown in the statistics of the State Administration of ForeignExchange (SAFE), in April 2020, the amount of foreign exchange settlement andsales by banks was RMB 1111.5 billion and RMB 1006.8 billion, respectively,with a settlement of RMB 104.7 billion. In the US dollar terms，the amount of foreignexchange settlement and sales by banks was USD 157.2 billion and USD 142.4billion, respectively, with a settlement of USD 14.8 billion. In particular,the amount of foreign exchange settlement and sales by banks for customers wasRMB 974.4 billion and RMB 889.5 billion, respectively, with a settlement of RMB84.9 billion; the amount of foreign exchange settlement and sales for banksthemselves was RMB 137.1 billion and RMB 117.3 billion, respectively, with a settlementof RMB 19.8 billion. During the period, newly signed contract amount of forwardforeign exchange settlement and sales was RMB 91.1 billion and RMB 61.9 billion,respectively, with a net newly signed contract amount of forward foreign exchangesettlement of RMB 29.3 billion. At the end of April, outstanding amount of forwardforeign exchange settlement and sales by the end of the current period was RMB 597.5billion and RMB 459.5 billion, respectively, with a net outstanding amount of forwardforeign exchange settlement of RMB 138 billion; the net Delta exposure ofoutstanding options was RMB -293.5 billion. During January to April 2020, the accumulative amount of foreignexchange settlement and sales by banks was RMB 4541.3 billion and RMB 4163.6billion, with an accumulative settlement of RMB 377.7 billion. In the US dollarterms, the accumulative amount of foreign exchange settlement and sales bybanks was USD 648.8 billion and USD 594.9 billion, with an accumulativesettlement of USD 53.9 billion. In particular, the accumulative amount offoreign exchange settlement and sales by banks for customers was RMB 3761.6billion and RMB 3533.4 billion, respectively, with an accumulative settlementof RMB 228.2 billion; the accumulative amount of foreign exchange settlementand sales for banks themselves was RMB 779.7 billion and RMB 630.2 billion,respectively, with an accumulative settlement of RMB 149.5 billion. During theperiod, newly signed contract amount of forward foreign exchange settlement andsales was RMB 573.9 billion and RMB 255.8 billion, respectively, with a net newlysigned contract amount of forward foreign exchange settlement of RMB 318.1 billion. In April 2020, the amount of cross-borderreceipts and paymentsby non-banking sectorswas RMB 2234.4 billion and RMB 2199.5 billion, respectively, with a surplus of RMB 35.0 billion.DuringJanuary to April 2020, the accumulative amount of cross-border receipts and paymentsby non-banking sectorswas RMB 8623.8 billion and RMB 8805.3 billion, respectively, with an accumulative deficit of RMB 181.5 billion. In the US dollar terms, in April 2020, the amount of cross-border receiptsand payments by non-bankingsectors was USD 316.1 billion and USD 311.2 billion, respectively, with a surplus of USD 4.9 billion.DuringJanuary to April 2020, the accumulative amount of cross-border receipts and paymentsby non-banking sectorswas USD 1232.0 billion and USD 1257.8 billion, respectively, with an accumulative deficit of USD 25.8 billion. Addendum: Glossaryand relevant definitions Balance of payments(BOP) refers to all economic transactionsbetween residents and non-residents. Foreignexchange settlement and sales by banks refers to settlement and sale transaction that bank executes for customersand for the banks themselves, including statistic data onsettlements of forward contracts for foreign exchange settlementand sales and the exercises of option, and excludingthe transactions in the interbank foreign exchange market. The statistic reporting date of Foreign exchangesettlement and sales by banks should be the trade day of theForeignexchange settlement and sales transaction. By definition, foreignexchange settlement means foreign exchange holders sell foreignexchange to designated foreign exchange bank, and foreignexchange sales means designated bank sells foreign exchange to foreign exchange buyers. The net position of foreign exchange settlement andforeign exchange sales could be position squared throughtransactions on the inter-bank foreign exchange market, and it is one ofthe major contributors to the country’sforeign exchange reserve fluctuation, though it is not equal to netchange in foreign exchange reserves during the same period Unlikethe principle of balance-of-payments statistics, which cover the transactionsbetween residents and non-residents, foreign exchange settlement and sales bybanks only cover transactions of RMB and foreign currencies between banks and customers or on banks for themselves. Thenewly signed contract amount of forward foreign exchange settlement and sales refers to the binding forward contract between designated foreignexchange bank and client that predetermines foreign exchange currency, amount,exchange rate and tenor which to be executed upon maturity. Thenewly signed forward contract enables corporate to lock inadvance the exchange rate for the purchase or sale of a currency on a futuredate to manage relevant foreign exchange risk arising fromRMB volatility. In general, bank will hedge its foreign exchange risk exposures arise from the newly signed forward contract in the Interbank foreign exchange market. For example,when bank has net foreign exchange long position, bankwill short the equivalent amount of foreign exchange in the Interbank foreignexchange market in advance, or vice versa. Therefore, the newly signedcontract amount of forward foreign exchange settlement and sales is also one of contributors to China’s foreign exchange reserve fluctuation. Theunwind amount of forward foreign exchange settlement and sales refers to, where client is unable to perform the original forwardcontract due to change in its real demand, client to fully or partially closeits forward position by executing another deal with opposite direction to theoriginal contract. Therolling amount of forward foreign exchange settlement and sales refers to client to adjust the settlement date of original contract dueto change in its real demand. Theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period refers to the total amount of forwardcontracts accumulated from all non-matured forward contracts with client. Thenewly signed contractamount and the outstanding amount should satisfy the equationthat: theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period = theoutstanding amount of forward foreign exchange settlement and sales at the endof the previous period + the newly signed contract amount of forward foreignexchange settlement and sales for the period - settlements of forwardcontracts for foreign exchange settlement and sales for the period - the unwindamount of forward foreign exchange settlement and sales for the period. The net Deltaexposure of outstanding options refers to the implied foreignexchange spot risk exposure from outstanding option contracts that bank executedwith client. Bank shall hedge such risk in the foreign exchange market for risk management during deal life cycle. The cross-borderreceipts and payments bynon-banking sectors refers to the receipts andpayments between domestic non-banking sectors (including institutional and individual residents)and non-residentsthrough domestic banks, excluding receipts and payments in cash. In particular,the statisticsincludescross-border receipts and payments between non-banking sectors andnon-residents through domestic banks (including RMB and foreign currency), and domesticreceipts and payments between non-banking sectors and non-residents throughdomestic banks (temporarily excluding domestic receipts and payments in RMBbetween individual residents and non-resident individuals). Data are collected whencustomers conduct receipts and payments with non-resident counterparties atdomestic banks. Specifically, the receipts refer to the capitalof non-bankingsectors received fromnon-residents via domestic banks; the payments refer to the capitalof non-bankingsectors paid to non-residents via domestic banks. The cross-border receiptsand payments by non-banking sectors is based on cash basis, different from the accrual basis required by the Balance of Payments Statistics. The statistics merely reflects the cash flows between non-bankingsectors and non-residents and does not include bartertransactions or transactions with non-residents conducted by the banks themselves. Therefore, the scope of the statistics is narrowerthan that of the Balance of Payments Statistics. 2020-05-22/en/2020/0522/1686.html
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The State Administration of Foreign Exchange (SAFE) has recently released the Circular of the State Administration of Foreign Exchange on Supporting the Development of New Forms of Trade (SAFE Document No. 11 [2020]) (“Circular”). Wang Chunying, press spokesperson and chief economist of the SAFE, answered media questions on relevant issues. 1. What is the policy background for the Circular? A: The Communist Party of China (CPC) Central Committee and the State Council have introduced many support policies for the development of new forms of trade, such as cross-border ecommerce, market procurement trade and comprehensive foreign trade services. Boosting the development of new forms of trade has become an integral part of the efforts to accelerate the building of new competitive advantages for trade and drive high-quality trade development. Compared with traditional trade, the new forms of trade, featuring diversified market players and frequent online transactions, have a strong demand for efficient and convenient financial services. To better support their development, we must ensure stability in employment, financial operations, foreign trade, foreign investment, domestic investment, and expectations. Additionally it is necessary to ensure security in job, basic living needs, operations of market entities, food and energy security, stable industrial and supply chains, and the normal functioning of primary-level governments（known as “six priorities”）. So as for the aim of “six priorities” and stability in six areas, the SAFE published this Circular to optimize foreign exchange policies for new forms of trade and increase facilitation for trade and foreign exchange receipts and payments, on the basis of the inputs from market players of new forms of trade and experience gained from piloting, and with a view to further energizing the market and promoting healthy and fast development of new forms of trade. 2. What is the overall consideration behind the Circular? A: The Circular is focused on addressing inconvenience in settling small-amount, frequent and electronic transactions under new forms of trade. In policy design, the Circular is intended to encourage innovation and promote inclusiveness and prudence to actively adapt to the actual needs for the development of new forms of trade. Following the requirements of “serving the real economy, facilitating opening up, tracking transactions and keeping risks under control”, the Circular is designed to loosen foreign exchange policies, optimize foreign exchange services, facilitate foreign exchange business processing, and implement credit restrictions and classified management that feature “more convenient exchanges for more compliant transactions” for new forms of trade. 3. What policy facilitation will the Circular offer market players? A: According to the Circular, the foreign exchange settlement model will be optimized, the scope of receipts and payments under the foreign exchange account will be expanded, and more online processing will be enabled for new forms of trade, so as to reduce comprehensive costs for market players while increasing cross-border settlement efficiency. Specifically, the policy facilitation the Circular will offer includes the following: Foreign exchange administration will be relaxed. First, settlements for exports by cross-border ecommerce players will be facilitated. Net settlements will be allowed between expenses on overseas warehousing, logistics and taxes, and export proceeds for cross-border ecommerce players. Second, cross-border advance payment will be optimized for relevant taxes and fees for cross-border ecommerce players. Enterprises will be allowed to pay relevant warehousing and logistics charges, taxes and fees for their overseas customers in advance. Third, efforts will be made to meet individuals’ needs for the foreign exchange settlement under foreign trade. Individuals will be allowed to handle foreign exchange settlements under cross-border ecommerce and market procurement trade through the foreign exchange account. Fourth, settlement for market procurement trade will be improved. For market players having filed with the market procurement trade platform, banks can handle their foreign exchange receipts and settlements with the customs declaration entrusted to a third party, based on the information available on the platform. Fifth, comprehensive foreign trade service providers will be supported to handle foreign exchange receipts from exports for their clients. Any technically eligible comprehensive foreign trade service provider will be allowed to handle for its customers foreign exchange receipts from exports on a commission basis, via a bank that is capable of verifying the electronic transaction information. Additionally, foreign exchange services will be improved. First, settlement channels for new forms of trade will be expanded, by supporting eligible banks to handle foreign exchange businesses based on electronic transaction information. Second, enterprises will be facilitated in remote handling of foreign exchange businesses. Enterprises will be given direct access to the SAFE system to report trade, declare the balance of payments, and handle other foreign exchange businesses online. Third, declarations of foreign-related receipts and payments for micro transactions will be optimized. Enterprises will be enabled to make summary declarations of small-amount foreign-related receipts and payments in their names to meet their requirements for declaration for export tax refunding and financing. Fourth, innovative development in new forms of trade will be tracked continuously to actively respond to new demand of market players for foreign exchange businesses. 4. What further considerations does the SAFE have to support the development of foreign trade? A: The SAFE will continue to follow the decisions and arrangements of the CPC Central Committee and the State Council and work hard to make a big push to ensure “six priorities” and stability in six areas. It will further deepen reforms in foreign exchange administration and launch more foreign exchange facilitation services to support resumption of work, better meet the demand for innovative trade development and boost high-quality trade development, and ultimately to support China’s efforts to open our door wider to the world. 2020-05-20/en/2020/0520/1688.html
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The State Administration of Foreign Exchange (SAFE) has recently released the preliminary data in the balance of payments for the first quarter of 2020. Wang Chunying, Press Spokesperson and Chief Economist of the SAFE, answered media questions on relevant issues. Q: Could you brief us on the features of China’s balance of payments for the first quarter of 2020? A: Overall, despite the impacts from the novel coronavirus epidemic, China’s balance of payments remained in a basic equilibrium in the first quarter of 2020, with the current account registering a slight deficit and direct investment still recording a net inflow. First, trade in goods remained in surplus. In the first quarter, due to the Chinese New Year holiday and novel coronavirus epidemic, trade in goods in the balance of payments registered a surplus of US$ 26.4 billion. To be specific, exports of goods reached US$ 468.5 billion, down by 11% year on year; imports of goods amounted to US$ 442 billion, down by 2% year on year. Second, trade in services recorded a declining deficit. In the first quarter, trade in services registered a deficit of US$ 47 billion, down by 26% year on year. The deficit was mainly attributed to travel and transport. Travel services recorded a deficit of US$ 41.6 billion, down by 28% year on year, chiefly due to decreased outbound travels as the epidemic raged. Transport registered a deficit of US$ 11.7 billion, down by 6% year on year. Third, direct investment continued to register a net inflow. In the first quarter, direct investment recorded a net inflow of US$ 14.9 billion, primarily driven by a net inflow of US$ 33.6 billion in Foreign Direct Investment (FDI), which showed foreign investors’ desire to invest and start businesses in China in the long term. China’s Outbound Direct Investment (ODI) registered a net outflow of US$ 18.7 billion, denoting stable and orderly ODI by businesses. China’s epidemic prevention and control is yielding positive changes, and the resumption of work is nearing or has reached a normal level for the moment. China’s economy is showing its strong resilience, its economic structure is being optimized and the reform and opening up is being deepened, indicating China’s balance of payments still has a solid foundation to remain in equilibrium in the future. 2020-05-08/en/2020/0508/1684.html
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Q: The State Administration of Foreign Exchange (SAFE) has released the latest foreign exchange reserves data just now. Could you explain why foreign exchange reserves changed in April 2020? What would you say about the future trends? A: China posted US$ 3.0915 trillion in foreign exchange reserves as at the end of April 2020, up by US$ 30.8 billion or 1% month on month. So far this year, facing the challenges from the novel coronavirus epidemic, China has responded with strong measures, achieving significant progress in epidemic prevention and control, and resuming the economic and social order at a faster pace. The supply and demand on China’s foreign exchange market has remained in balance and market players have been sensible. In April, as the epidemic continued to rage across the world, major countries reinforced their monetary and fiscal stimulus, shoring up investor confidence to some extent. As a result, in global financial markets, the US dollar index fell slightly and asset prices in major counties rose. Due to the combined impacts of the currency exchange and changes in asset prices, China’s foreign exchange reserves climbed slightly in the month. As the epidemic is ravaging around the world, the global economic and financial situations are complex and challenging still. Along with the abatement of the novel coronavirus epidemic in China, the epidemic prevention and control has become a normal. But China’s economy features strong resilience, potentialities and much leeway, and the fundamentals sustaining sound economic growth over the long term will not change, which will continue to underpin the overall stability of China’s foreign exchange reserves. 2020-05-07/en/2020/0507/1683.html
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According to the statisticsof the State Administration of Foreign Exchange (SAFE), the Chinese foreignexchange market (excluding foreign currency pairs, the same below) recorded totaltransactions of RMB 16.27 trillion (equivalent to USD 2.30 trillion) in April 2020. Specifically,the transactions volume of the bank to customer market was RMB 2.48 trillion (equivalent toUSD 351.5 billion), the transactionsvolume of interbank market was RMB 13.79 trillion (equivalent to USD 1.95 trillion), the cumulativetransactions volume of the spot market was RMB 5.77 trillion (equivalent to USD 816.7 billion), and that ofthe derivatives market was RMB 10.50 trillion (equivalent to USD 1.49 trillion). From January to April 2020, a total of RMB 59.29 trillion (equivalent to USD 8.47 trillion) was traded in the Chinese foreignexchange market. 2020-05-22/en/2020/0522/1687.html
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Recently, the State Administration of Foreign Exchange (SAFE) releases data on China's external portfolio investment assets (by country/region) at the end of 2019. The statistics show that China's external portfolio investment assets (excluding reserve assets) amounted to USD 646 billion by the end of 2019, including USD 373.8 billion in equity investments and USD 272.2 billion in bond investments. The top 5 recipients of Chinese investments were Hong Kong SAR, the US, Cayman Islands, the British Virgin Islands and the UK, with the amount being USD 226.4 billion, USD 162.8 billion, USD 55.1 billion, USD 45.9 billion and USD 21.8 billion respectively. (End) 2020-05-29/en/2020/0529/1691.html
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官方储备资产 Official reserve assets html xlsx pdf 2019-01-07/en/2018/0517/1680.html
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In July 2020, China’s international trade in goods and services recorded receipts of RMB 1757.4 billion and payments of RMB 1381.8 billion based on statistics of balance of payments (BOP), registering a surplus of RMB 375.6 billion. Specifically, trade in goods registered receipts of RMB 1613.2 billion, payments of RMB 1162.2 billion, recording a surplus of RMB 451 billion; trade in services recorded receipts of RMB 144.2 billion, payments of RMB 219.6 billion, resulting in a deficit of RMB 75.4 billion. In the US dollar terms, in July 2020, China's BOP-based receipts and payments of international trade in goods and services were USD 250.7 billion and USD 197.2 billion respectively, registering a surplus of USD 53.6 billion. Specifically, the receipts and payments from trade in goods were USD 230.2 billion and USD 165.8 billion respectively, resulting in a surplus of USD 64.3 billion. Trade in services registered receipts and payments of USD 20.6 billion and USD 31.3 billion respectively, recording a deficit of USD 10.8 billion. (End) International Trade in Goods and Services of China (Based on the BOP statistics) July 2020 Item In 100 million of RMB In 100 million of USD Goods and services 3756 536 Credit 17574 2507 Debit -13818 -1972 1. Goods 4510 643 Credit 16132 2302 Debit -11622 -1658 2. Services -754 -108 Credit 1442 206 Debit -2196 -313 2.1Manufacturing services on physical inputs owned by others 66 9 Credit 69 10 Debit -3 0 2.2Maintenance and repair services n.i.e 36 5 Credit 56 8 Debit -20 -3 2.3Transport -277 -39 Credit 345 49 Debit -621 -89 2.4Travel -561 -80 Credit 125 18 Debit -686 -98 2.5Construction 3 0 Credit 58 8 Debit -55 -8 2.6Insurance and pension services -57 -8 Credit 24 3 Debit -81 -12 2.7Financial services 5 1 Credit 22 3 Debit -17 -2 2.8Charges for the use of intellectual property -168 -24 Credit 36 5 Debit -203 -29 2.9Telecommunications, computer and information services 111 16 Credit 288 41 Debit -177 -25 2.10Other business services 104 15 Credit 404 58 Debit -299 -43 2.11Personal, cultural, and recreational services -8 -1 Credit 8 1 Debit -16 -2 2.12Government goods and services n.i.e -7 -1 Credit 9 1 Debit -16 -2 Notes: 1. The trade in goods and services in this table refers to the transactions between residents and non-residents, based on the same standard as that for BOP statement. The monthly data are preliminary and may be inconsistent with the quarterly data in the BOP statement. 2. The data on international trade in goods and services are prepared in USD, and the RMB data for the current month is derived by converting the USD data at the monthly average central parity rate of the RMB against the USD. 3. This table employs rounded-off numbers. Definition of Indicators: Goods and Services: refers to the trade in goods and services between residents and non-residents, which is based on the same standard as that for the BOP statement. 1. Goods: refers to transactions in goods whereby the economic ownership is transferred between the Chinese residents and non-residents. The credit side records export of goods, while the debit side records import of goods. The data of goods account are mainly from the customs statistics of imports and exports, but differ from the statistics of the customs mainly in the following aspects: first, the goods in the BOP statement only reflect the goods whose ownership has been transferred (e.g. goods under the trade modes such as general tradeand processing trade with imported materials), while the goods whose ownership is not transferred (e.g. manufacturing services with supplied materials or with exported materials) are included in the statistics of trade in services instead of the statistics of trade in goods; second, as required by the BOP statistics, the goods imported and exported are valued on the FOB basis, but as required by the customs, the goods exported are valued on the FOB basis, whereas goods imported are on the CIF basis. Therefore, for the purpose of the BOP statistics, the international transport and insurance premiums are taken out from the value of imported goods and included in the trade in services; and third, the data on net export of goods in merchanting which are not included in the customs statistics are supplemented. 2. Services: includes manufacturing services on physical inputs owned by others, maintenance and repair services n.i.e, transport, travel, construction, insurance and pension services, financial services, charges for the use of intellectual property, telecommunications, computer and information services, other business services, personal, cultural and recreational services, and government goods and services n.i.e. The credit side records services supplied, while the debit side records services received. 2.1 Manufacturing services on physical owned by others: processoronly provides processing, assembly, packaging and other services and charges service fee from the owner, while the ownership of the goods is not transferred between the owner and the processor. The credit side records the manufacturing services supplied by the Chinese residents on physical inputs owned by non-residents, and vice versa for debit side. 2.2 Maintenance and repair services: refer to the maintenance and repair services supplied by residents to non-residents or vice versa on goods and equipment (such as vessel, aircraft, and other transportation facility) owned by the receiving party. The credit side records the maintenance and repair services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.3 Transport: refers to the process of transporting people and goods from one place to another, and the relevant supporting and auxiliary services, as well as postal and delivery services. The credit side records the international transport, postal and delivery services supplied by residents to non-residents, and vice versa for debit side. 2.4 Travel: refers to goods consumed and services purchased by travelers in various economies as non-residents. The credit side records the goods and services provided by the Chinese residents to non-residents who have stayed in China for less than one year, as well as non-residents studying abroad and seeking medical treatment for indefinite period of stay. The debit side records the goods and services purchased by the Chinese residents when traveling, studying or seeking medical services abroad from non-residents. 2.5 Construction services: refer to the establishment, renovation, maintenance or expansion of fixed assets in the form of buildings, land improvement, roads, bridges and dams and other engineering buildings of engineering nature, relevant installation, assembly, painting, pipeline construction, demolition and project management, as well as site preparation, measurement and blasting and other special services. The credit side records the construction services provided by the Chinese residents outside the economic territory. The debit side records the construction services received by the Chinese residents in the Chinese economic territory from non-residents. 2.6 Insurance and pension services: refers to various insurance services and commission to agents related with insurance transaction. The credit side records the life insurance and annuity, non-life insurance, reinsurance, standardized guarantee services and relevant supporting services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.7 Financial services: refer to financial intermediation and supporting services, excluding those covered by insurance and pension services. The credit side records the financial intermediation and supporting services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.8 Charges for the use of intellectual property: refer to licensed use of intangible, non-productive/non-financial assets and exclusive rights between residents and non-residents and the licensed use of existing original works or prototypes. The credit side records the intellectual property-related services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.9 Telecommunications, computer and information services: refer 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 to non-residents, and vice versa for debit side. 2.10 Other business services: refer to other types of services between residents and non-residents, including research and development services, professional and management consulting services, technical and trade-related services. The credit side records the other business services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.11 Personal, cultural and recreational services: refer to transactions of personal, cultural and recreational services between residents and non-residents, including audiovisual and related services (films, radio, television programs and music recordings) and other personal, cultural and recreational services (health, education, etc.). The credit side recordsthe related services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.12 Government goods and services n.i.e: refer to various goods and services provided and purchased by governments and international organizations not included in other categories of goods and services. The credit side records the goods and services not included elsewhere and supplied by the Chinese residents to non-residents, and vice versa for debit side. 2020-08-28/en/2020/0828/1742.html
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As shown in the statistics of the State Administration of ForeignExchange (SAFE), in July 2020, the amount of foreign exchange settlement andsales by banks was RMB 1206.8 billion and RMB 1224.5 billion, respectively,with a deficit of RMB 17.7 billion. In the US dollar terms，the amount of foreignexchange settlement and sales by banks was USD 172.2 billion and USD 174.7billion, respectively, with a deficit of USD 2.5 billion. In particular, theamount of foreign exchange settlement and sales by banks for customers was RMB 1085.2billion and RMB 1062.7 billion, respectively, with a settlement of RMB 22.5billion; the amount of foreign exchange settlement and sales for banksthemselves was RMB 121.6 billion and RMB 161.8 billion, respectively, with a deficitof RMB 40.2 billion. During the period, newly signed contract amount of forwardforeign exchange settlement and sales was RMB 141.1 billion and RMB 81.7 billion,respectively, with a net newly signed contract amount of forward foreignexchange settlement of RMB 59.4 billion. At the end of July, outstanding amountof forward foreign exchange settlement and sales by the end of the current periodwas RMB 571.0 billion and RMB 464.5 billion, respectively, with a net outstandingamount of forward foreign exchange settlement of RMB 106.5 billion; the netDelta exposure of outstanding options was RMB -316.4 billion. During January to July 2020, the accumulative amount of foreignexchange settlement and sales by banks was RMB 7909.3 billion and RMB 7373.9billion, with an accumulative settlement of RMB 535.3 billion. In the US dollarterms, the accumulative amount of foreign exchange settlement and sales bybanks was USD 1125.6 billion and USD 1049.6 billion, with an accumulativesettlement of USD 76.0 billion. In particular, the accumulative amount offoreign exchange settlement and sales by banks for customers was RMB 6781.2billion and RMB 6409.3 billion, respectively, with an accumulative settlementof RMB 371.9 billion; the accumulative amount of foreign exchange settlementand sales for banks themselves was RMB 1128.0 billion and RMB 964.6 billion,respectively, with an accumulative settlement of RMB 163.4 billion. During theperiod, newly signed contract amount of forward foreign exchange settlement andsales was RMB 945.1 billion and RMB 475.3 billion, respectively, with a net newlysigned contract amount of forward foreign exchange settlement of RMB 469.8 billion. In July 2020, the amount of cross-border receipts and payments by non-bankingsectors was RMB 2717.3 billion and RMB 2731.5 billion, respectively, with a deficitof RMB 14.2 billion. During January to July2020, the accumulative amount of cross-border receipts and payments by non-bankingsectors was RMB 16243.2 billion and RMB 16173.3 billion, respectively, with an accumulativesurplus of RMB 69.8 billion. In the US dollar terms, in July 2020, the amount of cross-border receiptsand payments by non-banking sectors was USD 387.7 billion and USD 389.7billion, respectively, with a deficit of USD 2.0 billion. During January to July 2020, the accumulative amount of cross-borderreceipts and payments by non-banking sectors was USD 2311.2 billion and USD 2301.4billion, respectively, with an accumulative surplus of USD 9.7 billion. In addition, the State Administration of Foreign Exchange revisedthe data on cross-border receipts and payments by non-banking sectors fromJanuary to June 2020 based on the latest data, and released it through the “Dataand Statistics” section of the official website of the State Administration ofForeign Exchange. Addendum: Glossaryand relevant definitions Balance of payments(BOP) refers to all economic transactionsbetween residents and non-residents. Foreignexchange settlement and sales by banks refers to settlement and sale transaction that bank executes for customersand for the banks themselves, including statistic data onsettlements of forward contracts for foreign exchange settlementand sales and the exercises of option, and excludingthe transactions in the interbank foreign exchange market. The statistic reporting date of Foreign exchangesettlement and sales by banks should be the trade day of theForeignexchange settlement and sales transaction. By definition, foreignexchange settlement means foreign exchange holders sell foreignexchange to designated foreign exchange bank, and foreignexchange sales means designated bank sells foreign exchange to foreign exchange buyers. The net position of foreign exchange settlement andforeign exchange sales could be position squared throughtransactions on the inter-bank foreign exchange market, and it is one ofthe major contributors to the country’sforeign exchange reserve fluctuation, though it is not equal to netchange in foreign exchange reserves during the same period Unlikethe principle of balance-of-payments statistics, which cover the transactionsbetween residents and non-residents, foreign exchange settlement and sales bybanks only cover transactions of RMB and foreign currencies between banks and customers or on banks for themselves. Thenewly signed contract amount of forward foreign exchange settlement and sales refers to the binding forward contract between designated foreignexchange bank and client that predetermines foreign exchange currency, amount,exchange rate and tenor which to be executed upon maturity. Thenewly signed forward contract enables corporate to lock inadvance the exchange rate for the purchase or sale of a currency on a futuredate to manage relevant foreign exchange risk arising fromRMB volatility. In general, bank will hedge its foreign exchange risk exposures arise from the newly signed forward contract in the Interbank foreign exchange market. For example,when bank has net foreign exchange long position, bankwill short the equivalent amount of foreign exchange in the Interbank foreignexchange market in advance, or vice versa. Therefore, the newly signedcontract amount of forward foreign exchange settlement and sales is also one of contributors to China’s foreign exchange reserve fluctuation. Theunwind amount of forward foreign exchange settlement and sales refers to, where client is unable to perform the original forwardcontract due to change in its real demand, client to fully or partially closeits forward position by executing another deal with opposite direction to theoriginal contract. Therolling amount of forward foreign exchange settlement and sales refers to client to adjust the settlement date of original contract dueto change in its real demand. Theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period refers to the total amount of forwardcontracts accumulated from all non-matured forward contracts with client. Thenewly signed contractamount and the outstanding amount should satisfy the equationthat: theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period = theoutstanding amount of forward foreign exchange settlement and sales at the endof the previous period + the newly signed contract amount of forward foreignexchange settlement and sales for the period - settlements of forwardcontracts for foreign exchange settlement and sales for the period - the unwindamount of forward foreign exchange settlement and sales for the period. The net Deltaexposure of outstanding options refers to the implied foreignexchange spot risk exposure from outstanding option contracts that bank executedwith client. Bank shall hedge such risk in the foreign exchange market for risk management during deal life cycle. The cross-borderreceipts and payments bynon-banking sectors refers to the receipts andpayments between domestic non-banking sectors (including institutional and individual residents)and non-residentsthrough domestic banks, excluding receipts and payments in cash. In particular,the statisticsincludescross-border receipts and payments between non-banking sectors andnon-residents through domestic banks (including RMB and foreign currency), and domesticreceipts and payments between non-banking sectors and non-residents throughdomestic banks (temporarily excluding domestic receipts and payments in RMBbetween individual residents and non-resident individuals). Data are collected whencustomers conduct receipts and payments with non-resident counterparties atdomestic banks. Specifically, the receipts refer to the capitalof non-bankingsectors received fromnon-residents via domestic banks; the payments refer to the capitalof non-bankingsectors paid to non-residents via domestic banks. Thecross-border receipts and payments bynon-banking sectors is basedon cash basis, different from the accrual basis required by the Balance of Payments Statistics. The statistics merely reflectsthe cash flows between non-bankingsectors and non-residents and doesnot include barter transactions or transactions with non-residents conducted by the banks themselves. Therefore, the scope of the statistics is narrower than thatof the Balance of Payments Statistics. 2020-08-21/en/2020/0821/1740.html
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On the morning of July 31, the State Administration of Foreign Exchange (SAFE) held a video conference on foreign exchange administration for the second half of 2020, to convey and study the guiding principles of the meeting of the Political Bureau of the Communist Party of China (CPC) Central Committee held on July 30 and implement the decisions and arrangements of the CPC Central Committee and the State Council on economic and financial work. The meeting reviewed the work in the first half, analyzed the economic, financial and foreign exchange situations both domestic and abroad, and made arrangements for the priorities of foreign exchange administration in the second half. Pan Gongsheng, secretary of the CPC Leadership and administrator of the SAFE delivered the work report. Members of the CPC Leadership and deputy administrators in Beijing attended the meeting. According to the meeting, in the year to date, foreign exchange authorities, under the guidance of Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, have been earnestly implementing the decisions and arrangements of the CPC Central Committee and the State Council, and further deepening foreign exchange reform and opening up to support epidemic control and economic and social development, with a focus on effectively preventing and controlling cross-border capital flow risks and safeguarding economic and financial security, which have yielded positive results. First, efforts are expected to step up to enforce full, rigorous self-discipline of the Party. Foreign exchange authorities have been raising the awareness of political organs and firmly upholding general secretary Xi Jinping's core position on the Party Central Committee and in the Party as a whole, and upholding the Party Central Committee's authority and its centralized, unified leadership. Foreign exchange authorities have been implementing the guiding principles in general secretary Xi Jinping's instructions and replies, and the decisions and arrangements of the CPC Central Committee and the State Council, in an effort to build loyal and responsible professional teams with integrity and high qualities. Second, full support has been given to epidemic control and economic recovery. Foreign exchange authorities have introduced convenient foreign exchange policies, simplified processes for foreign exchange businesses such as import and export of anti-epidemic supplies, the capital account receipts and cross-border financing, effectively meeting the needs for foreign exchange related to epidemic control. Third, foreign exchange reform and opening up has been deepened. While implementing the 12 facilitation measures adopted at the State Council executive meeting, foreign exchange authorities have been expanding the pilot regions and scope of foreign exchange receipts and payments facilitation. Foreign exchange authorities have been accelerating the foreign exchange system reform for building the international financial center in Shanghai, the Guangdong-Hong Kong-Macao Greater Bay Area and the Hainan Free Trade Port to serve the key regional development strategies of the state. Fourth, the foreign exchange market has been stable. Foreign exchange authorities have been improving the two-faceted management framework of "macro-prudence and micro-regulation" for the foreign exchange market and severely cracked down on breaches of laws and regulations on foreign exchange, effectively blocking risks arising from external shocks. Fifth, operations of foreign exchange reserves are prudential and robust. Foreign exchange reserves have been kept above US$ 3 trillion. As was stressed at the meeting, in the second half, foreign exchange authorities will need to fully implement the guiding principles of the recent meeting of the Political Bureau of the CPC Central Committee, and work tirelessly to fulfill the targets and tasks for completing the building of a moderately prosperous society in all respects, by better coordinating COVID-19 control, promoting economic and social development, ensuring stability on six fronts and security in six areas and stepping up foreign exchange administration efforts. The priorities for foreign exchange administration in the second half were set at the meeting. First, foreign exchange authorities will firmly uphold general secretary Xi Jinping's core position on the Party Central Committee and in the Party as a whole, and uphold the Party Central Committee's authority and its centralized, unified leadership, and further enforce full, rigorous self-discipline of the Party. In building "a model organ that is trusted by the CPC Central Committee and satisfies the general public", foreign exchange authorities will take the opportunity to raise the awareness of political organs, continue to clean up undesirable work styles and exercise more rigorous discipline and uphold the leadership of the CPC in all respects and at all stages. Second, foreign exchange authorities will deepen foreign exchange reform and opening up to support regular epidemic control and economic and social development. The authorities will need to fully implement all foreign exchange facilitation measures, expand piloting for trade receipts and payments facilitation, and advance electronic filing for taxation regarding foreign exchange payments for trade in services. They will explore reform of cross-border investment management for PE investment funds and further steadily expand two-way opening-up and connectivity of the financial market. Third, they will continue to forestall and defuse heavy financial risks associated with foreign exchange and guard against cross-border capital flow risks. They will strengthen macro-prudential management of cross-border capital flows, improve regulation of the foreign exchange market, and protect the legitimate rights and interests of foreign exchange consumers and investors. They will take a "zero tolerance" stance on foreign exchange breaches and crimes such as underground banks and cross-border gambling to safeguard an orderly and healthy foreign exchange market. Fourth, they will improve foreign exchange reserve operations and management with Chinese characteristics to ensure the security, flows, and preservation as well as appreciation of assets. Fifth, they will be more committed to study key topics such as foreign exchange administration reform and development during the 14th Five-Year Plan period, deepen the reforms to streamline administration, delegate powers and improve the services, improve the multi-level balance of payments statistical system and advance the building of "digital foreign exchange administration" and "secure foreign exchange administration". Officials of the deputy director general level and above from departments and units of the SAFE's organs attended the meeting at the main venue. Attendees also included officials from the discipline inspection and supervisory unit in the People's Bank of China dispatched by the CPC Central Commission for Discipline Inspection and the National Supervisory Commission, Financial Audit Bureau I of the National Audit Office, and relevant departments of the People's Bank of China. SAFE branches (administrative offices) attended the local parallel sessions. (End) 2020-08-01/en/2020/0801/1744.html