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Provincial, Autonomous Region, and Municipal Branches, Foreign Exchange Departments, Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo Branches of the SAFE and designated national foreign exchange banks: To be in line with the new international standards for BOP statistics and to enhance the monitoring of cross-border capital flows, the State Administration of Foreign Exchange (SAFE) has revised and released the Classifications and Codes for Transactions of Foreign-Related Receipts and Payments. Meanwhile, the new Industrial Classifications and Codes for national economic activities shall be used according to the new national standards. The two types of classifications and codes will come into force as of May 1, 2014. Implementation matters are hereby notified as follows: I. Adjustments of the involved codes 1. Classifications and codes for transactions of foreign-related receipts and payments are used to declare transactions of foreign-related receipts and payments. Transactions of foreign-related receipts and payments refer to BOP transactions and other economic transactions in relation to foreign-related receipts and payments. These revised and newly released classifications and codes for transactions of foreign-related receipts and payments are the 2014 version (hereinafter referred to as the new transaction codes, see Appendix 1). Refer to Appendix 2 for the Table of Codes for Transactions of Foreign-related Receipts and Payments (Receipts/Payments). The transaction codes for domestic receipts and payments under verification of trade in goods, domestic receipts and payments of foreign exchange under verification of non-trade in goods, and settlement and sales of foreign exchange under the foreign exchange account shall be included within the above. 2. Codes for BOP transactions. According to the Circular of the SAFE on the Issuance of the Operating Procedures for the Declaration of BOP Statistics via Financial Institutions (Huifa No. 22 [2010]), non-banking institutions and individuals shall declare the BOP statistics for foreign-related receipts or payments via domestic banks and the involved BOP transaction codes shall be adjusted to the new transaction codes. The codes for BOP transactions adopt part of the content of the Classifications and Codes for Transactions of Foreign-Related Receipts and Payments: codes for receipts including “121050,” “121060,” “121070,” “521010,” “621050,” “621060,” “621070,” “622040,” “622050,” “622060,” “622070,” “821041,” “821042,” “822041,” “822042,” “822050,” and transaction codes for receipts starting with 92 are not adopted; and codes for payments including “121050,” “121060,” “121070,” “521010,” “621040,” “621050,” “621060,” “621070,” “622040,” “622050,” “622060,” “622070,” “821041,” “821042,” “822041,” “822042,” “822050” and transaction codes for payments starting with 92 are not adopted. 3. Transaction codes under the capital account that will be adjusted according to the new transaction codes. These codes are the transactions codes beginning with 5, 6, 7, 8, and some codes starting with 9 in the Classifications and Codes for Transactions of Foreign-Related Receipts and Payments. Some codes starting with 9 refer to transaction codes for receipts, excluding “921030,” “922010,” “922090,” “925010,” “925020,” “929030,” and “929080,” and transaction codes for payments, excluding “921030,” “922090,” “925010,” “925020”, “929030,” and “929080”. 4. The Industrial Classifications and Codes for National Economic Activities shall be used according to the new national standards (GB/T 4754-2011) (hereinafter referred to as the new industrial codes, see Appendix 3). II. Implementation steps for changing the codes 1. Business changes. Designated foreign exchange banks (hereinafter referred to as the “banks”) shall use the new transaction codes and the adjusted codes for BOP transactions, the transaction codes under the capital account, and the new industrial codes in their own systems starting from May 1, at 00:00. Banks shall guide the declaration entities to make the declarations using the new codes beginning from May 1. 2. System changes. The SAFE will store the interface data, including the BOP, company profile, and account information in the database using the old codes for the last time on April 30, at 11:59 pm and shall provide error feedback on time. Starting from May 1, at 00:00, the banks shall fill in or submit the interface data using the new codes (including the data not declared before May 1 or the data declared before May 1 but needing to be modified) and thereafter the business systems of the SAFE will no longer receive or use the old codes. With no other elements requiring re-submissions due to these changes, the historical data (including the business and filing data) shall not be re-submitted using the new codes. III. Other related matters 1. Banks can change their historical data based on the concordance table for the old and new codes, which will be available at www.safe.gov.cn and http://banksvc.safe. 2. Some business systems of the SAFE will be shut down from May 1 to May 3 for the change of the old codes to the new codes. More information will be released at www.safe.gov.cn and http://banksvc.safe. 3. An application has been submitted to the National Financial Standardization Technology Committee and the Standardization Administration Committee of the People's Republic of China for the current revisions of the recommended Classifications and Codes for Transactions for Foreign-Related Receipts and Payments (GB/T 19583—2004). 4. Upon receipt of this Circular, branches and Foreign Exchange Departments of the SAFE shall immediately forward it to the banks under their jurisdiction and provide training for the declaration entities under their jurisdiction. Please contact the SAFE if you have any questions during implementation. For the new transaction codes, please call 010-68402448; for the new industrial codes, please call 010-68402459; and for technical support, please call 010-68402459. Appendices: 1. Classifications and Codes for Transactions of Foreign-Related Receipts and Payments (2014) 2. Table of Codes for Transactions of Foreign-related Receipts and Payments (Receipts/Payments) 3. New and Altered Industrial Classifications and Codes of National Economic Activities (GB/T 4754-2011) State Administration of Foreign Exchange April 16, 2014 FILE: Classifications аnd Codes for Transactions of Foreign-related Receipts аnd Payments (2014) FILE: Table of Codes for Transactions of Foreign-related Receipts аnd Payments FILE: New аnd Altered Industrial Classifications аnd Codes of National Economic Activities 2014-12-08/en/2014/1208/750.html
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The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange(SAFE) in all provinces, autonomous regions, and municipalities directly under the central government, and SAFE branches of Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo: In accordance with the Regulations of the Peoples Republic of China on the Administration of Foreign-funded Banks, which were promulgated by the State Council on November 11, 2006, a circular on foreign exchange management issues involved in the transformation of the branches of foreign-funded banks is hereby given as follows: 1. Business qualifications Wholly foreign-funded banks after the transformation shall take over the licenses for spot purchases and sales of foreign exchange, forward purchases and sales of foreign exchange, swaps of renminbi against foreign currencies, and other renminbi derivatives against foreign currencies that the original branches of the foreign banks had already obtained, and shall attend to the procedures to alter the registration at the local SAFE branches (including the foreign exchange administrative departments, hereinafter referred to as SAFE branches). The branches of the wholly foreign-funded banks shall take over the licenses for foreign exchange purchases and sales and renminbi derivatives against foreign currencies that the same outlets had obtained before the transformation, and shall attend to the procedures to alter the registration at the local SAFE branches. The wholly foreign-funded banks after the transformation shall take over the membership in the foreign exchange market of the original branches of the foreign-funded banks. The wholly foreign-funded banks, taking over the membership in the inter-bank spot foreign exchange market, shall go through the procedures to alter the registration at the China Foreign Exchange Trade System; the wholly foreign-funded banks taking over the licenses for inter-bank forward foreign exchange transactions and inter-bank renminbi swaps against foreign currencies shall report the changes to the China Foreign Exchange Trade System for preliminary inspection and to the SAFE to alter the registration; the wholly foreign-funded banks taking over the licenses for market-makers of renminbi-foreign currency transactions in the inter-bank foreign exchange market shall report the changes to the SAFE for registration and filing. The branches of foreign-funded banks that had obtained the license for QFII custodian shall, after the transformation, apply to the SAFE to confirm their taking over of the license for QFII custodian. If the wholly foreign-funded banks take over the license, a procedure to alter the registration shall be undertaken at the SAFE. If the branches of foreign-funded banks that keep the foreign exchange wholesale business (hereinafter referred to as bookkeeping branches) take over the license, a registration procedure shall be undertaken at the SAFE. The wholly foreign-funded banks transformed from the branches of foreign-funded banks with a QDII license may take over their QDII quotas directly. 2. Management of the general position over foreign exchange purchases and sales The SAFE and its branches shall implement the ongoing method to manage the general position over foreign exchange purchases and sales of wholly foreign-funded banks. The wholly foreign-funded banks may take over the general position quotas over foreign exchange purchases and sales of the original branches of the foreign-funded banks. If the wholly foreign-funded banks need to adjust the general position quotas over foreign exchange purchases and sales, they shall, based on their amount of capital, apply to the local SAFE branches in accordance with the Circular of the SAFE on Adjusting the Method of Managing Bank Foreign Exchange Purchase and Sale Positions (HuiFa No.69 [2005]) and the Circular of the General Affairs Department of the SAFE on Prescribing the Banks General Position Quotas over Foreign Exchange Purchases and Sales (HuiZongFa No. 118 [2005]), and other relevant provisions. The bookkeeping branches not implementing centralized management of the general position over foreign exchange purchases and sales before the transformation may take over the general position quotas over the foreign exchange purchases and sales of the original branches of the foreign-funded banks. The bookkeeping branches implementing centralized management of the general position over foreign exchange purchases and sales before the transformation shall carry the relevant documentation to the local SAFE branches to apply for a re-prescription of their general position quotas over foreign exchange purchases and sales. 3. Transfers of foreign exchange capital and exchanges between local and foreign currencies Transfers of foreign exchange operating funds between wholly foreign-funded banks and their branches after the transformation can be made at their own discretion. Exchanges between domestic and foreign currencies of foreign-funded bankscapital (or operating funds) are subject to advance approval by the local SAFE branches in accordance with the Circular of the SAFE on the Approval Principles and Procedures for the Banks' Own Foreign Exchange Purchases and Sales under the Capital and Financial Account (HuiFa No.61 [2004]). When the accumulated amount of one-year exchanges between domestic and foreign currencies is more than the equivalent of USD 500 million (including USD 500 million), the local SAFE branches shall give preliminary approval and report to the SAFE for further approval. 4. Accounting items for foreign exchange purchases and sales Wholly foreign-funded banks after the transformation shall, in accordance with the Interim Measures for the Management of the Designated Foreign Exchange Banks' Handling of Foreign Exchange Purchase and Sale Operations (Decree of the People's Bank of China No.4 [2002]), establish independent foreign exchange purchase and sale accounting items, separate foreign exchange purchases and sales for the clients, their own foreign exchange purchases and sales, intra-system foreign exchange purchase and sale positions management transactions, and market foreign exchange purchase and sale positions management transactions, and they shall be accounted for separately under the accounting items for foreign exchange purchases and sales. The wholly foreign-funded banks that cannot meet the aforesaid requirements by the end of the preparatory period for the transformation shall meet the said requirements within two years after obtaining approval to start operations from the China Banking Regulatory Commission. 5. Management of surplus quotas for short-term external debts and external guarantees The wholly foreign-funded banks after the transformation shall take over the quotas of the short-term external debt and external financial guarantees provided to overseas enterprises from the original branches of the foreign banks, and shall report to the SAFE and the local SAFE branches. The registrations of claims, debts, and external guarantees that were originally handled by the branches of the foreign banks shall accordingly now be handled by the wholly foreign-funded banks. The changes in the external debts registration shall be handled collectively at one time by the banks at the SAFE. The registration changes of the external guarantees and domestic foreign exchange loans shall be handled collectively at one time by the guarantors or claimants at the local SAFE branches/ sub-branches. If an overseas bank has both a wholly foreign-funded bank and a bookkeeping branch in China, the said wholly foreign-funded bank and the bookkeeping branch shall share the surplus quotas of the short-term external debt and the external financial guarantees provided to the overseas enterprise. The wholly foreign-funded bank shall be responsible for management. To go through the aforesaid registration changes or filing, a written application, the approval to start a business issued by the China Banking Regulatory Commission, the licenses for relevant operations issued by the foreign exchange bureaus, and other documents required by the foreign exchange bureaus shall be presented. All SAFE branches shall simplify the procedures for approving a change of registration. On receiving this Circular, all SAFE branches shall transmit it promptly to the sub-branches and foreign-funded banks under their jurisdiction. In cases of any problems encountered during implementation, please send the feedback to the SAFE in a timely manner. Telephone numbers: Balance of Payments Department: 010-68402464, 68402311; Fax numbers: 010-68402315, 68402303 Capital Account Management Department: 010-68402247, 68402348; Fax numbers: 010-68402208, 68402349 2011-09-21/en/2011/0921/731.html
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Provincial, Autonomous Region, and Municipal Branches, Foreign Exchange Departments, Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo Branches of the SAFE, and designated China-funded foreign exchange banks: To deepen the reform of the foreign exchange administration system, streamline administrative approval procedures, and regulate receipt and payment activities under cross-border guarantees, the State Administration of Foreign Exchange (SAFE) has decided to improve the methods of foreign exchange administration for cross-border guarantees and has developed the Provisions on Foreign Exchange Administration for Cross-border Guarantees and its operational guidelines (hereinafter referred to as “these Provisions”). These Provisions are now issued to you for implementation. These Provisions will come into force as of June 1, 2014. If there is any inconsistency between previously issued regulations and these Provisions, these Provisions will prevail. When these Provisions become effective, the regulations as listed in Annex 3 will be repealed. Upon receipt of these Provisions, the SAFE branches and Foreign Exchange Departments should promptly forward them to the central sub-branches, sub-branches, urban commercial banks, rural commercial banks, foreign banks, and rural credit cooperatives under their respective jurisdictions, and the China-funded banks should promptly forward them to the branches under their jurisdictions. Please contact the Capital Account Administration Department of the SAFE immediately should any problems be encountered in terms of their implementation. Annex: 1. Provisions on Foreign Exchange Administration for Cross-border Guarantees 2. Operational Guidelines for Foreign Exchange Administration for Cross-border Guarantees 3. Catalogue of the Repealed Regulations The State Administration of Foreign Exchange May 12, 2014 FILE: Provisions on Foreign Exchange Administration for Cross-border Guarantees FILE: Operational Guidelines for Foreign Exchange Administration of Cross-border Guarantees FILE: Catalogue of the Repealed Regulations 2014-08-22/en/2014/0822/745.html
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To the Shanghai Headquarters, Branches, Business Management Departments, and Central Sub-branches in the capital cities of provinces (autonomous regions) and insub-provincial cities；the branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the central government, the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, all Chinese-funded designated foreign exchange banks, and the China Foreign Exchange Trade System: To further enhance the formation mechanism for RMB market-based exchange rates, the following issues concerning management of the trading rates in the interbank foreign exchange market and the exchange rates posted by banks are hereby notified: 1. The People’s Bank of China (hereafter “the PBC”) authorizes the China Foreign Exchange Trading Center (hereafter “the Center”) to announce to the public, at 9:15 AM of each working day, the mid-rates of the RMB to the USD, EUR, JPY, HKD, GBP, MYR, RUB, AUD, CAD, and NZD for the day, as the mid-rates for interbank spot foreign exchange market transactions (including those on a quoting or matching basis) for that day. The mid-rates, which are announced for that day by the Center, as authorized by the PBC, shall prevail upon such announcement until an announcement of new mid-rates. 2. The formation mechanism of the RMB/USD mid-rate is as follows: the Center makes a price enquiry prior to the opening of the interbank foreign exchange market on a daily basis to the market makers and uses the quotations of the market makers as the sample to calculate the RMB/USD mid-rate, deletes the highest and lowest quotations and obtains the RMB/USD mid-rate for that day based on the weighted average of the remaining quotations; the weightedfunction is determined on a comprehensive basis by the Center according to indicators such as the trading volume and the quotations of the market makers in the interbank foreign exchange market. 3. The Center determines the mid-rates of the RMB to the EUR, HKD, and CAD respectively on a cross-rate basis according to the mid-rate of the RMB to the USD for the day, and the rates of the EUR, HKD, and CAD to the USD in the international foreign exchange market at 9:00 AM. The Center determines the mid-rates of the RMB to the JPY, GBP, AUD, NZD, MYR, and RUBrespectively according to the average quotations of the corresponding currencies made by the market makers for direct dealings prior to the opening of the interbank foreign exchange market on a daily basis. 4. The daily trading rate of the RMB/USD in the spot foreign exchange market may move within a range of plus or minus 2% from the mid-rate of the RMB/USD announced for the day by the Center. The trading rates of the RMB to the EUR, JPY, HKD, GBP, AUD, CAD, and NZD may move within a range of plus or minus 3% from the mid-rate of the RMB to the corresponding currency as announced by the Center.The trading rates of the RMB to the MYR and RUB may move within a range of plus or minus 5% from the mid-rate of the RMB to the corresponding currency as announced by the Center. The ranges the movement of the trading rates of the RMB to other non-USD currencies are separately prescribed. 5. The banks may post to its clients, on an independent basis, the exchange rates of the RMB to various currencies according to market demand and pricing ability; the buying and selling rates for spot exchanges or cash are not subject to any limits, but are subject to independent pricing according to market supply and demand. The banks shall establish and consolidate the internal control system for the posted exchange rates so as to prevent risks and to avoid unfair competition. 6. This Circular shall enter into effect as of the date of issuance. The Circular of the People’s Bank of China on Issues Concerning Management of the Trading Rates in the Interbank Foreign Exchange Market and the Exchange Rates Posted by DesignatedForeign Exchange Banks (YinfaNo. 183 [2005]), the Circular of the People’s Bank of China on Further Improving Management of the Trading Rates in the Interbank Foreign Exchange Market and the Exchange Rates Posted by Designated Foreign Exchange Banks (Yinfa No. 250 [2005]), and the Circular of the People’s Bank of China on Issues Concerning Management of the Trading Rates in the Interbank Foreign Exchange Market and the Exchange Rates Posted by Designated Foreign Exchange Banks (Yinfa No. 325 [2010])shall be simultaneously abolished. This Circular shall prevail for relevant issues concerning the management of the trading rates in the interbank foreign exchange market and the exchange rates posted by banks referred to in other documents issued by the PBC and the SAFE. People’s Bank of China July 1, 2014 2014-08-06/en/2014/0806/744.html
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The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (the SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, all policy banks, state-owned commercial banks, joint-stock commercial banks, and the China Foreign Exchange Trade System: For the purpose of promoting foreign exchange market development, the following relevant matters are hereby notified concerning adjustments in the business management of RMB foreign exchange derivative products according to the Interim Measures for Management of Conducting Settlements and Sales of Foreign Exchange by Designated Foreign Exchange Banks and other legal and regulatory stipulations: I. Streamlining access administration for foreign exchange swap and currency swap businesses. Banks and their branches that have obtained (including during the period prior to implementation of this Circular) qualifications for forward settlements and sales of foreign exchange business in line with the Circular of the People’s Bank of China Concerning Expansion of Forward Foreign Exchange Settlements and Sales to Clients and Launching RMB and Foreign Currency Swap Businesses by Designated Foreign Exchange Banks (Yinfa No. 201 [2005]) may automatically obtain business qualifications for foreign exchange swaps and currency swaps, and are not required to apply again for filing. Before the banks and their branches newly launch foreign exchange swap and currency swap business for clients, they shall confirm with the State Administration of Foreign Exchange (SAFE) or their branches and sub-branches the statistics on their settlements and sales of foreign exchange and other administrative matters. II. Increasing the principal exchange modes for currency swap business. Banks can repay the principal and interest for domestic and overseas foreign currency liabilities of clients in conformity with the foreign exchange administrative stipulations, conduct currency swap business without actual exchanges of the principal on the effective date of the contract or currency swap business with or without actual exchanges of the principal on the date of maturity, and can add the principal exchange mode for inter-bank foreign exchange market currency swap business accordingly. For foreign exchange exposure generated in the aforementioned currency swap business, banks can integrate it into their overall position for the settlement and sale of foreign exchange for uniform management. III. Supporting banks to refine options business pricing and risk management With regard to the balance settlement options business conducted for clients or on the inter-bank foreign exchange market by banks in line with the Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning Options Transactions of RMB to Foreign Exchange (Huifa No. 8 [2011]), the reference price may be determined by both trading partners in line with the business principles upon consultation, but it shall be the authentic and effective domestic market exchange rate. Banks can select a reasonable and proper approach and the parameters based on their own discretion to measure the Delta position of the options and to integrate them into the overall position of the settlements and sales of foreign exchange for universal management. IV. When banks conduct RMB foreign exchange derivative product business for clients, they shall follow the principles of “knowing your clients,” “knowing your business,” and “due diligence reviews,” and shall sell the right products to the right clients, strengthen risk disclosure and their own risk management, and conduct business in a prudent and compliant manner. V. The China Foreign Exchange Trade System shall, in line with the stipulations in this Circular, adjust the relevant trading rules and systems of the inter-bank foreign exchange market accordingly and shall do a good job in terms of technical support. VI. This Circular will enter into effect as of January 1, 2014. Upon receiving this Circular, the branches and foreign exchange departments of the SAFE shall immediately distribute it to the banks and currency brokerage companies under their respective jurisdictions. The Circular is hereby notified. State Administration of Foreign Exchange December 16, 2013 2014-08-01/en/2014/0801/742.html
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In order to adapt to the development of banks’ transport of foreign currency banknotes and further standardize administration of banks’ transport of foreign currency banknotes into or out of the territory of the PRC, the State Administration of Foreign Exchange (SAFE) and the General Administration of Customs (GAC) jointly revised the Regulations on the Administration of Banks’ Transport of Foreign Currency Banknotes Into or Out of the Territory of the PRC (see the attachment). It is hereby printed and distributed to you and the relevant particulars are notified as follows: I. Banks that already qualify to transport foreign currency banknotes into or out of PRC territory prior to the issuance of this Circular do not need to reapply for such qualification. II. The License for Banks’ Transport of Foreign Currency Banknotes Into or Out of PRC Territory that has been printed and signed by the SAFE prior to the issuance of this Circular shall remain valid until September 30, 2015. Licenses that have not been used by then will be uniformly reclaimed and destroyed by the SAFE. After receiving the Regulations, the branches and administrative departments of the SAFE shall timely transfer them to the central sub-branches, sub-branches, and Chinese-foreign banks within their respective jurisdictions. The Circular of the State Administration of Foreign Exchange and the General Administration of Customs on the Issuance of Regulations on the Administration of Banks’ Transport of Foreign Currency Banknotes Into or Out of the Territory of the PRC (Huihan No. 65 [1998]), the Circular of the State Administration of Foreign Exchange and the General Administration of Customs on Issues Concerning Banks’ Transport of Macau Pataca Banknotes (Huifa No. 204 [1999]), the Circular of the Comprehensive Department of the State Administration of Foreign Exchange and the General Office of the General Administration of Customs on Issues Concerning the Transport of Russian Ruble Banknotes Into or Out of the Territory of the PRC (Huizongfa No. 44 [2004]), and the Circular of the Comprehensive Department of the State Administration of Foreign Exchange and the General Office of the General Administration of Customs on Issues Concerning Banks’ Transport of Foreign Currency Banknotes Into or Out of the Territory of the PRC Handled by the Urumqi Port Customs (Huizongfa No. 198 [2007]) shall simultaneously be repealed. If problems arise in implementation, please contact the SAFE and the GAC in a timely manner. Contact No. of the SAFE: 010-68402313 Contact No. of the GAC: 010-65194959 Attachment: Regulations on the Administration of Banks’ Transport of Foreign Currency Banknotes into or Out of the Territory of the PRC State Administration of Foreign Exchange (SAFE) General Administration of Customs (GAC) April 22, 2014 FILE: Regulations on the Administration of Banks’ Transport of Foreign Currency Banknotes Into or Out of the Territory of the PRC 2014-08-01/en/2014/0801/743.html
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A symposium of branch directors of the State Administration of Foreign Exchange (SAFE) was recently held in Shenyang, Liaoning province. The symposium discussed foreign exchange administration work since the beginning of 2009, analyzed the current foreign exchange situation, and studied and planned the next stage of foreign exchange administration work. Yi Gang, administrator of the SAFE, and Deng Xianhong, deputy administrator of the SAFE, each delivered speeches at the symposium. The symposium pointed out that since the beginning of this year, under the firm leadership of the Central Committee of the CPC and the State Council and the direct guidance of the Party Committee of the Peoples Bank of China, the foreign exchange administration departments have been earnestly carrying out and putting into practice the scientific outlook on development, and have made new achievements with consolidated conviction and concerted effort, which have played an active role in coping with the global financial crisis and promoting the steady and rapid development of the national economy. First, normal foreign trade activities of enterprises have been further facilitated so as to mitigate the difficulties of export enterprises. The SAFE has earnestly put into practice the policy measures of the State Council on promoting economic development with financial levers and stabilizing external demand, improved on-line inspection and management for the collection and settlement of foreign exchange for exports, and has taken measures to encourage banks to carry out trade financing. These measures are conducive to accelerating foreign exchange collection and settlement for exports and capital turnovers as well as for stabilizing the foreign trade activities of enterprises. Second, energetic support has been given to the go-global strategy and trade facilitation has been promoted. The SAFE issued the Circular on Related Issues Regarding Foreign Exchange Administration of Overseas Loans Granted by Domestic Enterprises and the Regulations on Foreign Exchange Administration of Overseas Direct Investment of Domestic Institutions, which further expanded the scope of lenders and sources of funds for overseas loans, streamlined the ratification and exchange procedures for overseas loans, and improved the relevant statistical monitoring and risk prevention mechanism. The examination and verification measures of foreign exchange fund sources for overseas direct investment have been altered from ex ante examination to ex post registration. The administration system for outward remittances of funds has been adjusted from a ratification system to a registration system. Currently, the overseas direct investment of domestic institutions is basically free from exchange procedure restrictions, which, to a great extent, has further facilitated the relevant procedures. Third, the statistics and monitoring of the balance of payments have been improved, and balanced administration and risk prevention of cross-border fund flows have been strengthened. The SAFE improved the foreign exchange administration and monitoring system for direct investment, revised the measures for the statistics of foreign exchange assets and liabilities of Chinese-funded financial institutions, standardized the opening, use, and other activities of domestic foreign exchange accounts of overseas institutions, and improved the supervision of cross-border fund flows. The SAFE also improved the working mechanism of the Global Financial Crisis Response Team, completed the appraisal of commercial banksimplementation of the foreign exchange administration regulations, and revised and issued the Measures for Appraisal of Banks Implementation of Foreign Exchange Administration Regulations. Fourth, construction of the foreign exchange market has been promoted and efforts by enterprises to avoid exchange rate risks have been supported. Since the beginning of this year, the SAFE has approved three currency brokerage companies to enter the foreign exchange brokerage business, three financial companies to have access to the inter-bank foreign exchange market, and seven finance companies of enterprise groups to engage in spot settlement and sales of foreign exchange, in order to activate transactions on the foreign exchange market and facilitate the use of foreign exchange by transnational enterprise groups. The SAFE actively carried out the netting clearing business of inquiry trading on the inter-bank foreign exchange market in order to lower market operation risks and to increase market activity. Fifth, administrative procedures for the examination and approval of foreign exchange business have been improved, and efforts to adjust the foreign exchange regulations have been strengthened. The SAFE delegated the examination and approval authority for ten foreign exchange businesses under the capital account from the headquarters to its branches so as to facilitate the handling of the business by enterprises. Efforts were strengthened to straighten out the existing foreign exchange administration regulations; 91 regulatory documents on foreign exchange administration were declared null and void, thus facilitating the efforts of enterprises and banks to grasp the relevant foreign exchange administration regulations. Sixth, foreign exchange fund flows in breach of the regulations have been actively investigated and punished so as to maintain good order on the foreign exchange market. The SAFE successively organized and implemented special examinations and investigations of foreign exchange business, and made concerted supervisory efforts in various departments to further improve the supervision of abnormal foreign exchange fund flows. The SAFE continued to carry forward the spirit of revitalizing business with integrity and credibility, to do a good job for the disclosure of illegal information about foreign exchange transactions, and to make major efforts by harshly cracking down on illegal acts and acts in breach of the regulations. Seventh, the safety of foreign exchange reserve assets has been guaranteed, and the operation and management of foreign exchange reserves have been improved. The SAFE persisted in prioritizing risk prevention, conducted deep analysis of market changes and economic trends, earnestly summarized the experiences and lessons in coping with the international financial crisis, and actively explored operation and management systems and mechanisms that are suited for implementation in China. Eighth, education on building clean government and construction of an internal control system have been strengthened. The campaign of the Caution and Education Month for Building Clean Government was carried out in the headquarters of the SAFE in April, and the year of 2009 has been designated as the Year of Standardized Administrative Enforcement of the SAFE. Vigorous efforts have been made to improve the internal management system. For key departments, businesses, and procedures involving administrative approval, self-examination activities have been conducted in line with the requirements of the Administrative Licensing Law and other relevant provisions. The functions of various positions in the administrative enforcement departments have been examined in an all-round manner, the enforcement procedures have been standardized, and an appraisal and assessment mechanism and responsibility investigation mechanism for administrative enforcement have been established. It was agreed at the symposium that Chinas economy has entered a critical period of stabilizing and recovery. Generally, the nations foreign exchange collection and payments on the whole so far this year have been stable, with a certain amount of net inflows and no massive outflows of capital. In the upcoming period, the balance of payments and foreign exchange collection and payments will still confront relatively great uncertainty and complexity. In this regard, the foreign exchange administration will continue to adhere to the policy orientation of preventing massive outflows of funds and warding off the sudden inflow of funds. Meanwhile, under the guidance of the scientific outlook on development, the various plans of the CPC Central Committee and the State Council shall be resolutely implemented. Continued efforts will be made to emancipate the mind, actively upgrade the concepts of foreign exchange administration, further strengthen service-oriented awareness in foreign exchange administration, and incorporate cost control and market-oriented awareness into foreign exchange administration, in order to constantly improve social transparency, service quality, and the management level of foreign exchange administration, to maintain the security of the national economy and finance, and to promote the sound and rapid development of the national economy. Priority will be given to the following areas: First, so as to facilitate foreign exchange collection and payments of various market entities, efforts will be made to further enhance service-oriented awareness in foreign exchange administration. The SAFE will step up the reform of the writing-off and verification system for exchange collection and payments for imports and exports, improve foreign exchange administration for trade in services, streamline procedures for submitting tax certificates for external payments in foreign exchange for trade in services, conduct research on the formulation of measures for the administration of overseas deposits of foreign exchange collections from exports, steadily promote product innovation on the foreign exchange market, and provide enterprises with more risk prevention instruments. Second, priority will continue to be placed on broadening capital outflow channels, and the reform of capital account administration will be steadily pushed forward. Research will be carried out on expanding the scope of centralized domestic operations of foreign exchange funds of enterprise groups so as to further facilitate the efforts of enterprise groups to raise the efficiency of fund use. The regulations on foreign exchange administration of QFII and DFII will be improved in order to provide domestic residents with more channels for investment. The SAFE will also team up with relevant departments to promote the development of the domestic capital market. Third, intensified efforts will be made for system integration, and the statistical monitoring system for cross-border funds will be improved. The SAFE will make major efforts to develop the foreign exchange account system and will continue to study the integration of data and the system in order to provide better services for cross-border fund flows and statistical monitoring and analysis of the balance of payments. Efforts will be made to perfect the statistical and declaration system of the balance of payments, improve the statistics of overseas assets, liabilities, profits, and losses of financial institutions, enhance the timeliness and transparency of statistics of the balance of payments, study the establishment and perfection of the statistical monitoring system for external claims and liabilities, and improve the system functions such as trade credit registration, direct investment, etc. Fourth, balanced management of cross-border funds will be strengthened, and the contingency mechanism for the balance of payments will be further improved. Efforts will be made to investigate the building of an overall claims and liabilities management system, to persist in and perfect the assessment system for the implementation of foreign exchange administration policies by banks, to consolidate the effects of such assessment, to reinforce the construction of an early warning risk system for the balance of payments, and to improve the multi-level dual-direction early warning framework for risks in the balance of payments. Intensified efforts will be made to investigate major and significant cases and to struggle against illegal acts or acts in breach of the regulations, such as the operation of underground money shops and network speculation in foreign exchange. Special inspections and investigations will be carried out to facilitate the operations of enterprises involved in exchange transactions in compliance with the relevant regulations. Fifth, efforts will be made to further improve the operation and administration of foreign exchange reserves. The SAFE will continue to improve the operation and management mechanism for foreign exchange reserves to meet the specific requirements of the Chinese economy, further intensify studies on the operation and development patterns of economic cycles and the financial market, and improve the long-term profitability of reserve assets based on maintaining asset security and liquidity. Sixth, efforts will be made to further increase the transparency of foreign exchange administration and promote the construction of the foreign exchange administration regulation system. Intensified efforts will be made to straighten out the regulations for a better understanding of the foreign exchange administration policies and regulations by market entities. Efforts will also be made to strengthen communications between the SAFE, the general public, and the relevant departments in order to create a sound external environment for foreign exchange administration. Seventh, the construction of clean government and of an internal management system will be further strengthened. Efforts will be made to strengthen supervision of leading cadres and to incorporate the building of clean government into the comprehensive responsibility target management of Party organizations and the administrative leadership teams at various levels. Party members and leading cadres at various levels should earnestly carry out the principle of dual responsibilities for one post, strengthen construction of the internal management system, and intensify training for cadres and education on the building of clean government. At the symposium it was required that the foreign exchange administrations at various levels shall thoroughly implement the scientific outlook on development under the guidance of Deng Xiaoping Theory and the important thought of the Three Represents, shall consolidate conviction, work steadfastly, and make great endeavors to achieve all the annual targets, so as to make greater contributions to the steady and rapid development of the national economy and to greet the 60th anniversary of the founding of New China with practical work and outstanding achievements. Participants at the symposium included the leaders, chief economists, chief accountants, chief leaders of all departments, the Party Committee, and all institutions of the SAFE, as well as the general deputy directors (deputy directors) responsible for foreign exchange work in all branches of the foreign exchange administrative departments. 2009-09-23/en/2009/0923/900.html
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The State Administration of Foreign Exchange (SAFE) recently issued the Circular of the SAFE on Relevant Issues Concerning the Management of Domestic Foreign Exchange Accounts of Overseas Institutions (hereinafter referred to as the Circular). A person-in-charge of the SAFE was interviewed on the relevant contents of the Circular. Q: What are the purposes and significance of issuing the Circular? A: In order to cope with the global financial crisis, the CPC Central Committee and the State Council have reiterated that efforts shall be strengthened to support economic development through financing, and the role of financing to bolster economic growth and to foster structural adjustments shall be given better play by implementing various measures. Emphasis has also been placed on deepening financial reform, strengthening risk prevention, and effectively maintaining financial security and stability. The issuance of this Circular is indicative of the efforts of the SAFE to fulfill the above requirements of the CPC Central Committee and the State Council. On the one hand, the Circular allows all domestic banks to open foreign exchange accounts for overseas institutions under the premise of prudent operations, and it streamlines the procedures for the examination and verification of documentary evidence for the account opening and overseas fund transfers by overseas institutions. These efforts are conducive for banks to broaden the scope of intermediary businesses and to facilitate fund management of go-globalenterprises so as to safeguard fund security, and consequently will enhance the capacity of banks and enterprises to cope with the global financial crisis. On the other hand, the Circular standardizes the identification mark of the foreign exchange accounts of overseas institutions as well as the rules on the declaration of balance of payments statistics, and clarifies that the cross-border transaction principle shall be applied to the examination of the authenticity of fund receipts and payments from/to domestic parties. Furthermore, the funds in the domestic foreign exchange accounts of overseas institutions shall be incorporated into the banks external debt management. Thus a firewall between the accounts of domestic institutions and the account of overseas institutions is established to prevent illegal inflows and outflows of funds via the domestic foreign exchange accounts of overseas institutions. Q: What is the main content of the Circular? A: The Circular allows qualified Chinese-funded banks and foreign-funded banks to open foreign exchange accounts and to provide financial services for overseas institutions after examining and verifying the authenticity and legitimacy of the opening of the domestic foreign exchange accounts by overseas institutions. However, the opening of special foreign exchange accounts by foreign investors and foreign exchange accounts of qualified overseas institutional investors etc. shall be subject to approval by the Foreign Exchange Administrations according to the regulations. The Circular also requires that domestic banks make identifying marks on the domestic foreign exchange accounts of overseas institutions and incorporate these accounts into relevant information system for uniform management. The receipts and payments from/to domestic institutions (individuals) by the said accounts shall be subject to cross-border transaction administration. Domestic banks must examine and verify valid commercial documents and vouchers as required and declare the balance of payments statistics according to the relevant regulations. The account funds are categorized as non-resident deposits, and accordingly shall be incorporated into the short-term external debt balance quota of the opening banks. Cash withdrawals from the accounts and foreign exchange settlements in a direct or disguised manner are prohibited unless approved by the Foreign Exchange Administrations. Domestic banks shall abide by the anti-money laundering regulations, such as the know your customer principle, the large-sum and suspicious transaction reporting system, and so forth. The Circular is not applicable to the opening and use of offshore foreign exchange accounts at offshore banking departments of domestic banks that have obtained offshore banking business qualifications in accordance with the law, and is also not applicable to the opening and use of foreign exchange accounts within China by overseas individuals. Q: What does the Circular specify for foreign exchange accounts opened at domestic banks by banks registered overseas? A: Banks registered overseas are identified as overseas institutions in the Circular, and all provisions in the Circular are applicable to the foreign exchange accounts opened by such banks at domestic banks. Such provisions include real-name accounts, affixing the NRA identification, free fund transfers from abroad, incorporating the funds in such foreign exchange accounts into the short-term external debt balance quota of the domestic opening banks, prohibiting cash deposits and withdrawals and prohibiting foreign exchange settlement, and so forth. Since the majority of the accounts opened by such banks at domestic banks are foreign exchange accounts of inter-bank deposits, which are relatively small in terms of their total amount, only involve overseas transfers, and are already covered in the balance of payments statistics, the foreign exchange accounts opened by these banks at domestic banks are not required to be incorporated into the foreign exchange account management information system, and are not subject to registration of the basic information, application of the special institutional code, and so forth. Q: What does the Circular specify in terms of monitoring and supervising the adoption of uniform identification of the domestic foreign exchange accounts of overseas institutions and in terms of submission of the information and so forth? A: In order to strengthen the monitoring and supervision over foreign exchange fund flows, to facilitate the handling of statistics and business, as well as to provide differentiation from offshore foreign exchange accounts (OSA foreign exchange accounts), the Circular requires that the identification NRA (NON-RESIDENT ACCOUNT) be marked on the form for domestic foreign exchange accounts of overseas institutions with NRA + the foreign exchange account number.From the banks perspective, no uniform requirements are imposed on the specific forms for marking the NRA identification. This provides the banks with the latitude to make the identification directly before the account number or to use alternative technologies such as a matching system for the NRA identification, on the condition that the identification is presented in the form of NRA+ the foreign exchange account number, enabling the payer and payee of foreign exchange funds to effectively identify the nature of the account. The Circular also requires that the domestic foreign exchange accounts of overseas institutions be incorporated into the foreign exchange account management information system. The domestic banks shall submit detailed information about the account opening, balance, receipt, and payment of the domestic foreign exchange accounts of overseas institutions via the system to the Foreign Exchange Administrations. The Foreign Exchange Administrations will notify the domestic banks separately regarding the specific time for submission of the information, based on the situation for upgrading and transforming the foreign exchange account management information system, the preparation of the banks, and so forth. The domestic banks shall make relevant preparations and submit the information about the declaration of the balance of payments statistics, the information about the non-resident deposits under the item of short-term external debt balanced management, and so forth. 2009-07-13/en/2009/0713/895.html
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The SAFE recently released China's Balance of Payments Statement for the first half of 2009. The statistics reveal that the current account and the capital and financial account continued to post a "twin surplus," but the scale of the surplus has begun to decline modestly. In the first half of 2009, China's surplus under the current account totaled USD 134.5 billion, a decrease of 30% year on year. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD 119 billion, USD 16.9 billion, and USD 15.2 billion, respectively, whereas the deficit in services amounted to USD 16.7 billion. Meanwhile, China's surplus under the capital and financial account totaled USD 61 billion, a drop of 15% year on year. In particular, the net inflows of direct investments and portfolio investments amounted to USD 15.6 billion and USD 20.2 billion respectively, whereas the net inflows of other investments reached USD 23.9 billion. Furthermore, China's international reserves continued to grow. At the end of June 2009, China registered a total of USD 2,131.6 billion in foreign exchange reserves, an increase of USD 185.6 billion over that at the end of 2008. For the purpose of enhancing the timeliness of the release of the data in the balance of payments statement, the SAFE released preliminary data on China's Balance of Payments Statement for the first half of 2009 on August 20. The data now available are subject to revision. In addition, the BOP Analysis Team of the SAFE released China's Balance of Payments Report for the First Half of 2009 in order to facilitate an understanding among all social groups of the data and analysis of China's balance of payments. Balance of Payments * First Half of 2009 US dollars (thousand) Items Line Balance Credit Debit I. Current Account 1 134,459,941 643,376,735 508,916,794 A. Goods and Services 2 102,319,724 576,190,644 473,870,920 a. Goods 3 118,976,618 521,262,315 402,285,697 b. Services 4 -16,656,894 54,928,329 71,585,222 1.Transportation 5 -9,148,812 10,632,325 19,781,137 2.Travel 6 -2,846,806 18,246,000 21,092,806 3.Communications Services 7 63,967 546,892 482,926 4.Construction Services 8 1,288,000 3,677,880 2,389,879 5.Insurance Services 9 -4,248,751 602,657 4,851,408 6.Financial Services 10 -26,701 158,530 185,231 7.Computer and Information Services 11 1,579,353 2,876,007 1,296,653 8.Royalties and Licensing Fees 12 -4,435,022 181,204 4,616,226 9.Consulting Services 13 2,291,165 8,253,302 5,962,137 10.Advertising and Public Opinion Polling 14 152,221 1,103,585 951,364 11.Audio-visual and Related Services 15 -104,943 38,736 143,678 12. Other Business Services 16 -1,300,352 8,186,771 9,487,123 13. Government Services, n.i.e. 17 79,789 424,439 344,650 B. Income 18 16,936,295 47,143,272 30,206,978 1.Employee Compensation 19 2,662,501 3,775,455 1,112,954 2.Investment Income 20 14,273,794 43,367,817 29,094,024 C. Current Transfers 21 15,203,922 20,042,819 4,838,897 1.General Government 22 -128,280 23,852 152,132 2. Other Sectors 23 15,332,202 20,018,967 4,686,765 II. Capital and Financial Account 24 60,994,554 342,306,167 281,311,613 A. Capital Account 25 1,348,333 1,448,015 99,683 B. Financial Account 26 59,646,222 340,858,152 281,211,930 1. Direct Investment 27 15,561,165 49,222,658 33,661,493 1.1 Overseas 28 -13,306,810 1,177,898 14,484,708 1.2 Domestic 29 28,867,975 48,044,760 19,176,784 2. Portfolio Investment 30 20,184,651 42,542,136 22,357,485 2.1 Assets 31 7,731,758 30,025,343 22,293,585 2.1.1 Equity Securities 32 -850,658 7,277,860 8,128,517 2.1.2 Debt Securities 33 8,582,415 22,747,483 14,165,068 2.1.2.1 Bonds and Notes 34 3,546,925 17,709,179 14,162,254 2.1.2.2 Money Market Instruments 35 5,035,490 5,038,304 2,814 2.2 Liabilities 36 12,452,893 12,516,793 63,900 2.2.1 Equity Securities 37 12,453,094 12,516,120 63,026 2.2.2 Debt Securities 38 -201 673 873 2.2.2.1 Bonds and Notes 39 0 0 0 2.2.2.2 Money Market Instruments 40 -201 673 873 3. Other Investment 41 23,900,406 249,093,358 225,192,952 3.1 Assets 42 29,117,407 70,167,876 41,050,468 3.1.1 Trade Credits 43 -16,307,365 0 16,307,365 Long-term 44 -1,141,516 0 1,141,516 Short-term 45 -15,165,849 0 15,165,849 3.1.2 Loans 46 6,437,006 26,814,013 20,377,007 Long-term 47 -20,214,000 0 20,214,000 Short-term 48 26,651,006 26,814,013 163,007 3.1.3 Currency and Deposits 49 28,968,413 33,278,498 4,310,085 3.1.4 Other Assets 50 10,019,353 10,075,364 56,011 Long-term 51 0 0 0 Short-term 52 10,019,353 10,075,364 56,011 3.2 Liabilities 53 -5,217,001 178,925,483 184,142,484 3.2.1 Trade Credits 54 -6,670,160 0 6,670,160 Long-term 55 -466,911 0 466,911 Short-term 56 -6,203,249 0 6,203,249 3.2.2 Loans 57 -6,083,623 151,047,587 157,131,210 Long-term 58 -8,387,786 5,196,860 13,584,646 Short-term 59 2,304,163 145,850,727 143,546,564 3.2.3 Currency and Deposits 60 4,955,296 24,508,180 19,552,884 3.2.4 Other Liabilities 61 2,581,486 3,369,716 788,230 Long-term 62 -120,472 0 120,472 Short-term 63 2,701,957 3,369,716 667,758 III. Reserves Assets 64 -185,941,174 0 185,941,174 3.1 Monetary Gold 65 0 0 0 3.2 Special Drawing Rights 66 -28,637 0 28,637 3.3 Reserves Position in the Fund 67 -336,537 0 336,537 3.4 Foreign Exchange 68 -185,576,000 0 185,576,000 3.5 Other Claims 69 0 0 0 IV. Net Errors and Omissions 70 -9,513,322 0 9,513,322 * This BOP statement employs rounded-off numbers. 2009-10-15/en/2009/1015/902.html
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The SAFE convened an extended meeting of the central team of the Party Leadership Group on September 21, 2009 to deliver and study the spirit of the Fourth Plenary Session (hereinafter referred to as the Session) of the 17th CPC Central Committee, and made plans for the tasks related to implementation of the spirit of the Session. Yi Gang, secretary of the Party leadership Group and administrator of the SAFE, chaired the meeting. It was pointed out at the meeting that the Session is an important meeting on the eve of the 60th anniversary of the founding of the New China, which is of significant and far-reaching importance for carrying out the spirit of the 17th CPC National Congress in an all-around manner, deeply implementing the scientific outlook on development, effectively coping with the impact of the global financial crisis, maintaining steady and rapid growth of the national economy, striving for new victories for the building of well-off society, as well as opening up new prospects for the construction of socialism with Chinese characteristics. It was proposed at the meeting that all Party members and cadres of the SAFE should earnestly comprehend the spirit of the Session, act in full conformity with the CPC Central Committee, continue to emancipate the mind, strive to be innovative and to blaze new trails, actively update concepts for foreign exchange administration, further enhance the service-oriented and market-oriented awareness of foreign exchange administration, constantly increase the service and management level of foreign exchange administration, and conscientiously safeguard the economic and financial security of the state so as to promote the steady and rapid development of the national economy. Yi Gang stressed that there still will be twists and turns before the global economy recovers. Since the foundation for an upswing in Chinas national economy is still not stable, firm, and balanced, the national economy is at a critical stage for maintaining growth and rebounding. To do a good job in foreign exchange administration requires that we comply with the important and strategic planning of the Session on strengthening and improving Party construction for the present and for the upcoming period, exert a major effort to construct a study-oriented Marxist political party, improve ideological and political consciousness of all Party members, persist in and perfect the system of democratic centralism, actively develop intra-Party democracy, deepen the reform of the personnel system relating to cadres, build ranks of high-quality cadres, fulfill the duties for fundamental work by improving work at the grassroots level, consolidate the organizational foundation for the leadership of the Party, carry forward the fine work style of the Party, maintain close bonds between the Party and the masses, speed up construction of a system to punish and prevent corruption, and thoroughly carry out the anti-corruption drive. It was pointed out at the meeting that some uncertainty will still exist for some time to come in terms of international capital flows and the balance of payments. Against the backdrop of the new circumstances and challenges, the foreign exchange administration departments should consolidate confidence and enhance the sense of crisis and risk awareness. The departments should continue to prioritize the maintenance of steady and rapid growth of the national economy as well as to promote a basic equilibrium in the balance of payments for foreign exchange administration, based on a scientific judgment of the economic situations both at home and abroad. The foreign exchange administrations must consistently cater to the needs for the steady and rapid growth of the national economy when fulfilling their duties, act in conformity with the policy orientation to prevent massive outflows or sudden influxes of capital, and conscientiously carry out the following foreign exchange administration tasks based on implementation of the spirit of the Session: First, further facilitate foreign exchange collection and payments for various market entities, expedite the reform of the verification and writing-off system for foreign exchange collection and payments for imports and exports, and constantly improve foreign exchange administration for trade in services. Second, further intensify efforts to reform and innovate the mechanism for foreign exchange administration, continue to emphasize the expansion of channels for capital outflows, push forward the opening of the capital account in a prudent and orderly manner, steadily promote product innovation on the foreign exchange market, and provide enterprises with more risk-hedging instruments. Third, further improve supervision for foreign exchange administration, enhance efforts for system integration, improve the statistical and monitoring system for cross-border fund flows, further enhance statistics, monitoring, analysis, and early warning levels for cross-border fund flows and the balance of payments, expedite the construction of foreign exchange administration laws and regulations, further increase the transparency and public credibility of foreign exchange administration, strengthen the balanced administration of cross-border fund inflows and outflows, and continue to improve the contingency mechanism for the balance of payments. Fourth, persist in fulfilling the responsibilities for the construction of Party work style and clean administration, intensify efforts for education, supervision, reform, and system innovation, enhance education on clean administration and self-discipline of cadres, improve various systems for the construction of Party work style and clean administration, and establish and perfect the internal control mechanism for administrative power so as to constantly reach new achievements in the construction of Party work style and clean administration. (The End) 2009-09-21/en/2009/0921/899.html