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The State Administration of Foreign Exchange (SAFE) held a press conference on the foreign exchange receipts and payments for the first half of 2017 in the State Council Information Office on Thursday, July 20, 2017 at 10 am and answered press questions. Moderator Xi Yanchun: Good morning, ladies and gentlemen. Welcome to the press conference of the State Council Information Office. Today we are very glad to have with us Ms. Wang Chunying, press spokesperson and director of the Department of Balance of Payments of the SAFE. She will brief us on the foreign exchange receipts and payments for the first half of 2017 and take your questions. Now let's invite Ms. Wang for some opening remarks. 2017-07-20 10:00:50 Wang Chunying: Good morning, everyone. Welcome to today's press conference. Now I would like to disseminate China's foreign exchange receipts and payments data for the first half of 2017 and then I will be taking your questions. In the first half of this year, the global economy continued to recover and the global financial markets remained stable. China's economy performed stably with stronger momentum for growth. Its economic development becomes more stable, coordinated and sustainable, and the RMB exchange rate stayed stable. The SAFE was committed to enhancing the cross-border trade and investment facilitation and boosting the two-way opening of the financial market in a proper and orderly manner to serve the development of the real economy on the one hand; and on the other hand, it tightened the monitoring of cross-border capital flows, enhanced the building of regulatory capability, and cracked down on foreign exchange irregularities to safeguard the health and stability of the foreign exchange market and China's economic and financial security. Overall, China's cross-border capital flows remained sound with good momentum for growth, and the supply and demand in the foreign exchange market found a basic equilibrium in the first half, which proved to be the best equilibrium over the past three years. 2017-07-20 10:01:52 Wang Chunying: Banks settled foreign exchange of RMB 5.31 trillion (USD 772.7 billion) and sold foreign exchange of RMB 5.95 trillion (USD 866.5 billion) in the first half, with a deficit of RMB 644.3 billion (USD 93.8 billion). Meanwhile, banks registered cumulative foreign-related income of RMB 9.55 trillion (USD 1.39 trillion) and made external payment of RMB 10.12 trillion (USD 1.47 trillion) for their customers, with a deficit of RMB 577.9 billion (USD 84.2 billion), according to the data on banks' foreign-related receipts and payments for customers. 2017-07-20 10:03:59 Wang Chunying: China's foreign exchange receipts and payments for the first half present the following characteristics: First, banks' foreign exchange sales and settlements as well as foreign-related receipts and payments registered drastic falls in deficits. In the first half, in dollar terms, foreign exchange settlements by banks were up by 6% year on year, and foreign exchange sales by banks, down by 4% year on year, resulting in a deficit of USD 93.8 billion, down by 46% year on year; the foreign-related receipts by banks for customers were up by 3% year on year, while the payments were down by 3%, leading to a deficit of USD 84.2 billion, representing a decrease of 50% year on year; in particular, the foreign-related foreign exchange receipts and payments recorded a deficit of USD 14.3 billion, down by 45% year on year. Second, the supply and demand of foreign exchange were moving towards a basic equilibrium. According to the foreign-related foreign exchange receipts and payments for customers, a surplus was registered between January and February, and a monthly average deficit of USD 5.9 billion from March to June. As for the foreign exchange settlement and sales for customers, a deficit of USD 15.6 billion was recorded in January, and the monthly average deficit fell to USD 11.2 billion from February to June, compared with the monthly average deficit of USD 26.6 billion in 2016. Considering the spot and forward foreign exchange sales and settlements as well as options, China's foreign exchange supply and demand has found a basic equilibrium since February. 2017-07-20 10:04:27 Wang Chunying: Third, the foreign exchange sales rate dropped drastically while foreign exchange financing of enterprises grew steadily. In the first half, this rate that measures enterprises' motives to buy foreign exchange, or the ratio of customers' purchases of foreign exchange from banks to customers' foreign-related foreign exchange payments was 68%, down by 9 percentage points year on year. In particular, the ratio was 68% and 67% for the first and second quarters respectively, indicating that enterprises are more reasonable in buying foreign exchange, and their willingness for foreign exchange financing is recovering, while they are less willing to buy foreign exchange to service debt. In the same period, China's outstanding foreign exchange loans rose by USD 7.1 billion, down by USD 58.3 billion year on year. The balance of cross-border financing for imports such as refinancing and forward L/C climbed by USD 13.8 billion, and the balance of financing in foreign currencies went up by USD 26.2 billion. Fourth, the foreign exchange settlement rate climbed, indicating domestic resident individuals were less willing to hold foreign exchange. In the first half, the foreign exchange settlement rate that measures taxpayers' willingness to settle foreign exchange, or the ratio of foreign exchange sold to banks by customers to their foreign-related foreign exchange receipts was 62%, up by 1 percentage point year on year. To be specific, the ratio was 62％ and 63％ respectively for the first and second quarters, indicating market participants are more willing to settle foreign exchange. The domestic foreign exchange deposits of individuals went down by USD 1.7 billion in the first half, up by USD 12.9 billion year on year. 2017-07-20 10:09:01 Wang Chunying: Fifth, the differential of forward foreign exchange settlement and sales turned from a deficit into a surplus. In the first half, the value of foreign exchange contracted for forward settlement by banks for customers was up by 94% year on year, while that of foreign exchange contracted for forward sales was down by 18%, leading to a surplus of USD 9.5 billion in forward foreign exchange settlement and sales contracted with banks, compared with a deficit of USD 37 billion for the same period last year. To be specific, a deficit of USD 3.4 billion was registered for the first quarter, and a surplus of USD 13 billion for the second quarter, indicating the recent expectations of RMB depreciation has declined markedly. Sixth, the supply and demand of the foreign exchange market were being increasingly balanced, boosting the continuous recovery of the balance of foreign exchange reserves. As at the end of June 2017, the balance of China's foreign exchange reserves was USD 3.0568 trillion, up by USD 46.3 billion from the level of the end of 2016. The balance of foreign exchange reserves registered recovery for 5 consecutive months from February to June. These are the major statistical data I want to unveil regarding foreign exchange receipts and payments for the first half. Now I will answer your questions. 2017-07-20 10:11:25 Moderator Xi Yanchun: Thank you, Ms. Director. Now let's move on to the Q&A session. As many foreign journalists are present today, we arrange for simultaneous interpreting service here. As usual, please identify yourself before raising your questions. Now let's begin. 2017-07-20 10:13:31 Market News International (MNI): Ms. Director, China's cross-border capital flows for the past few months have changed for the better. Will this momentum continue in the second half? What possible disturbances will be guarded against by the competent authority in the near future? The recent reports say that the overseas investment projects of some major companies have been suspended as they violated relevant investment regulations. My second question is whether these reports are true. Is China tightening reviews of outbound investments? Will cross-border capital flows that have taken a turn for the better as you said just now enable the regulators to relax their regulation? Thank you. 2017-07-20 10:17:56 Wang Chunying: Let me answer you first question first. Since the beginning of this year, China's cross-border capital flows have changed for the better in all respects, which can be obviously seen in the various data indicators. First, a twin surplus was posted under the current and capital and financial accounts in the balance of payments. In the first quarter, the current account registered a surplus of USD 18.4 billion, and the non-reserve financial account recorded a surplus of USD 36.8 billion, compared with a deficit of USD 103.1 billion for the fourth quarter of last year, thus ending the deficits that have continued for 11 consecutive quarters. Second, the domestic supply and demand of foreign exchange are moving towards an equilibrium. According to the data just unveiled, banks' deficit in foreign exchange settlement and sales for the first half had dropped by an astonishing 46% year on year. If other factors that impact the foreign exchange supply and demand such as the surplus in the foreign exchange contracted for forward settlement and sales are taken into account, the supply and demand of foreign exchange has remained in balance since February. Third, non-banking sectors such as enterprises posted remarkably lower outflows of cross-border capital. The data just released also show that the deficit in foreign-related receipts and payments dropped by 50% year on year in the first half. Fourth, the balance of foreign exchange reserves has risen for five months straight. 2017-07-20 10:18:33 Wang Chunying: There are also diverse factors that boost the turnaround of China's cross-border capital flows. Internally, first, the domestic economic fundamentals become more supportive. Recently, China's momentum for steady economic growth has become more evident, thereby strengthening market confidence. China's economic growth hit 6.8% last quarter, higher than the previous three quarters, and reached a higher level of 6.9% in the first half, with many economic indicators continuing changing for the better. For example, China's official manufacturing purchasing manager's index (PMI) has remained in the expansion cycle for 11 consecutive months; the added value of industries above designated size grew by 6.9% year on year, 0.9 percentage point higher than the same period last year. Second, domestic market participants' expectations of the market are being further stabilized. In the first half, the two-way fluctuations of the RMB exchange rate against the USD became more obvious, growing by 2.4% accumulatively. At the same time, the formation mechanism for the central parity of the RMB against the USD was further refined, and the impact of the counter-cyclical adjustments took shape. Under such circumstances, domestic market participants were increasingly reasonable in making outbound investments and China's external debt continued its stable recovery. 2017-07-20 10:32:26 Wang Chunying: Externally, the global financial markets are relatively stable. Despite the Fed's interest rate hikes in March and June, and the proposal of shortening the balance sheet for the first time, the US Dollar Index dropped from 102 at the beginning of the year to around 96 as at the end of June, and the USD exchange rate depreciated by 6.4% accumulatively in the first half. In Europe, the euro zone posted a more stable momentum for economic recovery, no black swan event was witnessed in French presidential election, and the subsequent progress of Brexit did not make a stir, suggesting lower uncertainties in the market. 2017-07-20 10:39:31 Wang Chunying: Going forward, there will be a more solid foundation for China's cross-border capital flows to stay stable. In particular, recently collected statistics and information have further built our confidence. First, the domestic economy will have a more solid and sustainable momentum for stable growth. The Report on the Work of the Government, published early this year, points out that the target for this year's economic growth is around 6.5%, while the real growth for the first half hit 6.9%, making it certain that the economy will achieve the target and continue to stay within the reasonable range. In June, the IMF upped its projection of China's economic growth for 2017 to 6.7%, which is the second time that the expectations of China's economic growth has been upgraded this year, representing an objective judgment of the international community. Moreover, China's economic structure is being optimized and the quality of its economic growth is stably improved. Second, the domestic market will be further liberalized. The recent National Financial Work Conference and the Conference of the Central Leading Group on Finance and Economic Affairs studied the issues of improving investment and market environments and expanding opening up, and more work or policies will be introduced in the future. For direct investments, China has recently adopted a series of measures favorable for foreign investments, such as the newly revised Catalogue for the Guidance of Industries for Foreign Investment, and the early and pilot implementation policy for deepening foreign investments in free trade zones, so as to provide better services and build a better environment for the entry of foreign investments into China. As relevant measures are implemented one after another, foreign direct investments will continue stable growth. As for portfolio investment, the connectivity of HK and mainland bond markets indicates the Bond Connect has been launched. The inclusion of A shares in the MSCI Emerging Markets Index shows that this will play a positive role in actual capital inflows and market confidence, which will help enhance the attractiveness and international impact of RMB assets. For example, the European Central Bank announced in June to hold more RMB assets that are the equivalent of EUR 500 million as the foreign exchange reserves. 2017-07-20 10:42:49 Wang Chunying: In addition, the impact from external environment will be milder. According to the real economy, the world economy at large will continue to recover. The IMF projection shows that the global economic growth will be 3.5% this year, 0.4 percentage point higher than the previous year. As for the financial markets, the Fed has raised interest rates for four times since the US exited from the QE policy, and its impact on the market, especially on the increase of the USD exchange rate, has been declining. On the one hand, this shows that the market has strengthened its capabilities of understanding, adapting to and digesting policies, and on the other hand, this indicates the hedging effect of other factors, such as the market expectations of the long-term growth of the US economy, the economic performance as well as the orientation of monetary policies in the Euro Zone and Japan. Therefore, China's cross-border capital flows will remain stable in the future, and the risk arising from the significant outflows of capital will become much lower. The SAFE will certainly continue to closely watch the impact of various factors and tighten its monitoring and analysis. 2017-07-20 10:55:25 Wang Chunying: As for your second question, I am sorry I have no such information at hand. As for the ODI policies, we have also noticed that the NDRC and the Ministry of Commerce and other relevant departments have given responses, supporting capable domestic enterprises who meet the conditions to conduct true ODI activities in compliance with regulations, and supporting enterprises to make market-oriented outbound investments in accordance with business principles and international practices, especially to make investments and conduct operating activities under the Belt and Road Initiative and to get involved in international production capacity cooperation. At the same time, departments concerned will continue to watch the tendency of irrational outbound investments in real estate, hotels, cinemas, entertainment, and sports clubs to guard against the risks associated with outbound investments and recommend relevant enterprises to be prudent in making decisions. The SAFE will cooperate closely with departments concerned with regard to ODI, to ensure capable enterprises that meet the conditions to carry out true outbound investing activities in compliance with regulations and encourage domestic enterprises to participate in the construction projects under the Belt and Road Initiative and in international production capacity cooperation. On the other hand, the SAFE will take measures to effectively guard against risks arising from outbound investments and boost the healthy, stable and sustainable development of China's outbound investments. 2017-07-20 11:07:28 Wang Chunying: I would like to stress again that the SAFE's foreign exchange administration policies for outbound investments have been consistent and stable. We will keep to several "unchangeds": the going global strategy, the guideline of utilizing domestic and foreign markets and resources, the direction of supporting ODI that is in compliance with laws and regulations, and the principle of guarding against risks arising from outbound investments in pushing for trade and investment facilitation will remain unchanged. Thank you for your questions. 2017-07-20 11:13:59 Phoenix Satellite Television: We have noticed that the SAFE has introduced relevant documents since the end of last year to raise the requirements on declaration of foreign exchange information, especially on enterprises. Some enterprises say many materials and documents are required to be submitted for cross-border remittances, which leaves them very confused. What would you say about this? How to look at the impact of relevant requirements on the normal operating activities of enterprises? Thank you. 2017-07-20 11:16:44 Wang Chunying: Thank you for your questions. As for the declaration of foreign exchange information, the SAFE released at the end of 2016 the Circular of the State Administration of Foreign Exchange on Optimizing the Information System for Individual Foreign Exchange Business, which came into force on January 1. This Circular imposes the authenticity review requirements on the individual foreign exchange business, improves the declaration form for individuals' buying of foreign exchange from banks, refines what to be declared and emphasizes the quality and authenticity of data. In fact, the policies for individuals' buying of foreign exchange remain unchanged, except for the information declaration newly required to purchase foreign exchange. Since the implementation of the policy, individuals' awareness of using foreign exchange in compliance with regulations has been markedly raised, given the survey results and feedback, while false declaration to purchase a large amount of foreign exchange in violation of regulations, and lending foreign exchange quota for split purchases of foreign exchange have declined drastically. The individual sales and settlements of foreign exchange across the country are normal, suggesting a remarkable outcome of standardizing the order in the individual foreign exchange sales and settlements market. The monitoring data of the SAFE show that in the first half, foreign exchange purchased by individuals went down by 4% year on year from a growth of 14% in the same period last year. Also in the first half, the balance of foreign exchange deposits of residents fell by USD 1.7 billion, versus an increase of USD 12.9 billion in the same period last year, indicating residents' desire to purchase and hold foreign exchange is stable. 2017-07-20 11:18:25 Wang Chunying: For enterprises, we did not impose any requirement on information declaration, and the SAFE's principle of enhancing trade and investment facilitation to better serve the real economy and deepen the opening up remains unchanged. Without making any significant policy adjustment, the SAFE still follows the principle of current account convertibility, duly supports and ensures true payments and transfers under the current account in compliance with regulations, while enhancing trade and investment facilitation. What's more, we will continue to properly and systematically push for the two-way opening of the market, support capable domestic enterprises that meet the conditions to make true outbound investments that conform to the regulations and support them to go global. For the issues you are concerned about, we can keep in contact with each other as the issues are also of help to us. Thank you. 2017-07-20 11:27:12 China National Radio: The Bond Connect has been launched recently. What impact will it have on China's cross-border capital flows? What supportive measures will the SAFE provide for the Connect? 2017-07-20 11:33:37 Wang Chunying: China has been committed to stably pressing ahead with the opening up of the financial market, while the Bond Connect is a key measure to achieve this end. Along with the robust development of China's economy and the development of RMB internationalization, global investors are strengthening their demand for investing in RMB assets. The Bond Connect is the institutional arrangement for the connectivity of infrastructure in the financial markets between mainland and Hong Kong, and Northbound Connect makes it easier for foreign investors to invest in China's bond market. 2017-07-20 11:37:02 Wang Chunying: China's bond market has much room for developments and strong potential for attracting the inflows of foreign capital. First, China's bond market still has great potential for growth. Currently the market ranks No. 3 worldwide, but has plenty of leeway for growth as compared with GDP. The balance of government bonds, for example, is nearly 50% of China's GDP, compared with more than 70% in the US and over 200% in Japan. Second, foreign investors are expected to hold more shares. For the moment, foreign investors take up 1.2% of China's bond market. The share of foreign investors holding government bonds is 4% in China, versus 42% in the US, and 10% in Japan. The share is also lower than those of emerging markets in Asia such as Indonesia, Malaysia and Thailand. Third, the bond yield in China still outperforms other major markets. At the beginning of July, for example, the yield of 10-year treasury bonds was 3.6% in China, compared with 2.3% in the US, 0.5% in Europe and only 0.08% in Japan. 2017-07-20 11:41:30 Wang Chunying: The SAFE has been active in supporting the liberalization measures of the Bond Connect. It works with the People's Bank of China to study relevant capital remittances, inward or outward, exchange and foreign exchange risk management, and adopts facilitation management measures. For example, it imposes no restriction on capital remittances, inward or outward, and exchange; it allows foreign investors to trade foreign exchange derivatives through the clearing house in Hong Kong, who can square off the position in the domestic interbank market based on the true compliance requirements under the Northbound Connect, which is favorable for foreign investors to manage exchange rate risks. Going forward, the SAFE will ensure the combination of investment facilitation and risk control to boost stable cross-border capital flows, based on the progress of the liberalization of China's financial market and the implementation of the Bond Connect. The SAFE will also be dedicated to ensuring foreign currency exchange and foreign exchange risk hedging to deepen and refine the liberalization of China's foreign exchange market and its coordination with the opening up of the domestic financial market. Thank you. 2017-07-20 11:45:24 Bloomberg News: We have noticed that the short-term external debt of Chinese enterprises is rising. Are you concerned about this? What risks will this impose on Chinese enterprises? Will the SAFE take measures to tackle such risks? 2017-07-20 11:49:50 Wang Chunying: China's external debt is growing stably now. As at the end of the first quarter of 2017, China's outstanding full-scale external debt was USD 1.44 trillion, up by USD 17.1 billion or 1.2% against the end of 2016. The total external debt has climbed steadily for four consecutive quarters. 2017-07-20 11:52:07 Wang Chunying: Given the level of external debt and relevant metrics, the risk associated with China's external debt is under control now. First, China's full-scale external debt has continued rebounding recently, but is far lower than the peak in recent years. As at the end of 2014, China's outstanding full-scale external debt amounted to USD 1.78 trillion and has been falling since then. As at the end of the first quarter of 2016, the outstanding full-scale external debt hit USD 1.33 trillion, the lowest level since the statistics on full-scale external debt began to be collected. The current level of USD 1.44 trillion was USD 106.3 billion higher than the historical low, but more than USD 340 billion less than the high level as at the end of 2014. According to the maturity structure of external debt, the medium and long-term external debt has changed stably, with the outstanding medium and long-term external debt as at the end of the first quarter of this year being USD 39.7 billion higher than that of the end of 2014. But short-term external debt is volatile. The outstanding short-term debt as at the end of the first quarter increased by USD 45.5 billion year on year, chiefly due to the increases in currencies and deposits attracted by banks, but was still USD 381.8 billion lower than the outstanding external debt as at the end of 2014. The normal flows of external debt in compliance with regulations will help support the development of the real economy. In our opinion, to observe the changes of an economic datum or financial indicator, one should focus on the long-term performance and assess the level of the datum in terms of absolute value or relative value. China's short-term external debt in terms of absolute value is markedly lower than the historical high. 2017-07-20 11:55:06 Wang Chunying: Second, the major indicators of the risks associated with China's external debt are lower than the internationally accepted alarm levels. As at the end of 2016, China's liability ratio, or outstanding external debt/GDP, was 13%, compared with the internationally accepted safe level of 20%; the debt ratio, or outstanding external debt/income from exports of goods and services, was 65%, versus the internationally accepted safe level of 100%; the solvency ratio, or the payments of principal and interest on external debt/income from exports of goods and services, was 6%, compared with the internationally accepted safe level of 20%; the ratio of short-term external debt to foreign exchange reserves was 29%, much lower than the internationally accepted safe level of 100%. Going forward, the PBC and the SAFE will continue to refine the external debt and capital flows management system under the macro-prudential management framework, and will strengthen ongoing and ex-post monitoring and analysis while further promoting cross-border investment and financing facilitation, so as to guard against external debt risks and safeguard China's economic and financial security. Thank you. 2017-07-20 12:04:00 China News Service: China's foreign exchange reserves have recovered for five months straight. What are the major reasons for this? What would you say about the trend of foreign exchange reserves for the second half? Thank you. 2017-07-20 12:06:03 Wang Chunying: The first half has witnessed the five consecutive months of rebounds in foreign exchange reserves, which has strengthened market confidence. The factors that impact the changes in foreign exchange reserves, as we have communicated with you many times before, include the following: First, the central bank's operation in the foreign exchange markets. Second, price fluctuations of foreign exchange reserve assets for investments. Third, as foreign exchange reserves are denominated in the US dollar, changes in the exchange rates of other currencies against the US dollar will lead to changes in foreign exchange reserves. Fourth, as defined by the IMF, foreign exchange reserves used to support going global will be excluded from the entry of foreign exchange reserves in accounting, and vice versa. 2017-07-20 12:07:12 Wang Chunying: The consecutive recovery of foreign exchange reserves in the first half should be attributed to the following: first, in the dimension of trading, China's economic growth has gained momentum, the cross-border capital flows have continued to be stabilized, and the RMB exchange rate has grown stably, and therefore, residents and enterprises have become increasingly reasonable in buying foreign exchange and the supply and demand of foreign exchange have found an equilibrium. Second, in non-trading terms, the currencies against the US dollar have appreciated this year, and the prices of foreign exchange reserves assets for investments have risen, boosting foreign exchange reserves to recover stably. 2017-07-20 12:10:40 Wang Chunying: Looking ahead, it is likely that China's foreign exchange reserves will stay stable. On the one hand, as China's economic growth becomes increasingly stable and coordinated, China's economic performance will continue to make progress while maintaining stability, in terms of industry support, development motives, development confidence and development environment. On the other hand, the further opening up of the financial market, the healthy development of the foreign exchange market, the more stable market expectations, and the balance of cross-border capital flows and the supply and demand of the financial market will further boost the stability of foreign exchange reserves. Thank you. 2017-07-20 12:13:17 Moderator Xi Yanchun: This is the end of today's press conference. Let me thank Ms. Director again for her wonderful answers and thank you all for coming. 2017-07-20 12:17:15 (The original text is available at china.com.cn) 2017-07-20/en/2017/0720/1289.html
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· Hu Kaihong: Good morning, ladies and gentlemen. Welcome to the press conference of the State Council Information Office. We are very pleased to have with us today Mr. Guan Tao, director from the Balance of Payments Department of the State Administration of Foreign Exchange(SAFE). He will first unveil the foreign exchange receipts and payments data for the first three quarters of 2014 and then will take your questions. Now let us welcome our old friend Mr. Guan to give the opening remarks. October 23, 2014, 09:43:08am · Guan Tao: Good morning, ladies and gentlemen. Welcome to today's conference. I am delighted to meet you again.This is the fourth time I have seen you this year.Today I am going to unveil the foreign exchange receipts and payments data for the first three quartersof this year and take your questions on behalf of the SAFE. In the first three quarters of this year, the global economy recovered slowly, but was imbalanced among countries, with different monetary policies in the major economies. Meanwhile, the domestic economy remained stable under the new normal, the marketization of the RMBexchange-rateformation achieved new progress and the foreign exchange administration reformsproceeded steadily. Overall, during this period China's cross-border capital flows were basically balanced amid oscillations. Banks settled foreign exchange totaling RMB 8.77 trillion (USD 1.43 trillion) and sold foreignexchange totaling RMB 7.71 trillion (USD 1.25trillion) in the first three quarters, with a surplus of RMB 1.05 trillion (USD 172.3 billion). Meanwhile, banks registered cumulative foreign-related income of RMB 15.10 trillion (USD 2.46 trillion) and made external payments of RMB 14.70 trillion (USD 2.39 trillion) on behalf of theirclients, with a surplus of RMB 405.5 billion (USD 66.2 billion). October 23, 2014, 10:00:15am · Guan Tao: China's foreign exchange receipts and payments are currently characterized by the following: First, China is witnessing net inflows of cross-border capital.Excluding the impact from foreign exchange rates (the same below), in the first three quarters the foreign exchange settled by banks was up 4 percent year on year and that sold by banks was up 4 percent year on year, representing an increase in the surplus of 3 percent. Meanwhile, the foreign-related income received via banks was up 14 percent year on year, and external payments made through banks were up 19 percent year on year, representing a decrease in the surplus of 52 percent. Second, the motivation of market players to settle foreign exchange was weakened while their willingness to buy foreign exchange was strengthened.Foreign exchange settled via banks as a percentage of total foreign-related foreign exchange income (or the foreign exchange settlement rate), which measures the willingness of companies and individuals to settle foreign exchange, was on thedecline, down from 77 percent in the first quarter to 68 percent in thesecond quarter and then 69 percent in the third quarter; foreign exchange sold via banks as a percentage of total foreign-related foreign exchange payments(or the foreign exchange selling rate), which measures the motivation to buy foreign exchange, was on the rise, up from 61 percent in the first quarter to 69 percent in thesecond quarter and 70 percent in the third quarter. Third, the supply and demand of foreign exchange has beenbasically balanced amid oscillations. The surplus in foreign exchange settled and sold by banks stood at USD 159.2 billion in the first quarter, decreasing to USD 29 billion in the second quarter, and becoming a deficit of USD 16 billion in the third quarter. The surplus in foreign-related receipts and payments via banks amounted to USD 45.5 billion in the first quarter, decreasing to USD 40.7 billion in thesecond quarterand becoming a deficit of USD 20 billion in the third quarter. Fourth, forward settlements and sales of foreign exchange by banks have changed from a significantsurplus to being basically balanced.Forward contracts for foreign exchange settlements and sales registered consecutive surpluses during the first five months of the year, but the monthly average surplus dropped from USD 24 billion in the first two months to USD 1.7 billion from March to May. Then, between June and September, the surpluses and deficits in the forward settlements and sales offoreign exchange alternated in a moderate absolute size, with a monthly average deficit of USD 600 million. October 23, 2014,10:00:39am · Guan Tao: Fifth, the foreign exchange market is voluntarily becomingbalanced. Excluding the performance of the forward contracts for foreign exchange settlements and sales, the undue net forwardforeign exchange settled increased by a cumulative USD 15.2 billion in January and February, and then underwent a correction during the seven months from March to September, dropping USD 50.6 billion on an cumulative basis, thus spurring banks to increase their foreign exchange position. The balance of spot and forward foreign exchange settled and sold by banks (or the balance of foreign exchange settled and sold by banks and the balance of the combined undue net forward settled foreign exchange), an indicator of the supply and demand for foreign exchange in the retail market, amounted to a surplus of USD164.9 billion in the first quarter, which dropped to USD 2.5 billion in the second quarter and then became a deficit of USD 30.5 billion in thethird quarter. These are the major statistics I want to disclose regarding the foreign exchange receipts and payments during the first three quarters of this year. You can also find the relevant data released on the SAFE's official Website. Now I would like to take any questions you might have. October 23, 2014, 10:00:52am · Hu Kaihong: Thank you, Mr. Guan. Now please raise your questions and remember to tell us where you are from before asking your questions. October 23, 2014,10:03:05am · Reporter from CCTV: China's foreign exchange reserves stood at USD 3.89 trillion at the end of the third quarter of this year, a decrease of nearly USD 100 billion from the end of the second quarter. Could you tell us the main reasons behind this significantdecrease? How should we regard this decrease? Thank you. October 23, 2014,10:03:33am · Guan Tao: Thank you for your questions. We also have noted thatthebalance of foreign exchange reserves as of the end of September, which was just released by the People's Bank of China, was about USD 100 billion less than that at the end of June. In our opinion, the main reason behind the decline was the change in the exchange-rate conversion due to the rise in the USD exchange rate in the international market. The US dollar index (USDX) picked up 7.7 percent in the third quarter. Of China's foreign exchange reserves, there are the US dollar-denominated assets and assets not denominated in the US dollarsthat have to be converted into US dollars before being announced, and anappreciation of the US dollar would lead to a decrease in the amount of those assets not denominated in US dollars when they are converted into US dollars. However, the change in thebalance due to such conversions is just a change in the valuation of the book value, not the actual loss, and it does not result in actual cross-border capital flows. Therefore, the change in the valuation of the book value is different from actual losses or profits. The fluctuations in the exchange rates of the major currencies in the international market will likely lead to changes in the balance of China's foreign exchange reserves, but the impact will be limited since China's foreign exchange reservesare nearing USD 4 trillion. It is commonplace that the exchange rates of the major currencies have ups and downs, and we do not need to overanalyze that. October 23, 2014,10:20:10am · Guan Tao: Regarding your second question, I'd like to make three points: First, the government has made it clear that it is not that the moreforeign exchange reserves, the better. The slowdown in the foreign exchange reserve growth during the first three quarters due to the fluctuations in the exchange rates in the international market also reflects that China's BOPis basically becomingmore balanced. The report on the work of the government unveiled at the beginning of this year states that one of our major tasks this year is to basically balance the BOP and we are now striving to achieve this goal. Second, new measures have been introduced in the reform of the RMB exchange-rate formation mechanism this year, expanding the bidirectional floating range of the RMB exchange rate, while the People's Bank of China has started to end normal interventions in the foreign exchange market. Under these circumstances, the self-balancing of the market and the slowdownin the growth of foreign exchange reserveswill become a new normal, which is in line with the goals of the reform.Third, China nowhas enormous foreign exchange reserves, which will enable it to experience a correction in its foreign exchange reserves sometime in the future due to the bidirectional fluctuations in cross-border capital flows. China can use this strong base to ward off external shocks. This is what I think about the decrease in foreign exchange reserves, and I want to stress that we need to look at the fluctuations in foreign exchange reservescalmly and rationally. October 23, 2014,10:27:16am · Reporter from the People's Daily: WhileChina's trade surplus has set new records and the RMB exchange rate has increased, the surplus between foreign exchangesettled and sold by banks has remained low since the beginning of the third quarter and even turned into a deficitduring some months. How do you look at this? Does this mean that China is at risk of capital flight? What are your ideasaboutfuture movements of the foreign exchange reserves? Thank you. October 23, 2014,10:43:16am · Guan Tao: Thank you for your questions. We have noted this as well. While the RMB exchange rate increased and the trade surplus was large, the foreign exchange market registered a slight shortfall in thethird quarter. Such a change in the supply and demand of foreign exchange is another result of the reform of the RMB exchange-rate formation mechanism that started in March. Since the bidirectional floating range of the RMB exchange rate against the US dollar was expanded in mid-February, or more accurately, on March 17, the unilateral movements of the RMB exchange rate have ended and there have been bidirectional fluctuations, with both ups and downs, which have somehow guided the market, making market players adjust their foreign exchange transaction strategies. The willingness of market players to buy foreign exchange has been strengthened and their motivation to settle foreign exchange has been weakened. Despite increases in the RMB exchange rate over the past several months, companies have been deeply impressed by the preliminary bidirectional fluctuations of the RMB exchange rate amidthe complex economic and financial environments in China and in the international markets, so they have continued the financial adjustments of increasing foreign exchange deposits and reducing foreign exchange loans and external liabilities. We have some data to explain this. October 23, 2014,10:44:59am · Guan Tao: First, foreign exchange settled by banks in the third quarter was up by 3 percent against the second quarter, while foreign exchange sold by banks was up by 14 percent. According to indicators that measure a company’s motivation to buy foreign exchange, the percentage of foreign exchange bought by companies to make payments reached 70 percent in the third quarter, up by 5 percentage points against the first half of the year, while the percentage of foreign exchange settled by companies as foreign exchange income was 69 percent, down by 3 percentage points from the first halfof the year. Second, companies' foreign exchange deposits rose by USD 3.8 billionin the third quarter, among which the combined increasein July and August amounted to USD 22.9 billion, while the growth was USD 38.7 billion in the first quarter and USD 65.2 billion in thesecondquarter. Foreign exchange loans dropped by USD 21.2 billion in the third quarter, compared with an increase of USD 62.6billion in the first quarter and a decrease of USD 2.3 billion in the second quarter. Thebalance of import trade financing fell by USD 36.5 billion in the third quarter, versus an increase of USD 24.1 billion and USD 18.7 billion respectively in the first and second quarters. These data show that companies were more willing to buy than to settle foreign exchange and in the third quarter they continued financialadjustments of increasing foreign exchange deposits and reducing foreign exchange loans and external liabilities. October 23, 2014, 10:50:40am · Guan Tao: As for how we look at this issue, we believe China is currently experiencing capital flight; however, this does not represent a risk or a problem. Customs statistics show China's trade surplus stood at USD 128.1 billion in the third quarter, up by 48 percent quarter on quarter and up 111 percent year on year. The short supply in the foreign exchange marketindicates net outflows under the capital account. However, this should not be regarded as a risk or a problem but rather it should be considered in the following three ways. First, in terms of the results of the adjustments, such a change is in line with the goal of the macro controls set at the beginning of this year that is, basically balancing the BOP. The current and capital BOP accounts both registered a surplus and foreign exchange reserves jumped by more than USD 100 billionin the first quarter,suggesting that balancing the BOP would be very challenging. But as the RMB exchange rate fluctuated bi-directionally amidincreased economic uncertainties both at home and abroad,companieshave made reverse financial adjustments since April. In thesecond quarter, although the trade surplus and the current account surplus increased, the capital account changed from a net inflow of USD 94 billion in the first quarter to a net outflow of USD 16.2 billion, and thegrowth of foreignexchange reserves in the BOP slowed down, dropping by 82 percent quarter on quarter from more than USD 100 billion in the previous quarter to more than USD 20 billion. Initial estimates indicate that Chinamaintainedan equilibrium in the BOP during the third quarter, that is, the current account was in surplus and the capital account was in deficit. This will be favorable for a voluntary balance in the BOP in China and for the People's Bank of China to improve macro controls and to expand the space for operation of its monetary policies. Second, from the perspective of the approach to the adjustment, the increase in companies’foreign exchange deposits, including their increase in external investments, has helped allocateforeign exchange to the marketinstead of to the government, which is in line with the reform goal of encouraging people to hold more foreignexchange. The reductionsin foreign exchange loans and external liabilities by companies are favorable for reducing the currency mismatch and exposure to external liabilities, thus cutting financial risks. During themarketization reform of the RMB exchange-rate formation mechanism, thecentral bank phased out its intervention in the foreign exchange market, which means that the trade surplus has a positive correlation with capital outflows, namely, the higher the trade surplus, the more capital outflows there are, which is also a goal of the reform. Our reform has delivered fruits and has achieved theexpected goals, which should not be regarded as a problem, but it still requires careful consideration. Third, in terms of the adjustment process, China witnessed a round of massive net capital inflows between the end of 2012 and the beginning of this year, but due to the bidirectional fluctuations of the RMB exchange rate and the complex domestic and international environments, capital inflows have recently been replaced bycapital outflows, suggesting a relativelyobvious pendulum effect, which is considered normal. A shortage ofUSD 20–30 billionin foreign exchange is not very serious and it is something that China can withstand. Moreover, the percentage of foreign exchange settled by companies as foreign exchange income was 69 percent in the third quarter, up by 1 percentage point from the second quarter.In particular, the percentage was 74 percent in September, 6 percentage points higher than that in August. All these indicate that at present the willingness of market playersto hold foreign exchange is stable and there is no reason to panic about speculation in foreign exchange. October 23, 2014, 10:59:23am · Guan Tao: China's cross-border capital flows will be basically balanced amid oscillations in the future. Currently receipts and payments under the current account are basically balanced and the RMB exchange rate is rationally balanced. Butdue to increased uncertainties both at home and abroad, bidirectional fluctuations in cross-border capital flows may become a new normal, which is also the case of the BOP under the economic new normal. There are stillfactors that may lead to inflows or outflows of China's cross-border capital. For example, stable economic growth, will increase demand for the allocation of RMB assets in theinternational market, and thepositive spread both at home and abroad and during thepeak season for consumption at the year-endtraditionalWestern holidayseason are all favorable for cross-border capital inflows. On the other hand, given the complex economic and financialenvironments both at home and abroad, the many uncertainties may increase the volatility of China's cross-border capital flows. But by deepening efforts on all fronts, promoting economic upgrading and transformation, and maintaining stable economic growth based on the plans of the Central Committee and the State Council, coupled with the high trade surplus and enormous foreign exchange reserves, China will be able to withstand such volatilities. October 23, 2014, 11:23:08am · Reporter from the Economic Daily News: Although the RMB exchange rate experienced obvious bidirectional fluctuations and the SAFE introduced relevant policies to develop foreign exchange derivatives since thebeginning of this year, we have learned that some companies have reduced their foreign exchange hedging businesses. What would you say about this? October 23, 2014, 11:37:33am · Guan Tao: The foreign exchange market has responded positively to the bidirectional fluctuations of the RMB exchange rate, but some issues still require our attention. First, significant changes have taken place in foreign exchange derivative transactions. On the one hand, the bidirectional fluctuations of the RMB exchange rate have endedthe single expectations of the RMB, making companies change their unilateral transaction strategies that only focus onforward settlements of foreignexchange and excludeforward purchases of foreign exchange. The monthly average of forward settlements of foreign exchange from March to September dropped by 48 percent from those of January to February, while the monthly average forwardsales of foreign exchange were up by 18 percent. On the other hand, derivative transactions have been more active since the end of June when the SAFE introduced foreign exchange market development measures that focus on foreign exchangeoptions with simplified market access. The number of foreign exchange option transactions set a record in August and was 1.8 times that in the previous month;the percentage of forward transactions during the same periodwas up from 8 percent in July to 21 percent. All these changes reveal the voluntary adjustments of the market and the effects of policy support. Second, providing risk education to companies is still a pressing issue. We have noted that some companies have not yet adapted to the bidirectional fluctuations of the RMB exchange rate. Due to the unilateral appreciation of the RMB, the RMB exchange rate seldom fluctuated sharply in the past, and the forward settlement price of foreign exchange was even higher than thespot settlement price of foreign exchange for a certain period of time. Given this, some companieshave used forward settlements offoreign exchange as a tool to make money, and some even believethat it is not necessary to hedge risks if forward transactions or other derivative transactions prove not to be profitable. On the other hand, some companies have formeda stereotypical routine in derivative transactions, that is, they only settle forward foreign exchange income and they do not hedge risks arising from foreign exchange spending or external liabilities. In other words, despite foreign exchange exposure arising from foreign exchange loans, they do not hedge foreign exchange- rate risks. Next, the SAFE will continue to promote the development of the foreignexchange market and support market players to use derivatives to manage exchange-rate risks so as to better serve the real economy. Banks should provide companies with hedging services in line with the principle of merchantability, improve the provision of risk education, and guide market players to build a proper sense of hedging. Meanwhile, under the new normal of bidirectional fluctuations of the RMB exchange rate, companies should have a correct sense of risks, create strict financial discipline,manage exchange-rate risks properly by using derivatives, and replace subjective judgments with market operations. October 23, 2014, 1:06:32pm · Reporter from NHK, Japan: What do you think of the impacton China's economy of the US withdrawalfrom its third round of quantitative easing?It is said that theprevious “hot money”inflowswere one of the reasons behind the increase in property prices and the year-on-year increase in real estate investments in China. What would you say about this and what areyour ideasabout the recent changes? Since most of China's foreign exchange reserves are used to buy US bonds, will the US withdrawal fromthe QE lead to a reduction in China’s holding of US bonds? October 23, 2014, 1:10:04pm · Guan Tao: We have already conducted interviews on investments in foreign exchange reserves, and you can review the relevant reports if you are interested. By the way, this issue is irrelevantto today's conference. Now I'd like to talk about the impact of the US withdrawal from the QE. The direction of US monetary policy has always been an important factor that has an impact on China's cross-border capital flows, and it is a variant we have closely watched since the beginning of this year. So far, the USwithdrawalfrom the QE, coupled with many other factors in China and the international market, has hada certain impact on China's cross-border capital flows. Companies have adjusted theirfinancialstrategies, not merely due to the US withdrawal from theQE but also due to factors such as the bidirectional fluctuations in the RMB exchange rate, domestic economic conditions, and differentiated exchange-rate expectations. As I have mentioned, the results of such impactsare beneficial and in line with the direction of the reform and the goal of macro control. We will continue to pay attention to the direction of US monetary policy in the future and make plans to respond. The market should watch out for the effects in the domestic and international markets and use proper tools and approaches to manage the cross-border capital flows and the risks arising from bidirectional fluctuations in the RMB exchange rate. Regarding the property market, the indicators we monitor show that there are no strong signs of outflows of foreign capital from China's property market. On the whole, we have witnessed more net inflows of foreign capital into China's property market. The inflows of capital from non-residents to buy housing in China stood at USD 520 million in the first three quarters, which was not huge but several ten times that during the same period from 2009 to 2013. Capital inflows of foreign-funded companies inthe property industry remain high, with the net amount totaling USD 20.1 billion in the first three quarters, the highest for the same period since 2009. October 23, 2014, 1:10:44pm · Reporter from CRI: The exchange rate of the RMB against the US dollar has been on the decline since the beginning of this year. Reportedly, companies such as those in the aviation, iron and steel, and property industries have reported significant exchange losses in the first half of the year. How would you look at this? October 23, 2014, 1:12:33pm · Guan Tao: First, we have noted this as well. It has been recently reported that the exchange losses that listed Chinese companiesdisclosed during the first half of this year amounted to RMB 11.7 billion. That is true. As the RMB exchange rate is on the decline, companies that have foreign-denominatedliabilities will suffer exchange losses. But this is a book loss in an accounting sense, not a real loss, provided that real liabilities arising from purchases of foreign exchange using RMBdo not occur. As the RMB exchange rate fluctuates bi-directionally, losses may be incurred as the RMB depreciates, but they will decrease as the RMB appreciates, just as what has been occurring recently, so such changes are dynamic rather than static. Second, many companies have foreign-denominatedboth liabilities and assets. Exchange-rate fluctuationsare a double-edged sword. When the exchange rate is declining, companies' foreign-denominatedliabilities will rise, but the returns fromtheir foreign-denominated assets will rise.Therefore, losses or gains should be analyzed based on the real situation. Given that the beneficiaries of the exchange-rate fluctuations constitute the silent majority, while the losers will be reported or be hyped by the media, the negative impact of the exchange-rate fluctuations may be exaggerated. Third, companies may have become used to the unilateral rises and low fluctuations of the RMB exchange rate. It is attractive in terms of accounting to have foreign-denominatedliabilities when the RMB interest rate is high. But this will not always be profitable after the RMB exchange rate begins to fluctuate bi-directionally. It is therefore suggested that companies adapt to the bidirectional fluctuations of the RMB exchange rate, reduce currency mismatches, and adopt the strategy of borrowing, collecting, and repaying foreign exchange. Moreover, companies should borrow foreign money based on their real needsand should not artificially magnify the lever and take this as a financing tool to make money. Therecently unveiled financing risks that are associated with commodity trading may entail a high leverage transaction ratio and companies using this financing tool to make moneywill face risks as the RMB exchange rate fluctuates bi-directionally. In addition, companies should properly hedge the risks associated with exposure to foreign-denominated liabilities and actively use tools such as foreign exchange derivatives to manage the exchange-rate risks. October 23, 2014, 1:13:11pm · Reporter from Global Times (English edition): Officials from the People's Bank of Chinasaid in September that the PBC will promote the building of a QualifiedDomestic Institutional Investormechanism, or the new QDII mechanism, to allow individuals to invest in overseas markets. What measures will the SAFE taketo support overseas investments by individuals?Will it further ease the limit of USD 50,000per person per yearfor foreign exchange purchases by individuals? October 23, 2014,1:16:24pm · Guan Tao: The relevant QDII policy has been developed by the People's Bank of China, so I recommend that you make enquiries of the relevant departments. The question regarding the limit of USD 50,000per person per year for individual foreign exchange purchases was raised at the SAFE press conference on September 25. To save your time, I will not repeat the answer. October 23, 2014,1:17:03pm · Hu Kaihong: This is the end of today's conference. Thank you for coming. October 23, 2014, 1:17:57pm The original text is available at www.china.com.cn 2014-11-26/en/2014/1126/1134.html
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2019-07-08http://www.gov.cn/xinwen/2019-07/06/content_5406818.htm
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问：国家外汇管理局公布的最新外汇储备规模数据显示，2019年6月末，我国外汇储备规模较5月末上升182亿美元。请问造成外汇储备规模变动的原因是什么？今后的外汇储备规模趋势是怎样的？ 答：截至2019年6月末，我国外汇储备规模为31192亿美元，较5月末上升182亿美元，升幅为0.6%。 6月，受全球贸易局势、主要国家央行货币政策等因素影响，美元指数下跌，国际金融市场资产价格上涨。汇率折算和资产价格变化等因素共同作用，外汇储备规模有所上升。 今年以来，在外部环境不确定不稳定因素有所增加的情况下，我国经济总体平稳、运行在合理区间，外汇市场供求基本平衡，主要渠道跨境资金流动呈现积极变化，外汇储备规模稳中有升。 往前看，国际经济金融形势仍然错综复杂，但我国将持续推进经济高质量发展，积极落实全方位对外开放举措，经济增长的韧性和可持续性将进一步增强。这些都会为我国外汇市场稳定提供有力支撑，从而为外汇储备规模保持总体稳定提供坚实基础。 2019-07-09/xiamen/2019/0709/1317.html
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附件：7月9日人民币汇率中间价及人民币对美元汇率变动表 2019-07-09/ningbo/2019/0709/1084.html
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湖南省分局业务办理咨询电话及联系方式 2019-06-24/hunan/2018/0528/677.html
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2019-07-08http://www.gov.cn/premier/2019-07/06/content_5406845.htm
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2019-07-08http://www.gov.cn/xinwen/2019-07/05/content_5406606.htm
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2019-07-09http://www.gov.cn/xinwen/2019-07/08/content_5407437.htm
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5、问：境内个人能收取境外公司汇过来的货款吗？ 答：个人对外贸易经营者，在取得对外贸易经营权后，可以办理货物出口，并从境外进口商处收汇。 6、问：个人能不能去境外设立公司，开离岸账户？ 答：截至目前，除《国家外汇管理局关于境内居民通过特殊目的公司境外投融资及返程投资外汇管理有关问题的通知》（汇发〔2014〕37号）规定的特殊目的公司外，境内个人不能去境外设立公司。 7、问：境外个人在境内买卖商品房，应在哪个部门办理？ 答：由银行按规定审核资料无误后办理。 2019-07-04/shenzhen/2019/0704/499.html