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QFII investment quota of GE Asset Management Incorporated approved 2007-01-11/en/2007/0111/820.html
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QFII investment quota of Fortis Bank SA/NV increased 2007-01-11/en/2007/0111/821.html
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I. Q: What is domestic and foreign currency exchange franchise business to individuals? A: The domestic and foreign currency exchange franchise business to individuals in the expanded pilot implementation refers to two-way currency exchange services (foreign currencies to RMB and vice versa) for domestic/overseas individuals in the localities of the pilot implementation, which are provided by domestic non-financial enterprises after approval of the SAFE. Internationally, a multi-level service system has been put in place for the provision of domestic and foreign currency exchange franchise business to individuals to meet the needs of diversified groups and the set up special client services composed of many levels. The providers of the domestic and foreign currency franchise exchange business to individuals generally include: bank outlets, foreign currency exchange franchise entities, and foreign currency exchange agencies. By nature, the Chinese institutions engaging in the pilot implementation of domestic and foreign currency exchange franchise business to individuals fall into the category of foreign currency exchange franchise entities, which are similar to the exchange shops in foreign countries. II. Q: What is the reason for the expanded pilot implementation? A: The provision of authority to general enterprises (other than banks) to deal in domestic and foreign currency exchange businesses to individuals is an important measure to improve currency exchange services for individuals, to diversify foreign exchange service providers, as well as to fulfill the requirements of the Regulations of the People's Republic of China on Foreign Exchange Administration. On August 20, 2008, the SAFE granted approval to Beijing and Shanghai for pilot implementation of domestic and foreign currency exchange business to individuals, with each city being allowed to select one franchise institution for implementation. The implementation has achieved the expected results and has received a positive response from the public. A number of regions and institutions have applied for pilot implementation of domestic and foreign currency exchange business to individuals. The SAFE recently decided to incorporate 13 provinces, municipalities, and autonomous regions (including Beijing and Shanghai) and 4 cities specifically designated in the state plan into the pilot implementation of foreign exchange business to individuals, to increase the number of pilot institutions, to permit cross-regional chain operations, to streamline relevant procedures, and to carry out uniform supervision over the pilot implementation. Among the aforesaid regions, there are regions with a robust foreign-related economy and a vast amount of frequent commercial contacts, cities at the borders/ports or tourist hubs, and regions entitled to preferential policies, all of which have a certain amount of currency exchange needs. The expansion of the pilot implementation of domestic and foreign currency exchange business to individuals will supplement the inadequacy of the existing services. With the establishment of a service network integrating the strength of various institutions banks, franchise operations institutions, and foreign currency exchange agencies the SAFE will be able to increase its capacity to provide diversified services to clients, thus better fulfilling market demands. III. Q: What are the qualifications for applying for domestic and foreign currency exchange business to individuals? What are the procedures for approval? A: First, individuals are not allowed to apply for such business. Qualified applicants must be general commercial enterprises with independent legal-person authority (Chinese-funded or foreign-funded) located within the territory of China. The applicants should have registered capital of not less than RMB 1 million (for foreign-funded enterprises, the amount should be the foreign exchange equivalent of RMB 1 million), and should have engaged in foreign currency exchange for more than 6 months. Second, the applicants should have a certain number of in-house practitioners with good knowledge of the foreign currency exchange business and foreign exchange administration policies. Third, the applicants should have adequate venues, systems, facilities, and security for carrying out the business, particularly the hardware/software compatible with the uniform national information system for the administration of individual exchange settlement and sales. Enterprises with the above qualifications can submit applications to the branches of the SAFE (foreign exchange administration departments, hereinafter referred to as SAFE branches) located at their registered domicile. The SAFE branches shall, after receipt of the application materials, examine the qualifications of the applicants with respect to their handling of domestic and foreign currency exchange business to individuals. The application materials of the qualifying applicants shall be submitted to the SAFE for approval. The SAFE shall assess the level of local demand for domestic and foreign currency exchange to individuals, the risk-control ability of the applicant, and other objective conditions, in order to determine the timetable for granting approval and making appropriate adjustments in the number of franchise institutions. IV. Q: What are the specific requirements for the expansion of the pilot implementation? A: By drawing on the experience from the earlier pilot implementation and specifying the requirements for supervision of the institutions operating the franchises, the SAFE has worked out a set of nationally uniform and normative measures for an expanded pilot implementation in compliance with the regulations and in consideration of operational convenience. The requirements for the expanded pilot implementation mainly include: a) The operations institutions shall handle the currency exchange business via the information system for the administration of individual settlement and sales of foreign exchange and shall incorporate the amount of each clients currency exchange into the annual aggregate quota control for the individual settlement and sales of foreign exchange; b) To underscore the distinct feature (transactions in small amounts) of the currency exchange business to individuals, the cumulative amount of currency exchanged by the franchise operations institutions shall not exceed USD 5,000 on one day for a single client; c) All the operations activities of the franchise institutions shall be conducted via their accounts under the foreign exchange excess reserves and limitations shall be imposed on the foreign exchange excess reserves; d) The operations institutions shall, on a monthly basis, issue to the SAFE branches statements related to their currency exchange and shall fulfill their statistical and reporting responsibilities regarding the balance of payments, anti-money-laundering, etc; e) The SAFE shall comply with the principle of achieving an efficient geographic distribution of franchise institutions to meet market demands and encourage the development of chain operations by specifying the timetable for the granting of approval and by flexibly adjusting the number of franchise institutions for the orderly promotion of the pilot implementation. V. Q: What are the distinctive characteristics of the franchise operations institutions in comparison with bank outlets and foreign currency exchange agencies? A: In 2008 Chinas domestic and foreign currency exchange business (also known as exchange settlement and sales) to individuals amounted to approximately USD 170 billion, of which currencies exchanged by overseas individuals reached USD 24 billion. The market has revealed the great potential as well as the diversified needs of customers. The franchise operations institutions, bank outlets, and foreign currency exchange agencies are natural competitors and also complement one another in terms of their business. As compared to bank outlets and foreign currency exchange agencies, franchise operations institutions have their own distinctive characteristics: a) Presently about 90% of foreign currency exchange agencies serve as auxiliary facilities at foreign-related hotels catering to the exchange needs of hotel guests. As far as bank outlets are concerned, the majority of bank outlets are positioned to provide B2B services to customers, and most bank outlets are generally in areas of concentrated residents and public work. Only a few bank outlets are located in areas where there are few residents, such as airports, hotels, scenic spots, etc. In contrast, franchise operations institutions can install a distribution of outlets to meet changing market demands; b) Bank outlets are normally restricted to fixed working hours; some are even closed during holidays. Foreign currency exchange agencies are usually limited in terms of the geographic scope of their services. In contrast, franchise operations institutions are allowed to extend their business hours at any time based on market demands and at some airports can operate 24/7. c) Franchise operations institutions, as compared to foreign currency exchange agencies, are capable of handling two-way exchange and discretionary setting of prices. The strong expertise of the franchise institutions enables service staffers to identify bank notes of all major countries in a timely manner, to keep pace with the latest anti-counterfeiting techniques, and to interact with customers with sound language skills. VI. Q: Some border provinces such as Guangxi, Yunnan, and Xinjiang have been incorporated into the expanded pilot implementation. Can the settlement of border trade enjoy the services provided by the pilot implementation? A: The main purpose of the expansion is to facilitate operation of currency exchange to individuals, especially to satisfy the currency exchange needs of individuals in areas with frequent entries and exits. That also underscores a feature of the business, i.e., small transactions and operational convenience. The SAFE has incorporated some border provinces into the expanded pilot implementation and encourages franchise operations institutions located in border/port cities to provide currency exchange services for the currencies of the surrounding countries and regions. In the case that a currency cannot be exchanged via a deposit bank, the franchise operations institutions are allowed to carry out the exchange through other channels. This will facilitate legal operations of the local currency exchange business to individuals, and hence will help check illegal exchange transactions at their source. Nonetheless, such practices may not completely satisfy the needs for border trade settlement, which should mainly be conducted via banks. 2009-12-23/en/2009/1223/911.html
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Recently the State Administration of Foreign Exchange (SAFE) promulgated the Provisions on the Centralized Operations and Administration of Foreign Exchange Funds of Internal Members of Domestic Enterprises (hereinafter referred to as the Provisions), and a relevant responsible person of the SAFE was interviewed concerning the Provisions. Q: What is the background and significance of the promulgation of the Provisions? A: In the current context of gradual globalization and integration of the world economy and finance, domestic enterprises have greater requirements to optimize the allocation of foreign exchange resources and to improve the efficiency of the utilization of foreign exchange funds. In order to support and facilitate the utilization and operations of foreign exchange funds by domestic enterprises, as well as to conform to the requirements of adapting to the balanced management of the balance of payments, in recent years the SAFE in succession promulgated a series of policies and measures to reform and normalize the centralized operations and administration of the foreign exchange funds of enterprises. For example, the Circular of the SAFE Concerning Relevant Issues on the Internal Operation and Administration of Foreign Exchange Funds of Multinational Companies (Huifa [2004], No. 104) and the Circular of the SAFE Concerning Relevant Issues on the Business of Spot Purchases and Sales of Foreign Exchange Carried Out by Finance Companies of Enterprise Groups (Huifa [2008], No. 68). In order to further lower the admittance threshold for centralized operations and administration of foreign exchange funds of domestic enterprises, to clarify the operation methods of foreign currency fund pool business in China, to normalize and improve the laws and regulations on the centralized operations and administration of foreign exchange funds, and to promote the putting in order and amending of laws and regulations on foreign exchange administration, the SAFE drafted the Provisions on the Centralized Operations and Administration of Foreign Exchange Funds of Internal Members of Domestic Enterprises, with comprehensive reference to the opinions of banks and enterprises. The Provisions were promulgated on October 13, 2009 and implemented on November 1, 2009. Implementation of the Provisions will further normalize and systematize the collective operations and administration of foreign exchange funds, thus conforming to the current state of economic development. And it will facilitate improvements in the efficiency of utilization of funds by domestic enterprises, reducing costs and enhancing competitiveness. Meanwhile, this implementation is also conducive to promoting cooperation between banks and enterprises as well as to business innovation, thus accelerating the linking of Chinas financial services industry and international operations. Q: What are the major reforms set forth in the Provisions? A: First, they relax the limits stipulated for the qualifications of business entities. Second, they clarify the operational methods for foreign currency fund pool business in China, normalize the relevant content concerning the foreign currency fund pool business in China, such as basic principles, business structure, examination procedures, and specify that entrusted banks (finance companies) that implement the plans shall be responsible for the application and relevant statistics and filing and reporting. Third, they further delegate relevant powers. Issues such as the examination of foreign exchange administration prescribed in the Provisions shall fall under the jurisdiction of the AFE branches (administrative departments), and the SAFE will no longer process the specific examinations and verifications of the applications. Fourth, they normalize and reinforce the laws and regulations on the centralized operations and administration of foreign exchange funds. The Circular Concerning Relevant Issues on the Business of Spot Purchases and Sales of Foreign Exchange Carried Out by Finance Companies of Enterprise Groups (Huifa [2008], No. 68) incorporates and improves the framework of the Provisions, thus further promoting the putting in order and amending of the laws and regulations on foreign exchange administration. Meanwhile, they further simplify the relevant procedures for examination and approval of foreign exchange business. Issues related to the business of centralized operations and administration of foreign exchange funds, such as the opening of relevant accounts and domestic foreign exchange transfers, can be processed by entrusted banks (finance companies) on behalf of the enterprises with the approval documents for the business qualifications, and no approval from the AFE branches is required. Q: What is the main content included in the centralized operations and administration of foreign exchange funds of internal members of domestic enterprises? A: According to the Provisions and other relevant regulations on foreign exchange administration, the centralized operations and administration of foreign exchange funds of internal members of domestic enterprises include inter-company lending/borrowing of foreign exchange among internal members of domestic enterprises, implementation of administration of foreign currency fund pool business, and the business of spot purchases and sales of foreign exchange via internal finance companies. Q: Upon implementation of the above-mentioned measures, what are the anticipated risks in terms of the centralized operations and administration of foreign exchange funds? How can those risks be prevented? A: First, as foreign exchange funds used for inter-company lending/borrowing and the foreign currency fund pool business by internal members of domestic enterprises are from the discretionary foreign exchange funds in their foreign exchange capital accounts and foreign exchange current accounts, it may be possible that the settlement of foreign exchange capital will be carried out by way of the centralized operations of the foreign exchange funds, thus avoiding the current exchange settlement policies for foreign exchange capital. In order to prevent such a risk, it is specifically prescribed in the Provisions that entrusted loan funds of domestic enterprises shall not be used after exchange settlement, nor shall they be used as pledges for RMB loans. Should it be necessary that they be used after exchange settlement, the domestic enterprises shall transfer the entrusted loan funds from their foreign exchange capital account or current foreign exchange account back to the original accounts thereof, and then carry out the foreign exchange settlement in compliance with relevant regulations. Second, in the event of centralized operations of foreign exchange funds in the form of foreign currency fund pools, in order to avoid conflicts with the fact examination methods of the exporter shall be the party to collect the foreign exchange and the importer shall be the party to pay the foreign exchangeas prescribed in the current regulations on foreign exchange administration, in the plans for foreign exchange fund pools it is prescribed that: ones own foreign exchange funds for collection shall follow the principle of going through the relevant formalities before centralized operations and administration; the income/expenditure range of the accounts, such as special accounts for foreign exchange entrusted loans, and foreign exchange capital accounts and current foreign exchange accounts, is strictly limited; the principle of full-receipt, full-paymentshall be adhered to; and no net settlement is allowed on its own. In general, the risks existing from the centralized operations and administration of foreign exchange funds of domestic enterprises are limited, and are also controllable with the implementation of above-mentioned design scheme. Q: Do the Provisions apply to internal members of domestic enterprises controlled by overseas parent companies? A: Yes. Article 28 of the Provisions specifies that The Provisions shall apply to internal members of domestic enterprises controlled by the same overseas parent company. Q: Is approval from the AFE required when domestic enterprises carry out operations of foreign exchange funds business via internal finance companies in the form of collecting the internal membersforeign exchange deposits and granting foreign exchange loans to internal members? A: If domestic enterprises only conduct the business of foreign exchange funds operations via finance companies in the form of collecting internal members foreign exchange deposits and granting foreign exchange loans to the internal members, no approvals by the AFEs are required. The same case applies in the plan for issues such as the opening of foreign exchange fund accounts and domestic foreign exchange transfers. However, if foreign currency funds pools are realized within the legal framework of the entrusted loans, they shall be approved by the AFEs and processed in compliance with the Provisions. Q: Compared with the Circular of the SAFE Concerning Relevant Issues on the Business of Spot Purchases and Sales of Foreign Exchange Conducted by Finance Companies of Enterprise Groups, are there any changes in the Provisions concerning administration of the business of spot purchases and sales of foreign exchange conducted by domestic enterprises via finance companies? A: There are no changes in the principles, but the contents are more scientific and improved. For example, the Provisions further specify the relevant procedures for the business of purchase and sale of foreign exchange by finance companies, i.e., only after becoming members of the inter-bank spot foreign exchange market can finance companies conduct the business of spot purchases and sales of foreign exchange in compliance with the relevant regulations on the purchase and sale of foreign exchange. Q: How should we understand the relationship among the Provisions, the Circular of the SAFE Concerning the Relevant Issues on the Internal Operations and Administration of Foreign Exchange Funds of Multinational Companies (Huifa [2004], No. 104) and the Circular of the SAFE Concerning the Relevant Issues on the Business of Spot Purchases and Sales of Foreign Exchange Carried Out by Finance Companies of Enterprise Groups (Huifa [2008], No. 68)? A: The Circular of the SAFE Concerning the Relevant Issues on the Internal Operations and Administration of Foreign Exchange Funds of Multinational Companies (Huifa [2004], No. 104) and the Circular of the SAFE Concerning the Relevant Issues on the Business of Spot Purchases and Sales of Foreign Exchange Carried Out by Finance Companies of Enterprise Groups (Huifa [2008], No. 68) shall be repealed simultaneously with the date that the Provisions enter into effect. 2009-11-30/en/2009/1130/908.html
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In order to further increase the transparency of foreign exchange administration and facilitate public comprehension and mastery of knowledge regarding foreign exchange administration, the State Administration of Foreign Exchange (SAFE) has compiled an Overview of Foreign Exchange Administration (hereinafter referred to as the Overview), in which the purpose, framework, business administration principles, key policy points, and so forth on foreign exchange administration are elaborated. In parallel with its promulgation, the contents of the Overview have been posted on the official Web site of the SAFE (www.safe.gov.cn). The Overview is composed of six sections. Each section gives a brief introduction to the framework of forex administration, forex administration of current accounts, forex administration of capital accounts, statistics and monitoring of the balance of payments, forex business of financial institutions, and operation and administration of forex reserves, etc. A directory of commonly-used laws and regulations related to forex administration is included in the Overview, to serve as a reference for comprehension of relevant laws and regulations applicable to the related businesses. Other parts of the Overview such as the RMB Exchange Rate and Foreign Exchange Market, the Inspection and Applicability of the Laws and Regulations on Foreign Exchange Administration, and so forth will be promulgated after compilation of the Overview is completed. The Overview will serve as an outline and summary of the objectives, policies, measures, and other important issues related to foreign exchange administration. It is promulgated to facilitate comprehension by the general public of issues related to foreign exchange administration. The Overview shall not be deemed to be legally binding. 2009-12-04/en/2009/1204/909.html
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Recently, the SAFE promulgated the Circular Concerning Further Improving Administration of Foreign Exchange Settlement and Sale Business for Individuals (hereinafter referred to as the Circular) in order to exercise focused management to prevent foreign exchange settlement and sales by individuals through fund splitting. The Circular further standardized and clarified the procedures for handling the foreign exchange settlement and sale business for individuals. Implementation of the Circular will help promote facilitation of foreign exchange collection and payment for individuals, and is expected to effectively prevent the inflow and outflow of abnormal funds through individual channels. Since the SAFE put into practice in February 2007 the management policy regarding the annual aggregate amount of foreign exchange settlement and sales for individuals equivalent to USD50,000, the policy has satisfied demands by individuals for foreign exchange settlement and sales for studying abroad, tourism, provision of labor services, family maintenance remittances, consultations, and so forth. However, some individuals have attempted to evade the relevant management policies by splitting large sums of the exchanged funds into small amounts, which in reality disturbs the normal order for the administration of the exchange business for individuals. In this regard, the Circular provides specific countermeasures to guard against such behavior. The main contents of the Circular include: first, the facilitation requirements of the current policies shall remain effective for authentic and reasonable demands for purchases and settlement of foreign exchange for individuals; whereas purchases and settlement of foreign exchange by individuals that are identified as being conducted via fund splitting shall be subject to (1) rejection by the banks, according to the specific circumstances; (2) an authenticity examination; or (3) reports to the SAFE branches according to the relevant requirements; second, large sums of exchange settlement for individuals with foreign currency notes shall be subject to examination of the documents testifying to the source of the foreign currency notes; third, for any foreign exchange purchase under the current account excluding trade, the individual shall use cash RMB or funds in the RMB accounts/bankcard of the individual or his/her direct relatives; fourth, penalties with regard to settlement and sales of foreign exchange by individuals through fund splitting are specified, and the pilot institutions engaging in franchise business of domestic and foreign currency exchange for individuals are placed under jurisdiction of the Circular. The promulgation of the Circular will serve as a complement to the current policy for the administration of individual foreign exchange. While sustaining adequate demand by individuals for the authentic and reasonable purchase and settlement of foreign exchange, the Circular provides clear specific administrative requirements, which will help restrain the inflow and outflow of abnormal exchange funds through individual channels, will crack down on illegal activities by underground exchange markets and money shops, and will maintain a sound environment in the foreign exchange market. 2009-12-23/en/2009/1223/913.html
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For the purpose of improving the internal operations and administration of foreign exchange funds of domestic enterprises, facilitating and supporting the utilization and operations of foreign exchange funds by domestic enterprises, and enhancing the efficiency of the utilization of foreign exchange funds, the SAFE released the Provisions on the Centralized Operations and Administration of Foreign Exchange Funds of Internal Members of Domestic Enterprises (hereinafter referred to as the Provisions). The Provisions will enter into effect as of November 1, 2009. Based on the experience of the centralized operations and administration of foreign exchange funds of multinational companies since October 2004, the Provisions provide further reforms on the centralized operations and administration of foreign exchange funds of domestic enterprises, mainly in the following respects: 1) They further lower the admittance threshold for centralized operations of foreign exchange funds. In principle, foreign currency fund pool business can be carried out so long as the internal members of the domestic enterprises participating in the business and the banks (finance companies) providing the funds for the pooled services reach agreement and comply with the legal framework for entrusted loans. 2) They clarify the administrative policy for the foreign currency fund pool business in China, and further regulate relevant issues concerning the foreign currency fund pool business of domestic enterprises, such as operational methods, fundamental principles, approval procedures, and so forth. 3) They delegate power of examining and approving to the AFE branches. The foreign currency fund pool business by domestic enterprises, the business of spot purchases and sales of foreign exchange by finance companies, and related examinations and verifications of exchange transfers all fall under the jurisdiction of the AFE branches. 4) They specify and improve the laws and regulations concerning the centralized operations and administration of foreign exchange funds. The Circular of the SAFE Concerning the Relevant Issues Regarding the Business of Spot Purchases and Sales of Foreign Exchange Conducted by Finance Companies of Enterprise Groups (Huifa [2008], No. 68) is improved upon and incorporated into the framework of the Provisions, thus further promoting the putting in order and amending of the laws and regulations on foreign exchange administration. Implementation of the Provisions will further improve and normalize the centralized operations and administration of foreign exchange funds, thus conforming to the trend of institutional reform of financial administration of foreign exchange and the current state of economic development. Especially in the context of the current international financial crisis, it will facilitate improvements in the efficiency of utilization of funds by domestic enterprises, reducing costs and enhancing competitiveness. Meanwhile, it is conducive to promoting cooperation between banks and enterprises as well as to business innovation, thus accelerating linkages between Chinas financial services industry and international operations. 2009-11-30/en/2009/1130/907.html
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At the end of September 2009, China's outstanding external debt (excluding that of Hong Kong SAR, Macao SAR, and Taiwan Province) reached USD 386.772 billion, an increase of USD 12.111 billion, or 3.23 percent compared with that at the end of 2008. Specifically, the outstanding long- and medium-term external debt (with the remaining term) reached USD 164.793 billion, an increase of USD 917 million, or 0.56 percent compared with that at the end of 2008, accounting for 42.61 percent of the total outstanding external debt. The outstanding short-term external debt (with the remaining term) totaled USD 221.979 billion, an increase of USD 11.194 billion, or 5.31 percent compared with that at the end of 2008, accounting for 57.39 percent of the total outstanding external debt. In terms of China's outstanding short-term external debt, the balance of trade credit was USD 132.5 billion. The outstanding registered short-term external debt (with the remaining term) was USD 89.479 billion, accounting for 40.31 percent of the outstanding short-term external debt and 23.13 percent of the total outstanding external debt. Included in the outstanding registered external debt of USD 254.272 billion, the outstanding sovereign debt borrowed by ministries under the State Council totaled USD 35.232 billion, accounting for 13.86 percent; the outstanding debt of Chinese-funded financial institutions was USD 87.018 billion, accounting for 34.22 percent; the outstanding debt of foreign-funded enterprises was USD 92.262 billion, accounting for 36.28 percent; the outstanding debt of foreign-funded financial institutions in China was USD 35.154 billion, accounting for 13.83 percent; the outstanding debt of Chinese-funded enterprises was USD 4.281 billion, accounting for 1.68 percent; and the outstanding debt of other institutions was USD 325 million, accounting for 0.13 percent. From January to September 2009, long- and medium-term external borrowing totaled USD 13.845 billion, a decrease of USD 13.535 billion, or 49.43 percent compared with that in the same period of the last year. Repayment of principal was USD 25.959 billion, an increase of USD 12.175 billion, or 88.33 percent, over that during the same period of the last year. Interest payments for long- and medium-term external debt totaled USD 2.563 billion, a decrease of USD 393 million, or 13.29 percent compared with that during the same period of the last year. 2010-01-06/en/2010/0106/915.html
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For the purpose of meeting the growing demand for domestic and foreign currency exchange by individuals, in August 2008 the SAFE initiated a pilot implementation of domestic and foreign currency exchange business to individuals in the localities of Beijing and Shanghai. Building on the results of the pilot implementation, the SAFE recently expanded the range of this pilot implementation and perfected the Measures for the Administration of the Pilot Implementation of Domestic and Foreign Currency Exchange Franchise Business to Individuals. There are four aspects to this expansion: first, the range of the pilot implementation has been expanded to 13 provinces, municipalities, and autonomous regions including Beijing and Shanghai, as well as 4 cities specifically designated in the state plan; second, the number of franchise operations institutions has been increased, and cross-regional chains of franchise operations institutions via the establishment of branches in the pilot areas are encouraged; third, relevant exchange procedures have been streamlined, viz. for small amounts of exchange business under USD 500 for each transaction, after completing the relevant procedures, the operations institutions are allowed to append the transaction data to the information system for the administration of settlement and sales of foreign exchange to individuals; fourth, regulatory compliance and operational conveniences have been taken into account in the pilot implementation, and the requirements for supervision of franchise operations institutions have been clarified. The expansion is expected to further satisfy the demand for domestic and foreign currency exchange by individuals in foreign-related economically strong regions, international tourist hubs, as well as border/port regions (apart from Beijing and Shanghai). The move will also stimulate fair competition in the market of domestic and foreign currency exchange to individuals, make the most of the advantages of the franchise operations institutions with respect to their business hours, vast diversity of exchange currencies, as well as their operational flexibility, and will upgrade the overall level of Chinas domestic and foreign currency exchange services to individuals. 2009-12-23/en/2009/1223/910.html
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The State Administration of Foreign Exchange (SAFE) recently released on its official Web site (www.safe.gov.cn) foreign exchange statistical time-series data, marking the first time the administration has systematically arranged and disclosed such data. During recent years, in order to satisfy the increasing needs of foreign-related business development, the SAFE has worked out a series of foreign exchange statistical statements, such as China's Balance of Payments Statement, Chinas International Investment Position, the scale of foreign exchange reserves, the balance and structure of the external debt, and so forth, in line with international universal indicators and relevant technical standards, which are conducive to analyzing foreign-related economic situations and monitoring cross-border capital flows. Furthermore, the foreign exchange statistical data has received growing attention from the general public. In order to make better use of foreign exchange statistical data, facilitate the general publics comprehension, analysis, and use of the information, and to enhance the comprehensiveness, systematic nature, and transparency of these data, the SAFE has arranged and released eleven categories of data that were made public during the period from 1985 to 2009, including China's Balance of Payments Statement, China's International Investment Position, the scale of foreign exchange reserves, the conversion rates of various currencies against the USD, the mid-price of the RMB exchange rate, the balance and structure of the external debt, the structure and growth of China's long- and short-term external debt, China's external debt, the national economy and exchange revenue, examination and approval of the investment quota for QDII and QFII, and so forth. The corresponding explanations of the indicators and intervals for their release have also been publicized. After their release, the SAFE will regularly update the relevant statistical data and constantly improve its disclosure system for statistical information. 2009-12-23/en/2009/1223/912.html