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According to statistics from the State Administration of Foreign Exchange (SAFE), from January to March 2010, bank settlements of foreign exchange for clients were USD94 billion in January, USD76.3 billion in February, and USD100 billion in March respectively; the total was USD270.3 billion. Bank sales of foreign exchange for clients were USD53.8 billion in January, USD54.5 billion in February, and USD69.3 billion in March; the total was USD177.6 billion. The balance between bank settlements and sales of foreign exchange for clients was USD40.2 billion in January, USD21.8 billion in February, and USD30.7 billion in March, resulting in a total surplus of USD92.7 billion. During the period from January to March 2010, domestic banks foreign-related collections for clients were USD132.3 billion in January, USD108.1 billion in February, and USD141.8 billion in March respectively; the total was USD382.2 billion. External payments by domestic banks for clients were USD102.1 billion in January, USD93 billion in February, and USD125.80 billion in March; the total was USD320.9 billion. The balance between domestic banks foreign-related collections and payments for clients was USD30.2 billion in January, USD15.1 billion in February, and USD16 billion in March, resulting in a total surplus of USD61.3 billion. Glossary and relevant definitions The Balance of Payments refers to all economic transactions occurring between residents and non-residents in China, including all financial transactions and barter resulting in changes in the assets and liabilities of residents and non-residents. Bank Settlement and Sales of Foreign Exchange for Clients refers to settlement and sales services of foreign exchange provided by designated foreign exchange banks for their clients, exclusive of settlement and sales of foreign exchange conducted by designated foreign exchange banks for themselves and transaction data on the inter-bank foreign exchange market. Statistics on bank settlement and sales of foreign exchange for clients are conducted at the time of the exchange of the RMB and the foreign currency. Specifically, settlement of foreign exchange is the process by which the owner of the foreign exchange sells exchange to designated foreign exchange banks; the sale of foreign exchange is the process by which exchange is sold by the designated foreign exchange banks to the users of foreign exchange. The balance between the settlement and sales of foreign exchange is the offset balance between the settlement and sales of foreign exchange, which will be balanced by the banks through bank transactions on the inter-bank foreign exchange market. This is the major cause of changes in the amount of foreign exchange reserves, which is not equivalent to the net change in foreign exchange reserves during the same period. The bankssettlements and sales of foreign exchange for clients are not counted in compliance with the principle applicable to the transactions between residents and non-residents, which only include the transactions between banks and their clients in domestic and foreign currencies, i.e., the exchange and transactions between RMB and foreign exchange. Their statistical scope differs from the transactions under the balance of payments. Foreign-related Collections and Payment by Banks for their Clients refers to the collection and payment occurring between domestic non-bank resident institutions/individuals (collectively called the non-bank section) and non-resident institutions/individuals through domestic banks, which are exclusive of the collection and payment in cash and foreign-related collections and payments by the banks themselves. They include: cross-border collections and payments between non-bank sections and non-residents through domestic banks (including RMB and foreign exchange), and domestic collections and payments between non-bank sections and non-residents through domestic banks (currently including collections and payments in foreign exchange and collections and payments in RMB under the RMB settlement item for cross-border trade). The statistics are collected at the time when the clients conduct foreign-related collections and payments at domestic banks. Specifically, the foreign-related collections by banks for their clients refer to funds collected by non-bank sections from non-residents via domestic banks; the banksexternal payments for their clients refer to the funds paid by non-bank sections to non-residents through the domestic banks. Although foreign-related collections and payments by banks for their clients constitute an integral part of the balance of payment statistics, in principle they differ from the balance of payment statistics. The capital receipt and payment system is the statistical principle for banksforeign-related collections and payments for their clients, whereas the accrual basis is the statistical principle for the balance of payments. The banksforeign-related collections and payments for their clients only reflect cash flows between domestic non-bank sections and non-residents and do not reflect the barters and foreign-related transactions conducted by the banks themselves, and their statistical scope is smaller than that of the balance of payments. 2010-09-20/en/2010/0920/952.html
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The SAFE recently released the preliminary data on China's Balance of Payments Statement for the second quarter and the first half of 2010. The current account and the capital and financial account posted a "twin surplus" in Q2 of 2010, and international reserves maintained their growing momentum. During the same period, the surplus under the current account totaled USD70.5 billion, an increase of 30 percent year on year. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD59.5 billion, USD7.2 billion, and USD9.9 billion, respectively, whereas the deficit in the services trade amounted to USD6.1 billion. Meanwhile, during this year China's surplus under the capital and financial account (including net errors and omissions) totaled USD11.5 billion. Specifically, the net inflows of foreign exchange by foreign direct investments amounted to USD21 billion. International reserves assets posted an increase of USD82.1 billion, a drop of 17 percent year on year calculated on a comparable basis. Specifically, foreign exchange reserve assets registered an increase of USD81.1 billion (exclusive of the influence of non-transaction value change factors, such as exchange rates, prices, etc.), and the reserve position in the IMF registered an increase of USD900 million. In the first half of 2010, China's surplus under the current account totaled USD124.2 billion, a decrease of 8 percent year on year. The share of the surplus under the current account in GDP was 4.9 percent, a decrease of 1.3 percentage points as compared with the same period of the last year. Meanwhile, China's surplus under the capital and financial account this year totaled USD 53.9 billion (including net errors and omissions). International reserve assets posted an increase of USD178 billion, a rise of 8 percent year on year. Balance of Payments1 (Preliminary Data) Q2 and H1, 2010 Unit: USD 100 million Items # Q2, 20102 H1, 20103 I. Current Account 1 705 1,242 A. Goods and Services 2 534 764 a. Goods 3 595 897 Credit 4 3896 7,063 Debit 5 3302 6,166 b. Services 6 -61 -133 B. Income 7 72 283 C. Current Transfers 8 99 194 II. Capital and Financial Account4 9 115 539 Incl.: Direct investment 10 210 365 III. Reserves Assets 11 -821 -1,780 3.1 Monetary Gold 12 0 0 3.2 Special Drawing Rights 13 0 -1 3.3 Reserves Position in the Fund 14 -9 -9 3.4 Foreign Exchange 15 -811 -1,770 3.5 Other Claims 16 0 0 Notes: 1. This statement employs rounded-off numbers. Some aggregate data may be not equal to the accumulation of the correspondent subentries. 2. The preliminary data of the BOP statement for Q2 of 2010 is prepared based on the single quarter. 3. The preliminary data of this statement for H1 of 2010 is the sum total of the revised data for Q1 of 2010 and the preliminary data for Q2 of 2010. 4. The data under the capital and financial accounts in this statement is the balance between Current Account Balance and the amount of change in reserve assets, including net errors and omissions. 2010-08-19/en/2010/0819/949.html
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According to the statistical data released by the State Administration of Foreign Exchange (SAFE), in July 2010 foreign exchange settlement and sales by banks on behalf of clients amounted to USD114.2 billion and USD87.6 billion respectively. The surplus of foreign exchange settlement and sales amounted to USD26.6 billion. During the month of July 2010, foreign-related receipts and payments of domestic banks on behalf of clients amounted to USD162.2 billion and USD134.6 billion respectively. The surplus of foreign-related receipts and payments reached USD27.6 billion. Annex: Definition of terms and interpretation Balance of payments (BOP) refers to all economic transactions occurring between residents and non-residents in China, including all financial transactions and barter transactions resulting in any changes to assets and liabilities thereof. Foreign exchange settlement and sales by banks on behalf of clients refer to foreign exchange settlement and sales conducted by designated foreign exchange banks for their clients, excluding data on foreign exchange settlement and sales conducted by designated foreign exchange banks on their own behalf and data on inter-bank foreign exchange market transactions. The time of conversion between Renminbi and foreign currency is regarded as the time-point for the statistics. Specifically, foreign exchange settlement refers to the sale of foreign exchange to designated foreign exchange banks by owners of foreign exchange; foreign exchange sales refer to the sale of foreign exchange by designated foreign exchange banks to users of foreign exchange. The differences between foreign exchange settlement and sales are regarded as an offset balance, which will be balanced by the banks through transactions on the inter-bank foreign exchange market. This is the major reason for changes in the amount of foreign exchange reserves, which is not equivalent to the net change in foreign exchange reserves during the same period. The principle for transactions between residents and non-residents does not apply to the preparation of statistics on foreign exchange settlement and sales by banks on behalf of clients, and such statistics only cover transactions of RMB and foreign currencies between the banks and their clients, namely, exchange transactions between RMB and foreign currencies, which fall outside the category of the balance-of-payments statistics. Foreign-related receipts and payments of banks on behalf of clients refer to receipts and payments occurring between domestic non-bank resident institutions and individuals (collectively called the non-bank sector) and non-resident institutions and individuals through domestic banks, which are exclusive of the receipts and payments in cash and foreign-related receipts and payments by the banks themselves. They include: cross-border receipts and payments between non-bank sectors and non-residents through domestic banks (including RMB and foreign exchange), and domestic receipts and payments between non-bank sectors and non-residents through domestic banks (currently including receipts and payments in foreign exchange and receipts and payments in RMB under the RMB settlement item for cross-border trade). Statistics are collected at the time when the clients conduct the foreign-related receipts and payments at the domestic banks. Specifically, foreign-related receipts of banks on behalf of clients refer to funds collected by non-bank sectors from non-residents via domestic banks; external payments by banks on behalf of clients refer to the funds paid by non-bank sectors to non-residents through domestic banks. Although foreign-related receipts and payments of banks on behalf of clients are an integral part of the balance-of-payments statistics, the accounting method for the statistics, different from the accrual basis of accounting required by the balance of payments statistics, is based on a cash basis. In addition, it merely reflects fund flows between the non-bank sectors and non-residents, and does not include the barter transactions and foreign transactions conducted by the banks themselves. Furthermore, the scope of the statistics on the foreign-related receipts and payments of banks on behalf of clients is smaller than the scope of the balance-of-payments statistics. 2010-09-01/en/2010/0901/951.html
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In Q2 of 2010 the current account and the capital and financial account continued to post a "twin surplus" and international reserves maintained growing momentum. China's surplus under the current account totaled USD72.9 billion, an increase of 35 percent year on year. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD59.5 billion, USD8 billion, and USD9.9 billion, respectively, whereas the deficit in trade in services amounted to USD4.5 billion. Meanwhile, China's surplus under the capital and financial account totaled USD25.8 billion, a decrease of 68 percent year on year. In particular, the net inflows of direct investments and other investments amounted to USD21.5 billion and USD12.4 billion respectively, whereas the net outflows of portfolio investments reached USD9.5 billion. International reserve assets posted an increase of USD82.1 billion, a drop of 17 percent year on year as calculated on a comparable basis. Specifically, transactions in foreign exchange reserve assets registered an increase of USD81.1 billion (exclusive of the influence of non-transaction value change factors such as exchange rates and prices) and the reserve position in IMF registered an increase of USD900 million. In the first half of 2010, China's surplus under the current account totaled USD126.5 billion, a decrease of 6 percent year on year. Meanwhile, China's surplus under the capital and financial account totaled USD90 billion, an increase of 48 percent year on year. International reserve assets posted an increase of USD178 billion, a rise of 8 percent as calculated on a comparable basis. In addition, the BOP Analysis Team of the SAFE released China's Balance of Payments Report for the First Half of 2010 in order to facilitate an understanding of the data and analysis of China's balance of payments among all social groups. 2010-10-12/en/2010/1012/956.html
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According to the statistical data released by the State Administration of Foreign Exchange (SAFE), in August 2009 the amount of foreign exchange settlement and sales by banks on behalf of clients amounted to USD113.2 billion and USD84.1 billion respectively. The surplus of foreign exchange settlement and sales amounted to USD29.1 billion. During the month of August 2010, foreign-related receipts and payments of domestic banks on behalf of clients amounted to USD163.4 billion and USD137.1 billion respectively. The surplus of foreign-related receipts and payments reached USD26.3 billion. 2010-09-28/en/2010/0928/953.html
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The SAFE recently released China's Balance of Payments Statement for the year 2008. The statistics reveal that the current account and the capital and financial account posted a "twin surplus" in 2008, and international reserves maintained a growing momentum. In 2008, China's surplus under the current account totaled USD 426.1 billion, an increase of 15% year on year. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD 360.7 billion, USD 31.4 billion, and USD 45.8 billion, respectively, whereas the deficit in services amounted to USD 11.8 billion. Meanwhile, China's surplus under the capital and financial account totaled USD 19 billion in 2008, a decrease of 74% year on year. In particular, the net inflows of direct investments and portfolio investments amounted to USD 94.3 billion and USD 42.7 billion respectively, whereas the net outflows of other investments reached USD 121.1 billion. Furthermore, China's international reserves continued to grow. At the end of 2008, China registered a total of USD 1.946 trillion in foreign exchange reserves, an increase of USD 417.8 billion over that at the end of 2007. In addition, the BOP Analysis Team of the SAFE released China's Balance of Payments Report for the year 2008 in order to facilitate understanding of the data and analysis of China's balance of payments among all groups in the society. Balance of Payments * 2008 US dollars (thousands) Items Line Balance Credit Debit I. Current Account 1 426,107,395 1,725,893,261 1,299,785,866 A. Goods and Services 2 348,870,456 1,581,713,188 1,232,842,732 a. Goods 3 360,682,094 1,434,601,241 1,073,919,146 b. Services 4 -11,811,638 147,111,948 158,923,586 1.Transportation 5 -11,911,179 38,417,556 50,328,735 2.Travel 6 4,686,000 40,843,000 36,157,000 3.Communication Services 7 59,585 1,569,663 1,510,079 4.Construction Services 8 5,965,493 10,328,506 4,363,013 5.Insurance Services 9 -11,360,128 1,382,716 12,742,844 6.Financial Services 10 -250,884 314,731 565,615 7.Computer and Information Services 11 3,086,931 6,252,062 3,165,131 8.Royalties and Licensing Fees 12 -9,748,930 570,536 10,319,466 9.Consulting Services 13 4,605,315 18,140,866 13,535,551 10.Advertising and Public Opinion Polling 14 261,668 2,202,324 1,940,656 11.Audio-visual and Related Services 15 163,322 417,943 254,622 12. Other Business Services 16 2,885,059 26,005,857 23,120,798 13. Government Services, n.i.e. 17 -253,890 666,187 920,076 B. Income 18 31,437,960 91,614,872 60,176,912 1.Compensation of Employees 19 6,400,156 9,136,547 2,736,391 2.Investment Income 20 25,037,804 82,478,325 57,440,521 C. Current Transfers 21 45,798,979 52,565,201 6,766,222 1.General Government 22 -181,611 49,205 230,816 2. Other Sectors 23 45,980,590 52,515,996 6,535,406 II. Capital and Financial Account 24 18,964,877 769,876,094 750,911,218 A. Capital Account 25 3,051,448 3,319,886 268,439 B. Financial Account 26 15,913,429 766,556,208 750,642,779 1. Direct Investment 27 94,320,092 163,053,964 68,733,872 1.1 Abroad 28 -53,470,972 2,175,785 55,646,757 1.2 In China 29 147,791,064 160,878,179 13,087,115 2. Portfolio Investment 30 42,660,063 67,708,045 25,047,982 2.1 Assets 31 32,749,936 57,672,404 24,922,468 2.1.1 Equity Securities 32 -1,117,368 3,844,800 4,962,168 2.1.2 Debt Securities 33 33,867,304 53,827,604 19,960,300 2.1.2.1 Bonds and Notes 34 37,563,103 53,827,604 16,264,501 2.1.2.2 Money Market Instruments 35 -3,695,799 0 3,695,799 2.2 Liabilities 36 9,910,127 10,035,641 125,514 2.2.1 Equity Securities 37 8,721,011 8,721,011 0 2.2.2 Debt Securities 38 1,189,116 1,314,630 125,514 2.2.2.1 Bonds and Notes 39 1,189,116 1,314,630 125,514 2.2.2.2 Money Market Instruments 40 0 0 0 3. Other Investment 41 -121,066,726 535,794,199 656,860,925 3.1 Assets 42 -106,074,263 32,563,248 138,637,510 3.1.1 Trade Credits 43 5,866,953 5,866,953 0 Long-term 44 410,687 410,687 0 Short-term 45 5,456,266 5,456,266 0 3.1.2 Loans 46 -18,501,123 478,305 18,979,428 Long-term 47 -6,569,000 0 6,569,000 Short-term 48 -11,932,123 478,305 12,410,428 3.1.3 Currency and Deposits 49 -33,528,165 17,715,954 51,244,120 3.1.4 Other Assets 50 -59,911,928 8,502,035 68,413,963 Long-term 51 0 0 0 Short-term 52 -59,911,928 8,502,035 68,413,963 3.2 Liabilities 53 -14,992,463 503,230,952 518,223,415 3.2.1 Trade Credits 54 -19,049,071 0 19,049,071 Long-term 55 -1,333,435 0 1,333,435 Short-term 56 -17,715,636 0 17,715,636 3.2.2 Loans 57 3,620,979 442,835,925 439,214,946 Long-term 58 6,724,078 20,129,387 13,405,309 Short-term 59 -3,103,099 422,706,538 425,809,637 3.2.3 Currency and Deposits 60 2,702,297 59,226,206 56,523,909 3.2.4 Other Liabilities 61 -2,266,668 1,168,821 3,435,489 Long-term 62 -2,236,180 34,976 2,271,156 Short-term 63 -30,488 1,133,845 1,164,333 III. Reserves Assets 64 -418,978,429 0 418,978,429 3.1 Monetary Gold 65 0 0 0 3.2 Special Drawing Rights 66 -7,114 0 7,114 3.3 Reserves Position in the Fund 67 -1,190,315 0 1,190,315 3.4 Foreign Exchange 68 -417,781,000 0 417,781,000 3.5 Other Claims 69 0 0 0 IV. Net Errors and Omissions 70 -26,093,843 0 26,093,843 * This BOP statement employs rounded-off numbers. 124 The SAFE recently released China's Balance of Payments Statement for the year 2008. The statistics reveal that the current account and the capital and financial account posted a "twin surplus" in 2008, and international reserves maintained a growing momentum. In 2008, China's surplus under the current account totaled USD 426.1 billion, an increase of 15% year on year. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD 360.7 billion, USD 31.4 billion, and USD 45.8 billion, respectively, whereas the deficit in services amounted to USD 11.8 billion. Meanwhile, China's surplus under the capital and financial account totaled USD 19 billion in 2008, a decrease of 74% year on year. In particular, the net inflows of direct investments and portfolio investments amounted to USD 94.3 billion and USD 42.7 billion respectively, whereas the net outflows of other investments reached USD 121.1 billion. Furthermore, China's international reserves continued to grow. At the end of 2008, China registered a total of USD 1.946 trillion in foreign exchange reserves, an increase of USD 417.8 billion over that at the end of 2007. In addition, the BOP Analysis Team of the SAFE released China's Balance of Payments Report for the year 2008 in order to facilitate understanding of the data and analysis of China's balance of payments among all groups in the society. Balance of Payments * 2008 US dollars (thousands) Items Line Balance Credit Debit I. Current Account 1 426,107,395 1,725,893,261 1,299,785,866 A. Goods and Services 2 348,870,456 1,581,713,188 1,232,842,732 a. Goods 3 360,682,094 1,434,601,241 1,073,919,146 b. Services 4 -11,811,638 147,111,948 158,923,586 1.Transportation 5 -11,911,179 38,417,556 50,328,735 2.Travel 6 4,686,000 40,843,000 36,157,000 3.Communication Services 7 59,585 1,569,663 1,510,079 4.Construction Services 8 5,965,493 10,328,506 4,363,013 5.Insurance Services 9 -11,360,128 1,382,716 12,742,844 6.Financial Services 10 -250,884 314,731 565,615 7.Computer and Information Services 11 3,086,931 6,252,062 3,165,131 8.Royalties and Licensing Fees 12 -9,748,930 570,536 10,319,466 9.Consulting Services 13 4,605,315 18,140,866 13,535,551 10.Advertising and Public Opinion Polling 14 261,668 2,202,324 1,940,656 11.Audio-visual and Related Services 15 163,322 417,943 254,622 12. Other Business Services 16 2,885,059 26,005,857 23,120,798 13. Government Services, n.i.e. 17 -253,890 666,187 920,076 B. Income 18 31,437,960 91,614,872 60,176,912 1.Compensation of Employees 19 6,400,156 9,136,547 2,736,391 2.Investment Income 20 25,037,804 82,478,325 57,440,521 C. Current Transfers 21 45,798,979 52,565,201 6,766,222 1.General Government 22 -181,611 49,205 230,816 2. Other Sectors 23 45,980,590 52,515,996 6,535,406 II. Capital and Financial Account 24 18,964,877 769,876,094 750,911,218 A. Capital Account 25 3,051,448 3,319,886 268,439 B. Financial Account 26 15,913,429 766,556,208 750,642,779 1. Direct Investment 27 94,320,092 163,053,964 68,733,872 1.1 Abroad 28 -53,470,972 2,175,785 55,646,757 1.2 In China 29 147,791,064 160,878,179 13,087,115 2. Portfolio Investment 30 42,660,063 67,708,045 25,047,982 2.1 Assets 31 32,749,936 57,672,404 24,922,468 2.1.1 Equity Securities 32 -1,117,368 3,844,800 4,962,168 2.1.2 Debt Securities 33 33,867,304 53,827,604 19,960,300 2.1.2.1 Bonds and Notes 34 37,563,103 53,827,604 16,264,501 2.1.2.2 Money Market Instruments 35 -3,695,799 0 3,695,799 2.2 Liabilities 36 9,910,127 10,035,641 125,514 2.2.1 Equity Securities 37 8,721,011 8,721,011 0 2.2.2 Debt Securities 38 1,189,116 1,314,630 125,514 2.2.2.1 Bonds and Notes 39 1,189,116 1,314,630 125,514 2.2.2.2 Money Market Instruments 40 0 0 0 3. Other Investment 41 -121,066,726 535,794,199 656,860,925 3.1 Assets 42 -106,074,263 32,563,248 138,637,510 3.1.1 Trade Credits 43 5,866,953 5,866,953 0 Long-term 44 410,687 410,687 0 Short-term 45 5,456,266 5,456,266 0 3.1.2 Loans 46 -18,501,123 478,305 18,979,428 Long-term 47 -6,569,000 0 6,569,000 Short-term 48 -11,932,123 478,305 12,410,428 3.1.3 Currency and Deposits 49 -33,528,165 17,715,954 51,244,120 3.1.4 Other Assets 50 -59,911,928 8,502,035 68,413,963 Long-term 51 0 0 0 Short-term 52 -59,911,928 8,502,035 68,413,963 3.2 Liabilities 53 -14,992,463 503,230,952 518,223,415 3.2.1 Trade Credits 54 -19,049,071 0 19,049,071 Long-term 55 -1,333,435 0 1,333,435 Short-term 56 -17,715,636 0 17,715,636 3.2.2 Loans 57 3,620,979 442,835,925 439,214,946 Long-term 58 6,724,078 20,129,387 13,405,309 Short-term 59 -3,103,099 422,706,538 425,809,637 3.2.3 Currency and Deposits 60 2,702,297 59,226,206 56,523,909 3.2.4 Other Liabilities 61 -2,266,668 1,168,821 3,435,489 Long-term 62 -2,236,180 34,976 2,271,156 Short-term 63 -30,488 1,133,845 1,164,333 III. Reserves Assets 64 -418,978,429 0 418,978,429 3.1 Monetary Gold 65 0 0 0 3.2 Special Drawing Rights 66 -7,114 0 7,114 3.3 Reserves Position in the Fund 67 -1,190,315 0 1,190,315 3.4 Foreign Exchange 68 -417,781,000 0 417,781,000 3.5 Other Claims 69 0 0 0 IV. Net Errors and Omissions 70 -26,093,843 0 26,093,843 * This BOP statement employs rounded-off numbers. 124 2009-04-24/en/2009/0424/886.html
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The SAFE recently released China's Balance of Payments Statement for the first half of 2009. The statistics reveal that the current account and the capital and financial account continued to post a "twin surplus," but the scale of the surplus has begun to decline modestly. In the first half of 2009, China's surplus under the current account totaled USD 134.5 billion, a decrease of 30% year on year. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD 119 billion, USD 16.9 billion, and USD 15.2 billion, respectively, whereas the deficit in services amounted to USD 16.7 billion. Meanwhile, China's surplus under the capital and financial account totaled USD 61 billion, a drop of 15% year on year. In particular, the net inflows of direct investments and portfolio investments amounted to USD 15.6 billion and USD 20.2 billion respectively, whereas the net inflows of other investments reached USD 23.9 billion. Furthermore, China's international reserves continued to grow. At the end of June 2009, China registered a total of USD 2,131.6 billion in foreign exchange reserves, an increase of USD 185.6 billion over that at the end of 2008. For the purpose of enhancing the timeliness of the release of the data in the balance of payments statement, the SAFE released preliminary data on China's Balance of Payments Statement for the first half of 2009 on August 20. The data now available are subject to revision. In addition, the BOP Analysis Team of the SAFE released China's Balance of Payments Report for the First Half of 2009 in order to facilitate an understanding among all social groups of the data and analysis of China's balance of payments. Balance of Payments * First Half of 2009 US dollars (thousand) Items Line Balance Credit Debit I. Current Account 1 134,459,941 643,376,735 508,916,794 A. Goods and Services 2 102,319,724 576,190,644 473,870,920 a. Goods 3 118,976,618 521,262,315 402,285,697 b. Services 4 -16,656,894 54,928,329 71,585,222 1.Transportation 5 -9,148,812 10,632,325 19,781,137 2.Travel 6 -2,846,806 18,246,000 21,092,806 3.Communications Services 7 63,967 546,892 482,926 4.Construction Services 8 1,288,000 3,677,880 2,389,879 5.Insurance Services 9 -4,248,751 602,657 4,851,408 6.Financial Services 10 -26,701 158,530 185,231 7.Computer and Information Services 11 1,579,353 2,876,007 1,296,653 8.Royalties and Licensing Fees 12 -4,435,022 181,204 4,616,226 9.Consulting Services 13 2,291,165 8,253,302 5,962,137 10.Advertising and Public Opinion Polling 14 152,221 1,103,585 951,364 11.Audio-visual and Related Services 15 -104,943 38,736 143,678 12. Other Business Services 16 -1,300,352 8,186,771 9,487,123 13. Government Services, n.i.e. 17 79,789 424,439 344,650 B. Income 18 16,936,295 47,143,272 30,206,978 1.Employee Compensation 19 2,662,501 3,775,455 1,112,954 2.Investment Income 20 14,273,794 43,367,817 29,094,024 C. Current Transfers 21 15,203,922 20,042,819 4,838,897 1.General Government 22 -128,280 23,852 152,132 2. Other Sectors 23 15,332,202 20,018,967 4,686,765 II. Capital and Financial Account 24 60,994,554 342,306,167 281,311,613 A. Capital Account 25 1,348,333 1,448,015 99,683 B. Financial Account 26 59,646,222 340,858,152 281,211,930 1. Direct Investment 27 15,561,165 49,222,658 33,661,493 1.1 Overseas 28 -13,306,810 1,177,898 14,484,708 1.2 Domestic 29 28,867,975 48,044,760 19,176,784 2. Portfolio Investment 30 20,184,651 42,542,136 22,357,485 2.1 Assets 31 7,731,758 30,025,343 22,293,585 2.1.1 Equity Securities 32 -850,658 7,277,860 8,128,517 2.1.2 Debt Securities 33 8,582,415 22,747,483 14,165,068 2.1.2.1 Bonds and Notes 34 3,546,925 17,709,179 14,162,254 2.1.2.2 Money Market Instruments 35 5,035,490 5,038,304 2,814 2.2 Liabilities 36 12,452,893 12,516,793 63,900 2.2.1 Equity Securities 37 12,453,094 12,516,120 63,026 2.2.2 Debt Securities 38 -201 673 873 2.2.2.1 Bonds and Notes 39 0 0 0 2.2.2.2 Money Market Instruments 40 -201 673 873 3. Other Investment 41 23,900,406 249,093,358 225,192,952 3.1 Assets 42 29,117,407 70,167,876 41,050,468 3.1.1 Trade Credits 43 -16,307,365 0 16,307,365 Long-term 44 -1,141,516 0 1,141,516 Short-term 45 -15,165,849 0 15,165,849 3.1.2 Loans 46 6,437,006 26,814,013 20,377,007 Long-term 47 -20,214,000 0 20,214,000 Short-term 48 26,651,006 26,814,013 163,007 3.1.3 Currency and Deposits 49 28,968,413 33,278,498 4,310,085 3.1.4 Other Assets 50 10,019,353 10,075,364 56,011 Long-term 51 0 0 0 Short-term 52 10,019,353 10,075,364 56,011 3.2 Liabilities 53 -5,217,001 178,925,483 184,142,484 3.2.1 Trade Credits 54 -6,670,160 0 6,670,160 Long-term 55 -466,911 0 466,911 Short-term 56 -6,203,249 0 6,203,249 3.2.2 Loans 57 -6,083,623 151,047,587 157,131,210 Long-term 58 -8,387,786 5,196,860 13,584,646 Short-term 59 2,304,163 145,850,727 143,546,564 3.2.3 Currency and Deposits 60 4,955,296 24,508,180 19,552,884 3.2.4 Other Liabilities 61 2,581,486 3,369,716 788,230 Long-term 62 -120,472 0 120,472 Short-term 63 2,701,957 3,369,716 667,758 III. Reserves Assets 64 -185,941,174 0 185,941,174 3.1 Monetary Gold 65 0 0 0 3.2 Special Drawing Rights 66 -28,637 0 28,637 3.3 Reserves Position in the Fund 67 -336,537 0 336,537 3.4 Foreign Exchange 68 -185,576,000 0 185,576,000 3.5 Other Claims 69 0 0 0 IV. Net Errors and Omissions 70 -9,513,322 0 9,513,322 * This BOP statement employs rounded-off numbers. 2009-10-15/en/2009/1015/902.html
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The SAFE recently released China's International Investment Position for year-end 2008. The statistics reveal that at the end of 2008, China's external financial assets hit USD 2920.3 billion, up 23 percent over that at the end of 2007; external financial liabilities reached USD 1401.3 billion, a rise of 17 percent year on year; external net financial assets totaled USD 1519 billion, an increase of 31 percent year on year.. Among the external financial assets, direct investments abroad amounted to USD 169.4 billion, portfolio investments were USD 251.9 billion, other investments were USD 532.8 billion, and reserves assets were USD 1966.2 billion, accounting for 6 percent, 9 percent, 18 percent, and 67 percent respectively. In terms of external financial liabilities, foreign direct investments totaled USD 876.3 billion, portfolio investments USD 161.2 billion, and other investments USD 363.7 billion, accounting for 63 percent, 11 percent, and 26 percent respectively. The International Investment Position (hereinafter referred to as the IIP) is a statistical statement which reflects at a specific point the stocks of financial assets and liabilities of one country or region to other countries or regions in the world, and together with the balance of payments statements (BOP statements) it constitutes the complete international accounts system of the country or region to show the trade flows. The SAFE has adjusted its IIP for year-end 2006 and year-end 2007 according to the latest data. China's International Investment Position Unit: USD 100m Items End of 2006 End of 2007 End of 2008 Net Position 6534 11619 15190 A. Assets 16881 23744 29203 1. Direct Investments Abroad 906 1160 1694 2. Portfolio Investment 2652 2846 2519 2.1 Equity Securities 15 196 208 2.2 Debt Securities 2637 2650 2311 3. Other Investment 2515 4265 5328 3.1 Trade Credits 1161 1399 1340 3.2 Loans 670 888 1071 3.3 Currency and Deposits 474 723 1060 3.4 Other Assets 210 1255 1857 4. Reserves Assets 10808 15473 19662 4.1 Monetary Gold 123 170 169 4.2 Special Drawing Rights 11 12 12 4.3 Reserves Position in the Fund 11 8 20 4.4 Foreign Exchange 10663 15282 19460 B. Liabilities 10347 12125 14013 1. Foreign Direct Investments 6144 7037 8763 2. Portfolio Investment 1207 1466 1612 2.1 Equity Securities 1065 1290 1440 2.2 Debt Securities 142 176 172 3. Other Investment 2996 3622 3637 3.1 Trade Credits 1040 1331 1141 3.2 Loans 985 1033 1030 3.3 Currency and Deposits 589 785 910 3.4 Other Liabilities 382 473 557 Note: 1. This IIP employs rounded-off numbers. 2. Net position refers to assets minus liabilities, + means net assets, and -means net liabilities. Compilation Principles and Indexes for the IIP I. Compilation Principles for the IIP In accordance with the standards of the Balance of Payments Manual (Fifth Edition) published by the International Monetary Fund (IMF), the IIP is a statistical statement which reflects at a specific point the stocks of financial assets and liabilities of one country or region to other countries or regions of the world. Changes in the IIP can be caused by changes in the transactions, prices, and exchange rates, as well as by other adjustments during specific periods. The IIP remains consistent with the BOP statement with regard to the principles of valuation, measurement, and conversion, and together with the BOP statement constitutes a complete international accounts system of the country or region. Chinas IIP is a statistical statement which reflects at a specific point the stocks of the financial assets and liabilities of China (excluding that in Hong Kong SAR, Macao SAR, and Taiwan Province) to other countries or regions of the world. II. Explanation of the Major IIP Indexes According to the standards of the IMF, the items on the IIP are categorized according to assets and liabilities. The assets are divided into China's direct investments abroad, portfolio investments, other investments, and reserves assets, and the liabilities are divided into foreign direct investments, portfolio investments, and other investments. The net position refers to external assets minus external liabilities. The items are specifically defined as follows: 1. Direct Investment: Refers to external investment in which an investor of one country operates an enterprise located in another country with the aim of acquiring effective control over the enterprise. It consists of direct investment abroad and foreign direct investment. Direct investment abroad includes the stocks of the direct investment abroad conducted by China's non-financial sectors, the stocks of the capital fund and working capital appropriated by domestic banks to set up branches overseas, as well as the stocks of the loans between parent companies and subsidiaries both in China and abroad, and the stocks of other receivables and payables. Foreign direct investment includes the stocks of foreign direct investment absorbed by China's non-financial sectors, the stocks of direct investment overseas absorbed by the financial sectors (including foreign investment attracted by branches of foreign financial sectors and Chinese-funded financial sectors, and investments by the foreign party in joint financial sectors), as well as the stocks of the loans between parent companies and subsidiaries both in China and abroad and the stocks of other receivables and payables. 2. Portfolio Investment: Includes some types of investment such as shares, long- and medium-term bonds, and money-market instruments. Portfolio investment assets refer to holdings of negotiable securities, such as shares, bonds, money-market instruments, and derivative financial instruments, which are held by Chinese residents but issued by non-resident enterprises. Portfolio investment liabilities refer to shares and bonds held by non-resident enterprises but issued by Chinese residents. 2.1 Equity Securities: Comprise securities in the form of stocks. 2.2 Debt Securities: Include long-term and medium-term bonds, short-term (one year or less) bonds, and money-market instruments or transferable debt instruments such as short-term treasury notes, commercial papers, and large-sum short-term negotiable certificates of deposits. 3. Other Investment: Refers to all the financial assets and liabilities, including trade credits, loans, currency, and deposits, as well as other assets and liabilities, but excluding direct investments, portfolio investments, and reserves assets. Long term means that the contract period of the relevant financial assets/liabilities is longer than one year, and short term means that the contract period is one year or less. 3.1 Trade Credits: Refers to the direct business credit arising from the import and export of goods between China and other countries. Assets refer to the receivables of China's exporters and the advance payments by Chinas importers, and liabilities refer to the payables of Chinas importers and the advance receipts of China's exporters. 3.2 Loans: Assets refer to the external assets held by domestic institutions by providing loans and lending to overseas institutions; and liabilities refer to the loans borrowed by domestic institutions, such as loans from foreign governments, loans from international institutions, loans from foreign banks, and sellers credit. 3.3 Currency and Deposits: Assets refer to the funds deposited abroad and the foreign cash in stock held by China's financial institutions; and liabilities refer to the overseas private deposits and short-term funds from foreign banks attracted by China's financial institutions, as well as other short-term funds like loans from foreign exporters and individuals. 3.4 Other Assets/Liabilities: Refer to the investments other than trade credits, loans, currency, and deposits, for example, the capital paid by non-currency international institutions and other receivables and payables. 4. Reserves Assets: Refer to the external assets that can be used at any time and are effectively controlled by the PBOC, consisting of monetary gold, special drawing rights (SDRs), the reserves position in the Fund, and foreign exchange. 4.1 Monetary Gold: Refers to the gold held by the PBOC as reserve. 4.2 Special Drawing Rights: is a type of ledger assets, which is allocated by the IMF according to the capital share of its members; it can be used to repay the debt to the IMF and can make up for the deficit in the balance of payments between the governments of member countries. 4.3 Reserves Position in the Fund: Refer to the assets that are in the ordinary accounts of the IMF and that can be used freely. 4.4 Foreign Exchange: Refers to the current assets and liabilities that are retained by the PBOC and that can be used as a means of international compensation. (End) 2009-06-02/en/2009/0602/890.html
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Recently the People's Bank of China released data on the state's foreign exchange reserves as of the end of 2009. According to some analyses, in 2009 China witnessed an increase of USD453.1 billion in its foreign exchange reserves. Deducting the trade surplus of USD196.07 billion and the actually utilized foreign capital of USD90.03 billion during the same period, there is a balance of USD167 billion, which is regarded as unaccountable, that is, an inflow of hot money.A reporter interviewed a relevant official of the SAFE on this issue. Q: How do regard the estimation method for the newly-increased foreign exchange reserves minus the trade surplus and minus the actually utilized foreign capital equals hot money,which is presently widely used by the general public? A: We appreciate the analyses from the general public on the operating conditions of the balance of payments from different perspectives, as well as their suggestions on our work on foreign exchange administration. To be frank, the above estimation method is unscientific, thus the conclusion is misleading. With regard to the newly- increased balance of foreign exchange reserves, analysts should not only emphasize factors such as foreign trade conditions, foreign direct investment, and so forth, but also should take into consideration the conditions for cross-border fund flows for trade in service, individuals, external debts, and securities investment as well as the investment income of the foreign exchange reserves, currency conversion, and other factors. A simple deduction of the trade surplus and the actually utilized foreign exchange will not account for the so-called unaccountable reserves, let alone the inappropriate label of hot money. Q: Can you describe in detail how the newly-increased foreign exchange reserves should be analyzed by taking into account the investment income and currency conversion? A: We have noted that some media have taken into consideration the investment income and income from currency conversion to analyze the newly-increased foreign exchange reserves. As per the relevant requirements of the foreign exchange administration, for the time being we cannot disclose the specific data on the investment income and currency conversion. Nevertheless, selection of the relevant data can be used as a reference. For example, according to the changes in the exchange rate index of the USD against other major currencies which is compiled by the FED, the exchange rate of the USD depreciated by 8.5% in 2009. As shown in the data on the structure of global reserves released by the IMF, the non-dollar reserve assets account for nearly 40% of the total reserve assets. Hence, the appreciation of non-dollar assets against the USD in 2009 will inevitably lead to an increase in the balance of foreign exchange reserves in USD (income from currency conversion). As another instance, by use of the frequently-adopted Barclays Return Rate of the Global Bond Integrated Index, the annual average return rate from 2005 to 2009 was 4.8%. Based on that, the aggregate investment income from a certain amount of the balance of reserves for various years can be calculated, i.e., to what extent investment income contributed to the increase in the foreign exchange reserves. Although these analyses are only for reference, they will help prevent significant omissions in the selection of analytical methods, thus their conclusions will be more convincing. Q: Could the increase in foreign exchange reserves in 2009 be better explained, if investment income and currency conversion are taken into consideration? A: With regard to our data, the argument that the increase in foreign exchange reserves in 2009 is unaccountable is unreasonable. Q: Some argue that there will be increasing inflows of short-term speculative funds into China in 2010. How do you regard that? A: With the stable growth of the national economy and the constant decline in the USD interest rate in the past months, those entities involved in foreign exchange businesses (banks, enterprises, individuals, and so forth) are more likely to transfer their overseas assets back to China and to make settlements. Meanwhile, it is possible that some overseas speculative and arbitrage funds will flow into China by means of distribution and infiltration through such channels as trade, individual investment, foreign investment, and so forth. Currently, China maintains a certain level of control over capital accounts. Based on the premise to promote the facilitation of trade and investment, we will continue to intensify efforts to crack down on illegal flows of cross-border funds. Q: What about the progress and achievements in cracking down on illegal flows of cross-border funds during the past year? A: In 2009, by taking full advantage of the United Office for Cracking Down on Criminal Activities of Illegal Foreign Exchange Transactions and closely teaming up with the public security departments, we launched a series of campaigns to crack down on major cases of illegal flows of funds, such as underground money shops, online foreign exchange speculation, and so forth The SAFE uncovered 10 cases of underground money shops, 6 cases of online illegal foreign exchange speculation, and 11 cases of illegal trading of foreign exchange, and discovered more than 61 nests for illegal foreign exchange transactions, involving a total amount of USD3.54 billion. Q: What measures will the foreign exchange administration departments adopt to prevent the inflow of speculative and arbitrage funds in 2010? A: To prevent the inflow of speculative and arbitrage funds, which may affect the stability of the national economy and finance, we will take the following measures: (1) strengthening the construction of the statistical system for the balance of payments, establishing and improving monitoring, an early-warning system, and an emergency plan for the inflows and outflows of cross-border funds; (2) strengthening the administration of cross-border capital flows, continuing to crack down on illegal inflows of funds, and taking appropriate measures to control the channels for the excessive inflow of capital; (3) further promoting the convertibility of the capital accounts, broadening the channels for capital outflows, and facilitating the holding and use of foreign exchange by domestic institutions and individuals; and (4) taking comprehensive and effective measures to promote an equilibrium in the balance of payments by complying with the unified planning of the Central Government. 2010-01-19/en/2010/0119/918.html
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For the purpose of enhancing the timeliness of the release of the data of the balance of payments statement, the SAFE recently released preliminary data of China's Balance of Payments statement for the first half of 2009. The current account and the capital and financial account posted a "twin surplus" in the first half of 2009, and international reserves maintained a growing momentum. In the first half of 2009, China's surplus under the current account totaled USD 130 billion, a decrease of 32% year on year. Specifically, according to the statistical coverage of the balance of payments, the surpluses under the trade in goods, income, and current transfers reached USD 118.3 billion, USD 16 billion, and USD 14.3 billion respectively, whereas the deficit in services amounted to USD 18.6 billion. Meanwhile, China's surplus under the capital and financial account totaled USD 33.1 billion, a drop of 54% year on year. In particular, the net inflows of direct investments and portfolio investments amounted to USD 20.6 billion and USD 16.9 billion respectively, whereas the net outflows of other investments reached USD 5.6 billion. Furthermore, China's international reserves continued to grow. At the end of the first half of 2009, China registered a total of USD 2131.6 billion in foreign exchange reserves, an increase of USD 185.6 billion over that at the end of 2008. The SAFE will formally release China's Balance of Payments Statement for the first half of 2009 during the September-October period. (End). Balance of Payments*(Preliminary Data) First Half of 2009 US dollars (thousands) Items Line Balance I. Current Account 1 129,985,896 A. Goods and Services 2 99,695,010 a. Goods 3 118,332,904 Credit 4 521,698,519 Debit 5 403,365,615 b. Services 6 -18,637,895 B. Income 7 15,953,349 C. Current Transfers 8 14,337,537 II. Capital and Financial Account 9 33,141,071 A. Capital Account 10 1,253,915 B. Financial Account 11 31,887,156 1. Direct Investment 12 20,572,107 2. Portfolio Investment 13 16,924,372 3. Other Investment 14 -5,609,323 III. Reserves Assets 15 -185,941,174 3.1 Monetary Gold 16 0 3.2 Special Drawing Rights 17 -28,637 3.3 Reserves Position in the Fund 18 -336,537 3.4 Foreign Exchange 19 -185,576,000 3.5 Other Claims 20 0 IV. Net Errors and Omissions 21 22,814,207 2009-09-02/en/2009/0902/898.html