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The State Administration of Foreign Exchange (SAFE) has recently published the Circular of the State Administration of Foreign Exchange on Regulating Large-sum Overseas Cash Withdrawals with Bank Cards (Huifa No. 29 [2017]) (Circular), and its official answered media questions on relevant issues. 1. Could you brief us on the background of the Circular? A: Alongside technical advancement, non-cash payment has been proliferating and offering increasing convenience. The international regulators' experience also shows that large-sum cash transactions tend to be associated with illegalities such as frauds, gambles, money laundering and terrorist financing. Given this, large-sum cash management is being intensified worldwide. Our monitoring finds that some individuals have withdrawn large sums of cash overseas with many bank cards, which are well above the payments for normal consumption, and are therefore suspicious of violating laws. Regulating large-sum overseas cash withdrawals with bank cards is crucial to cracking down on money laundering, terrorist financing and tax evasion, and can help guard against illegalities associated with cash withdrawals with bank cards. The Circular, aligned with the requirement of ensuring currency convertibility under the current account, does not contradict with the annual quota of USD 50,000 for foreign exchange purchases by individuals, or affect individuals' normal withdrawals of cash and consumption or the convenience for individuals to use foreign exchange. In addition, the SAFE is negotiating with overseas regulators the establishment of the information communication mechanism for regulating large-sum cash withdrawals, in a bid to enhance regulation and collaboration and guard against risks associated with cross-border money laundering. 2. What are the highlights of the Circular? A: First, in overseas cash withdrawals by individuals with domestic bank cards, the sum of withdrawals using the bank cards under the name of the individual (including additional cards) shall not exceed the equivalent of RMB 100,000 in every civil year. Second, the daily quota per card for overseas cash withdrawals with RMB cards and foreign currency cards is the equivalent of RMB 10,000. Third, in case of overseas cash withdrawals in excess of the annual quota, the individuals will not be allowed to withdraw cash overseas with the domestic bank cards in the current and second years. Fourth, individuals are prohibited from borrowing others' bank cards or lending their own bank cards to evade or help evade the management of overseas cash withdrawals. 3. Will the introduction of the Circular impact overseas consumption by cardholders? A: The introduction of the Circular will not impact overseas consumption by cardholders. Bank cards have become one of the most convenient payment tools for overseas consumption. They can be used for catering, accommodation, transport and purchases in overseas travel, business trips and study abroad, and does not offset the annual quota of USD 50,000 for foreign exchange purchases by individuals. The Circular is designed to standardize the large-sum overseas cash withdrawals with bank cards and will not change the basic framework for foreign exchange administration with regard to bank cards and the policy for the use of foreign exchange by individuals, or affect overseas consumption by individuals with bank cards. 4. What are the considerations behind the annual quota of RMB 100,000 for overseas cash withdrawals, as stipulated in the Circular? A: The quota-based management of overseas cash withdrawals with bank cards has been adopted since 2003, with the current quota no higher than RMB 100,000 per card per year. To prevent lawbreakers from withdrawing a large amount of cash with many cards from different banks, the Circular adjusts the annual quota for overseas cash withdrawals to RMB 100,000 per person per year. Statistics show that 81% of overseas cash withdrawals with domestic bank cards were lower than RMB 30,000 in 2016. The annual quota of RMB 100,000 as stipulated in the Circular can meet cardholders' requirements for normal cash withdrawals overseas and curb large-sum cash withdrawals by a few lawbreakers. If an individual does need to use large sums of cash overseas and will not violate regulations, they can handle it in accordance with relevant regulations for foreign exchange administration such as the Measures for the Administration of Individual Foreign Exchange, and the detailed implementation rules. For example, they can leave for China with foreign currency banknotes after buying foreign exchange in accordance with the law. 5. Will it be likely that individuals withdraw cash in excess of the annual quota after the Circular becomes effective? If yes, what impact will that have? A: The annual quota will be subject to the control by the SAFE through the card-issuing financial institutions based on the collection and calculations of the data from the card-issuing financial institutions. Considering that real-time control will postpone response and affect experience with the card, the SAFE adopts delayed control. Therefore, individuals shall well plan overseas cash withdrawals and ensure the quota will not be surpassed. In addition, the Circular requires the card-issuing financial institutions to properly notify the cardholders who withdraw cash overseas of watching policy changes and to step up policy promotion. To guard against malicious withdrawals by some cardholders, any individual who withdraws more cash than permitted will not be allowed to withdraw cash overseas with the domestic bank cards in the current and second years, and will be punished in accordance with the Regulations of the People's Republic of China on Foreign Exchange Administration, depending on the severity. 6. When will the Circular come into force? A: The Circular will become effective on January 1, 2018, with the 2018 annual quota for overseas cash withdrawals calculated on an accumulative basis starting from the same day. 7. Are individuals allowed to inquire about the breakdowns of overseas cash withdrawals with their bankcards? A: Any individual who is on the list of individuals whose right to withdraw cash overseas with domestic bankcards is suspended is allowed to inquire of the card-issuing financial institution about the breakdowns of the withdrawals using the bank card issued by the institution, or inquire of the branches or sub-branches of the SAFE by presenting their valid ID card. It should be noted that the SAFE has confidentiality provisions on the breakdowns of cash overseas withdrawals with bankcards and stipulates that any use of the breakdowns should comply with laws and regulations, and card-issuing financial institutions should properly keep the information on any individual whose right to withdraw cash overseas with domestic bankcards is suspended. 8. What suggestions do you have on overseas cash withdrawals by individuals with bank cards? A: Any individual who wants to withdraw cash overseas should protect their own interest. First, they should have a good plan for the use of foreign exchange, reducing the amount of cash carried or used, lest their personal and property security should be threatened by robbery. Second, they should be mindful of card security and information protection, lest their bank cards should be stolen, which will interrupt normal transactions. Third, they should use their bank cards in accordance with laws and regulations. They should not borrow others' bank cards to evade quota management, or lend their own cards to others lest the latter should use the cards for illegal purposes. 2017-12-30/en/2017/1230/1391.html
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The State Administration of Foreign Exchange (SAFE) has recently published the Balance of Payments and the International Investment Position for the third quarter and the first three quarters of 2017, and its press spokesperson answered media questions regarding relevant issues. Q: Could you brief us on China's balance of payments for the first three quarters of 2017? A: China witnessed twin surplus under the current account and the financial account in the Balance of Payments (excluding reserve assets) and increased reserve assets for the first three quarters of 2017. A surplus was registered under the current account. In the first three quarters, a surplus of USD 109.8 billion was recorded under the current account, contributing 1.3% to China's GDP, which remained reasonable. To be specific, a surplus of USD 334.7 billion was registered in trade in goods in the Balance of Payments, with exports of USD 1.5953 trillion and imports of USD 1.2605 trillion, which increased by 10% and 17% year on year respectively, indicating stronger momentum for the recovery foreign trade. A surplus was registered under the financial account that excludes reserve assets. A surplus of USD 112.1 billion was registered under the financial account that excludes reserve assets in the first three quarters of 2017, compared with a deficit of USD 313.9 billion for the same period the previous year. On the one hand, outbound investments remained steady. China posted a net increase of USD 213 billion in external financial assets due to the balance of payments transactions in the first three quarters. Specifically, net ODI went up by USD 65.1 billion; net external securities investment rose by USD 64.1 billion; and other investments such as external deposits and loans increased by USD 85.8 billion net. On the other hand, overseas investors continued to increase investments in China. In the first three quarters, the net external liabilities grew by USD 325.1 billion. To be specific, FDI climbed by USD 87.9 billion net; securities investment in China rose by USD 82.1 billion net; and other investments such as non-resident deposits attracted and loans obtained jumped by USD 155.9 billion net. An increase was recorded in reserve assets. In the first three quarters, China's reserve assets rose by USD 58.9 billion due to the balance of payments transactions (excluding non-trading factors such as exchange rate and price), compared with a decrease of USD 294.1 billion the same period of the previous year. In particular, foreign exchange reserves went up by USD 59.8 billion and reserve position in the IMF went down by USD 900 million. As the sustained recovery of the global economy helps strengthen the external demand, China's economy is operated within a reasonable range and the financial market is further opened up, China's balance of payments is expected to continue the basic equilibrium going forward. Q: What would you say about China's International Investment Position as at the end of September 2017? A: As at the end of September, China witnessed increased external financial assets and liabilities against the end of the previous year. China posted USD 1.7064 trillion in net external assets as at the end of September, including USD 6.7928 trillion in external assets, USD 5.0864 trillion in external liabilities, which went up by 5.0% and 9.0% respectively against the end of the previous year (same below). External assets were on an upward trend. To be specific, ODI rose by USD 75.9 billion or 5.8%; securities investment grew by USD 88.7 billion or 24.3%; financial derivative instruments went up by USD 1.5 billion or 28.8%; other investments increased by USD 53.6 billion or 3.2%; and reserve assets climbed by USD 106.5 billion or 3.4%. External liabilities continued to recover. Specifically, FDI grew by USD 87.4 billion or 3.0%; securities investment rose by USD 162.1 billion or 20.0%; financial derivative instruments went down by USD 1.8 billion or 26.8%; and other investments rose by USD 172.7 billion or 17.5%. In terms of the composition of external assets, reserve assets was USD 3.2044 trillion, 47% of total assets; ODI was USD 1.3931 trillion, 21% of total assets; securities investment was USD 453.8 billion, 7% of total assets; financial derivative instruments was USD 6.7 billion, 0.1% of total assets; and other investments hit USD 1.7347 trillion, 26% of total assets. With regard to the composition of external liabilities, FDI was USD 2.9533 trillion, 58% of total liabilities, the highest among external liabilities; securities investment was USD 970.7 billion, 19% of total liabilities; financial derivative instruments was USD 4.8 billion, 0.1% of total liabilities; and other investments reached USD 1.1576 trillion, 23% of total liabilities. Overall, China sustained its No. 1 position worldwide by reserve assets. With orderly outbound investments and rising inbound investments, China's international investment position is robust. 2017-12-28/en/2017/1228/1388.html
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The State Administration of Foreign Exchange (SAFE) has recently disseminated the external debt data as at the end of September 2017 and its official answered press questions regarding the recent external debt status in China. Q: Could you brief us on the external debt status in China for the first three quarters of 2017? A: China's external debt grew stably in the first three quarters of 2017. As at the end of September 2017, China's full-scale outstanding external debt (denominated in the RMB or other currencies) amounted to USD 1.68 trillion, an increase of USD 117.2 billion or 7.5% from the end of June. Increased debt securities, trade credit and prepayment were the major sources of growth. In particular, the growth of debt securities accounted for 45% of the overall growth of external debt, indicating that alongside the liberalization of the inter-bank bond market, foreign institutions have become more involved in the domestic bond market. The increase in trade credit and prepayment was about 20% of the overall increase in external debt, which is closely related to the ongoing recovery of China's foreign trade. Q: How to look at China's current external debt status? A: China's economy has shown a strong momentum for growth while maintaining stability, providing a solid foundation for the steady growth of external debt. China's economy sustained stable growth in the first three quarters, with GDP hitting RMB 59.3 trillion, up by 6.9% year on year. Its imports and exports rose fast, with total import and export value reaching RMB 20.3 trillion in the first three quarters, up by 16.6% year on year. The two-way fluctuations of the RMB exchange rates displayed much stronger flexibility, the expectations of foreign exchange rates stayed stable, and the demand for cross-border financing from the real economy was strengthened. Policy dividends have been yielded to provide important conditions for the stable growth of China's external debt. With the implementation of measures for trade investment and financing facilitation such as the macro-prudential management policy for full-scale cross-border financing and free trade zones, a growing number of enterprises have benefitted from policy dividends, expanding their financing channels while reducing their financing costs. The inter-bank bond market has been increasingly liberalized. In particular, the launch of Bond Connect between the mainland and Hong Kong in July has further diversified the channels for overseas investors to participate in China's financial market, increasingly motivating overseas institutions to hold more of domestic bonds. Going forward, China will improve the macro-prudential management of cross-border financing by enhancing the control framework with two pillars of monetary policy and macro-prudential policy, and keep a close watch on the changes in external debt and better integrate serving the real economy and guarding against systematic risks, in a bid to boost the sustainable and healthy development of China's economy. 2017-12-28/en/2017/1228/1389.html
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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, the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks: To implement the requirements of the State Council on reformative measures such as streamlining administration and power delegation, combination of regulation and deregulation, and optimizing services, and to further promote trade facilitation, the SAFE has streamlined relevant regulatory documents and would here like to notify you of the effectiveness of a selection of regulatory documents: I. The following two regulatory documents on foreign exchange administration are abolished: (I) Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Standardization of the Information System Codes (Huizongfa No. 101 [2009]) (II) Circular of the State Administration of Foreign Exchange on Issuing the Standards Version 1.0 for Collecting Data on Foreign Exchange Transactions by Financial Institutions (Huifa No. 18 [2014]) II. The following four regulatory documents on foreign exchange administration are announced invalid: (I) Supplementary Circular of the State Administration of Foreign Exchange on Issues Concerning Domestic Residents' Investments in the B-Share Market with their Personal Foreign Exchange Deposits (Huifa No. 33 [2001]) (II) Reply of the General Affairs Department of the State Administration of Foreign Exchange to Promoting the Use of Online Reporting and Approval System with Regard to Foreign Exchange Receipts and Payments of Foreign-funded Enterprises (Huizongfu No. 83 [2005]) (III) Circular of the Balance of Payments Department of the State Administration of Foreign Exchange on Using the National Information Sharing Platform with Regard to Organization Code (Huiguofa No. 14 [2006]) (IV) Circular of the General Affairs Department of the State Administration of Foreign Exchange on Launching the Statistical System for External Financial Assets and Liabilities and Foreign Transactions (Huizongfa No. 1 [2015]) The Circular will take effect as of the date of promulgation. Upon receipt of this Circular, all branches and foreign exchange administration departments of the SAFE shall immediately forward it to the central sub-branches, sub-branches, urban and rural commercial banks and foreign banks within their respective jurisdictions; and all designated Chinese-funded foreign exchange banks shall forward it to their branches and sub-branches as soon as possible. State Administration of Foreign Exchange December 1, 2017 2017-12-07/en/2017/1207/1396.html
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On December 30, 2017, Zhou Xiaochuan, secretary of the CPC Committee and governor of the People's Bank of China (PBC), visited the Investment Center of the State Administration of Foreign Exchange (SAFE) to meet with officials for the operation and management of foreign exchange reserves, accompanied by Yi Gang, deputy secretary of the CPC Committee and deputy governor of the People's Bank of China, Pan Gongsheng, member of the CPC Committee and deputy governor of the PBC and administrator of the SAFE, and Yin Yong, member of the CPC Committee and deputy governor of the PBC, and Lu Lei, deputy administrator of the SAFE. On behalf of the CPC Committee of the PBC, Zhou Xiaochuan showed his care for every official involved in the operation and management of foreign exchange reserves and confirmed the accomplishments already achieved in this regard. According to Zhou Xiaochuan, the year 2017 was key to the implementation of the 13th Five-year Plan and also witnessed the deepening of the supply-side structural reform. In the face of complex reform tasks and economic and financial conditions both at home and abroad, the Investment Center was committed to the implementation of the gist of the 19th CPC National Congress, the National Financial Work Conference and the Central Economic Work Conference under the leadership of the Central Committee and the State Council. By focusing on serving the real economy, guarding against financial risks and deepening the financial reform, the Investment Center pushed forward the operation and management efforts and ensured the security, flows and preservation and maintenance of the value of assets, making great contribution to serving the national development strategy and safeguarding economic and financial security. Zhou emphasized that the year 2018 marks the first year to implement the gist of the 19th CPC National Congress and the 40th anniversary of the reform and opening up, and is crucial to the building of a moderately prosperous society in all respects. Following the gist of the 19th CPC National Congress and Xi Jinping thought on socialism with Chinese characteristics for a new era, officials involved in the operation and management of foreign exchange reserves shall keep in mind their mission and purpose and forge ahead in a down-to-earth manner to promote the operation and management of foreign exchange reserves to a new high, better serve the real economy and the new pattern of reform and opening up and strive for the fulfillment of the Chinese dream of great national rejuvenation. 2017-12-30/en/2017/1230/1392.html
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Q: The latest data on foreign exchange reserves disseminated by the People's Bank of China (PBC) show that China's foreign exchange reserves as at the end of December 2017 went up by USD 20.7 billion month on month. Could you brief us on the causes of such a change? What will be the future trends? A: As at the end of December 2017, China's foreign exchange reserves hit USD 3.1399 trillion, up by USD 20.7 billion or 0.66% month on month, marking the 11th month of consecutive growth. In December, China's cross-border capital flows and trading by domestic and foreign market participants stayed stable and balanced. Globally, the financial markets fluctuated slightly. The foreign exchange rates of major non-USD currencies and asset prices rose, driving China's foreign exchange reserves to go up. Through out the year, China's foreign exchange reserves recovered stably after a drop to USD 2.9982 trillion in January, with the figure for the yearend climbing by USD 129.4 billion or 4.3% from that of the beginning of the year. China's macroeconomic performance remained stable in the year with a strong momentum for growth, boosting cross-border capital flows to be more stable and balanced. The equilibrium of the balance of payments provided a guarantee for the continuous and steady recovery of foreign exchange reserves. 2018 is the first year to implement the spirit of the 19th CPC National Congress, key to building a moderately prosperous society in all respects and implementing the 13th Five-year Plan. Under the leadership of the CPC Central Committee with Comrade Xi Jinping at its core, China will adhere to the general work guideline of making progress while maintaining stability, the new development philosophy and the requirement for high-quality development, to enhance the stability and resilience of economic performamce and ensure the development trend of mainitaing stability with a strong moement for grwth. As external demand rises, finanical marketa are further liberalized and market expectations are improved alongside the continuous global econonic recovery, China's balance of payments and foreign exchange reserves will remain stable and balanced going forward. 2018-01-07/en/2018/0107/1393.html
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Since the beginning of 2017, to implement the reform requirements of the CPC Central Committee and the State Council on pushing forward administration streamlining and power delegation, combination of deregulation and regulation, and optimization of services, the State Administration of Foreign Exchange (SAFE) has been committed to legislation in key areas and documents streamlining. Based on this, to facilitate public enquiry and application, the SAFE then updated the Catalogue of Major Existing Laws and Regulations in Effect on Foreign Exchange Administration ("Catalogue") and released it at its official website. The upgraded Catalogue contains 223 main laws and regulations on foreign exchange administration released as of December 31, 2017, which fall into eight categories including general foreign exchange administration, foreign exchange administration under the current account, foreign exchange administration under the capital account, regulation of the foreign exchange business of financial institutions, the RMB exchange rate and the foreign exchange market, balance-of-payments and foreign exchange statistics, foreign exchange inspections and application of the laws and regulations, and the scientific administration of foreign exchange, and several sub-categories by specific business type. The extra documents added to the Catalogue covers various topics, such as foreign exchange sales and settlement for foreign people, improvement of declaration of personal foreign exchange information, foreign exchange administration for financial leasing, foreign exchange administration for overseas loans under domestic guarantees, foreign exchange administration for overseas deals with bank cards, regulating large-sum overseas cash withdrawals with bank cards, rules on business reviews for the declaration of balance of payments statistics via banks, verification rules for external financial assets and liabilities and trading statistics, guidance on statistics collection regarding external financial assets and liabilities and trading, and unified social credit code applicable to the foreign exchange business system. Going forward, the SAFE will carefully implement the work arrangements by the CPC Central Committee and the State Council, deepen the foreign exchange administration reform, deepen legislation and document streamlining in key areas, and enhance trade and investment facilitation to serve the real economy. 2018-01-15/en/2018/0115/1395.html
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The State Administration of Foreign Exchange (SAFE) has recently published the Circular of the State Administration of Foreign Exchange on Regulating Large-sum Overseas Cash Withdrawals with Bank Cards (Huifa No. 29 [2017]) (Circular) to regulate large-sum cash withdrawals overseas with bank cards and enhance regulation against cross-border money laundering. The highlights of the Circular include: first, in overseas cash withdrawals by individuals with domestic bank cards, the sum of withdrawals using the bank cards under the name of the individual (including additional cards) shall not exceed the equivalent of RMB 100,000 in every civil year. Second, the daily quota per card for overseas cash withdrawals with RMB cards and foreign currency cards is the equivalent of RMB 10,000. Third, in case of overseas cash withdrawals in excess of the annual quota, the individuals will not be allowed to withdraw cash overseas with the domestic bank cards in the current and second years. Fourth, individuals are prohibited from borrowing others' bank cards or lending their bank cards to evade or help evade the management of overseas cash withdrawals. The SAFE supports individuals' use of bank cards overseas in compliance with regulations. Regulating large-sum overseas cash withdrawals with bank cards is crucial to cracking down on money laundering, terrorist financing and tax evasion, and can help guard against illegalities associated with cash withdrawals with bank cards. The Circular, aligned with the requirement of ensuring currency convertibility under the current account, does not contradict with the annual quota of USD 50,000 for foreign exchange purchases by individuals, or impact individuals' normal withdrawals of cash and consumption, or the convenience for individuals to use foreign exchange. This Circular will become effective on January 1, 2018. 2017-12-30/en/2017/1230/1390.html
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Q: Recent media reports say China is considering stopping buying or buying less US treasury bonds. Is this true? A: We have noted it from some media reports. We believe this may be a citation from wrong sources or even false news. China has always made investment with or managed foreign exchange reserves following the principle of diversification and fragmentation, in order to ensure the overall security, value preservation and growth of foreign exchange assets. Like other investments, investing in US treasury bonds with foreign exchange reserves is a market behavior that is subject to professional management based on market situations and investment needs. For both foreign exchange reserves and the market involved, China's foreign exchange reserves operation and management authorities are responsible investors, and their investing activities have boosted the stability of global financial markets and the value preservation and growth of China's foreign exchange reserves. 2018-01-11/en/2018/0111/1394.html
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The time-series data of China's Gross External Debt Position by Sector(since2014Q4) 2026-03-27/en/2018/0329/1412.html