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As shown in the statistics of the State Administration of Foreign Exchange (SAFE), in May 2021, the amount of foreign exchange settlement and sales by banks was RMB 1242.0 billion and RMB 1095.2 billion, respectively, with a surplus of RMB 146.8 billion. During January to May 2021, the accumulative amount of foreign exchange settlement and sales by banks was RMB 6309.4 billion and RMB 5574.7 billion, respectively, with an accumulative surplus of RMB 734.7 billion. In the US dollar terms, in May 2021, the amount of foreign exchange settlement and sales by banks was USD 193.1 billion and USD 170.3 billion, respectively, with a surplus of USD 22.8 billion. During January to May 2021, the accumulative amount of foreign exchange settlement and sales by banks was USD 973.6 billion and USD 860.1 billion, respectively, with an accumulative surplus of USD 113.5 billion. In May 2021, the amount of cross-border receipts and payments by non-banking sectors was RMB 2782.0 billion and RMB 2655.0 billion, respectively, with a surplus of RMB 127.0 billion. During January to May 2021, the accumulative amount of cross-border receipts and payments by non-banking sectors was RMB 14836.4 billion and RMB 13818.4 billion, respectively, with an accumulative surplus of RMB 1018.1 billion. In the US dollar terms, in May 2021, the amount of cross-border receipts and payments by non-banking sectors was USD 432.5 billion and USD 412.8 billion, respectively, with a surplus of USD 19.7 billion. During January to May 2021, the accumulative amount of cross-border receipts and payments by non-banking sectors was USD 2289.1 billion and USD 2132.0 billion, respectively, with an accumulative surplus of USD 157.1 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. 2021-06-18/en/2021/0618/1832.html
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According to the statistics of the State Administrationof Foreign Exchange (SAFE), the Chinese foreign exchange market (excludingforeign currency pairs, the same below) recorded total transactions of RMB 22.43 trillion (equivalent to USD 3.45 trillion) in March 2021. In terms of markets, the transactions volume of clientmarket was RMB 3.22 trillion (equivalent to USD 0.49 trillion), and the transactionsvolume of interbank market was RMB 19.21 trillion (equivalent to USD 2.95 trillion). In terms ofproducts, the cumulative transactions volume of the spot market was RMB 8.70 trillion (equivalent to USD 1.34trillion), and that of the derivatives market was RMB 13.73 trillion (equivalent to USD 2.11 trillion). From January to March 2021, a total of RMB 54.38 trillion (equivalent to USD 8.39 trillion) was traded in the Chinese foreign exchangemarket. 2021-04-30/en/2021/0430/1825.html
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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 transactions of RMB 19.95 trillion (equivalent to USD 3.06 trillion) in April 2021. In terms of markets, the transactions volume of client market was RMB 2.70 trillion (equivalent to USD 0.41 trillion), and the transactions volume of interbank market was RMB 17.25 trillion (equivalent to USD 2.65 trillion). In terms of products, the cumulative transactions volume of the spot market was RMB 7.84 trillion (equivalent to USD 1.20 trillion), and that of the derivatives market was RMB 12.11 trillion (equivalent to USD 1.86 trillion). From January to April 2021, a total of RMB 74.33 trillion (equivalent to USD 11.45 trillion) was traded in the Chinese foreign exchange market. 2021-05-28/en/2021/0528/1829.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 2020. The statistics show that China's external portfolio investment assets (excluding reserve assets) amounted to USD 899.9 billion by the end of 2020, including USD 604.3 billion in equity investments and USD 295.5 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 409.1 billion, USD 178.4 billion, USD 90.1 billion, USD 59.2 billion and USD 21.5 billion respectively. (End) 2021-05-28/en/2021/0528/1828.html
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In the third quarter of 2021, China's current account registered a surplus of RMB 518.3 billion, including a surplus of RMB 915.2 billion under trade in goods, a deficit of RMB 204.1 billion under trade in services, a deficit of RMB 216.1 billion under primary income, and a surplus of RMB 23.4 billion under secondary income. In the capital and financial accounts, direct investments recorded a surplus of RMB 273.9 billion, and reserve assets increased by RMB 397.3 billion, of which RMB 271.6 billion was from the allocation of Special Drawing Right (SDR) by IMF. In the first three quarters of 2021, China's current account registered a surplus of RMB 1313.3 billion, including a surplus of RMB 2456 billion under trade in goods, a deficit of RMB 530.8 billion under trade in services, a deficit of RMB 678.6 billion under primary income, and a surplus of RMB 66.7 billion under secondary income. In the capital and financial accounts, direct investments recorded a surplus of RMB 1059.3 billion, and reserve assets increased by RMB 946.7 billion. In the US dollar terms, in the third quarter of 2021, China's current account recorded a surplus of USD 80.1 billion, including a surplus of USD 141.4 billion under trade in goods, a deficit of USD 31.5 billion under trade in services, a deficit of USD 33.4 billion under primary income, and a surplus of USD 3.6 billion under secondary income. In the capital and financial accounts, direct investments recorded a surplus of USD 42.3 billion, and reserve assets increased by USD 61.4 billion, of which USD 41.9 billion was from the allocation of SDR by IMF. In the US dollar terms, in the first three quarters of 2021, China's current account recorded a surplus of USD 202.8 billion, including a surplus of USD 379.6 billion under trade in goods, a deficit of USD 82.1 billion under trade in services, a deficit of USD 105 billion under primary income, and a surplus of USD 10.3 billion under secondary income. In the capital and financial accounts, direct investments recorded a surplus of USD 163.6 billion, and reserve assets increased by USD 146.4 billion. In SDR terms, in the third quarter of 2021, China posted a surplus of SDR 56.3 billion under the current account, including a surplus of SDR 99.4 billion under trade in goods, a deficit of SDR 22.2 billion under trade in services. In the capital and financial accounts, direct investments recorded a surplus of SDR 29.8 billion, and reserve assets increased by SDR 43.2 billion, of which SDR 29.5 billion was from the allocation of SDR by IMF. In SDR terms, in first three quarters of 2021, China posted a surplus of SDR 141.8 billion under the current account, including a surplus of SDR 265.3 billion under trade in goods, a deficit of SDR 57.4 billion under trade in services. In the capital and financial accounts, direct investments recorded a surplus of SDR 114.2 billion, and reserve assets increased by SDR 102.3 billion. (End) China's Balance of Payments (Preliminary Data) Unit:RMB 100 million Item Line No. 2021 Q3 2021 First Three Quarters 1. Current account 1 5,183 13,133 Credit 2 65,023 180,433 Debit 3 -59,840 -167,300 1. A Goods and Services 4 7,111 19,252 Credit 5 59,632 163,509 Debit 6 -52,522 -144,257 1.A.a Goods 7 9,152 24,560 Credit 8 53,985 148,215 Debit 9 -44,833 -123,655 1.A.b Services 10 -2,041 -5,308 Credit 11 5,648 15,293 Debit 12 -7,689 -20,601 1.A.b.1 Processing services 13 218 643 Credit 14 231 676 Debit 15 -13 -33 1.A.b.2 Maintenance and Repair Services 16 65 182 Credit 17 131 360 Debit 18 -67 -178 1.A.b.3 Transport 19 -257 -1,144 Credit 20 2,306 5,471 Debit 21 -2,563 -6,615 1.A.b.4 Travel 22 -1,812 -4,684 Credit 23 175 547 Debit 24 -1,988 -5,231 1.A.b.5 Construction 25 92 204 Credit 26 258 677 Debit 27 -165 -472 1.A.b.6 Insurance and Pension Services 28 -238 -541 Credit 29 75 248 Debit 30 -313 -789 1.A.b.7 Financial Services 31 -68 -45 Credit 32 89 247 Debit 33 -158 -293 1.A.b.8 Charges for the Use of Intellectual Property 34 -667 -1,678 Credit 35 172 557 Debit 36 -840 -2,235 1.A.b.9 Telecommunications, Computer, and Information Services 37 159 430 Credit 38 802 2,380 Debit 39 -643 -1,950 1.A.b.10 Other Business Services 40 530 1,506 Credit 41 1,358 3,988 Debit 42 -828 -2,482 1.A.b.11 Personal, Cultural, and Recreational Services 43 -24 -85 Credit 44 24 68 Debit 45 -48 -153 1.A.b.12 Government Goods and Services n.i.e 46 -38 -96 Credit 47 25 75 Debit 48 -63 -171 1.B Primary Income 49 -2,161 -6,786 Credit 50 4,637 14,703 Debit 51 -6,798 -21,489 1.C Secondary Income 52 234 667 Credit 53 754 2221 Debit 54 -520 -1554 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -5,183 -8,843 2.1 Capital Account 56 7 6 Credit 57 9 14 Debit 58 -2 -7 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -5,190 -8,849 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -1,217 618 Including: 2.2.1.1 Direct Investment 61 2,739 10,593 2.2.1.1.1 Assets 62 -1,924 -5,526 2.2.1.1.2 Liabilities 63 4,663 16,119 2.2.2 Reserve Assets 64 -3973 -9467 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 -2716 -2722 2.2.2.3 Reserve position in the IMF 67 13 32 2.2.2.4 Foreign exchange reserves 68 -1271 -6777 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / -4290 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 period average central parity rate of RMB against USD. 4.The preliminary amount for the first three quarters of 2021 is the sum of the official amounts of the BOP for 2021Q1 and 2021Q2, and the preliminary amount for 2021Q3. 5.This table employs rounded-off numbers. China's Balance of Payments (PreliminaryData) Unit: USD 100 million Item Line No. 2021 Q3 2021 First Three Quarters 1. Current account 1 801 2,028 Credit 2 10,049 27,887 Debit 3 -9,248 -25,858 1. A Goods and Services 4 1,099 2,975 Credit 5 9,216 25,271 Debit 6 -8,118 -22,296 1.A.a Goods 7 1,414 3,796 Credit 8 8,343 22,907 Debit 9 -6,929 -19,112 1.A.b Services 10 -315 -821 Credit 11 873 2,364 Debit 12 -1,188 -3,184 1.A.b.1 Processing services 13 34 99 Credit 14 36 104 Debit 15 -2 -5 1.A.b.2 Maintenance and Repair Services 16 10 28 Credit 17 20 56 Debit 18 -10 -28 1.A.b.3 Transport 19 -40 -177 Credit 20 356 846 Debit 21 -396 -1,023 1.A.b.4 Travel 22 -280 -724 Credit 23 27 85 Debit 24 -307 -808 1.A.b.5 Construction 25 14 32 Credit 26 40 105 Debit 27 -26 -73 1.A.b.6 Insurance and Pension Services 28 -37 -84 Credit 29 12 38 Debit 30 -48 -122 1.A.b.7 Financial Services 31 -11 -7 Credit 32 14 38 Debit 33 -24 -45 1.A.b.8 Charges for the Use of Intellectual Property 34 -103 -260 Credit 35 27 86 Debit 36 -130 -346 1.A.b.9 Telecommunications, Computer, and Information Services 37 25 66 Credit 38 124 368 Debit 39 -99 -301 1.A.b.10 Other Business Services 40 82 233 Credit 41 210 616 Debit 42 -128 -384 1.A.b.11 Personal, Cultural, and Recreational Services 43 -4 -13 Credit 44 4 10 Debit 45 -7 -24 1.A.b.12 Government Goods and Services n.i.e 46 -6 -15 Credit 47 4 12 Debit 48 -10 -26 1.B Primary Income 49 -334 -1,050 Credit 50 717 2,272 Debit 51 -1,051 -3,322 1.C Secondary Income 52 36 103 Credit 53 116 343 Debit 54 -80 -240 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -801 -1,362 2.1 Capital Account 56 1 1 Credit 57 1 2 Debit 58 0 -1 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -802 -1,363 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -188 100 Including: 2.2.1.1 Direct Investment 61 423 1,636 2.2.1.1.1 Assets 62 -298 -855 2.2.1.1.2 Liabilities 63 721 2,491 2.2.2 Reserve Assets 64 -614 -1464 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 -419 -420 2.2.2.3 Reserve position in the IMF 67 2 5 2.2.2.4 Foreign exchange reserves 68 -196 -1048 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / -666 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 2021 is the sum of the official amounts of the BOP for 2021Q1 and 2021Q2, and the preliminary amount for 2021Q3. 4.This table employs rounded-off numbers. China's Balance of Payments (Preliminary Data) Unit:SDR 100 million Item Line No. 2021 Q3 2021 First Three Quarters 1. Current account 1 563 1,418 Credit 2 7,068 19,492 Debit 3 -6,505 -18,073 1. A Goods and Services 4 773 2,080 Credit 5 6,482 17,664 Debit 6 -5,709 -15,584 1.A.a Goods 7 994 2,653 Credit 8 5,868 16,012 Debit 9 -4,873 -13,359 1.A.b Services 10 -222 -574 Credit 11 614 1,652 Debit 12 -836 -2,226 1.A.b.1 Processing services 13 24 69 Credit 14 25 73 Debit 15 -1 -4 1.A.b.2 Maintenance and Repair Services 16 7 20 Credit 17 14 39 Debit 18 -7 -19 1.A.b.3 Transport 19 -28 -123 Credit 20 251 591 Debit 21 -279 -715 1.A.b.4 Travel 22 -197 -506 Credit 23 19 59 Debit 24 -216 -565 1.A.b.5 Construction 25 10 22 Credit 26 28 73 Debit 27 -18 -51 1.A.b.6 Insurance and Pension Services 28 -26 -59 Credit 29 8 27 Debit 30 -34 -85 1.A.b.7 Financial Services 31 -7 -5 Credit 32 10 27 Debit 33 -17 -32 1.A.b.8 Charges for the Use of Intellectual Property 34 -73 -181 Credit 35 19 60 Debit 36 -91 -242 1.A.b.9 Telecommunications, Computer, and Information Services 37 17 46 Credit 38 87 257 Debit 39 -70 -211 1.A.b.10 Other Business Services 40 58 163 Credit 41 148 431 Debit 42 -90 -268 1.A.b.11 Personal, Cultural, and Recreational Services 43 -3 -9 Credit 44 3 7 Debit 45 -5 -17 1.A.b.12 Government Goods and Services n.i.e 46 -4 -10 Credit 47 3 8 Debit 48 -7 -18 1.B Primary Income 49 -235 -733 Credit 50 504 1,588 Debit 51 -739 -2,321 1.C Secondary Income 52 25 72 Credit 53 82 240 Debit 54 -57 -168 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -563 -954 2.1 Capital Account 56 1 1 Credit 57 1 1 Debit 58 0 -1 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -564 -955 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -132 69 Including: 2.2.1.1 Direct Investment 61 298 1,142 2.2.1.1.1 Assets 62 -209 -597 2.2.1.1.2 Liabilities 63 507 1,740 2.2.2 Reserve Assets 64 -432 -1023 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 -295 -296 2.2.2.3 Reserve position in the IMF 67 1 3 2.2.2.4 Foreign exchange reserves 68 -138 -731 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / -464 Notes: 1. The table is compiled according to BPM6. 2."Credit" is presented as positive value while "debit" as negative value, and the balance is the sum of the"Credit" and the "Debit". All items herein refer to balances, unless marked with "Credit" or "Debit". 3. The SDR denominated quarterly BOP statement is converted from the USD denominated BOP statement for the quarter using the period average exchange rate of SDR against USD. 4. The preliminary amount for the first three quarters of 2021 is the sum of the official amounts of the BOP for 2021Q1 and 2021Q2, and the preliminary amount for 2021Q3. 5. This table employs rounded-off numbers. 2021-11-05/en/2021/1105/1884.html
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The State Council Information Office (SCIO) held a press conference at 3 p.m. on Thursday, September 9, 2021. Attending the conference were Pan Gongsheng, Deputy Governor of the People’s Bank of China (PBC) and Administrator of the State Administration of Foreign Exchange (SAFE), officials from the National Development and Reform Commission, the Leading Group for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area, the Ministry of Finance and the General Administration of Customs, and officials from the governments of Guangdong, Shenzhen, Hong Kong and Macao. They briefed the conference on the development of Hengqin and Qianhai and answered questions. The transcript is as follows. Journalist with China Daily: To promote financial interconnectivity is important for aligning rules and mechanisms in the Greater Bay Area, and the financial sector is considered a key area to the development of Hengqin and Qianhai. Would you introduce to us the support rendered by the PBC and SAFE for the development of Hengqin and Qianhai? What are the measures newly introduced this time? Thank you. Pan Gongsheng, PBC Deputy Governor and SAFE Administrator: Thank you for your questions. The PBC and SAFE have attached great importance to the development of the Greater Bay Area. In line with the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area issued by the central government, we have been moving ahead with financial opening-up and innovation in the area, including Hengqin and Qianhai. In May 2020, the PBC and other financial regulators jointly issued the Opinions on Providing Financial Support for the Development of the Guangdong-Hong Kong-Macao Greater Bay Area, in which 26 tasks regarding the priorities in the reform and opening-up of the financial sector are laid out to promote financial opening-up and innovation in the area. Since then, the PBC and SAFE have been advancing the implementation of the financial innovation measures in line with the principle of “balancing short-term and long-term goals and prioritizing financial services closely related to people’s well-being”. To that end, we have launched a pilot program allowing Hong Kong and Macao residents to remotely open Mainland bank accounts, and will gradually expand its coverage and scale. We have taken measures to facilitate the use of mobile payment by Hong Kong and Macao residents in the Mainland. In addition, we have introduced services for their convenience, such as cross-border direct payment of electronic bills and self-service inquiry on personal credit information. These measures have substantially facilitated people’s lives in the Greater Bay Area. With regard to market interconnectivity, continued efforts have been made to expand the channels for Hong Kong and Macau investors to invest in in the Mainland capital and bond markets. We have been working on the schemes of Wealth Management Connect and Southbound Bond Connect, which will be officially launched soon. To promote cooperation on green finance, we have taken active steps to encourage local governments to issue green municipal bonds in Hong Kong and Macao while boosting cooperation between green bond certification agencies in Guangdong, Hong Kong and Macao. With joint efforts, the Guangdong-Hong Kong-Macao Greater Bay Area Green Finance Alliance has been launched. Moreover, we have launched successively in the Greater Bay Area the pilot programs on the free trade account, cross-border transfer of credit assets, external debt facilitation, cross-border cash pooling and cross-border investment by private equity funds. Going forward, the PBC and SAFE will continue to implement the decisions and arrangements of the CPC Central Committee and the State Council and to step up financial support for the development of Hengqin and Qianhai. First, in accordance with the two plans issued by the central government and in order to support the strategic positioning of Hengqin and Qianhai, the PBC is working with financial regulators in Hong Kong and Macao to draft documents specifically on financial support for reform and opening-up in the two zones. Second, in accordance with Hengqin’s strategic positioning, which is to support Macao by achieving integrated development with it, we will formulate open financial institutional arrangements for Hengqin. We will work towards establishing an electronic fence system and further improve the opening-up of Hengqin’s financial services to financial institutions in Macao so as to achieve the integration of their financial services. We will promote the development of financial businesses with Macau’s characteristics while enhancing the width and depth of Macao’s financial market as well as its financial ties with Portuguese-speaking countries. Third, we will tap into the potential of Qianhai to strengthen financial cooperation between Shenzhen and Hong Kong and further bring out the role of Hong Kong as an international financial center. Focusing on the issue of free cross-border capital flow, we will promote higher-standard opening-up of the capital account and enhance the opening-up and interconnectivity between financial services sectors in Shenzhen and Hong Kong. Moreover, we will take steps to establish a system of financial rules aligned with international standards, and will improve the financial environment so that it will be market-oriented, law-based and internationalized to play a leading role in the opening-up of China’s financial markets. Fourth, while expanding opening-up, we will establish and improve the systems for monitoring, preventing and defusing financial risks. We will step up efforts to monitor abnormal cross-border capital flows and will strengthen regulatory cooperation between Guangdong, Hong Kong and Macao on anti-money laundering, counter-terrorist financing and anti-tax evasion efforts so as to improve the effectiveness of the fight against cross-border money laundering and other illegal financial activities. Thank you. Journalist with Phoenix TV: Hong Kong enjoys advantages in its modern services sector, especially in its financial industry, which is also one of the areas of cooperation between Shenzhen and Hong Kong in the development of Qianhai. What are your considerations for better leveraging Hong Kong’s status as an international financial center and giving play to Qianhai to provide higher-quality financial services for the Greater Bay Area and other parts of the country? Thank you. Pan Gongsheng: As we all know, Hong Kong is a major international financial center with highly open business environment, a deep financial market system, mature financial infrastructures and an internationalized financial regulatory system. Having been ranked the world’s freest economy for 25 consecutive years, it is the world’s largest offshore RMB market and fifth largest stock market and foreign exchange trading center. It is also Asia’s third largest bond market and largest fund management and personal wealth management center. Since 2019, Hong Kong’s financial market has seen continuous inflows of international capital; its IPO fundraising volumes have been among the highest in the world; and the HKD exchange rate has been stable. All these have consolidated the status of Hong Kong as an international financial center. In line with the policy of “one country, two systems” and the overall arrangements of the CPC Central Committee and the State Council, the PBC will thoroughly implement the 14th Five-Year Plan and the Outline Development Plan for the Guangdong-Hong Kong-Macao Greater Bay Area. Concerted efforts will be made to give play to the role of Qianhai as a pilot area and demonstration window for expanding financial opening-up as well as the role of Hong Kong as an international financial center in order to provide high-quality financial services for the Greater Bay Area and other parts of the country. First, we will leverage on Hong Kong’s status as an international financial center to promote RMB internationalization. As an international financial center, Hong Kong is home to many international financial institutions, with RMB funds in Hong Kong amounting to over RMB800 billion, which has rendered significant support for the progress of RMB internationalization. In the future, innovations of cross-border RMB businesses will be put into trial operation in Qianhai. This will help enhance the depth and width of Hong Kong’s offshore RMB businesses and reinforce its position as the world’s largest offshore RMB market. Second, we will speed up our work to improve the interconnectivity between the Mainland and Hong Kong financial markets. Shanghai-Hong Kong Stock Connect, Shenzhen-Hong Kong Stock Connect and Bond Connect have served as convenient and efficient channels for overseas investors to invest in China’s capital and bond markets. At present, over 70 percent of Mainland stock holdings by overseas investors have been bought through Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect. In the future, the Qianhai cooperation zone will be positioned to pioneer the programs on interconnectivity between the Mainland and Hong Kong financial markets. Third, we will promote cooperation between the Mainland and Hong Kong in such fields as green finance, sci-tech finance, Fintech, financial innovation and financial regulation. Fourth, Qianhai will be the pilot ground for implementing the negative list of the financial sector and aligning existing rules with international standards. We will take steps to establish a system of financial rules aligned with international standards and promote the integrated development of financial rules so that it will play a leading role in the opening-up of China’s financial markets. Thank you. 2021-09-18/en/2021/0918/1876.html
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In September 2021, China’s international trade in goods and services recorded receipts of RMB 2097.2 billion and payments of RMB 1801.3 billion based on statistics of balance of payments (BOP), registering a surplus of RMB 295.9 billion. Specifically, trade in goods registered receipts of RMB 1890.0 billion, payments of RMB 1521.8 billion, recording a surplus of RMB 368.2 billion; trade in services recorded receipts of RMB 207.2 billion, payments of RMB 279.6 billion, resulting in a deficit of RMB 72.3 billion. In the US dollar terms, in September 2021, the receipts and payments of China's international trade in goods and services were USD 324.6 billion and USD 278.8 billion respectively, registering a surplus of USD 45.8 billion. Specifically, the receipts and payments from trade in goods were USD 292.6 billion and USD 235.6 billion respectively, resulting in a surplus of USD 57.0 billion. Trade in services registered receipts and payments of USD 32.1 billion and USD 43.3 billion respectively, recording a deficit of USD 11.2 billion.(End) International Trade in Goods and Services of China (Based on the BOP statistics) September2021 Item In 100 million of RMB In 100 million of USD Goods and services 2959 458 Credit 20972 3246 Debit -18013 -2788 1. Goods 3682 570 Credit 18900 2926 Debit -15218 -2356 2. Services -723 -112 Credit 2072 321 Debit -2796 -433 2.1Manufacturing services on physical inputs owned by others 79 12 Credit 84 13 Debit -4 -1 2.2Maintenance and repair services n.i.e 21 3 Credit 46 7 Debit -25 -4 2.3Transport -4 -1 Credit 857 133 Debit -861 -133 2.4Travel -626 -97 Credit 57 9 Debit -683 -106 2.5Construction 31 5 Credit 98 15 Debit -67 -10 2.6Insurance and pension services -103 -16 Credit 47 7 Debit -150 -23 2.7Financial services -81 -13 Credit 36 6 Debit -117 -18 2.8Charges for the use of intellectual property -270 -42 Credit 74 11 Debit -343 -53 2.9Telecommunications, computerand information services 64 10 Credit 293 45 Debit -229 -35 2.10Other business services 194 30 Credit 463 72 Debit -269 -42 2.11Personal, cultural, and recreational services -3 0 Credit 10 2 Debit -13 -2 2.12Government goods and services n.i.e -26 -4 Credit 8 1 Debit -33 -5 Notes: 1. The trade in goodsand services in this table refers to the transactions between residents andnon-residents, based on the same standard as that for BOP statement. The monthly data are preliminary and may be inconsistent with the quarterly data in the BOP statement. 2. The data on international trade in goods and services are prepared in USD, and the RMB data for the current month is derived by converting the USD data at the monthly average central parity rate of the RMB against the USD. 3. This table employs rounded-off numbers. Definition of Indicators: Goods and Services: refers to the trade in goods and services between residents and non-residents, which is based on the same standard as that for the BOP statement. 1. Goods:refers to transactions in goods whereby the economic ownership is transferred between the Chinese residents and non-residents. The credit side records export of goods, while the debit side records import of goods. The data of goods account are mainly from the customs statistics of imports and exports, but differ from the statistics of the customs mainly in the following aspects:first, the goods in the BOP statement only reflect the goods whose ownership has been transferred (e.g. goods under the trade modes such as general trade and processing trade with imported materials), while the goods whose ownershipis 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 Manufacturingservices 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 isnot 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 postaland 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 Insuranceand pension services: refers to various insurance services and commission to agents related with insurance transaction. The credit side records the life insurance and annuity, non-lifeinsurance, reinsurance, standardized guarantee services and relevant supporting services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.7 Financial services: refer to financial intermediation and supporting services, excluding those covered by insurance and pension services. The credit side records the financial intermediation and supporting services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.8 Charges for the use of intellectual property:refer to licensed use of intangible, non-productive/non-financial assets and exclusive rights between residents and non-residents and the licensed use of existing original works or prototypes. The credit side records the intellectual property-related services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.9 Telecommunications, computer and information services: refer tocommunications services between residents and non-residents and transactions of services related to computer data and news, excluding commercial services delivered via telephone, computer and Internet. The credit side records the telecommunications, computer and information services supplied by residents to non-residents, and vice versa for debit side. 2.10Other business services: refer to other types of services between residents and non-residents, including research and development services, professional and management consulting services, technical and trade-related services. The credit side records the other business services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.11 Personal, cultural and recreational services: refer to transactions of personal, cultural and recreational services between residents and non-residents, including audiovisual and related services (films,radio, television programs and music recordings) and other personal, cultural and recreational services (health, education, etc.). The credit side records the related services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.12Government 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. 2021-10-29/en/2021/1029/1882.html
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Distinguished Secretary Cai Qi, Mayor Jining, Respectable Guests, Hello everyone! The trend of the monetary policies adopted by the Federal Reserve and other central banks of developed economies is the focus of the current international financial market and a crucial factor influencing the changes in the global financial market. In comparison with the policy responses and market reactions after the 2008 international financial crisis, here I will talk about the exit of the easy monetary policies in major developed economies in response to the COVID-19 epidemic, and its possible impacts on international financial markets, the cross-border capital flows in emerging economies, as well as Chinese foreign exchange market. In the face of the “sudden stop” in the global economy and liquidity crisis caused by the COVID-19, the central banks of major developed economies have implemented ultra-easy monetary policies. The current round of quantitative easing of monetary policies in developed economies is characterized by four features, namely, faster response, larger scale, direct access to entities, and fiscal coordination, making a much faster and stronger response than during the 2008 international financial crisis. Driven by policy stimulus and vaccination, the global economy has achieved a rapid recovery. The global economy, especially the major developed economies, rebounded rapidly. In the second quarter of 2021, the US GDP has surpassed the level before the epidemic, and the Europe, UK, and Japan have also seen their GDP close to the pre-pandemic level. The flipside of the rapid global recovery is that the strong demand in developed economies continues to recover faster than supply, pushing up inflationary pressures. With rapid economic recovery and inflation remaining stubbornly high, the central banks of developed economies have been prompted to signal a turnaround in monetary policy. The Fed’s tapering could begin soon, and the financial markets have already had sufficient expectations. It is expected that the timing of the first interest rate hike has been advanced to the second half of 2022. Other central banks, such as, the European Central Bank and the Bank of England, also generally strengthened their austerity stance. The significant appreciation of the US dollar during the last monetary policy tightening cycle of Fed had had a big impact on emerging market economies. After the dollar index began its rapid appreciation in mid-2014, the currencies of emerging market economies depreciated sharply, and major emerging market economies also experienced significant capital outflows. From 2015 to early 2017, Chinese foreign exchange market also suffered a great impact. The depreciation of renminbi was accompanied by capital outflows and a decline in the value of foreign exchange reserves. In the current monetary policy tightening cycle of Fed, the gaps between the United States and non-US economies in terms of both economic growth and monetary policy are smaller than the ones in the previous tightening cycle, which is expected to limit the appreciation of the US dollar. In terms of disparity of economic growth, the US economic growth was significantly better than that of the Europe during the exit of the last round of quantitative easing, while at present the US and Europe are more synchronized in growth. In terms of monetary policy differences, the last round of Fed’s bond-buying reduction coincided with the start of easing by the European Central Bank, but the current round of monetary policies of the US and European Central Banks are generally in the same direction. Emerging markets are also less exposed to capital outflows than they were during the last round of Fed tightening. The current external account vulnerability of emerging markets has declined, the current account has generally improved significantly compared with the period of 2013-2015, and capital inflows have also been relatively limited in recent years. It is expected that the influence of the current round of the Federal Reserve policy shift on Chinese foreign exchange market is controllable. The cross-border capital is expected to continue to flow in both directions, and the renminbi exchange rate will remain basically stable at a reasonably balanced level. Firstly, Chinese economy is in a better cyclical position. During the last round of austerity, Chinese economy was in the midst of a combination of growth rate shift, structural adjustment and the digestion of previous policies, and faced considerable downward pressure. The industrial producer price index (PPI) remained negative for more than 50 months. At present, however, the national economy is recovering, the main macro indicators are in a reasonable range, and employment is basically stable. The solid domestic economic fundamentals will be the basic guarantee for Chinese foreign exchange market to cope with external shocks. Recently, Chinese real estate market and related financial market experienced a little volatility, which is the stress reaction of market entities after the occurrence of individual corporate default incidents. Under the guidance of the financial authorities, the excessive contraction of risk appetite in financial institutions and financial markets has gradually been corrected, and financing behavior and financial market prices are gradually returning to normal. Since the 19th National Congress of the Communist Party of China (CPC), we have implemented macro-regulation of the real estate market and established a long-term management mechanism in accordance with the guidelines and policies set by the CPC Central Committee. As a result, the trend of financialization and bubblization in the real estate market has been contained, land and housing prices and expectations in the real estate market have remained stable, and the real estate industry has developed healthily on the whole. In the next step, the financial sector will actively cooperate with the Ministry of Housing and Urban-Rural Development and local governments to firmly maintain the healthy development of the real estate market and safeguard the legitimate rights and interests of housing consumers. Secondly, the flexibility of the renminbi exchange rate has also been enhanced, enabling it to play a better role in self-regulation. During the last round of tightening, the renminbi exchange rate appreciated unilaterally in the early stage, and thus a certain amount of devaluation pressure accumulated in the foreign exchange market. In recent years, the formation mechanism of renminbi exchange rate has been continuously improved, and the two-way floating of the exchange rate has become stronger. Meanwhile, the People’s Bank of China (PBC) and the State Administration of Foreign Exchange (SAFE) have continuously improved their counter-cyclical macro-prudential management tools and accumulated more experience in risk response. Thirdly, China’s capital inflow structure has been optimized and outbound investment becomes more stable. Before the last round of austerity, China’s foreign capital inflows were mainly traditional financing foreign debts, which were sensitive to exchange rate fluctuations. During the period of 2015-2016, China experienced a concentrated deleveraging of foreign debts. In recent years, the inflow of China’s foreign debt is mainly renminbi bonds invested by long-term overseas investors, which is relatively stable. In addition, the current “going out” of Chinese enterprises is more rational, and the future outbound direct investment is expected to be relatively stable. In recent years, the PBC and the SAFE have gathered rich experience and sufficient policy tools in coping with external shocks, and they have also carried out forward-looking arrangements this year. In the future, we will adhere to the bottom-line thinking, follow developments in the international market closely, strengthen monitoring and risk warning of the foreign exchange market, and actively prevent against cross-border capital flow risks. At present, we have more foundation, conditions, capability and confidence to maintain the smooth operation of Chinese foreign exchange market. I wish this year’s Annual Conference of the Financial Street Forum a complete success. Thank you all! 2021-10-20/en/2021/1021/1885.html
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As shown in the statistics of the State Administration of Foreign Exchange (SAFE), in September 2021, the amount of foreign exchange settlement and sales by banks was RMB 1473.4 billion and RMB 1337.9 billion, respectively, with a surplus of RMB 135.5 billion. During January to September 2021, the accumulative amount of foreign exchange settlement and sales by banks was RMB 12037.6 billion and RMB 10874.0 billion, respectively, with an accumulative surplus of RMB 1163.7 billion. In the US dollar terms, in September 2021, the amount of foreign exchange settlement and sales by banks was USD 227.2 billion and USD 206.3 billion, respectively, with a surplus of USD 20.9 billion. During January to September 2021, the accumulative amount of foreign exchange settlement and sales by banks was USD 1859.8 billion and USD 1679.8 billion, respectively, with an accumulative surplus of USD 180.0 billion. In September 2021, the amount of cross-border receipts and payments by non-banking sectors was RMB 3473.6 billion and RMB 3438.4 billion, respectively, with a surplus of RMB 35.3 billion. During January to September 2021, the accumulative amount of cross-border receipts and payments by non-banking sectors was RMB 28490.5 billion and RMB 26971.1 billion, respectively, with an accumulative surplus of RMB 1519.4 billion. In the US dollar terms, in September 2021, the amount of cross-border receipts and payments by non-banking sectors was USD 537.7 billion and USD 532.2 billion, respectively, with a surplus of USD 5.5 billion. During January to September 2021, the accumulative amount of cross-border receipts and payments by non-banking sectors was USD 4403.4 billion and USD 4168.6 billion, respectively, with an accumulative surplus of USD 234.8 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. 2021-10-22/en/2021/1022/1880.html
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As shown in the statistics of the State Administration of Foreign Exchange (SAFE), in October 2021, the amount of foreign exchange settlement and sales by banks was RMB 1195.1 billion and RMB 1088.9 billion, respectively, with a surplus of RMB 106.2 billion. During January to October 2021, the accumulative amount of foreign exchange settlement and sales by banks was RMB 13232.7 billion and RMB 11962.9 billion, respectively, with an accumulative surplus of RMB 1269.9 billion. In the US dollar terms, in October 2021, the amount of foreign exchange settlement and sales by banks was USD 186.2 billion and USD 169.6 billion, respectively, with a surplus of USD 16.5 billion. During January to October 2021, the accumulative amount of foreign exchange settlement and sales by banks was USD 2046.0 billion and USD 1849.5 billion, respectively, with an accumulative surplus of USD 196.5 billion. In October 2021, the amount of cross-border receipts and payments by non-banking sectors was RMB 2918.3 billion and RMB 2694.9 billion, respectively, with a surplus of RMB 223.4 billion. During January to October 2021, the accumulative amount of cross-border receipts and payments by non-banking sectors was RMB 31408.8 billion and RMB 29666.0 billion, respectively, with an accumulative surplus of RMB 1742.8 billion. In the US dollar terms, in October 2021, the amount of cross-border receipts and payments by non-banking sectors was USD 454.6 billion and USD 419.8 billion, respectively, with a surplus of USD 34.8 billion. During January to October 2021, the accumulative amount of cross-border receipts and payments by non-banking sectors was USD 4858.0 billion and USD 4588.4 billion, respectively, with an accumulative surplus of USD 269.6 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. 2021-11-19/en/2021/1119/1886.html