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The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government, and the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and commercial banks in China, To implement the arrangements of the CPC Central Committee and the State Council, and make all-out efforts to control the NCP epidemic, the SAFE notifies as follows relevant issues on offering convenient foreign exchange policy in the epidemic prevention and control period: First, all the SAFE branches and sub-branches shall start the emergency response mechanism, and in line with the principle of handling special cases with special methods, guide the banks within their respective jurisdictions to streamline processes and materials for purchase and payment of foreign exchange for imports of epidemic prevention and control supplies needed by relevant authorities and local governments, so as to practically improve efficiency. Second, for foreign exchange donations for fighting the epidemic from domestic and foreign donors alike, banks can recognize the receipts and settle foreign exchange via the beneficiary's existing foreign exchange settlement account under the current account. The requirement of opening up separate foreign exchange account for donations has been suspended. Third, while handling foreign exchange settlement and payment of receipts related with prevention and control of the epidemic under the capital account, enterprises are not required to submit documents or certificates for each transaction beforehand. Banks will intensify ex-post random inspection on the authenticity of fund use of such enterprises. Fourth, external debt quota for enterprises can be removed, in case that it is really required for epidemic prevention and control. To facilitate cross-border financing, such enterprises can apply for external debt registration via the “Online Application System of Government Services of the SAFE” at http://zwfw.safe.gov.cn/asone. Fifth, banks shall keep a keen eye on individuals' demand for foreign exchange and encourage them to go through individual foreign exchange transactions via online channels like mobile banking. Sixth, for other special foreign exchange services in connection with epidemic prevention and control, banks can handle them first and report them to local foreign exchange authorities for filing. In addition, the effective date of the Circular of the State Administration of Foreign Exchange on Streamlining Foreign Exchange Accounts (Huifa No. 29, [2019]) will be extended from February 1 to March 2, 2020. Therefore, banks shall report relevant data using the original account type code before 8pm on February 28, make preparations in accordance with the above Circular from 8pm on February 28 to 8pm on March 1, and then use the updated account code to submit relevant data starting from March 2. This Circular will be effective as of the date of issuance. The branches and foreign exchange administrative departments of the SAFE shall forward this Circular to the central sub-branches and sub-branches of the SAFE and banks in their jurisdictions as soon as possible; and commercial banks shall also forward this Circular to their branches and sub-branches as quickly as possible. Please contact the SAFE for any problems arising during implementation. Tel: 010-68402416, 68402365 General Affairs Department of the State Administration of Foreign Exchange January 27, 2020 2020-01-27/en/2020/0127/1652.html
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The State Administration of Foreign Exchange (SAFE) has recently released the data on banks' sales and settlements of foreign exchange and their foreign-related receipts and payments for customers for February 2020. SAFE Press Spokesperson and Chief Economist Wang Chunying answered media questions on foreign exchange receipts and payments for the month. Q: Could you brief us on the characteristics of China's foreign exchange receipts and payments for February 2020? A: China's foreign exchange market, despite the impact of the epidemic of COVID-19, stayed generally stable in February, with key highlights as follows: first, the supply and demand remained balanced in the foreign exchange market. Banks' sales and settlements of foreign exchange registered a surplus of USD 14.2 billion in the month, indicating a basic equilibrium in the supply and demand in China's foreign exchange market considering other supply and demand factors including forward foreign exchange sales and settlements and options. Second, non-banking foreign-related receipts and payments continued to record net inflows. In the month, non-banking sectors including firms and individuals registered a surplus of USD 9.6 billion in foreign-related receipts and payments, up by 5% month-on-month. Third, China's foreign exchange reserves remained generally stable, with changes in size being a result of valuation factors like exchange rate conversion and asset price changes. Fourth, the RMB exchange rate fluctuated in two ways within the reasonable range and its expectations remained stable. China's foreign exchange market has become more rational, systematic and mature, with cross-border capital flows through major channels staying generally stable. On one hand, players' desire to settle and sell foreign exchange remained stable. In February, the settlement ratio, a measure of the desire to settle foreign exchange or the ratio of customers' selling foreign exchange to banks to their foreign-related foreign exchange receipts, hit 59%, up by 5 percentage points year-on-year; the sales ratio, a measure of the desire to buy foreign exchange, or the ratio of customers' buying of foreign exchange from banks to their foreign-related foreign exchange payments, was 62%, down by 3 percentage points year-on-year. On the other hand, foreign exchange sales and settlements and foreign-related receipts and payments under trade in goods and direct investment remained in surplus in February; and foreign investors increased their net holdings of domestic bonds by USD 14 billion, compared with a net increase of USD 1.4 billion in January. For the moment, epidemic prevention and control is gaining momentum, businesses are reopening in a systematic way, and policy measures to keep foreign trade and investment stable have been introduced one after another in China, suggesting the fundamentals sustaining long-term economic growth and the aspiration for development have not been changed. Moreover, China is opening its markets wider to the outside, keeps improving its business environment, and further internationalizes the capital market, with its RMB assets highly attractive in the globe, thus laying a solid foundation for the stability of China's foreign exchange market. 2020-03-20/en/2020/0320/1654.html
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In 2016, the People's Bank of China and the State Administration of Foreign Exchange (SAFE) built a macro-prudential management policy framework for full-scale cross-border financing while cancelling ex-ante approval for external debt, which has greatly facilitated cross-border financing by domestic institutions. In recent years, a legion of promising innovative companies with independent intellectual property rights and technologies as well as advanced processes have emerged as the new development concepts were implemented. But some of them, especially micro, small and medium innovative companies that have limited net assets at the early stage could hardly find enough financing due to the low ceiling of quotas for cross-border financing. To encourage innovation and support healthy development of micro, small and medium high-tech companies, the SAFE initiated piloting for external debt facilitation in the national independent innovation demonstration zone in Zhongguancun, Beijing in 2018, allowing eligible micro, small and medium high-tech companies to find access to external debt themselves within a certain limit. This policy has met the demands of some micro, small and medium high-tech companies in Zhongguancun for overseas financing and reduced their financial costs. To meet the requirements raised at the 19 National People's Congress that efforts should be stepped up to accelerate the building of the new system for developing an open economy at a higher level to boost high-quality economic growth and to further facilitate full use of markets and resources, domestic and overseas, by micro, small and medium high-tech companies, the SAFE decides to expand the piloting scope to include Shanghai (China (Shanghai) Pilot Free Trade Zone), Hubei (China (Hubei) Pilot Free Trade Zone and Donghu New Technology Industrial Development Zone in Wuhan), Guangdong and Shenzhen (Guangdong-Hong Kong-Macao Greater Bay Area). In the meanwhile, further efforts will be made to strengthen external debt facilitation for Beijing Zhongguancun Science City Haidian Industry Park. Next, guided by the decisions and plans of the CPC Central Committee and the State Council, the SAFE will keep foreign trade and investment stable, launch more foreign exchange facilitation initiatives, and optimize the business environment for foreign exchange to boost the stable and healthy development of the economy and society. Further, the SAFE will enhance the management framework of macro-prudence and micro regulation for the foreign exchange market to guard against cross-border capital flow risks and ensure the bottom line that no systematic financial risk will occur. 2020-03-19/en/2020/0319/1651.html
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To implement the decisions and arrangements of the CPC Central Committee and the State Council, the Opinions on Accelerating the Building of Shanghai into an International Financial Hub and Financially Supporting the Integrated Development of the Yangtze River Delta (Yinfa No. 46 [2020]) was officially published on February 14, 2020 with approval from the State Council. Accelerating the building of Shanghai into an international financial hub and the integrated development of the Yangtze River Delta is a key growth strategy defined by the CPC Central Committee and part of the efforts to implement the guiding principles of the Fourth Plenary Session of the 19th CPC Central Committee to improve the government's governance systems and capabilities in finance. The Opinions provides 30 initiatives covering topics such as advancing financial piloting in Lin-gang Special Area, accelerating the opening up of the financial industry in Shanghai at a higher level and financially supporting the integrated development of the Yangtze River Delta. The release will be helpful for accelerating the building of Shanghai into an international financial hub and the integrated development of the Yangtze River Delta, and will be of great strategic significance to lead high-quality development of China and speed up the building of a modern economic system. The ongoing COVID-19 epidemic will have a short-lived impact on China's economy. In comparison, deepening the supply-side structural reform in the financial community and opening the financial industry wider to the outside, China's long-term policy orientation, is a long-standing cause that will not be disrupted by the epidemic. We are confident that China will speed up reforms, open its markets wider, and strengthen its risk governance capabilities. 2020-02-14/en/2020/0224/1649.html
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Q: The State Administration of Foreign Exchange (SAFE) has just released the latest data on foreign exchange reserves. Could you explain the causes of changes in foreign exchange reserves for January 2020? What would you say about the future trends? A: China posted USD 3.1155 trillion in foreign exchange reserves as at the end of January 2020, up by USD 7.6 billion or 0.2% month-on-month. China's cross-border capital flows stayed stable and the supply and demand of the foreign exchange market maintained basic equilibrium in January 2020, providing a strong support for the stable size of foreign exchange reserves. But due to multiple factors including the phase-one deal signed by the US and China, Britain's official exit from the EU and the NCP epidemic, the US Dollar Index rose slightly on international financial market and bond prices hiked in major countries. Under the combined impact of exchange rate conversion and asset price changes, China's foreign exchange reserves increased. Looking ahead, external environment is expected to remain complex and challenging, and there will still be many uncertainties in the global financial market. Despite the impact of the NCP epidemic on China's economy, which will be short-lived, China is confident, capable and convinced to win this battle. Moreover, China's fundamentals for long-term, sound and high-quality economic growth will remain unchanged, and the operation mechanism of the foreign exchange market will improve, which will be favorable for stabilizing market operations. All this will lay a solid foundation for China's foreign exchange reserves to remain stable at large. 2020-02-07/en/2020/0207/1653.html
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Q：The State Administration of Foreign Exchange (SAFE) has just released the latest data on China's foreign exchange reserves. Could you explain why China's foreign exchange reserves changed in February 2020? What will be the future trends? A: As at the end of February 2020, China's foreign exchange reserves hit USD 3.1067 trillion, down by USD 1.2 billion or 0.04% from the start of the year. China's foreign exchange market stayed generally stable in February. Globally, due to the impact of the pandemic of COVID-19, economic conditions and money policy expectations in major countries, the US dollar index and bond prices in major countries hiked. As a result, a combination of valuation factors like foreign exchange rate conversion and asset price changes led to the changes in China's foreign exchange reserves for the month. Going forward, the world economy will face more destabilizing factors and uncertainties, and global financial markets may become more volatile. Although the epidemic has had some impact on China's economic performance, yet in general China's economic fundamentals sustaining sound economic growth have not changed and the impact of COVID-19 will be short-lived and controllable. As policy measures are implemented, positive factors will accumulate to provide a strong support for the stable and healthy economic growth in China. With the favorable foundations and conditions for China's foreign exchange market to stay stable, China's foreign exchange reserves are expected to maintain general stability. 2020-03-07/en/2020/0307/1647.html
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Catalogue of Major Effective Regulations on Foreign Exchange Administration (as of December 31, 2019) 2020-02-24/en/2020/0224/1646.html
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In May 2020, China’s international trade in goods and services recorded receipts of RMB 1589.4 billion and payments of RMB 1165.4 billion based on statistics of balance of payments (BOP), registering a surplus of RMB 424 billion. Specifically, trade in goods registered receipts of RMB 1459.2 billion, payments of RMB 965 billion, recording a surplus of RMB 494.2 billion; trade in services recorded receipts of RMB 130.2 billion, payments of RMB 200.4 billion, resulting in a deficit of RMB 70.2 billion. Inthe US dollar terms, in May 2020,China's BOP-based receipts and payments of international trade in goods and services were USD 223.9 billion and USD 164.2 billion respectively, registering a surplus of USD 59.7 billion. Specifically, the receipts and payments from trade in goods were USD 205.5 billion and USD 135.9 billion respectively, resulting in a surplus of USD 69.6 billion. Trade in services registered receipts and payments of USD 18.3 billion and USD 28.2 billion respectively, recording a deficit of USD 9.9 billion.(End) InternationalTrade in Goods and Services of China (Based on the BOP statistics) May 2020 Item In 100 million of RMB In 100 million of USD Goods and services 4240 597 Credit 15894 2239 Debit -11654 -1642 1. Goods 4942 696 Credit 14592 2055 Debit -9650 -1359 2. Services -702 -99 Credit 1302 183 Debit -2004 -282 2.1Manufacturing services on physical inputs owned by others 70 10 Credit 72 10 Debit -2 0 2.2Maintenance and repair services n.i.e 30 4 Credit 46 6 Debit -15 -2 2.3Transport -122 -17 Credit 352 50 Debit -474 -67 2.4Travel -441 -62 Credit 98 14 Debit -540 -76 2.5Construction 36 5 Credit 72 10 Debit -37 -5 2.6Insurance and pension services -87 -12 Credit 22 3 Debit -109 -15 2.7Financial services 3 0 Credit 28 4 Debit -25 -4 2.8Charges for the use of intellectual property -203 -29 Credit 55 8 Debit -258 -36 2.9Telecommunications, computer and information services -23 -3 Credit 207 29 Debit -230 -32 2.10Other business services 43 6 Credit 341 48 Debit -297 -42 2.11Personal, cultural, and recreational services -9 -1 Credit 3 0 Debit -12 -2 2.12Government goods and services n.i.e 1 0 Credit 7 1 Debit -6 -1 Notes: 1. The trade in goodsand services in this table refers to the transactions between residents and non-residents, based on the same standard as that for BOP statement. The monthly dataare preliminary and may be inconsistent with the quarterly data in the BOP statement. 2. The data on international trade in goods and services are prepared in USD, and the RMB datafor the current month is derived by converting the USD data at the monthly average central parity rate of the RMB against the USD. 3. This table employs rounded-off numbers. Definition ofIndicators: Goods and Services: refers to the trade in goods and services between residents and non-residents, which is based on the same standard as that for the BOP statement. 1. Goods: refers to transactions in goods whereby the economic ownership is transferred between the Chinese residents and non-residents. The credit side records export of goods, while the debit side records import of goods. The data of goods account are mainly from the customs statistics of imports and exports, but differ from the statistics of the customs mainly in the following aspects: first, the goods in the BOP statement only reflect the goods whose ownership has been transferred (e.g. goods under the trade modes such as general tradeand processing trade with imported materials), while the goods whose ownership is not transferred (e.g. manufacturing services with supplied materials or with exported materials) are included in the statistics of trade in services instead of the statistics of trade in goods; second, as required by the BOP statistics, the goods imported and exported are valued on the FOB basis, but as required by the customs, the goods exported are valued on the FOB basis, whereas goods imported are on the CIF basis. Therefore, for the purpose of the BOP statistics, the international transport and insurance premiums are taken out from the value of imported goods and included in the trade inservices; and third, the data on net export of goods in merchanting which are not included in the customs statistics are supplemented. 2. Services: includes manufacturing services on physical inputs owned by others, maintenance and repair services n.i.e, transport, travel, construction, insurance and pension services, financial services, charges for the use of intellectual property, telecommunications, computer and information services, other business services, personal, cultural and recreational services, and government goods and services n.i.e. The credit side records services supplied, while the debit side records services received. 2.1 Manufacturing services on physical owned by others: processoronly provides processing, assembly, packaging and other services and charges service fee from the owner, while the ownership of the goods isnot transferred between the owner and the processor. The credit side recordsthe manufacturing services supplied by the Chinese residents on physical inputs owned by non-residents, and vice versa for debitside. 2.2 Maintenance and repair services: referto the maintenance and repair services supplied by residents to non-residentsor vice versa on goods and equipment (such as vessel, aircraft, and other transportation facility) owned by the receiving party. The credit side records the maintenance and repair services supplied by the Chinese residents tonon-residents, andvice versa for debit side. 2.3 Transport: refers to the process of transporting people and goods from one place toanother, and the relevant supporting and auxiliary services, as well as postaland delivery services. The credit side records the international transport, postal and delivery services supplied by residents to non-residents, and vice versa for debitside. 2.4 Travel: refers to goods consumed and services purchased by travelers in various economies as non-residents. The credit side records the goods and services provided by the Chinese residents to non-residents who have stayed in China for less than one year, as well as non-residents studying abroad and seeking medical treatment for indefinite period of stay. The debit side records the goods and services purchased by the Chinese residents when traveling, studying or seeking medical services abroad from non-residents. 2.5 Construction services: refer to the establishment, renovation, maintenance or expansion of fixed assets in the form of buildings, land improvement, roads, bridges and dams andother engineering buildings of engineering nature, relevant installation, assembly, painting, pipeline construction, demolition and project management, as well assite preparation, measurement and blasting and other special services. The credit side records the construction services provided by the Chinese residentsoutside the economic territory. The debit side records the construction services received by the Chinese residents in the Chinese economic territoryfrom non-residents. 2.6 Insurance and pension services: refers tovarious insurance services and commission to agents related with insurance transaction. The credit side records the life insurance and annuity, non-lifeinsurance, reinsurance, standardized guarantee services and relevant supporting services supplied by the Chinese residents to non-residents, and vice versa for debitside. 2.7 Financial services: refer to financial intermediationand supporting services, excluding those covered by insurance and pension services. The credit side records the financial intermediation and supporting services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.8 Charges for the use of intellectual property: refer to licensed use of intangible, non-productive/non-financial assets and exclusive rights between residents and non-residents and the licensed use of existing original works or prototypes. The credit side records the intellectual property-related services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.9 Telecommunications, computer and information services: refer tocommunications services between residents and non-residents and transactions of services related to computer data and news, excluding commercial services delivered via telephone, computer and Internet. The credit side records the telecommunications, computer and information services supplied by residents tonon-residents, andvice versa for debit side. 2.10 Other business services: refer toother types of services between residents and non-residents, including research and development services, professional and management consulting services, technical and trade-related services. The credit side records the other business services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.11 Personal, cultural and recreational services: refer to transactions of personal, cultural and recreational services between residents and non-residents, including audio visual and related services (films, radio, television programs and music recordings) and other personal, culturaland recreational services (health, education, etc.). The credit side recordsthe related services supplied by the Chinese residents to non-residents, and vice versa for debitside. 2.12 Government goods and services n.i.e: refer to various goods and services provided and purchased by governments and international organizations not included in other categories of goods andservices. The credit side records the goods and services not included elsewhere and supplied by the Chinese residents to non-residents, and vice versa for debit side. 2020-06-29/en/2020/0629/1715.html
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As shown in the statistics of the State Administration of ForeignExchange (SAFE), in May 2020, the amount of foreign exchange settlement andsales by banks was RMB 1079.6 billion and RMB 910.3 billion, respectively, witha settlement of RMB 169.3 billion. In the US dollar terms，the amount of foreignexchange settlement and sales by banks was USD 152.1 billion and USD 128.2billion, respectively, with a settlement of USD 23.8 billion. In particular,the amount of foreign exchange settlement and sales by banks for customers wasRMB 977.0 billion and RMB 834.1 billion, respectively, with a settlement of RMB142.9 billion; the amount of foreign exchange settlement and sales for banksthemselves was RMB 102.6 billion and RMB 76.2 billion, respectively, with a settlementof RMB 26.4 billion. During the period, newly signed contract amount of forwardforeign exchange settlement and sales was RMB 125.8 billion and RMB 71.7 billion,respectively, with a net newly signed contract amount of forward foreign exchangesettlement of RMB 54.1 billion. At the end of May, outstanding amount of forwardforeign exchange settlement and sales by the end of the current period was RMB 611.5billion and RMB 485 billion, respectively, with a net outstanding amount of forwardforeign exchange settlement of RMB 126.5 billion; the net Delta exposure ofoutstanding options was RMB -305.3 billion. During January to May 2020, the accumulative amount of foreignexchange settlement and sales by banks was RMB 5620.9 billion and RMB 5073.9billion, with an accumulative settlement of RMB 547.0 billion. In the US dollarterms, the accumulative amount of foreign exchange settlement and sales bybanks was USD 800.8 billion and USD 723.1 billion, with an accumulativesettlement of USD 77.7 billion. In particular, the accumulative amount offoreign exchange settlement and sales by banks for customers was RMB 4738.5billion and RMB 4367.5 billion, respectively, with an accumulative settlementof RMB 371.0 billion; the accumulative amount of foreign exchange settlementand sales for banks themselves was RMB 882.3 billion and RMB 706.4 billion,respectively, with an accumulative settlement of RMB 176.0 billion. During theperiod, newly signed contract amount of forward foreign exchange settlement andsales was RMB 699.7billion and RMB 327.5 billion, respectively, with a net newlysigned contract amount of forward foreign exchange settlement of RMB 372.2 billion. In May 2020, the amount of cross-border receipts and payments by non-bankingsectors was RMB 2170.4 billion and RMB 2129.8 billion, respectively, with a surplusof RMB 40.7 billion.During January to May 2020, the accumulative amount of cross-borderreceipts and payments by non-banking sectors was RMB 10794.2 billion and RMB 10935.1billion, respectively, with an accumulative deficit of RMB 140.8 billion. In the US dollar terms, in May 2020, the amount of cross-border receiptsand payments by non-banking sectors was USD 305.7 billion and USD 300.0 billion,respectively, with a surplus of USD 5.7 billion.During January to May 2020, theaccumulative amount of cross-border receipts and payments by non-banking sectorswas USD 1537.8 billion and USD 1557.8 billion, respectively, with an accumulativedeficit of USD 20.1 billion. Addendum: Glossaryand relevant definitions Balance of payments(BOP) refers to all economic transactionsbetween residents and non-residents. Foreignexchange settlement and sales by banks refers to settlement and sale transaction that bank executes for customers andfor the banks themselves, including statistic data onsettlements of forward contracts for foreign exchange settlementand sales and the exercises of option, and excludingthe transactions in the interbank foreign exchange market. The statistic reporting date of Foreign exchangesettlement and sales by banks should be the trade day of theForeignexchange settlement and sales transaction. By definition, foreignexchange settlement means foreign exchange holders sell foreignexchange to designated foreign exchange bank, and foreignexchange sales means designated bank sells foreign exchange to foreign exchange buyers. The net position of foreign exchange settlement andforeign exchange sales could be position squared throughtransactions on the inter-bank foreign exchange market, and it is one ofthe major contributors to the country’sforeign exchange reserve fluctuation, though it is not equal to netchange in foreign exchange reserves during the same period Unlikethe principle of balance-of-payments statistics, which cover the transactionsbetween residents and non-residents, foreign exchange settlement and sales bybanks only cover transactions of RMB and foreign currencies between banks and customers or on banks for themselves. Thenewly signed contract amount of forward foreign exchange settlement and sales refers to the binding forward contract between designated foreignexchange bank and client that predetermines foreign exchange currency, amount,exchange rate and tenor which to be executed upon maturity. Thenewly signed forward contract enables corporate to lock inadvance the exchange rate for the purchase or sale of a currency on a futuredate to manage relevant foreign exchange risk arising fromRMB volatility. In general, bank will hedge its foreign exchange risk exposures arise from the newly signed forward contract in the Interbank foreign exchange market. For example,when bank has net foreign exchange long position, bankwill short the equivalent amount of foreign exchange in the Interbank foreignexchange market in advance, or vice versa. Therefore, the newly signedcontract amount of forward foreign exchange settlement and sales is also one of contributors to China’s foreign exchange reserve fluctuation. Theunwind amount of forward foreign exchange settlement and sales refers to, where client is unable to perform the original forwardcontract due to change in its real demand, client to fully or partially closeits forward position by executing another deal with opposite direction to theoriginal contract. Therolling amount of forward foreign exchange settlement and sales refers to client to adjust the settlement date of original contract dueto change in its real demand. Theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period refers to the total amount of forwardcontracts accumulated from all non-matured forward contracts with client. Thenewly signed contractamount and the outstanding amount should satisfy the equationthat: theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period = theoutstanding amount of forward foreign exchange settlement and sales at the endof the previous period + the newly signed contract amount of forward foreign exchangesettlement and sales for the period - settlements of forwardcontracts for foreign exchange settlement and sales for the period - the unwindamount of forward foreign exchange settlement and sales for the period. The net Deltaexposure of outstanding options refers to the implied foreignexchange spot risk exposure from outstanding option contracts that bank executedwith client. Bank shall hedge such risk in the foreign exchange market for risk management during deal life cycle. The cross-borderreceipts and payments bynon-banking sectors refers to the receipts andpayments between domestic non-banking sectors (including institutional and individual residents)and non-residentsthrough domestic banks, excluding receipts and payments in cash. In particular,the statisticsincludescross-border receipts and payments between non-banking sectors andnon-residents through domestic banks (including RMB and foreign currency), and domesticreceipts and payments between non-banking sectors and non-residents throughdomestic banks (temporarily excluding domestic receipts and payments in RMBbetween individual residents and non-resident individuals). Data are collected whencustomers conduct receipts and payments with non-resident counterparties atdomestic banks. Specifically, the receipts refer to the capitalof non-bankingsectors received fromnon-residents via domestic banks; the payments refer to the capitalof non-bankingsectors paid to non-residents via domestic banks.The cross-border receiptsand payments by non-banking sectors is based on cash basis, different from the accrual basis required by the Balance of Payments Statistics. The statistics merely reflects the cash flows between non-bankingsectors and non-residents and does not include bartertransactions or transactions with non-residents conducted by the banks themselves. Therefore, the scope of the statistics is narrowerthan that of the Balance of Payments Statistics. 2020-06-19/en/2020/0619/1706.html
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As at the end of March 2020, China recorded RMB 14.8403 trillion in outstanding external debt denominated in both domestic and foreign currencies (equivalent to USD 2.0946 trillion, excluding those of Hong Kong SAR China, Macao SAR China, and Taiwan Province China, the same below). With respect to the term structure, the outstanding medium-and long-term external debt was RMB 6.226 trillion (USD 878.7 billion), accounting for 42%; while the outstanding short-term external debt was RMB 8.6143 trillion (USD 1.2159 trillion), taking up 58%, including 40% trade-related credit. In terms of institutions and sectors, the outstanding debt of government totaled RMB 1.9573 trillion(USD 276.2 billion), accounting for 13%; the outstanding debt of the central bank totaled RMB 355.7 billion (USD 50.2 billion), accounting for 2%; the outstanding debt of banks totaled RMB 6.873 trillion (USD 970.1 billion), taking up 46%; the outstanding debt of other sectors(including inter-company lending under direct investments) totaled RMB 5.6543 trillion (USD 798.1 billion), taking up 39%. In terms of debt instruments, the outstanding of loans was RMB 3.3271 trillion (USD 469.6 billion), accounting for 22%; the outstanding of trade credit and prepayment was RMB 2.3147 trillion (USD 326.7billion), accounting for 16%; the outstanding of currency and deposits was RMB 3.2767 trillion (USD 462.5 billion), accounting for 22%; the outstanding of debt securities was RMB 3.7848 trillion (USD 534.2 billion), accounting for 25.5%; the Special Drawing Rights (SDR) allocation amounted to RMB 67.6 billion (USD 9.5 billion), accounting for 0.5%. The outstanding debt of inter-company lending under direct investments totaled RMB 1.7086 trillion (USD 241.2 billion), accounting for 12%; and the outstanding of other debt liabilities was RMB 360.8 billion (USD 50.9 billion), accounting for 2%. With respect to currency structures, the outstanding external debt in domestic currency totaled RMB 5.575 trillion (USD 786.9 billion), accounting for 38%; the outstanding external debt in foreign currencies (including SDR allocation) totaled RMB 9.2653 trillion (USD 1.3077 trillion), accounting for 62%. In the total outstanding registered external debt in foreign currencies, the USD debt accounted for 83%, the Euro debt accounted for 7%, the HKD debt accounted for 5%, the JPY debt accounted for 2%, the SDR and other foreign currency-denominated external debt accounted for 3%. China’s major external debt metrics were all within the internationally recognized thresholds, indicating that the external debt risk is controllable on the whole. Appendix Definition of terms and interpretations External debt classification by term structure. There are two methods to classify the external debt by term structure. One is on the basis of the contract term,i.e. it is classified as medium- and long-term external debt if the contract term is over one year, and classified as short-term external debt if the contract term is one year or less; the other is on the basis of the remaining term, i.e.,on the basis of the contract term classification method above, the medium- and long-term external debt due within one year is classified as short-term external debt. In this news release, external debt is divided into medium- and long-term external debt and short-term external debt based on the contract term. Trade-related credit is a broad concept. In addition to trade credit and prepayment, it also involves other kinds of credit provided for trade activities. As it is defined, trade-related credit includes trade credit and prepayment, bank trade financing, short-term notes related to trade, and so forth. In particular, trade credit and prepayment refer to external liability arising from directly extending credit between the seller and buyer of goods transactions, specifically transactions between residents in the Chinese Mainland and overseas non-residents (including non-residents in Hong Kong SAR, Macao SAR, and Taiwan Province), i.e., the debt incurred due to the difference between the time of payment and the time of the goods ownership transfer, which include credit directly provided by the supplier (e.g., the overseas exporter) for goods and services, and advance payments made by buyers(e.g., overseas importers) for goods, services, and on-going business (or business to be undertaken). Bank trade financing refers to trade related loans that offered by a third party(e.g., banks) to exporters or importers, for instance, loans extended by foreign financial institutions or export credit agencies to buyers. Annexed table：China’s Gross External Debt Position by Sector, End of March 2020 End of March 2020 End of March 2020 （Unit:100 million RMB） （Unit:100 million US dollars） General Government 19573 2762 Short-term 666 94 Currency and deposits 0 0 Debt securities 666 94 Loans 0 0 Trade credit and advances 0 0 Other debt liabilities 0 0 Long-term 18906 2668 Currency and deposits 0 0 Debt securities 0 0 Loans 15644 2208 Trade credit and advances 3263 460 Other debt liabilities 0 0 Currency and deposits 0 0 Central Bank 3557 502 Short-term 2152 304 Currency and deposits 1167 165 Debt securities 985 139 Loans 0 0 Trade credit and advances 0 0 Other debt liabilities 0 0 Long-term 1405 198 Special drawing rights 676 95 Currency and deposits 0 0 Debt securities 0 0 Loans 0 0 Trade credit and advances 0 0 Other debt liabilities 729 103 Other Depository Corporations 68730 9701 Short-term 51440 7260 Currency and deposits 31591 4459 Debt securities 3344 472 Loans 16245 2293 Trade credit and advances 0 0 Other debt liabilities 260 37 Long-term 17290 2440 Currency and deposits 0 0 Debt securities 11790 1664 Loans 5432 767 Trade credit and advances 0 0 Other debt liabilities 69 10 Other Sectors 39457 5569 Short-term 27735 3915 Currency and deposits 9 1 Debt securities 155 22 Loans 3554 502 Trade credit and advances 22742 3210 Other debt liabilities 1275 180 Long-term 11722 1654 Currency and deposits 0 0 Debt securities 5264 743 Loans 4779 674 Trade credit and advances 405 57 Other debt liabilities 1275 180 Direct Investment: Intercompany Lending 17086 2412 Debt liabilities of direct investment enterprises to direct investors 10549 1489 Debt liabilities of direct investors to direct investment enterprises 782 110 Debt liabilities to affiliated enterprises 5755 812 Gross External Debt Position 148403 20946 Notes: 1. The short-term and long-term herein are broken down by contractual (original) maturity. 2. The data in this table have been rounded off. 2020-06-24/en/2020/0624/1712.html