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FILE: Template on International Reserves аnd Foreign Currency Liquidity(аs аt Dec 31 2017) 2018-01-31/en/2018/0131/1372.html
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In the third quarter of 2017, China's current account registered a surplus of RMB 247.2 billion, and the capital and financial accounts (including net errors and omissions for the third quarter, the same below) recorded a deficit of RMB 247.2 billion. To be specific, the financial account (excluding reserve assets, but including net errors and omissions for the third quarter, the same below) recorded a deficit of RMB 47.8 billion, and reserve assets rose by RMB 199.5 billion. In the first three quarters, China's current account registered a surplus of RMB 722.6 billion, and the capital and financial accounts recorded a surplus of RMB 20.4 billion. To be specific, the financial account (excluding reserve assets) recorded a surplus of RMB 419.1 billion, and reserve assets rose by RMB 398 billion. In the US dollar terms, in the third quarter, China's current account recorded a surplus of USD 37.1 billion, including a surplus of USD 121 billion under trade in goods, a deficit of USD 68.1 billion under trade in services, a deficit of USD 13.3 billion under primary income and a deficit of USD 2.5 billion under secondary income. The capital and financial accounts registered a deficit of USD 37.1 billion, including a surplus of USD 10 million under the capital account, and a deficit of USD 7.2 billion under the financial account (excluding reserve assets) and an increase of USD 29.9 billion under reserve assets. In the US dollar terms, in the first three quarters, the current account registered a surplus of USD 106.3 billion, including a surplus of USD 335.4 billion under trade in goods, a deficit of USD 203.2 billion under trade in services, a deficit of USD 16.7 billion under primary income, and a deficit of USD 9.2 billion under secondary income. The capital and financial accounts recorded a surplus of USD 1.8 billion, including a deficit of USD 100 million under the capital account, a surplus of USD 60.8 billion under the financial account (excluding reserve assets) and an increase of USD 58.9 billion under reserve assets. In SDR terms, in the third quarter, China posted a surplus of SDR 26.3 billion under the current account, and a deficit of SDR 26.3 billion under the capital and financial accounts. To be specific, the financial account (excluding reserve assets) registered a deficit of SDR 5.1 billion, and reserves assets increased by SDR 21.2 billion. In SDR terms, in the first three quarters, China posted a surplus of SDR 76.6 billion under the current account, and a surplus of SDR 2.4 billion under the capital and financial accounts. To be specific, the financial account (excluding reserve assets) registered a surplus of SDR 44.6 billion, and reserves assets rose by SDR 42.1 billion. 2017-11-06/en/2017/1106/1379.html
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Q：The latest data disseminated by the People's Bank of China on foreign exchange reserves show that China's foreign exchange reserves as at the end of October 2017 grew by a slight USD 700 million from the end of September. Could you brief us on the causes behind such a change? What will be the future trends on foreign exchange reserves? A: As at the end of October, China's foreign exchange reserves hit USD 3.1092 trillion, USD 700 million more than that of September. In October, China's cross-border capital flows and the trading behaviors of domestic and overseas market participants were further balanced, indicating a basic equilibrium in the supply and demand of foreign exchange. In global financial markets, non-USD currencies depreciated against the USD, and asset prices rose. Under the combined impact of various factors, China's foreign exchange reserves stayed stable. China's economic performance has remained steady since the beginning of this year. With structure optimized, new dynamics' growth picking up, and quality and benefits remarkably enhanced, the economy has continued its stable growth while maintaining a good momentum, thereby boosting the balance of China's cross-border capital flows. The balance of payments has found a basic equilibrium. The foreign exchange reserves have reached a stable level after recovery. Looking ahead, along with the success of the 19th CPC National Congress, the market confidence in China' long-term economic and social development, domestic or overseas, will be strengthened further, and the foundation for the equilibrium and good order of cross-border capital flows and the balance of payments will be solidified, which will be favorable for foreign exchange reserves to stay stable. 2017-11-07/en/2017/1107/1380.html
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FILE: Template on International Reserves аnd Foreign Currency Liquidity(аs аt Nov 30 2017) 2017-12-29/en/2017/1229/1371.html
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The State Administration of Foreign Exchange (SAFE) has recently published the Guidelines on External Financial Assets and Liabilities and Foreign Transaction Statistics (2017 Version) (Huizongfa No. 106 [2017]). The guidelines, a supplement to the Statistics System of External Financial Assets and Liabilities and Foreign Transactions (Huifa No. 15 [2016]), are a summary of the answers to business problems encountered in the early period and the experience in verification, with the aim of further standardizing the declaration of external financial assets and liabilities and foreign transaction statistics, guiding the declarers to accurately understand the declaration requirements and enhance the data quality in statistics declaration. 2017-11-30/en/2017/1130/1382.html
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Since the beginning of 2018, the State Administration of Foreign Exchange (SAFE) has implemented the spirit of the 19 CPC National Congress and the arrangements of the CPC Central Committee and the State Council, with focus on serving the real economy, defending against financial risks and deepening financial reforms. The SAFE has tightened regulations of the foreign exchange market, investigated and punished acts violating foreign exchange laws and regulations, and cracked down on false transactions and frauds. In accordance with the Regulation of the People's Republic of China on the Disclosure of Government Information (Decree No. 492 of the State Council), a selection of typical cases where foreign exchange regulations were violated are presented as follows: Case 1: Entrepot trade handled by Huaxia Bank Shanghai Branch against regulations From November 2015 to January 2016, without carrying out due diligence investigations into the authenticity of entrepot trade as required, Huaxia Bank Shanghai Branch handled the payments and purchases of foreign exchange for entrepot trade based on the false bills of lading presented. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations, the bank was fined RMB 2 million and suspended from selling foreign exchange to companies for two years. Case 2: Entrepot trade handled by the Bank of Communications Xiamen Branch Qianpu Sub-branch against regulations From January to August 2016, without carrying out due diligence investigations into the authenticity of entrepot trade as required, the Bank of Communications Xiamen Branch Qianpu Sub-branch handled the payments and purchases of foreign exchange for entrepot trade based on the false bills of lading presented. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations, the bank was fined RMB 6 million and suspended from selling foreign exchange to companies for three months, with senior executives and other persons directly liable for the violation ordered to take responsibility for the violation. Case 3: Entrepot trade handled by Nanyang Commercial Bank (China) Hangzhou Branch against regulations From March to August 2016, without carrying out due diligence investigations into the authenticity of entrepot trade as required, Nanyang Commercial Bank (China) Hangzhou Branch handled the payments of foreign exchange for entrepot trade based on the false or irrelevant bills of lading presented. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations, RMB 1.31 million was fined and confiscated. Case 4: Entrepot trade handled by the Bank of Beijing Shanghai Branch against regulations In July 2017, without carrying out a due diligence investigation into the authenticity of entrepot trade as required, the Bank of Beijing Shanghai Branch handled the payment of foreign exchange for entrepot trade based on the bills of lading repetitively presented. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations, RMB 840,000 was fined and confiscated. Case 5: Trade financing handled by the Bank of Jinzhou Dalian Branch against regulations From September to October 2015, the Bank of Jinzhou Dalian Branch handled trade financing for a company based on the Customs Report of another company. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations, RMB 529,800 was fined and confiscated. Case 6: Trade financing handled by Huishang Bank Hefei Branch Tian'ehu Sub-branch against regulations From September to November 2016, Huishang Bank Hefei Branch Tian'ehu Sub-branch handled trade financing for a company based on a Customs report repetitively presented. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations, RMB 400,000 was fined. Case 7: Onshore guarantees by China Minsheng Bank Xiamen Branch for offshore loans against regulations From August 2014 to December 2016, China Minsheng Bank Xiamen Branch handled the payments of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, without carrying out required due diligence investigations with regard to qualifications of the debtors, purposes of the loans, expected sources of repayments, possibility of performing the contracts on guarantees, as well as relevant transaction backgrounds. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, a total of RMB 22.40 million was fined and confiscated, and the bank was suspended from selling foreign exchange to companies for three months. Case 8: Onshore guarantees by the Bank of Guangzhou Shenzhen Branch for offshore loans against regulations From May 2015 to January 2017, the Bank of Guangzhou Shenzhen Branch handled the payments of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, without carrying out required due diligence investigations, with regard to qualifications of the debtors, purposes of the loans, expected sources of repayments, possibility of performing the contracts on guarantees, as well as relevant transaction backgrounds. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, a total of RMB 2.958 million was fined and confiscated. Case 9: Onshore guarantees by Xiamen International Bank Quanzhou Branch for offshore loans against regulations From June 2015 to July 2016, Xiamen International Bank Quanzhou Branch handled the payments of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, despite the fact that the bank knew the companies' offshore loans were non-performing and it was set to perform the contracts on guarantees. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, RMB 2.80 million was fined. Case 10: Onshore guarantees by Hana Bank Guangzhou Branch for offshore loans against regulations From July to December 2015, Hana Bank Guangzhou Branch handled the payments of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, without carrying out required due diligence investigations with regard to expected sources of repayments, and relevant transaction backgrounds. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, a total of RMB 2.1626 million was fined and confiscated, and the bank was suspended from selling foreign exchange to companies for six months, with senior executives and other persons directly liable for the violation ordered to take responsibility for the violation. Case 11: Onshore guarantees by the Bank of Tianjin No. 6 Central Sub-branch for offshore loans against regulations From January 2016 to July 2017, the Bank of Tianjin No. 6 Central Sub-branch handled the payments of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, without carrying out required due diligence investigations with regard to expected sources of repayments, possibility of performing the contracts on guarantees, as well as relevant transaction backgrounds. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, a total of RMB 7.4025 million was fined and confiscated. Case 12: Individual foreign exchange business handled by the Bank of China Putian Branch against regulations From January 2016 to April 2017, the Bank of China Putian Branch handled split-up sales and payments of individual foreign exchange and withdrawals of foreign currency banknotes. The bank violated Article 7 and 34 of the Measures for the Administration of Individual Foreign Exchange. In accordance with Article 47 and 48 of the Regulations of the People's Republic of China on Foreign Exchange Administration, RMB 700,000 was fined. Case 13: Individual foreign exchange business handled by the Industrial and Commercial Bank of China Shenzhen Branch against regulations From October 2017 to January 2018, the Industrial and Commercial Bank of China Shenzhen Branch handled the settlements of individual foreign exchange without reviewing the valid ID certificates of individuals in China and the nature of funds as required. The bank violated Article 9 and 6 of the Measures for the Administration of Individual Foreign Exchange. In accordance with Article 47 and 48 of the Regulations of the People's Republic of China on Foreign Exchange Administration, RMB 430,000 was fined. Case 14: Foreign exchange evasion by DDBill Payment Co., Ltd. From January 2016 to October 2017, DDBill Payment Co., Ltd. went through cross-border payments of foreign exchange in the amount of USD 15.588 million, based on false logistic information. The company violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was involved in foreign exchange evasion, which had severely disturbed the order of the foreign exchange market and led to serious consequences. In accordance with Article 39 of the Regulations, the company was fined RMB 15.308 million. Case 15: Foreign exchange evasion by PayEase (Beijing) Technology Ltd. From February 2016 to June 2017, PayEase (Beijing) Technology Ltd. went through split-up purchases and payments of foreign exchange in the amount of USD 1.59 million, based on automatic setup of the system. The company violated Article 14 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was involved in foreign exchange evasion, which had severely disturbed the order of the foreign exchange market and led to serious consequences. In accordance with Article 39 of the Regulations, the company was fined RMB 1.0745 million. Case 16: Violations of regulations on foreign exchange administration by Alipay (China) Network Technology Co., Ltd. From January 2014 to May 2016, Alipay (China) Network Technology Co., Ltd. went through cross-border payments of foreign exchange beyond the approved scope and misstated the balance of payments. The company violated Article 6 of the Guidelines for the Pilot Program of Cross-border Payments of Foreign Exchange by Payment Institutions and Article 7 of the Measures for Declaration of Balance of Payments Statistics. In accordance with Article 48 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the company was fined RMB 600,000. Case 17: Violations of regulations on foreign exchange administration by Tenpay Payment Technology Co., Ltd. From January 2015 to June 2017, Tenpay Payment Technology Co., Ltd. handled cross-border payments of foreign exchange for non-residents without going through the filing procedures, and failed to submit the unusual risk report as required. The company violated Article 35 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 48 of the Regulations, the company was fined RMB 600,000. Case 18: Violations of regulations on foreign exchange administration by Shanghai Shengpay E-Payment Service Co., Ltd. From January 2015 to June 2017, Shanghai Shengpay E-Payment Service Co., Ltd. handled cross-border payments without abiding by relevant regulations and misstated the balance of payments. The company violated Article 9 and 6 of the Circular of the State Administration of Foreign Exchange on the Implementation of the Pilot Program of Cross-border Foreign Exchange Payment Business through Payment Institutions. In accordance with Article 39 and 48 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the company was fined RMB 625,000. Case 19: Foreign exchange evasion by Qingdao Zerui Kaimao Foreign Trade Co., Ltd. Between January and December 2016, Qingdao Zerui Kaimao Foreign Trade Co., Ltd. paid USD 16.9289 million in foreign exchange by fabricating trade backgrounds and using false contracts and invoices. The company violated Article 12 and 14 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was involved in foreign exchange evasion, which had severely disturbed the order of the foreign exchange market and led to serious consequences. In accordance with Article 39 of the Regulations, the company was fined RMB 5.60 million. Case 20: Foreign exchange evasion by HaiKe Chemical Group Ltd. in Shandong In July 2016, HaiKe Chemical Group Ltd. in Shandong paid USD 22.9683 million in foreign exchange by fabricating entrepot trade backgrounds and using false contracts and invoices. The company violated Article 9 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was involved in foreign exchange evasion, which had severely disturbed the order of the foreign exchange market and led to serious consequences. In accordance with Article 39 of the Regulations, the company was fined RMB 7 million. Case 21: False trade financing by Anhui Whywin International Co., Ltd. From January to December 2016, Anhui Whywin International Co., Ltd. went through procedures for trade financing that involved USD 16.6675 million in total by presenting invalid trade documents and repetitively using the trade documents. The company violated Article 12 and 14 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 40 of the Regulations, the company was fined RMB 5.25 million. Case 22: Illegal foreign exchange settlement by Nanjing Samu'er Medical Instruments Co., Ltd. From August 2013 to June 2016, Nanjing Samu'er Medical Instruments Co., Ltd. went through inward remittances of capital and settlements of foreign exchange of USD 34.60 million based on false contracts. The company violated Article 23 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was involved in illegal foreign exchange settlements. In accordance with Article 41 of the Regulations, the company was fined RMB 4.2989 million. Case 23: Changes of the purposes of foreign exchange settlements for capital funds by Guangdong Heshan Ruishun Sales Co., Ltd. without permission From December 2016 to March 2017, Guangdong Heshan Ruishun Sales Co., Ltd. went through inward remittances of capital funds and settlements of foreign exchange of HKD 25.411 million by fabricating the purposes of the funds. By changing the purposes of foreign exchange settlements without permission, the company violated Article 23 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 44 of the Regulations, the company was fined RMB 1.125 million. Case 24: Illegal purchases and sales of foreign exchange by Mr. Zhong, native of Hunan From October 2013 to October 2016, to transfer his assets overseas without abiding by the law, Mr. Zhong transferred RMB 43.711 million into the domestic account controlled by an underground bank, exchanged the money into foreign exchange and then transferred the foreign exchange via the underground bank into his overseas account. Zhong violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was considered breaking the laws on the purchases and sales of foreign exchange. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Zhong was fined RMB 3.059 million. Case 25: Illegal purchases and sales of foreign exchange by Mr. Deng, native of Sichuan From February to August 2016, to obtain illegal gains, Mr. Deng exchanged RMB into HKD or vice versa many times via an underground bank, which involved RMB 13.6235 million in total. Deng violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was considered breaking the laws on the purchases and sales of foreign exchange. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Deng was fined RMB 2.0436 million. Case 26: Purchases and sales of foreign exchange by Mr. Xu, native of Sichuan, without permission In March 2017, Mr. Xu paid RMB 60 million to a domestic enterprise via a company he controlled to purchase US dollars without permission. Xu violated Article 30 of the Measures for the Administration of Individual Foreign Exchange by getting involved in the purchases and sales of foreign exchange without permission. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Xu was fined RMB 5.70 million. Case 27: Foreign exchange evasion by Mr. Zhao, native of Hebei, through split-up From January 2016 to December 2017, to transfer his assets overseas without abiding by the law, Mr. Zhao split up his personal funds, used the annual quotas of 55 individuals including his own to buy foreign exchange and transferred the foreign exchange into the overseas accounts. The funds thus transferred hit USD 2.4531 million in total. Zhao violated Article 7 of the Measures for the Administration of Individual Foreign Exchange and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Zhao was fined RMB 1.16 million. 2018-07-24/en/2018/0824/1446.html
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Since the beginning of 2018, the State Administration of Foreign Exchange (SAFE) has implemented the spirit of the 19th CPC National Congress and the arrangements of the CPC Central Committee and the State Council, with focus on serving the real economy, defending against financial risks and deepening financial reforms. The SAFE has tightened regulations of the foreign exchange market, maintaining a tough stance against violations of the laws and regulations on foreign exchange, stepping up punishments and cracking down on false transactions, frauds, illegal arbitrages and other behaviors involving the departure of financial capital from the real economy into the virtual economy, so as to safeguard the healthy and good market order. In accordance with the Regulation of the People's Republic of China on the Disclosure of Government Information (Decree No. 492 of the State Council), a selection of typical cases where foreign exchange regulations were violated are presented as follows: Case 1: Entrepot trade handled by Hengfeng Bank Wenzhou Branch against regulations In January 2016, without carrying out the required due diligence investigations into the authenticity of entrepot trade, Hengfeng Bank Wenzhou Branch handled the payments of foreign exchange for entrepot trade based on the false bills of lading presented. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations, it was fined RMB 1.464 million. Case 2: Entrepot trade handled by Bank of Communications Xiamen Branch Guanyinshan Sub-branch against regulations From February to July 2016, without carrying out the required due diligence investigations into the authenticity of entrepot trade, Bank of Communications Xiamen Branch Guanyinshan Sub-branch handled the sales of foreign exchange for entrepot trade based on the false bills of lading presented. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations, it was fined RMB 4 million and suspended from selling foreign exchange to companies for three months, with senior executives and other persons directly liable for the violation ordered to take responsibility. Case 3: Entrepot trade handled by Bank of Tianjin Shanghai Branch against regulations From March to April 2016, without carrying out the required due diligence investigations into the authenticity of entrepot trade, the Bank of Tianjin Shanghai Branch handled the payments of foreign exchange for entrepot trade based on the false bills of lading presented. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations, the bank was fined RMB 800,000. Case 4: Onshore guarantees by HSBC Beijing Branch for offshore loans against regulations From August 2014 to June 2017, HSBC Beijing Branch handled the payments of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, without carrying out the required due diligence investigations into the purposes of the loans and relevant transaction backgrounds. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, a total of RMB 8.4222 million was fined and confiscated. Case 5: Onshore guarantees by China Merchants Bank Xiamen Branch Jiahe Sub-branch for offshore loans against regulations From July 2014 to July 2016, China Merchants Bank Xiamen Branch Jiahe Sub-branch handled the payments of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, without carrying out the required due diligence investigations into the qualifications of the debtors, purposes of the loans, expected sources of repayments, and relevant transaction backgrounds. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, a total of RMB 4.3319 million was fined and confiscated. Case 6: Onshore guarantees by China Minsheng Bank Xi'an Branch for offshore loans against regulations From December 2014 to December 2016, China Minsheng Bank Xi'an Branch handled the payments of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, without carrying out the required due diligence investigations into the qualifications of the debtors, purposes of the loans, expected sources of repayments, and relevant transaction backgrounds. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, a total of RMB 6.454 million was fined and confiscated, and its senior executives and other persons directly liable for the violation were ordered to take responsibility. Case 7: Onshore guarantees by IBK (China) Tianjin Branch Xiqing Sub-branch for offshore loans against regulations From June 2015 to June 2017, IBK (China) Tianjin Branch Xiqing Sub-branch handled the payments of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, without carrying out the required due diligence investigations into the qualifications of the debtors, expected sources of repayments, and relevant transaction backgrounds. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, RMB 1.022 million was fined and confiscated. Case 8: Split-up sales and payments of individual foreign exchange handled by China Construction Bank Lianjiang Sub-branch against regulations From June 2016 to June 2017, China Construction Bank Lianjiang Sub-branch handled split-up sales and payments of individual foreign exchange against regulations. The bank violated Article 7 of the Measures for the Administration of Individual Foreign Exchange. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, RMB 600,000 was fined. Case 9: Foreign exchange evasion by Solvay Biochemicals (Taixing) Co., Ltd. From November 2012 to December 2013, Solvay Biochemicals (Taixing) Co., Ltd. paid advance of EUR 2.2768 million and USD 50,500 based on the expired contracts, without importing anything. The company violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations, the company was fined RMB 923,900. Case 10: Foreign exchange evasion by Yantai Pingrui Trade Co., Ltd. From August to September 2015, Yantai Pingrui Trade Co., Ltd. paid foreign exchange of USD 17.0682 million, based on the fabricated backgrounds of the entrepot trade, the bills of lading of a third party, false contracts and invoices. The company violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations, the company was fined RMB 5.45 million. Case 11: Foreign exchange evasion by Qingdao Zhonglin Yongsheng International Trade Co., Ltd. From January to August 2016, Qingdao Zhonglin Yongsheng International Trade Co., Ltd. paid foreign exchange of USD 9.38 million, based on the fabricated backgrounds of the entrepot trade, and the bills of lading of third parties. The company violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations, the company was fined RMB 3.10 million. Case 12: Foreign exchange evasion by Shandong Hengjing Property Co., Ltd. From November 2016 to April 2017, Shandong Hengjing Property Co., Ltd. transferred USD 1.8879 million overseas based on the annual quotas of 30 Chinese citizens for buying foreign exchange. The company violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations, the company was fined RMB 644,200. Case 13: Illegal foreign exchange settlement by Changshu Zhongguan Metallic Materials Co., Ltd. From March 2015 to April 2016, Changshu Zhongguan Metallic Materials Co., Ltd. went through trade finance processes and settled foreign exchange of USD 4.18 million, with the false customs export declaration forms presented. The company violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was involved in illegal foreign exchange settlement. In accordance with Article 41 of the Regulations, the company was fined RMB 1.33 million. Case 14: Illegal purchases and sales of foreign exchange by Mr. Guo, native of Henan From April 2011 to September 2014, to transfer his assets overseas without abiding by the law, Mr. Guo transferred RMB 104.9292 million into a domestic account controlled by an underground bank, exchanged the money into foreign exchange and then transferred the foreign exchange via the underground bank into his overseas account. Guo violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was considered breaking the laws on the purchases and sales of foreign exchange. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Guo was fined RMB 8.35 million. Case 15: Illegal purchases and sales of foreign exchange by Mr. Zhao, native of Zhejiang From January 2014 to June 2016, to transfer his assets overseas without abiding by the law, Mr. Zhao transferred RMB 18.0060 million into a domestic account controlled by an underground bank, exchanged the money into foreign exchange and then transferred the foreign exchange via the underground bank into his overseas account. Zhao violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was considered breaking the laws on the purchases and sales of foreign exchange. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Zhao was fined RMB 1.62 million. Case 16: Illegal purchases and sales of foreign exchange by Mr. Zhao, native of Guangdong From October 2015 to September 2016, to transfer his assets overseas without abiding by the law, Mr. Zhao exchanged his money into foreign exchange and then transferred the foreign exchange via the underground bank into his overseas account. The money involved totaled USD 2.2114 million. Zhao violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was considered breaking the laws on the purchases and sales of foreign exchange. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Zhao was fined RMB 797,800. Case 17: Purchases and sales of foreign exchange by Mr. Du, native of Sichuan, without approval From July to September 2016, without respecting the bank card management regulations, Mr. Du swiped his RMB cards many times via the overseas POS machines to exchange his money into HK dollars in cash. The money involved was RMB 6.7911 million. Du violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was involved in the purchases and sales of foreign exchange without approval. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Du was fined RMB 1.0187 million. Case 18: Purchases and sales of foreign exchange by Mr. Wang, native of Fujian, without approval In January 2017, to obtain illegal gains, Mr. Wang received RMB 11.2926 million through another person's account and sold HK dollars without approval. Wang violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was involved in the purchases and sales of foreign exchange without approval. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Wang was fined RMB 1.07 million. Case 19: Foreign exchange evasion by Mr. Wang, native of Sichuan, through split-up From January to April 2016, to transfer his assets overseas without abiding by the law, Mr. Wang split up his personal assets and bought foreign exchange based on the annual quotas of 46 Chinese persons for purchasing foreign exchange and then transferred the foreign exchange into the overseas accounts. The funds thus transferred totaled HKD 17.8476 million. Wang violated Article 7 of the Measures for the Administration of Individual Foreign Exchange and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Wang was fined RMB 800,000. Case 20: Foreign exchange evasion by Mr. Zhang, native of Jiangsu, through split-up From January to December 2016, to transfer his assets overseas without abiding by the law, Mr. Zhang split up his personal assets and bought foreign exchange based on the annual quotas of 41 Chinese persons for buying foreign exchange and then transferred the foreign exchange into the overseas accounts. The funds thus transferred totaled USD 1.8459 million. Zhang violated Article 7 of the Measures for the Administration of Individual Foreign Exchange and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Wang was fined RMB 615,200. Case 21: Foreign exchange evasion by Mr. Qiu, native of Jiangsu, through split-up From September 2016 to January 2017, to transfer his assets overseas without abiding by the law, Mr. Qiu split up his personal assets and bought foreign exchange based on the annual quotas of 69 Chinese persons for buying foreign exchange and then transferred the foreign exchange into the overseas accounts. The funds thus transferred totaled USD 3.4949 million. Qiu violated Article 7 of the Measures for the Administration of Individual Foreign Exchange and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Wang was fined RMB 1.60 million. 2018-08-16/en/2018/0829/1452.html
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On the morning of August 2, the State Administration of Foreign Exchange (SAFE) held a video conferencing for the second half of 2018. The purposes of this meeting were to study and implement the arrangements of the CPC Central Committee and the State Council for the economic and financial undertakings, summarize the work of the first half, analyze the economic and financial environments both at home and abroad and the conditions of the foreign exchange market, and study and make arrangements for key tasks of foreign exchange administration for the second half. Pan Gongsheng, secretary of the CPC Leadership and administrator of the SAFE, delivered a work report. The meeting believed that in the year to date, foreign exchange authorities have studied, promoted and implemented Xi Jinping thought on socialism with Chinese characteristics for a new era and the spirit of the 19th CPC National Congress. Under the leadership of the CPC Central Committee and the State Council and the guidance of the People's Bank of China, they have implemented the requirements on Party self-governance, the general work guideline of making progress while maintaining stability, the new development philosophy and the requirements on high-quality development. With a focus on the supply-side structural reform, they have been committed to serving the development of the real economy, deepening the reform and opening up of foreign exchange administration, and guarding against risks associated with cross-border capital flows, successfully defending the economic and financial security of China. First, with political development as the top priority, foreign exchange authorities have remained committed to ensuring the "two safeguards" and stricter exercise of Party self-governance. Following the earnest intraparty political norm, they have implemented the system for collective activities within the Party. They have performed their principal responsibilities and ensured successful retrospective self-check of rectifications. With a focus on Party discipline, they have intensified management of Party officials and intensified the accountability for supervision and discipline enforcement. They have implemented the CPC Central Committee's eight-point decision on improving Party and government conduct, working ceaselessly to improve Party conduct and enforce Party discipline. Second, they have deepened the reform of delegation, regulation and service, with the levels of trade and investment liberalization and facilitation raised. They have devoted themselves to boosting the two-way opening up of the financial sector, and systematically advancing the capital account convertibility. To support the Belt and Road Initiative, they have promoted regional opening up and innovation to strengthen the roles of foreign exchange administration in serving the real economy. Third, they have been committed to guarding against risks arising from cross-border capital flows, and cracking down on violations of foreign exchange laws and regulations to safeguard the health and good order of the foreign exchange market. Fourth, they have intensified the building of operation and management capabilities of foreign exchange reserves, and continued to optimize asset arrangements to further diversify the utilization. The meeting pointed out that China's economy stayed stable and gathered momentum in the first half. The cross-border capital flows were steady, the supply and demand found a basic equilibrium in the foreign exchange market, and the receipts and payments under the current account remained reasonable, contributing to a stronger balance between the internal and external economies. Despite tremendous changes in the external environment, China's economy has achieved more resilient and higher-quality growth as the supply-side structural reform is advanced and economic restructuring is optimized. With an overall equilibrium in the balance of payments, adequate foreign exchange reserves, extensive experience and sufficient policy tools, we are confident about the stable operation of the foreign exchange market. The meeting stressed that, in the second half, foreign exchange authorities need to continue studying, promoting and implementing Xi Jinping thought on socialism with Chinese characteristics for a new era and the spirit of the 19th CPC National Congress. With thoroughly studying, fully understanding and effectively implementing the thought and the spirit as their top priority, they should maintain political integrity, think in terms of the big picture, follow the leadership core, and keep in alignment with the central Party leadership and have full confidence in the path, theory, system, and culture of socialism with Chinese characteristics, so as to make sure that they become highly aligned with the CPC Central Committee with Comrade Xi Jinping at its core in thoughts, politics and action. Following the strategic arrangements laid out at the 19th CPC National Congress, they should adhere to the general work guideline of making progress while maintaining stability, advance the supply-side structural reform, boost the two-way opening up of the financial market and ensure three breakthroughs, in a bid to promote the stability and health of China's economic growth. According to the meeting, focus should be on the following in the second half: first, with political development as the top priority, foreign exchange authorities should endeavor to ensure the leadership of the Party in foreign exchange administration. Following the political discipline and rules of the Party, they should be committed to developing the active and healthy political culture within the Party. They should conduct four forms of oversight over discipline compliance and consolidate and build on the advances made in implementing CPC Central Committee's eight-point decision on improving Party and government conduct. They should cultivate professional and high-quality officials teams who are loyal to the Party, have moral integrity, and demonstrate a keen sense of responsibility, for foreign exchange administration, so as to forever preserve their political characteristics. Second, they should deepen the foreign exchange administration reforms, and open the foreign exchange market wider to make new ground in pursuing opening-up on all fronts. They should systematically ensure the RMB capital account convertibility to guarantee the legal rights and interests of foreign investments. They should diversify the products and trading tools, increase the number of domestic and foreign participants to build an open and competitive foreign exchange market. While enhancing trade and investment liberalization and facilitation, they should support the development of new formats and models of trade and ensure sound foreign exchange administration services for the first China International Import Expo. To support the Belt and Road Initiative, they should advance the pilot programs for the reform and opening up of foreign exchange administration such as free trade zones and free trade ports. Third, they should adopt a multipronged approach to guarding against and addressing significant risks associated with foreign exchange. While establishing and improving the management framework of "macro-prudence + micro-regulation" for cross-border capital flows, they should crack down on false and fraudulent transactions, underground banks, and illegal foreign exchange trading platforms and other violations of foreign exchange laws to safeguard the sound order in the foreign exchange market and the country's economic and financial security. Fourth, they should work to ensure the security, liquidity, value growth and maintenance of foreign exchange reserves to serve government strategies. The meeting called on officials and staff of foreign exchange authorities to get united around the CPC Central Committee with President Xi Jinping at its core and follow the guidance of Xi Jinping thought on socialism with Chinese characteristics for a new era, and to bear the weight of responsibility and work diligently to make notable achievements in foreign exchange administration, and to effectively implement the decisions and arrangements of the CPC Central Committee and the State Council to deliver a good result for the upcoming 40th anniversary of reform and opening up. Members of the CPC Leadership, chief accountants, chief economists and heads of departments and units of the SAFE attended the meeting at the main venue, while members of the leaderships and department heads of SAFE branches (foreign exchange administrative departments), and heads of central sub-branches were present at local venues. 2018-08-02/en/2018/0808/1448.html
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Pursuant to the Regulations of the People’s Republic of China on Foreign Exchange Administration and the relevant regulations, the State Administration of Foreign Exchange has formulated the Regulations on Foreign Exchange Administration for Domestic Securities Investments by Qualified Foreign Institutional Investors, which are hereby promulgated and shall enter into effect as of the date of promulgation. Appendix: Regulations on Foreign Exchange Administration for Domestic Securities Investments by Qualified Foreign Institutional Investors State Administration of Foreign Exchange June 10, 2018 2018-06-12/en/2018/0612/1453.html
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The State Administration of Foreign Exchange (SAFE) has recently released the preliminary data in the Balance of Payments for the second quarter and the first half of 2018. Its press spokesperson has answered media questions on relevant issues. Q: Could you brief us on the new characteristics of the balance of payments for the second quarter of 2018, relative to the first quarter? A: The preliminary data in the Balance of Payments for the second quarter show that China's BOP maintained a basic equilibrium and reserve assets rose. Below are the new characteristics: First, the current account was in surplus, with a higher surplus under trade in goods, and a stable deficit under trade in services. In the second quarter, the current account recorded a surplus of USD 5.8 billion, including a surplus of USD 104.2 billion under trade in goods, and a deficit of USD 73.7 billion under trade in services in the Balance of Payments. Transportation, travel and intellectual property fees remained in deficit. Second, the financial account excluding reserve assets continued to be in surplus, featuring net cross-border capital inflows. In the second quarter, the financial account excluding reserve assets registered a surplus of USD 18.2 billion, and cross-border capital continued with net inflows that started from the first quarter of 2017. Third, FDI stayed high. In the second quarter, China posted USD 29.9 billion in net inflows of direct investment. ODI recorded net outflows of USD 28.7 billion, and FDI registered net inflows of USD 58.6 billion, which was high. Fourth, reserve assets increased slightly. In the second quarter, China's reserve assets rose by USD 23.9 billion due to BOP transactions (excluding non-transaction factors like foreign exchange rate and price). Specifically, foreign exchange reserves went up by USD 22.9 billion. Overall, China's balance of payments maintained a basic equilibrium in the second quarter. It is noteworthy that the receipts and payments under the current account have entered an equilibrium range in recent years, with a slight surplus or deficit counted as a basic equilibrium. Going forward, the balance of the current account is expected to stay within a reasonable range, and the BOP will continue with an overall equilibrium. 2018-08-06/en/2018/0806/1449.html