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2021-05-27http://www.gov.cn/xinwen/2021-05/26/content_5612835.htm
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国家外汇管理局统计数据显示，2021年4月，银行结汇12412亿元人民币，售汇12268亿元人民币，结售汇顺差144亿元人民币。2021年1-4月，银行累计结汇50674亿元人民币，累计售汇44795亿元人民币，累计结售汇顺差5879亿元人民币。 按美元计值，2021年4月，银行结汇1904亿美元，售汇1882亿美元，结售汇顺差22亿美元。2021年1-4月，银行累计结汇7805亿美元，累计售汇6898亿美元，累计结售汇顺差907亿美元。 2021年4月，银行代客涉外收入30002亿元人民币，对外付款28955亿元人民币，涉外收付款顺差1046亿元人民币。2021年1-4月，银行代客累计涉外收入120545亿元人民币，累计对外付款111634亿元人民币，累计涉外收付款顺差8911亿元人民币。 按美元计值，2021年4月，银行代客涉外收入4601亿美元，对外付款4441亿美元，涉外收付款顺差160亿美元。2021年1-4月，银行代客累计涉外收入18566亿美元，累计对外付款17192亿美元，累计涉外收付款顺差1374亿美元。 附：名词解释和相关说明 国际收支是指我国居民与非居民间发生的一切经济交易。 银行结售汇是指银行为客户及其自身办理的结汇和售汇业务，包括远期结售汇履约和期权行权数据，不包括银行间外汇市场交易数据。银行结售汇统计时点为人民币与外汇兑换行为发生时。其中，结汇是指外汇所有者将外汇卖给外汇指定银行，售汇是指外汇指定银行将外汇卖给外汇使用者。结售汇差额是结汇与售汇的轧差数。 远期结售汇签约是指银行与客户协商签订远期结汇（售汇）合同，约定将来办理结汇（售汇）的外汇币种、金额、汇率和期限；到期外汇收入（支出）发生时，即按照远期结汇（售汇）合同订明的币种、金额、汇率办理结汇（售汇）。 远期结售汇平仓是指客户因真实需求背景发生变更、无法履行资金交割义务，对原交易反向平盘，了结部分或全部远期头寸的行为。 远期结售汇展期是指客户因真实需求背景发生变更，调整原交易交割时间的行为。 本期末远期结售汇累计未到期额是指银行与客户签订的远期结汇和售汇合同在本期末仍未到期的余额；差额是指未到期远期结汇和售汇余额之差。 未到期期权Delta净敞口是指银行对客户办理的期权业务在本期末累计未到期合约所隐含的即期汇率风险敞口。 银行代客涉外收付款是指境内非银行居民机构和个人（统称非银行部门）通过境内银行与非居民机构和个人之间发生的收付款，不包括现钞收付和银行自身涉外收付款。具体包括：非银行部门和非居民之间通过境内银行发生的跨境收付款（包括外汇和人民币），以及非银行部门和非居民之间通过境内银行发生的境内收付款（暂不包括境内居民个人与境内非居民个人之间发生的人民币收付款），统计时点为客户在境内银行办理涉外收付款时。其中，银行代客涉外收入是指非银行部门通过境内银行从非居民收入的款项，银行代客对外支出是指非银行部门通过境内银行向非居民支付的款项。 2021-05-25/xiamen/2021/0525/1723.html
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为更好地服务厦门涉外企业发展，人民银行厦门市中心支行和国家外汇管理局厦门市分局践行金融为民，组织厦门市银行业金融机构积极开展“我为群众办实事”实践活动，通过一系列行之有效的举措，将外汇和跨境人民币政策送到企业手中，服务好涉外主体，提升政策传导质效。 5月25日，在人民银行厦门市中心支行和国家外汇管理局厦门市分局指导下，由厦门市银行外汇和跨境人民币业务自律机制主办，中国银行厦门市分行承办、厦门国际商会协办的“我为群众办实事、惠企政策进万家”大型宣传活动启动仪式暨汇率风险中性宣导活动成功举办，金融监管部门及全市38家银行、250家企业代表出席本次活动。 活动现场，主办方特别邀请中银证券全球首席经济学家管涛博士作了题为“积极适应人民币汇率双向波动新常态”的专题讲座，与企业面对面交流，从人民币汇率的走势、企业应对汇率波动的管理等方面进行阐述，进一步引导企业树立风险中性意识，提升汇率风险管理能力。 同时，本次活动还依托厦门国际商会直播平台同步进行线上直播，全市上万名企业和银行外汇人员分别通过线下、线上参与活动。接下来，厦门市银行外汇和跨境人民币业务自律机制各成员单位将结合自身情况，加强银政企合作，开展形式多样的宣传活动，向企业宣导风险中性理念，分享实践案例，与企业共同应对汇率风险，助力涉外企业发展。 2021-05-27/xiamen/2021/0527/1724.html
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日前，国家外汇管理局公布了2021年4月份银行结售汇和银行代客涉外收付款数据。国家外汇管理局副局长、新闻发言人王春英就2021年4月份外汇收支形势回答了记者提问。 问：2021年4月份我国外汇收支形势如何？ 答：4月份我国外汇市场供求更趋平衡。从主要指标表现看，银行结汇和售汇大体相当，顺差22亿美元；在货物贸易进出口保持一定顺差情况下，非银行部门涉外收支延续净流入态势，顺差160亿美元。截至4月末，外汇储备规模31982亿美元，较3月末上升0.89%，主要受非美货币升值和资产价格上涨影响。 跨境双向投资合理有序。从流入渠道看，来华直接投资净流入保持平稳增长；外资净增持境内股票和债券195亿美元，同比增长3%。从流出渠道来看，我国对外直接投资净流出规模与去年同期基本相当；“港股通”项下境内主体净买入港股折合57亿美元，资金有序流动。 当前，全球疫情发展还存在不确定性，世界经济复苏很不平衡。但我国经济运行保持稳定恢复态势，新动能发展持续壮大，将为我国跨境资金均衡流动和国际收支基本平衡提供坚实基础。 2021-05-26/qingdao/2021/0526/1914.html
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日前，国家外汇管理局公布了2021年4月份银行结售汇和银行代客涉外收付款数据。国家外汇管理局副局长、新闻发言人王春英就2021年4月份外汇收支形势回答了记者提问。 问：2021年4月份我国外汇收支形势如何？ 答：4月份我国外汇市场供求更趋平衡。从主要指标表现看，银行结汇和售汇大体相当，顺差22亿美元；在货物贸易进出口保持一定顺差情况下，非银行部门涉外收支延续净流入态势，顺差160亿美元。截至4月末，外汇储备规模31982亿美元，较3月末上升0.89%，主要受非美货币升值和资产价格上涨影响。 跨境双向投资合理有序。从流入渠道看，来华直接投资净流入保持平稳增长；外资净增持境内股票和债券195亿美元，同比增长3%。从流出渠道来看，我国对外直接投资净流出规模与去年同期基本相当；“港股通”项下境内主体净买入港股折合57亿美元，资金有序流动。 当前，全球疫情发展还存在不确定性，世界经济复苏很不平衡。但我国经济运行保持稳定恢复态势，新动能发展持续壮大，将为我国跨境资金均衡流动和国际收支基本平衡提供坚实基础。 2021-05-24/xiamen/2021/0524/1722.html
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国家外汇管理局统计数据显示，2021年4月，银行结汇12412亿元人民币，售汇12268亿元人民币，结售汇顺差144亿元人民币。2021年1-4月，银行累计结汇50674亿元人民币，累计售汇44795亿元人民币，累计结售汇顺差5879亿元人民币。 按美元计值，2021年4月，银行结汇1904亿美元，售汇1882亿美元，结售汇顺差22亿美元。2021年1-4月，银行累计结汇7805亿美元，累计售汇6898亿美元，累计结售汇顺差907亿美元。 2021年4月，银行代客涉外收入30002亿元人民币，对外付款28955亿元人民币，涉外收付款顺差1046亿元人民币。2021年1-4月，银行代客累计涉外收入120545亿元人民币，累计对外付款111634亿元人民币，累计涉外收付款顺差8911亿元人民币。 按美元计值，2021年4月，银行代客涉外收入4601亿美元，对外付款4441亿美元，涉外收付款顺差160亿美元。2021年1-4月，银行代客累计涉外收入18566亿美元，累计对外付款17192亿美元，累计涉外收付款顺差1374亿美元。 2021-05-27/qingdao/2021/0527/1915.html
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2021-05-27http://www.gov.cn/xinwen/2021-05/26/content_5612838.htm
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2021-05-27http://www.gov.cn/xinwen/2021-05/26/content_5612800.htm
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银行代客涉外收付款数据时间序列 2021年银行代客涉外收付款数据（分地区） 2020年银行代客涉外收付款数据（分地区） 2021-05-27/qingdao/2021/0527/1917.html
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The State Council Information Office (SCIO) held a press conference on Friday, January 22, 2021 at 10 a.m. Ms. Wang Chunying, deputy administrator and press spokesperson of the State Administration of Foreign Exchange (SAFE), was invited to unveil the data on foreign exchange receipts and payments for 2020 and answer media questions. Shou Xiaoli, deputy head of the Press Bureau of the SCIO: Ladies and gentlemen, good morning. Welcome to the press conference of the SCIO. Today, we are pleased to have with us Ms. Wang Chunying, deputy administrator and press spokesperson of the SAFE. She will unveil the data on foreign exchange receipts and payments for the year of 2020 and take your questions. Now I will give the floor to Ms. Wang Chunying. 2021-01-22 10: 00: 47 Wang Chunying, deputy administrator and press spokesperson of the SAFE: Good morning, everyone. Welcome to today's press conference. First, I would like to disseminate China's foreign exchange receipts and payments data for 2020 and then I will take your questions. In 2020, we were confronted by the sudden onslaught of COVID-19 and complex international situation. Under the strong leadership of the CPC Central Committee with Comrade Xi Jinping at its core, we achieved significant outcomes in coordinating epidemic response and economic and social development. The SAFE implemented the decisions and arrangements of the CPC Central Committee and the State Council with rigor, and fully carried out tasks to ensure stability on the six fronts and security in the six areas. With more emphasis on serving the real economy, it pressed ahead with reform and opening-up, and defused and forestalled risks. In so doing, the SAFE maintained the stability of the foreign exchange market and kept the balance of payments in equilibrium. According to the data on foreign exchange settlement and sales by banks in 2020, in dollar terms, banks settled US$2.0493 trillion and sold US$1.8905 trillion of foreign exchange, representing a surplus of US$158.7 billion; in renminbi terms, banks settled 14.1 trillion yuan and sold 13.0 trillion yuan of foreign exchange, representing a surplus of 1.0783 trillion yuan. For cross-border receipts and payments by non-banking sectors, in dollar terms, banks registered US$4.4124 trillion in foreign-related receipts and US$4.2955 trillion in foreign-related payments for customers, representing a surplus of US$116.9 billion; or in renminbi terms, banks handled foreign-related receipts of 30.3 trillion yuan and payments of 29.6 trillion yuan for customers, recording a surplus of 784.6 billion yuan. China’s foreign exchange receipts and payments for the year of 2020 present the following characteristics: First, foreign exchange settlement and sales by banks were in surplus and cross-border capital fluctuated in two ways. In 2020, foreign exchange settlement and sales by banks and cross-border receipts and payments by non-banking sectors hit surpluses of US$158.7 billion and US$116.9 billion, respectively. This was chiefly attributed to China’s effective epidemic response, stable resumption of work and production, better-than-expected foreign trade, increasing surpluses in imports and exports, and narrowing deficit in trade in services as a result of COVID-19. To look at it by stage, foreign exchange settlement and sales by banks recorded a surplus of US$78.6 billion in the first half, which grew by a slight US$1.6 billion in the second half; cross-border receipts and payments by non-banking sectors registered a net outflow of US$26 billion in the first quarter due to the pandemic and global financial market turbulence, but reversed to a surplus since the second quarter. Second, the foreign exchange sales rate remained stable with a slight decrease, and enterprises’ willingness for foreign exchange financing remained generally stable. In 2020, the foreign exchange sales rate, a measure of customers' willingness to buy foreign exchange, or the ratio of foreign exchange purchased by customers from banks to foreign-related foreign exchange payments made by customers, stood at 65%, down by three percentage points year on year. In terms of customers’ willingness for foreign exchange financing, by the end of 2020, outstanding foreign exchange loans in China increased by US$24.3 billion year on year, despite the decrease of US$28.1 billion in the second half; the balance of foreign currency financing under international trade such as import refinancing and forward letter of credit fell by US$16.8 billion, including a decrease of US$12.6 billion in the second half. Third, the foreign exchange settlement rate remained stable, and market participants’ willingness to hold foreign exchange strengthened. In 2020, the foreign exchange settlement rate, a measure of customers' willingness to settle foreign exchange, or the ratio of foreign exchange sold by customers to banks to customers' foreign-related foreign exchange receipts, reached 64%, consistent with that of 2019. By the end of 2020, the balance of domestic foreign exchange deposits of market participants including individuals and enterprises went up by US$64 billion from the end of 2019. Fourth, the rising hedging ratio indicated stronger awareness of risk neutrality among market participants. In 2020, the hedging ratio of enterprises [(value of forward contracts signed + value of option contracts signed) / (total spot foreign exchange settlement and sales + value of forward contracts signed + value of option contracts signed)] hit 17.1%, up by 2.7 percentage points from a year earlier. Fifth, foreign exchange reserves were generally stable. By the end of 2020, China’s foreign exchange reserves hit US$3.2165 trillion, US$108.6 billion more than a year earlier. The increase was chiefly attributed to valuation factors including foreign exchange rate conversion and asset price changes. China’s foreign exchange reserve is a major participant and a responsible long-term investor in global financial markets. China makes investments in global financial markets following market principles, respecting international market rules and industry conventions, safeguarding and contributing to the stability and development of global financial markets. As for gold reserve, gold has features of finance and commodity, and has traditionally been a key part of a country’s foreign reserves that contributes to its foreign reserve diversification. China’s gold reserves play a positive role in adjusting and optimizing the characteristics of overall risks and returns of international reserve portfolios. In 2021, the SAFE will fully implement the guiding principles of the 19th CPC National Congress, the second, third, fourth and fifth plenary sessions of the 19th CPC Central Committee and the Central Economic Work Conference. In this new stage of development, it will apply the new development philosophy to build a new development pattern, work harder to coordinate development and security, deepen reform and opening-up in the foreign exchange sector, and guard against risks arising from abnormal cross-border capital flows to ensure the stability of China’s foreign exchange market and its economic and financial security. This is the data I want to share with you today. 2021-01-22 10: 05: 45 Shou Xiaoli: Thank you, Ms. Deputy Administrator. Now we will move on to take your questions. Please notify yourself before asking the questions. 2021-01-22 10: 06: 13 China Media Group CCTV: What would you say about the performance of China’s foreign exchange market and its cross-border capital flows in 2020? What are your perspectives on 2021? Thank you. 2021-01-22 10: 37: 46 Wang Chunying: Thank you for your questions. The sudden onslaught of COVID-19 dealt the world economy a big blow and aggravated global financial market turbulence. The gap from peak to trough of the US Dollar Index hit 15%, indicating a rather complex external environment. However, China’s cross-border capital flows and foreign exchange market withstood this tough test and showed the general characteristic of “stronger resilience and more maturity”. We have gained some insights from our observations and I’d like to share them with you. First, China’s balance of payments was at an adaptive, balanced level and its foreign exchange reserves were generally stable. Over the first three quarters of last year, the ratio of China’s current account surplus to its GDP was 1.6%, consistent with the recent average and remaining within a reasonable and balanced range. With outflows and inflows observed, the financial account excluding reserve assets registered a deficit to strike a balance with the current account surplus. As the balance of payments remained in overall equilibrium, China posted US$3.2 trillion in foreign exchange reserves by the end of last year. The fluctuations month over month were attributed to non-transaction valuation factors like foreign exchange rate conversion and asset price changes. In a word, China’s balance of payments is at an adaptive, balanced level with both surpluses and deficits, demonstrating a balanced pattern of development. Second, the renminbi exchange rate remained generally stable with two-way fluctuations. Since the beginning of 2020, the renminbi exchange rate has fluctuated more sharply along with the changes in the macro environment both at home and abroad as well as in market sentiment. It picked up at the beginning of the year, but dropped after COVID-19 struck, and even was below 7.1 against the US dollar at the lowest. Nevertheless, as the epidemic was basically kept under control and we began to resume our work, the renminbi exchange rate rebounded and even exceeded 6.52 against the US dollar at the highest. Therefore, the central parity rate of the renminbi against the US dollar averaged 6.8974 throughout the year, almost the same average with that of 2019(6.8985). When it comes to the foreign exchange rate elasticity, the one-year historical volatility of the renminbi against the US dollar was 4.2% in 2020 (the historical volatility is a measure of exchange rate elasticity), compared with 8% of the euro and the yen against the US dollar, and 11% of the pound against the US dollar for the same period. Therefore, the renminbi remained generally stable in value as compared with other major currencies. In 2020, the 4.2% renminbi elasticity was up by 0.4 percentage point from 2019. But as I just said, the renminbi stayed stable versus other major currencies like the euro, the yen and the pound, while the Brazilian real’s volatility was 21% for example. Judging from the two-way fluctuations of the renminbi exchange rate or the equilibrium of the balance of payments, we find that renminbi exchange rate is now within a reasonable and balanced range and it is normal for the renminbi exchange rate to go ups and downs, which is a common feature of major currencies. Third, with stable expectations, market participants transacted in a rational and orderly manner. In 2020, market expectations of the renminbi exchange rate stayed stable as shown by the forwards and options markets in and outside China. The prices on the forward foreign exchange market were lower than those on the spot foreign exchange market, which was aligned with the interest rate parity. This shows that market expectations of the renminbi exchange rate were neutral and not lopsided consistently. In the foreign exchange options market, risk reversal indicators that measure market expectations stayed stable. At any point, there were needs for buying and selling foreign exchange and market participants maintained a rational manner of settling foreign exchange when the renminbi exchange rate went up and buying foreign exchange when the rate went down. Moreover, this was also the case as seen from the foreign exchange settlement rates and the foreign exchange purchasing rates for the first and second half of 2020. Participants’ willingness to settle foreign exchange fell by one percentage point in the second half from the first half while their willingness to buy foreign exchange strengthened by 1.5 percentage points. It is clear that China’s foreign exchange market has been much more mature, market expectations have been more rational and transactions have not been lopsided. Market participants like banks and businesses transacted based on their needs and the foreign exchange market effectively met their needs. Overall, a more resilient and mature foreign exchange market has taken shape in China. Going forward, general balance with two-way fluctuations will be further consolidated and presented in the foreign exchange market. Firstly, China is accelerating the building of a new development pattern, featured as domination by domestic cycle and mutual promotion between domestic and international cycle. Efforts will be made to coordinate domestic and foreign demands, imports and exports, outbound and inbound investments, which will contribute to the equilibrium of balance of payments. Secondly, China will promote high-level and two-way opening-up of the financial market, and enhance cross-border trade and investment liberalization and facilitation to create a favorable policy environment for free and balanced two-way cross-border capital flows. Thirdly, China will improve infrastructure in the foreign exchange market and maintain highly elastic exchange rate of the renminbi as an automatic stabilizer for the macro economy and the balance of payments. Globally, the world economy is expected to recover this year, but will continue to face uncertainties and instabilities. Moreover, the risks associated with the COVID-19 pandemic cannot be ignored and global financial markets may remain turbulent. As a result, China’s foreign exchange markets may become more volatile. In view of this situation, the SAFE will insist on bottom-line thinking, intensifying two-way monitoring and risk evaluation of cross-border capital flows and foreign exchange markets, and improving the foreign exchange administration systems and mechanisms to match higher-level opening-up, in a bid to safeguard the equilibrium of the balance of payments and the stable performance of foreign exchange markets. Thank you. 2021-01-22 10: 38: 10 Phoenix Satellite TV: Could you brief us on the impact of the recent pickup of the renminbi exchange rate on China’s balance of payments? Thank you. 2021-01-22 10: 39: 23 Wang Chunying: As for the impact, I’d like to share with you some of our judgments, and hope you could view them objectively. The renminbi has picked up against the US dollar since the second half of 2020, which we attributed to the changes in internal and external environments. At home, China’s epidemic response is sound, economy is gradually back to normalcy. The indicators of foreign trade, investment and consumption are stable with a good momentum for growth, and monetary policy remains normal. In addition, opening-up is pressed ahead within the financial sector, and the renminbi assets become more attractive to foreign capitals. All this has underpinned the renminbi exchange rate. Internationally, as the pandemic continues to wreak havoc across developed nations, their economic performance is weak. The US Dollar Index fell sharply and is generally at recent lows, while non-dollar currencies generally rise against the US dollar. All this has contributed to the appreciation of the renminbi. Our observations show that the impact of the temporary rise of the renminbi exchange rate on the balance of payments is within a normal range. First, the rise in renminbi exchange rate has not changed the pattern that a reasonable surplus registered under China’s current account. Generally, in the second half of 2020, China’s exports increased by 13% year on year and a large surplus was registered under trade in goods. In the meanwhile, as the virus was not fully contained, travel expenses contracted significantly, leading to dramatic narrowing of deficit in trade in services. As a result, the current account continued with a small surplus. In the third quarter, the current account surplus reached US$92.2 billion, worth 2.4% of China’s GDP. A similar level is expected for the fourth quarter. It is obvious that the recent strengthening of the renminbi has not affected the sound momentum of the balance of payments. At the micro level, the rise of the renminbi exchange rate was favorable for imports, outbound investment and individual use of foreign exchange. Although some exporters might feel the impact more strongly, we found that different enterprises responded very differently, and many of them were impressively adaptive and resilient. Specifically, China is still filling the output gap in the world, which is a comparative advantage created by resumption of work and satisfies the needs for fighting the pandemic. For exporters that imported raw materials and semi-finished products, the impact of the rising renminbi exchange rate can be internally hedged. Some foreign trade companies also mitigated exchange rate risks through hedging. Some exporters, as we found, settled in the renminbi or other non-US dollar currencies like the euro and were impacted to a limited extent. Overall, China’s foreign trade and balance of payments have stayed resilient and the current account has remained in reasonable surplus. Second, the rise in renminbi exchange rate has not changed the pattern of two-way and balanced cross-border capital flows. In the Balance of Payments, net FDI registered US$270 billion and ODI was US$340 billion from July to November. To see in major items, the two-way direct cross-border investment climbed steadily, continuing with a slight surplus, which was US$40 billion for July to November. Two-way securities investment became more vibrant, recording a surplus of US$70 billion for the same period. Foreign securities investment grew by 93% from 2019, primarily driven by the increase in the holdings of domestic bonds by foreign investors. China’s outbound securities investment also maintained a high growth rate of 40%, indicating domestic residents were enthusiastic about investing in Hong Kong shares. Other investments were in deficit on the whole, which was more than US$180 billion for July to November, as a result of the increase in China’s overseas loans and deposits as well as trade credit. Overall, China’s cross-border capital flows remained within a reasonable, balanced range throughout the year. As we said previously, balance of payments are chiefly driven by domestic economic structure and two-way opening-up. China’s policy insists on keeping the renminbi exchange rate basically stabilized at an adaptive, balanced level and give the market the decisive role in the formation of exchange rate. Therefore, we believe that the renminbi exchange rate will continue to serve as an automatic stabilizer for the balance of payments in the future. Judging from the determinants of the balance of payments and the roles of the renminbi exchange rate, we believe the foundation for the overall equilibrium of the balance of payments will not change easily. Thank you. 2021-01-22 10: 39: 45 China News Service: What would you say about the purchases of domestic bonds by foreign investors in 2020? Is there any heavy risk? Thank you. 2021-01-22 11: 02: 13 Wang Chunying: Thank you too. Your perspective is of great importance as the bond market was a key area in which foreign capital flowed in 2020. SAFE statistics show that foreign investors increased their net holdings of domestic bonds by US$186.1 billion in 2020, with the balance totaling US$512.2 billion by the yearend. When it comes to risks, I’d like to share with you some of our observations. First, robust investors like foreign central banks are the primary holders of domestic bonds. As the renminbi internationalization is being increasingly promoted, the properties of the renminbi as an international reserve currency have been strengthened in recent years. Foreign central banks have expanded their needs for allocating renminbi bonds and have always been the primary forces of increasing holdings of domestic bonds. Throughout 2020, foreign central bank-like investors increased their net holdings of Chinese bonds by US$47.1 billion, bringing the average for the past five years to US$41.1 billion. From the view of stock, by the end of last year, foreign central bank-like investors held US$263.7 billion worth of domestic bonds, accounting for 51%. As you can find, robust investors constituted more than half of foreign investors. Second, foreign investors seek stable returns. To seek stable fixed income, they primarily buy low-risk bonds. Last year, foreign investors increased their holdings of Chinese government bonds by US$93.6 billion net, bringing the balance to US$291 billion by the yearend; they increased their holdings of domestic bank bonds by US$78.3 billion net, bringing the balance to US$184.6 billion by the yearend. The two combined accounted for 93% of foreign holdings of domestic bonds. In addition, foreign investors’ investment in China’s bond market remains stable. From January to November 2020, the monthly amount under bond connect was around renminbi 400 billion, with no sharp ups and downs along with changes in situations. The balance and volume of foreign investment in China’s bond market stayed at around 3%. Third, China’s economy shows broad prospects over the medium and long term, which is why domestic bond market is preferred by foreign investors. As COVID-19 is still raging across the world, China is the first to see recovery in economic fundamentals and keeps sound monetary policy. Moreover, the yields on Chinese bonds remain high as compared with other major countries and the renminbi assets have shown some characteristics of safe-haven assets across the world. These are the most important factors of the increase in foreign investments in domestic bond market. Further, as the opening-up of the financial market has been on a fast track and bonds have been included in major international indexes like Bloomberg Barclays Bond Indexes, renminbi assets in the form of bond have become the key targets to allocate for foreign investors. As foreign investors are increasing Chinese bonds for allocation now, more foreign capital is flowing in, but the flows will be stabilized going forward. All in all, as China’s financial market is opening up, its bond market will remain a relatively stable channel for foreign investments, and global investors will also need to allocate renminbi assets. To mitigate risks and support development, we will continue to step up monitoring, and perform structured analysis to make judgment and get policy ready for cross-border capital flows as early as possible. Thank you. 2021-01-22 11: 02: 26 Market News International: Could you brief us on China’s foreign exchange reserves operation in recent years? Public data shows that China’s foreign exchange reserves registered an annual average yield of 3.68% from 2005 to 2014. Could you unveil the latest data? One more question. The 2021 work conference of the People’s Bank of China (PBC) noted that foreign exchange reserves should be operated and managed in an intensive and efficient manner. How should we understand this? What does it mean by intensive and efficient? Thank you. 2021-01-22 11: 02: 56 Wang Chunying: Thank you for your question. China began to publish its foreign exchange reserves operations in 2019. What you got should be the average yields for 2005 to 2014. But to your disappointment, I don’t have the latest data on yield. I shared with you some perspectives on foreign exchange reserves operations in my opening remarks. China’s foreign exchange reserve is a major participant and a responsible long-term investor in global financial markets. China makes investments in global financial markets following market principles, international market rules and industry conventions, safeguarding and contributing to the stability and development of global financial markets. When it comes to gold reserve, gold reserve is an important part of international reserves and are used as a key category to adjust and optimize international reserve portfolios. As for your question on operating and managing foreign exchange reserves in an intensive and efficient way, my understanding is that China has always followed the philosophy of security, liquidity, value preservation and appreciation in foreign exchange reserves operations and management. In recent years, guided by the market-based and professional principles, we have optimized the currency structure and asset structure and made diversified investments in major currencies and assets of major countries and regions. By making risk prevention our top priority, we have properly responded to many shocks and challenges including the global financial crisis, the European debt crisis and the COVID-19 pandemic. Based on the inverse relations between different currencies and assets, we have effectively controlled overall investment risks and achieved robust incomes in the long term. In so doing, we have ensured the security, liquidity, value preservation and appreciation of foreign exchange reserve assets. For more information on China’s foreign exchange reserves operations, you can refer to the annual reports of the SAFE. Thank you. 2021-01-22 11: 03: 28 China Daily: In 2020, despite the COVID-19 pandemic, the SAFE introduced many policy measures in areas such as promoting trade and investment facilitation, capital account opening-up, foreign exchange market construction as well as boosting reform, innovation and development in key regions. I wonder what the SAFE’s priorities for this year will be? What will be your thinking and top priorities during the 14th Five-Year Plan period? Thank you. 2021-01-22 11: 15: 01 Wang Chunying: Thank you for your questions and also for your summary of our work in 2020. In 2021, following the decisions and arrangements of the CPC Central Committee and the State Council, the SAFE will continue to advance the trade and investment facilitation reform, promote financial opening-up and improve the functions of the foreign exchange market to serve the real economy. In reform and opening-up that concerns you, we will focus on the following: First, we will continue to press ahead with the two-way opening-up of the capital account. For example, we will pilot the integrated capital pool for multinational corporations’ domestic and foreign currencies, and advance the qualified domestic limited partnership (QDLP) and qualified foreign limited partnership (QFLP) piloting. We will expand the piloting scope of QDLP, enhance the QDLP investment reporting system, and improve the regular qualified domestic institutional investors (QDII) quota issuance. We issued some QDII quotas in a centralized manner in the early period. In addition, we will further advance the external debt registration management reform to improve the capital management of foreign institutions in stock and bond offers in China. Second, we will expand the piloting of foreign exchange receipts and payments facilitation under trade. We will support more regions, central and western China in particular, to join the pilot program. We will also support the development of new forms of trade including cross-border ecommerce, market purchasing and integrated foreign trade services, and improve online verification of tax filing information for foreign exchange payments under trade in services. Third, we will support regional opening-up and innovation as well as the construction of special regions. This is an ongoing effort. For example, we will explore the pilot program of high-level opening-up for cross-border trade and investment, support the building of the Comprehensive Demonstration Zone for Further Opening up the National service sector and China (Beijing) Pilot Free Trade Zone in Beijing, the building of Shanghai as an international financial center, the reform and opening-up in the Guangdong-Hong Kong-Macao Greater Bay Area and Hainan Free Trade Port and other regions. We will support reform and innovation in foreign exchange administration for pilot free trade zones. Fourth, we will be committed to building an open, diversified and well-functioning foreign exchange market. We will support financial institutions in launching more foreign exchange derivatives that meet the needs on the foreign exchange market. We have also made our plans and defined our priorities for the 14th Five-Year Plan period. In the new stage of development, the SAFE will apply the new development philosophy and deepen reform and opening-up in the foreign exchange sector to inject new life into development. Our priorities are as follows: First, with a focus on two-way opening-up of the financial market, we will steadily advance the high-level opening-up of the capital account. Second, we will deepen the reform of the renminbi exchange rate regime and build an open, diversified and well-functioning foreign exchange market system. Third, we will drive the transformation of the way of foreign exchange administration to achieve high-level trade and investment liberalization and facilitation. Fourth, we will improve the framework for foreign exchange market administration featuring “macro prudential management plus micro supervision” to strengthen risk management and the resilience of China’s foreign exchange market against external shocks. Fifth, during the 14th Five-Year Plan period, we will further enhance the level of professionalism and internationalization as regards foreign exchange reserves to ensure the security, liquidity, value preservation and appreciation of foreign exchange assets. These are our main tasks for reform and opening-up in 2021 and our priorities for the 14th Five-Year Plan period. Thank you. 2021-01-22 11: 15: 17 ET Net: Given that the COVID-19 pandemic has wrought havoc on the world economy, what would be your considerations to ensure smooth cross-border capital flows this year? Thank you. 2021-01-22 11: 22: 11 Wang Chunying: I have made some explanations just now. For foreign exchange administration, we will intensify two-way monitoring and risk pre-judgment of cross-border capital flows and foreign exchange markets and get risk plans in place. We will also boost development through reforms. As with 2020, when we battled the virus, we will prevent risks while promoting reform and opening-up. The major tasks for foreign exchange administration in 2021 and the top priorities for the 14th Five-Year plan period I shared just now should hopefully shed some light on you. Thank you. 2021-01-22 11: 22: 30 Shou Xiaoli: Now we will take two more questions before concluding this conference. 2021-01-22 11: 22: 44 Jiemian.com: Of the data you just unveiled, the balance of foreign exchange settlement and sales was up to US$66.6 billion in December, way higher than in the rest of 2020. Could you tell us why? Thank you. 2021-01-22 11: 22: 57 Wang Chunying: Thank you for your question. You are sharp to find this when we just released the data today. The foreign exchange settlement and sales registered a surplus of US$66.6 billion in December, including US$60.7 billion in foreign exchange settlement and sales under trade in goods, which accounted for 91%. According to our structural analysis and comparison with historical data, the fourth quarter is usually the peak season for foreign demands, with foreign orders continuing to flow in. In the meanwhile, China’s exports have maintained high growth. This is especially true last year when overseas production capacities suffered a setback. You can find this from Customs statistics too. In such a context, it is natural that relevant foreign exchange receipts and settlement grew more quickly. Moreover, as the Chinese New Year draws near, many enterprises have a strong willingness to receive and settle foreign exchange as they need to pay salaries and bonuses in advance. Some enterprises would certainly retain some foreign exchange for production in the upcoming quarter, such as purchasing raw materials and spare parts overseas. Some others choose to settle in the renminbi. The surplus in foreign exchange settlement and sales is an indication of exchanges between domestic and foreign currencies by bank customers including individuals and enterprises, which is explainable. Thank you. 2021-01-22 11: 23: 18 CRI of China Media Group: My question is also about the renminbi exchange rate. As the renminbi exchange rate rises, how could Chinese foreign trade companies mitigate associated risks? Are policy instruments sufficient to help enterprises respond to foreign exchange rate risks? Are they fully utilized? Thank you. 2021-01-22 11: 49: 08 Wang Chunying: Thank you for your questions. When the renminbi exchange rate becomes volatile, some adversely impacted enterprises will always complain. As a matter of fact, the basic product system in China’s foreign exchange market is not inferior to those of global mature markets. Our survey shows that many enterprises consider the derivatives on China’s foreign exchange market are sufficient and the needs for new varieties are not pressing. The major issue is that players don’t understand or don’t know how to use the derivatives. We also find from our survey that whether a company hedges depends on its performance review. Some argue that it is dependent on the business owner, especially on his/her awareness of managing exchange rate risks and inclusion of hedging profits or losses as KPIs for financial staff. As the renminbi exchange rate is based on market supply and demand, two-way fluctuation is a natural scenario. Therefore, business operators, especially decision makers, should understand the overall orientation of the market-based reform of the renminbi exchange rate and take its fluctuations into consideration when making day-to-day financial decisions. I’d like to say a bit more about this question. For companies, they need to raise the awareness of risk neutrality. As I just said, hedging awareness among companies was raised in 2020. The hedging ratio was 17.1%, up by 2.7 percentage points from 2019. We found from our survey that some companies, from the management layer to the operation layer, paid close attention to exchange rate risks and had taken many effective measures. I’d like to share some here to shed light on more companies. For example, they added the terms to their commercial contracts of re-pricing in case of exchange rate volatility and settled in various currencies to diversify risks arising from exchange rate volatility. Our observation shows that companies have been more rational in hedging. For example, some foreign-funded companies have definite management strategies for exchange rate risk exposure of more than US$1 million. All in all, to establish proper awareness of exchange rate risk management, one should focus on its main business, rationally face up to ups and downs in exchange rates and prudentially arrange the currency structure for assets and liabilities; and one also should properly manage exchange rate risks, oriented to keeping robust and sustainable financial situation, rather than the profits or losses from hedging. This is what I want to remind companies here. Banks shall continue to improve services and offerings for companies to meet their needs for mitigating exchange rate risks. Many enterprises told us that primary-level banks couldn’t give good guidance to local players on how to mitigate risks and preserve the value. According to some primary-level banks, as foreign exchange derivatives are highly specialized, it takes time to train employees while the profits are low. Given this, some banks are reluctant to input heavy resources. On the other hand, we have learned that some branches spent several years training a team of 6-7 people to provide “butler service” to hundreds of local companies. In our view, head offices need to make good design and risk control, and also need to customize effective exchange rate risk management strategies for local companies at the primary level, so as to solve the “last mile problem” in providing exchange rate risk management services. The SAFE will also continue to create favorable conditions for companies to manage exchange rate risks. In recent years, the SAFE has stepped up its efforts to expand trading varieties, increase participants and optimize infrastructure in the foreign exchange market. Throughout last year, the trading volume on the foreign exchange market was US$30 trillion, growing 22 times from the exchange rate reform in 2005. 60% of the trading volume was from foreign exchange derivatives trading. In addition, a growing number of banks are getting involved in foreign exchange derivatives trading. We have approved 518 banks for providing spot renminbi-foreign currency exchange services and 105 banks for providing foreign exchange derivatives trading services, including small, medium and large-sized banks as well as both Chinese and foreign banks. They serve almost all the regions across China, without any blank space. Going forward, the SAFE will cooperate with the PBC to keep the renminbi exchange rate stabilized at an adaptive, balanced level. At the same time, we will continue to advance the in-depth development and opening-up of the foreign exchange market, increase its width and depth and support enterprises in managing exchange rate risks. In addition, the SAFE will increase transparency, and step up interpretations of regulations and data to help the public understand foreign exchange policies, accurately assess the situation and effectively manage the risks. Thank you. Shou Xiaoli: Thank you, Ms. Wang. Thank you, friends from the press. This is the end of today's press conference. Goodbye! 2021-01-22 11: 50: 12 (The original text is available on www.china.com.cn) 2021-01-22/en/2021/0122/1811.html