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In the fourth quarter of 2019, China's current account registered a surplus of RMB 285.0 billion, and the capital and financial accounts recorded a surplus of RMB 155.0 billion. The financial account (excluding reserve assets) recorded a surplus of RMB 111.0 billion, and reserve assets decreased by RMB 44.0 billion. In 2019, China's current account registered a surplus of RMB 976.8 billion, and the capital and financial accounts recorded a surplus of RMB 388.4 billion.The financial account ( excluding reserve assets) recorded a surplus of RMB 254.5 billion, and reserve assets decreased by RMB 136.2 billion. In the US dollar terms, in the fourth quarter, China's current account recorded a surplus of USD 40.5 billion, including a surplus of USD 122.0 billion under trade in goods, a deficit of USD 59.4 billion under trade in services, a deficit of USD 24.7 billion under primary income and a surplus of USD 2.6 billion under secondary income. The capital and financial accounts registered a surplus of USD 22.0 billion, including a deficit of USD 2 million under the capital account, and a surplus of USD 15.8 billion under the financial account (excluding reserve assets), and reserves assets decreased by USD 6.3 billion. In the US dollar terms, in 2019, China's current account recorded a surplus of USD 141.3 billion, including a surplus of USD 425.3 billion under trade in goods, a deficit of USD 261.1 billion under trade in services, a deficit of USD 33.0 billion under primary income and a surplus of USD 10.3 billion under secondary income. The capital and financial accounts recorded a surplus of USD 56.7 billion, including a deficit of USD 300 million under the capital account, a surplus of USD 37.8 billion under the financial account (excluding reserve assets), and reserves assets decreased by USD 19.3 billion. In SDR terms, in the fourth quarter, China posted a surplus of SDR 29.5 billion under the current account, and a surplus of SDR 16.0 billion under the capital and financial accounts. The financial account (excluding reserve assets) registered a surplus of SDR 11.5 billion, and reserves assets decreased by SDR 4.5 billion. In SDR terms, in 2019, China posted a surplus of SDR 102.4 billion underthe current account, and a surplus of SDR 40.9 billion under the capital and financial accounts. The financial account (excluding reserve assets) registered a surplus of SDR 27.1 billion, and reserves assets decreased by SDR 14.1 billion. The SAFE has revised the BOP data for each quarter since 2018 according to the latest data and released it through the section of "Data andStatistics" at the official website of the SAFE. In addition, in order to facilitate understanding of the data of Balance of Payments among all social groups, the BOP Analysis Team of the SAFE released China’s Balance of Payments Report 2019. (End) AbridgedBalance of Payments, Q4 2019 Item Line No. RMB 100 million USD 100 million SDR 100 million 1. Current Account 1 2,850 405 295 Credit 2 53,943 7,672 5,579 Debit 3 -51,093 -7,266 -5,284 1. A Goods and Services 4 4,402 626 455 Credit 5 50,246 7,146 5,196 Debit 6 -45,845 -6,520 -4,741 1.A.a Goods 7 8,578 1,220 887 Credit 8 45,608 6,486 4,717 Debit 9 -37,030 -5,266 -3,830 1.A.b Services 10 -4,176 -594 -432 Credit 11 4,639 660 480 Debit 12 -8,814 -1,254 -912 1.B Primary Income 13 -1,736 -247 -180 Credit 14 3,238 461 335 Debit 15 -4,974 -707 -514 1.C Secondary Income 16 184 26 19 Credit 17 458 65 47 Debit 18 -274 -39 -28 2. Capital and Financial Account 19 1,550 220 160 2.1 Capital Account 20 0 0 0 Credit 21 4 1 0 Debit 22 -4 -1 0 2.2 Financial Account 23 1,550 220 160 Assets 24 -4,305 -612 -445 Liabilities 25 5,854 833 605 2.2.1 Financial Account Excluding Reserve Assets 26 1,110 158 115 2.2.1.1 Direct Investment 27 1,971 280 204 Assets 28 -1,986 -282 -205 Liabilities 29 3,957 563 409 2.2.1.2 Portfolio Investment 30 1,048 149 108 Assets 31 -1,844 -262 -191 Liabilities 32 2,892 411 299 2.2.1.3 Financial Derivatives (other than reserves) and Employee Stock Options 33 -96 -14 -10 Assets 34 -84 -12 -9 Liabilities 35 -12 -2 -1 2.2.1.4 Other Investment 36 -1,812 -258 -187 Assets 37 -830 -118 -86 Liabilities 38 -983 -140 -102 2.2.2 Reserve Assets 39 440 63 45 3. Net Errors and Omissions 40 -4,399 -626 -455 Notes: 1. Thestatement is compiled according to BPM6. Reserve assets are included in capitaland financial accounts. 2."Credit" is presented as positive value while "debit" asnegative value, and the difference is the sum of the "Credit" and the"Debit". All items herein refer to difference, unless marked with"Credit" or "Debit". 3. The RMBdenominated quarterly BOP data is converted from the USD denominated BOP datafor the quarter using the quarterly average middle rate of RMB against USD. Thequarterly accumulated RMB denominated BOP data is derived from the sum total ofthe RMB denominated data for the quarters. 4. The SDRdenominated quarterly BOP data is converted from the USD denominated BOP datafor the quarter using the quarterly average middle rate of SDR against USD. Thequarterly accumulated SDR denominated BOP data is derived from the sum total ofthe SDR denominated data for the quarters. 5. Thisstatement employs rounded-off numbers. 6. Fordetailed data, please see the section of “Dataand Statistics” atthe website of the SAFE. Abridged Balance of Payments, 2019 Item Line No. RMB 100 million USD 100 million SDR 100 million 1. Current Account 1 9,768 1,413 1,024 Credit 2 200,485 29,051 21,033 Debit 3 -190,717 -27,638 -20,009 1. A Goods and Services 4 11,398 1,641 1,191 Credit 5 182,470 26,434 19,140 Debit 6 -171,072 -24,793 -17,949 1.A.a Goods 7 29,405 4,253 3,081 Credit 8 165,612 23,990 17,371 Debit 9 -136,207 -19,737 -14,290 1.A.b Services 10 -18,007 -2,611 -1,890 Credit 11 16,858 2,444 1,769 Debit 12 -34,864 -5,055 -3,659 1.B Primary Income 13 -2,336 -330 -241 Credit 14 16,228 2,358 1,706 Debit 15 -18,565 -2,688 -1,947 1.C Secondary Income 16 706 103 74 Credit 17 1,787 259 188 Debit 18 -1,080 -157 -113 2. Capital and Financial Account 19 3,884 567 409 2.1 Capital Account 20 -23 -3 -2 Credit 21 15 2 2 Debit 22 -38 -5 -4 2.2 Financial Account 23 3,907 570 412 Assets 24 -13,759 -1,987 -1,440 Liabilities 25 17,665 2,558 1,852 2.2.1 Financial Account Excluding Reserve Assets 26 2,545 378 271 2.2.1.1 Direct Investment 27 3,994 581 420 Assets 28 -6,744 -977 -707 Liabilities 29 10,738 1,558 1,127 2.2.1.2 Portfolio Investment 30 4,003 579 420 Assets 31 -6,181 -894 -648 Liabilities 32 10,184 1,474 1,067 2.2.1.3 Financial Derivatives (other than reserves) and Employee Stock Options 33 -165 -24 -17 Assets 34 94 14 10 Liabilities 35 -259 -37 -27 2.2.1.4 Other Investment 36 -5,287 -759 -551 Assets 37 -2,290 -323 -236 Liabilities 38 -2,997 -437 -315 2.2.2 Reserve Assets 39 1,362 193 141 3. Net Errors and Omissions 40 -13,652 -1,981 -1,433 Notes: 1. Thestatement is compiled according to BPM6. Reserve assets are included in capitaland financial accounts. 2."Credit" is presented as positive value while "debit" asnegative value, and the difference is the sum of the "Credit" and the"Debit". All items herein refer to difference, unless marked with"Credit" or "Debit". 3. The RMBdenominated quarterly BOP data is converted from the USD denominated BOP datafor the quarter using the quarterly average middle rate of RMB against USD. Thequarterly accumulated RMB denominated BOP data is derived from the sum total ofthe RMB denominated data for the quarters. 4. The SDRdenominated quarterly BOP data is converted from the USD denominated BOP datafor the quarter using the quarterly average exchange rate of SDR against USD.The quarterly accumulated SDR denominated BOP data is derived from the sumtotal of the SDR denominated data for the quarters. 5. Thisstatement employs rounded-off numbers. 6. Fordetailed data, please see the section of “Dataand Statistics” atthe website of the SAFE. 2020-03-27/en/2020/0327/1659.html
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As at the end of 2019, China’s external financial assets reached USD 7714.5 billion, external financial liabilities reached USD 5590.5 billion, and net external assets totaled USD 2124.0 billion. In the external financial assets, direct investment assets amounted to USD 2094.5 billion, portfolio investment assets, USD 646.0 billion, financial derivative assets, USD 6.7 billion, other investment assets, USD 1744.3 billion, and reserves assets, USD 3222.9 billion, accounting for 27 percent, 8 percent, 0.1 percent, 23 percent and 42 percent of external financial assets respectively. In external liabilities, direct investment liabilities were USD 2928.1 billion, portfolio investment liabilities, USD 1364.6 billion, financial derivative liabilities, USD 6.5 billion and other investment liabilities, USD 1291.3 billion, accounting for 52 percent, 24 percent, 0.1 percent and 23 percent of the external financial liabilities respectively. In SDR terms, China’s external financial assets and liabilities reached SDR 5578.7 billion and SDR 4042.8 billion respectively, and external net assets totaled SDR 1536.0 billion at the end of 2019. The SAFE has revised the IIP data for each quarter since 2018 according to the latest data，and released it through the section of "Data and Statistics" at the official website of the SAFE. In addition, in order to facilitate understanding of China’s International Investment Position among all social groups, the BOP Analysis Team of the SAFE released China's Balance of Payments Report 2019. (End) China's International Investment Position, End of 2019 Item Line No. Position in 100 million USD Position in 100 million SDR Net Position 1 21,240 15,360 Assets 2 77,145 55,787 1 Direct Investment 3 20,945 15,147 1.1 Equity and Investment Fund Shares 4 17,811 12,880 1.2 Debt Instruments 5 3,135 2,267 1.a Financial Sectors 6 2,839 2,053 1.1.a Equity and Investment Fund Shares 7 2,739 1,981 1.2.a Debt Instruments 8 100 72 1.b Non-financial Sectors 9 18,107 13,094 1.1.b Equity and Investment Fund Shares 10 15,072 10,899 1.2.b Debt Instruments 11 3,035 2,195 2 Portfolio Investment 12 6,460 4,671 2.1 Equity and Investment Fund Shares 13 3,738 2,703 2.2 Debt Securities 14 2,722 1,968 3 Financial Derivatives (other than reserves) and Employee Stock Options 15 67 49 4 Other Investment 16 17,443 12,614 4.1 Other Equity 17 84 61 4.2 Currency and Deposits 18 4,179 3,022 4.3 Loans 19 6,963 5,035 4.4 Insurance, Pension, and Standardized Guarantee Schemes 20 135 97 4.5 Trade Credit and Advances 21 5,604 4,053 4.6 Others 22 479 346 5 Reserve Assets 23 32,229 23,307 5.1 Monetary Gold 24 954 690 5.2 Special Drawing Rights 25 111 80 5.3 Reserve Position in the IMF 26 84 61 5.4 Foreign Exchange Reserves 27 31,079 22,475 5.5 Other Reserve Assets 28 0 0 Liabilities 29 55,905 40,428 1 Direct Investment 30 29,281 21,175 1.1 Equity and Investment Fund Shares 31 26,748 19,343 1.2 Debt Instruments 32 2,533 1,832 1.a Financial Sectors 33 1,605 1,161 1.1.a Equity and Investment Fund Shares 34 1,426 1,031 1.2.a Debt Instruments 35 179 129 1.b Non-financial Sectors 36 27,676 20,014 1.1.b Equity and Investment Fund Shares 37 25,321 18,311 1.2.b Debt Instruments 38 2,354 1,703 2 Portfolio Investment 39 13,646 9,868 2.1 Equity and Investment Fund Shares 40 8,617 6,231 2.2 Debt Securities 41 5,029 3,636 3 Financial Derivatives (other than reserves) and Employee Stock Options 42 65 47 4 Other Investment 43 12,913 9,338 4.1 Other Equity 44 0 0 4.2 Currency and Deposits 45 4,245 3,070 4.3 Loans 46 4,605 3,330 4.4 Insurance, Pension, and Standardized Guarantee Schemes 47 135 97 4.5 Trade Credit and Advances 48 3,644 2,635 4.6 Others 49 189 136 4.7 Special Drawing Rights 50 97 70 Notes:1. This table employs rounded-off numbers. 2.Net International Investment Position refers to assets minus liabilities. Positive figure refers to net assets, and negative figure refers to net liabilities. 3.The SDR denominated data is converted from the USD denominated data, using the exchange rate of SDR against USD at the end of the quarter. 2020-03-27/en/2020/0327/1660.html
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The State Administration of Foreign Exchange (SAFE) has recently released the initial data in the Balance of Payments for the third quarter and the first three quarters of 2019. Wang Chunying, SAFE press spokesperson and chief economist, answered related questions from the press. Q: Could you brief us on the features of China's balance of payments for the first three quarters of 2019? A: The initial data in the Balance of Payments shows that China's current account registered a surplus and cross-border capital flows stayed stable in the first three quarters of 2019, suggesting China's balance of payments was in a basic equilibrium. First, the current account was in surplus, with a rising surplus under trade in goods and a narrowing deficit under the trade in services. In the first three quarters of 2019, the current account recorded a surplus of USD 143.2 billion, versus a deficit of USD 5.5 billion the same period a year earlier. Specifically, in the Balance of Payments, trade in goods registered a surplus of USD 343.5 billion, up by 34% year-on-year, but trade in services recorded a deficit of USD 201.7 billion, down by 12% year-on-year. Under trade in services, the deficits of travel, transportation and use of IP rights decreased by 8%, 15% and 10% year-on-year, respectively. Second, FDI remained high. In the first three quarters, direct investment registered a net inflow of USD 27.7 billion. ODI recorded a net outflow of USD 69.3 billion, and FDI, a net inflow of 97 billion, which was high. Third, portfolio investment reached a surplus and two-way capital flows were striking. Initial statistics show that China posted a surplus of USD 40 billion under portfolio investment in the first three quarters. Specifically, China's outward portfolio investment exceeded USD 60 billion, and foreign portfolio investment in China surpassed USD 100 billion. Fourth, reserve assets stayed generally stable. In the first three quarters, China's reserve assets contracted by USD 13 billion due to transactions in the Balance of Payments. Impacted by non-transaction factors including foreign exchange rate and pricing, the balance of China's reserve assets hit USD 3.2045 trillion by the end of September, up by USD 36.5 billion from the end of 2018. Overall, as China's economic fundamentals remain sound over the long term and all-round opening up is pushed ahead, China's balance of payments is expected to stay generally stable and remain in a basic equilibrium throughout the year. 2019-11-08/en/2019/1108/1662.html
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As at the end of 2019, China's banking sector recorded external financial assets of USD 1170.9 billion, external liabilities of USD 1330.1 billion, and net external liabilities of USD 159.1 billion including net RMB liabilities of USD 324.3 billion and net foreign currency assets of USD 165.2 billion. Among the external financial assets of the banking sector, deposits and loans were USD 832.1 billion,bonds investment,USD 163.0 billion, and other assets including equity, USD 175.9 billion,accounting for 71 percent, 14 percent and 15 percent of the sector's total external financial assets respectively. By currency, RMB assets were USD 109.2 billion, USD assets, USD 806.7 billion, and other currency assets, USD 255.1 billion,accounting for 9 percent, 69 percent and 22 percent respectively. Among the external financial assets of the banking sector, the amount invested in the overseas banking sector was USD 588.2 billion, accounting for more than 50 percent; the amount invested in the overseas non-banking sector was USD 582.7 billion,accounting for lessthan 50 percent. Among the external liabilities of the banking sector, deposits and loans were USD 721.5 billion,bonds investment,USD 212.7 billion,and other liabilities including equity, USD 395.9 billion, accounting for 54 percent, 16 percent and 30 percent of the sector's total external liabilities respectively. By currency, RMB liabilities were USD 433.5 billion, USD liabilities, USD 520.5 billion, and other currency liabilities, USD 376.1 billion, accounting for 33 percent, 39 percent and 28 percent respectively. Among the external liabilities of China’s banking sector, USD 536.1billion was from overseas banking sector, accounting for 40 percent; while USD 794 billion was from overseas non-banking sector, accounting for 60 percent. (End) 2020-03-26/en/2020/0326/1655.html
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On January 13, 2020, the State Administration of Foreign Exchange (SAFE) released the Circular of the State Administration of Foreign Exchange on Improving Foreign Exchange Risk Management for Foreign Institutional Investors in Interbank Bond Markets (Huifa No. 2 [2020]) (Circular) to further facilitate foreign exchange risk management by foreign institutional investors in interbank bond markets. Considering the issues that concern foreign investors and settlement agents, the SAFE has recently published the Q&A on Policy Set Forth in the Circular (in Chinese and English versions). The Q&A, with a focus on 16 dimensions mentioned in the Circular, elaborates on operational issues such as scope of foreign exchange risk exposure, changes in the channels of hedging against foreign exchange risks, account opening, and fund transfers. The SAFE will continue to follow the requirements of the CPC Central Committee and the State Council to press ahead with reform and opening up in foreign exchange, deepen the development of foreign exchange markets and launch more foreign exchange facilitation services to better serve the growth of the real economy and the opening up of the financial market. 2020-03-04/en/2020/0304/1663.html
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External_Financial_Assets_and_Liabilities_of_China's_Banking_Sector_(As_of_December_31_2019) 2020-03-26/en/2020/0326/1656.html
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According to the statistics of the State Administration of Foreign Exchange (SAFE), the Chinese foreign exchange market (excluding foreign currency pairs, the same below) recorded total transaction of RMB 12.20 trillion (equivalent to USD 1.74 trillion) in February 2020. Specifically, the transaction volume of the bank to customer market was RMB 2.18 trillion (equivalent to USD 311.9 billion), the transaction volume of interbank market was RMB 10.02 trillion (equivalent to USD 1.43 trillion), the cumulative transaction volume of the spot market was RMB 4.82 trillion (equivalent to USD 689.1 billion), and that of the derivatives market was RMB 7.38 trillion (equivalentto USD 1.06 trillion). From January to February 2020, a total of RMB 25.63 trillion (equivalent to USD 3.69 trillion) was traded in the Chinese foreign exchange market. Because some of the banks have not been able to submit data due to the disease caused by COVID-19, the data for customer market is incomplete. 2020-03-27/en/2020/0327/1657.html
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Honorable Vice Premier Liu He, Secretary Li Qiang, Acting Mayor Gong Zheng, Governor Yi Gang, Secretary Guo Shuqing, Chairman Yi Huiman, Ladies and Gentlemen, Good morning. It is my pleasure to attend this year’s Lujiazui Forum. Vice Premier Liu He’s remarks for the forum are very important, which highlight the macro design and the general framework for further promoting the development of Shanghai as an international financial center and advancing financial market reform and opening-up. We will work for effective implementation of these requirements under the leadership of the Financial Stability and Development Committee. In 2009, the Communist Party of China (CPC) Central Committee and the State Council set the goal of building Shanghai into an international financial center that matches China’s economic strength and the international status of the RMB. It was in the same year that Shanghai took the lead in launching the pilot program of RMB cross-border trade settlement, with which RMB internationalization set sail. We may well say that the building of Shanghai into an international financial center has started and moved on side by side with RMB internationalization. With over a decade passing by, the RMB has been included in the SDR currency basket of the International Monetary Fund, and Shanghai has achieved significant progress in its development as an international financial center. Shanghai has had a relatively complete set of financial factor markets, featuring all categories of RMB-denominated financial assets and active trading, with quite a number of major trading indicators ranking high globally. Shanghai has become home to almost all types of highly internationalized financial institutions. In particular, international financial institutions, headquarters, and functional institutions have been increasing continuously. Shanghai has become an important hub of RMB internationalization and a pioneer always at the forefront of financial opening-up. Regarding interconnectivity between domestic and overseas markets, Shanghai has served as the linkage not only for the Bond Connect but also for the Shanghai-Hong Kong Stock Connect and the Shanghai-London Stock Connect as well. In terms of RMB internationalization, cross-border RMB settlement in Shanghai has accounted for over 50 percent of the national total; and corporations on the Global 500 list that are based in Shanghai have seen their cross-border settlement in the RMB surpass that in foreign currencies, with the RMB becoming the most preferred currency for cross-border settlement among multinationals in Shanghai. In recent years, especially in the wake of the COVID-19 outbreak, with the world’s economic and financial landscape undergoing profound changes, Shanghai has been faced with new opportunities and challenges in building an international financial center with higher influence. The People’s Bank of China (PBC) and the State Administration of Foreign Exchange (SAFE) pledge continued support for the undertaking, and will work with the CPC Shanghai Municipal Committee, the Shanghai Municipal Government, relevant agencies, and market institutions to bring the development of Shanghai as an international financial center to a new height. Today I would like to share some opinions for your reference. First, Shanghai should adhere to its fundamental positioning in the competition among international financial centers, and focus on the development of a financial center based on RMB-denominated financial assets. With China’s economic and financial strength rising continuously, the RMB has become more and more important as an international payment, denomination, trading, and reserve currency. As a result, worldwide demand for investments in RMB assets has been rapidly growing, enhancing the radiation effect of the financial center globally. Currently, China has the world’s second largest bond market and stock market. With a total size of over RMB160 trillion, they have been included in several major international indices. RMB assets in the portfolios of international institutions have amounted to RMB6.4 trillion, increasing at an average annual rate of over 20 percent. In particular, domestic RMB bonds held by overseas institutional investors have witnessed an average annual growth rate of nearly 40 percent in recent years. Going forward, the PBC and SAFE will support Shanghai in exploring its unique advantages as the center for the issuance and trading of RMB assets in an effort to diversify RMB-denominated financial assets through innovation, improve the depth and width of RMB financial markets, and meet the investment and financing needs of various international investors. Second, continued efforts should be made to promote opening-up through multiple channels while work should be sped up to advance higher-level opening-up of onshore markets. China’s financial markets have been opening up progressively through channels. Of the three major types of opening-up channels so far, the first is for interconnectivity between domestic and overseas markets, including the Shanghai-Hong Kong Stock Connect, the Shenzhen-Hong Kong Stock Connect, the Bond Connect, and the Shanghai-London Stock Connect, so that international investors can invest in domestic markets via offshore markets. The second is for direct entry of overseas investors into the market, including the qualified foreign institutional investor (QFII) and RMB qualified foreign institutional investor (RQFII) schemes, and for direct investment in China’s interbank bond market (CIBM). The third is for overseas financial institutions to establish business presence in China and conduct investment and financing directly. The multiple channels in such an opening-up model have complemented each other quite well to meet the needs of overseas investors. Specifically, the first type has been playing an important role so far, with the stocks held by overseas investors through the Shanghai-Hong Kong Stock Connect and the Shenzhen-Hong Kong Stock Connect accounting for 60 percent of the total market capitalization of their stock holdings in China, and the Bond Connect witnessing more participants and higher average daily turnover than direct investment channels. As the RMB-denominated financial assets become increasingly attractive and Shanghai matures as an international financial center, accelerating the opening-up of onshore markets will help increase trading efficiency and reduce trading costs, thereby improving Shanghai’s efficiency in resource allocation and enhancing its radiation effect as an international financial center. The PBC and SAFE recently reformed bond market investment channels, abolishing restrictions on QFII/RQFII quotas and expanding the qualified domestic limited partner (QDLP) and qualified foreign limited partner (QFLP) pilot programs. Regulatory agencies removed foreign ownership limits on foreign-funded financial institutions. All these are important steps to expand the opening-up of onshore markets. Going forward, we will continue to support Shanghai’s efforts to optimize the multi-channel opening-up while taking active steps to expand the opening-up of onshore markets in line with market demand and promoting prosperity and development of both onshore and offshore markets. Third, more work should be done to make Shanghai a place where financial institutions concentrate, particularly wealth management and asset management institutions. In recent years, China has been steadily picking up pace in opening up its financial services industry, as reflected by the complete removal of foreign ownership caps on banks as well as securities, fund management, futures, and life insurance companies. A host of foreign-funded financial institutions, including the world’s top 10 asset management companies and over 90 percent of foreign-funded private equity firms in China, have set up offices in Shanghai. Next, the PBC and SAFE will fully implement existing opening-up policies, conduct research to roll out new measures such as the QDLP/QFLP expansion, and work on the model for managing cross-border investment and financing by private equity funds, thereby helping attract to Shanghai more of the world’s leading institutions and make Shanghai a major market of wealth management and asset management globally. Fourth, efforts should be made to foster a law-based and rule-based environment aligned with international standards. A law-based and rule-based environment of high standards is the foundation and guarantee for the development of an international financial center. The maturity, transparency, and predictability of laws, regulations, and policies are key to the confidence of market investors. Based on the actual needs of Shanghai in its development as an international financial center, the PBC and SAFE have worked with relevant authorities, hoping to launch in Shanghai more pilot programs regarding financial laws and regulations, such as those on nominal holding and multi-level custody of securities, clearing and settlement modes, information disclosure, accounting standards, investor protection, and the punishment of illegal financial conduct. These measures are aimed at speeding up the supply of high-standard financial laws and the integration with international practice so as to foster a high-quality business environment for the financial industry. Fifth, capital account opening-up should be achieved at a high level. In recent years, with the implementation of national strategies, such as the building of the Shanghai Pilot Free Trade Zone and the Lin-gang Special Area and the development of Shanghai as a sci-tech innovation center, policies have been introduced in Shanghai for high-level opening-up of both the current account and the capital account. At the same time, a series of innovative opening-up measures have been rolled out to facilitate foreign debt financing, cross-border asset transfer, and the conduct of cross-border RMB businesses so that capital account opening-up in Shanghai has been enhanced effectively. For the next stage, the PBC and SAFE will continue to support Shanghai in pioneering higher-level opening-up of the capital account. Meanwhile, work will be accelerated to improve the framework for foreign exchange market administration featuring “macroprudential management plus micro supervision” and to enhance the review mechanisms for combating money laundering, terrorist financing, and tax evasion so that opening-up and risk control will be pushed ahead together. With strong support from all sides and our joint efforts, Shanghai is bound to become a high-level international financial center based on RMB-denominated financial assets, and will play a bigger role in advancing China’s financial opening-up and high-quality economic development. I wish the forum a complete success. Thank you. 2020-06-24/en/2020/0624/1722.html
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In the second quarter of 2020, China's current account registered a surplus of RMB 847 billion, including a surplus of RMB 1142.6 billion under trade in goods, a deficit of RMB 208.4 billion under trade in services, a deficit of RMB 93.9 billion under primary income, and a surplus of RMB 6.7 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of RMB 16.9 billion, and reserve assets increased by RMB 135.6 billion. In the first half of 2020, China's current account registered a surplus of RMB 611.9 billion, including a surplus of RMB 1303.8 billion under trade in goods, a deficit of RMB 536.7 billion under trade in services, a deficit of RMB 173 billion under primary income, and a surplus of RMB 17.8 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of RMB 130.7 billion, and reserve assets decreased by RMB 39.3 billion. In the US dollar terms, in the second quarter of 2020, China's current account recorded a surplus of USD 119.6 billion, including a surplus of USD 161.3 billion under trade in goods, a deficit of USD 29.4 billion under trade in services, a deficit of USD 13.3 billion under primary income, and a surplus of USD 0.9 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of USD 2.4 billion, and reserve assets increased by USD 19.1 billion. In the US dollar terms, in the first half of 2020, China's current account recorded a surplus of USD 85.9 billion, including a surplus of USD 184.4 billion under trade in goods, a deficit of USD 76.5 billion under trade in services, a deficit of USD 24.6 billion under primary income, and a surplus of USD 2.5 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of USD 18.7 billion, and reserve assets decreased by USD 5.9 billion. In SDR terms, in the second quarter of 2020, China posted a surplus of SDR 87.3 billion under the current account, includinga surplus of SDR 117.8 billion under trade in goods, a deficit of SDR 21.5 billion under trade in services, a deficit of SDR 9.7 billion under primary income, and a surplus of SDR 0.7 billion under secondary income. In the capital and financial accounts, foreign direct investments recorded a surplus of SDR 1.7 billion, and reserve assets increased by SDR 14 billion. In SDR terms, in first half of 2020, China posted a surplus of SDR 62.3 billion under the current account, including a surplus of SDR 135 billion under trade in goods, a deficit of SDR 56.4 billion under trade in services. In the capital and financial accounts, foreign direct investments recorded a surplus of SDR 13.8 billion, and reserve assets decreased by SDR 4.6 billion. (End) China's Balance of Payments (Preliminary Data) Unit: RMB 100 million Item Line No. 2020 Q2 2020 H1 1. Current account 1 8,470 6,119 Credit 2 52,457 91,254 Debit 3 -43,987 -85,136 1. A Goods and Services 4 9,342 7,671 Credit 5 46,749 83,061 Debit 6 -37,407 -75,390 1.A.a Goods 7 11,426 13,038 Credit 8 42,776 75,289 Debit 9 -31,350 -62,251 1.A.b Services 10 -2,084 -5,367 Credit 11 3,973 7,772 Debit 12 -6,056 -13,139 1.A.b.1 Processing services 13 222 454 Credit 14 228 469 Debit 15 -7 -15 1.A.b.2 Maintenance and Repair Services 16 54 147 Credit 17 119 254 Debit 18 -65 -108 1.A.b.3 Transport 19 -526 -1,342 Credit 20 994 1,713 Debit 21 -1,520 -3,055 1.A.b.4 Travel 22 -1,428 -4,328 Credit 23 299 620 Debit 24 -1,728 -4,948 1.A.b.5 Construction 25 82 100 Credit 26 206 372 Debit 27 -124 -272 1.A.b.6 Insurance and Pension Services 28 -142 -223 Credit 29 94 163 Debit 30 -236 -387 1.A.b.7 Financial Services 31 12 37 Credit 32 68 137 Debit 33 -56 -100 1.A.b.8 Charges for the Use of Intellectual Property 34 -556 -912 Credit 35 157 311 Debit 36 -714 -1,222 1.A.b.9 Telecommunications, Computer, and Information Services 37 56 88 Credit 38 656 1,249 Debit 39 -600 -1,162 1.A.b.10 Other Business Services 40 141 685 Credit 41 1,062 2,344 Debit 42 -921 -1,659 1.A.b.11 Personal, Cultural, and Recreational Services 43 -34 -67 Credit 44 16 31 Debit 45 -51 -98 1.A.b.12 Government Goods and Services n.i.e 46 36 -6 Credit 47 72 107 Debit 48 -36 -114 1.B Primary Income 49 -939 -1,730 Credit 50 5,115 6,960 Debit 51 -6,054 -8,690 1.C Secondary Income 52 67 178 Credit 53 593 1,233 Debit 54 -527 -1,056 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -8,470 -7,696 2.1 Capital Account 56 -1 -7 Credit 57 3 4 Debit 58 -4 -11 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -8,469 -7,689 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -7,114 -8,082 Including: 2.2.1.1 Direct Investment 61 169 1,307 2.2.1.1.1 Assets 62 -2,067 -3,323 2.2.1.1.2 Liabilities 63 2,236 4,630 2.2.2 Reserve Assets 64 -1,356 393 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 11 8 2.2.2.3 Reserve position in the IMF 67 -104 -86 2.2.2.4 Foreign exchange reserves 68 -1,262 471 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / 1,577 Note:1. The table is compiled according to BPM6. 2."Credit" is presented as positive value while "debit" as negative value, and the balance is the sum of the "Credit" and the "Debit". All items herein refer to balances, unless marked with "Credit" or "Debit". 3.The RMB denominated BOP statement is converted from the USD denominated BOP statementfor the quarter using the quarterly average central parity rate of RMB against USD. 4.The preliminary amount for the first half of 2020 is the sum of the official amounts of the BOP for 2020Q1 and the preliminary amount for 2020Q2. 5.This table employs rounded-off numbers. China's Balance of Payments ( Preliminary Data) Unit: USD 100 million Item Line No. 2020 Q2 2020 H1 1. Current account 1 1,196 859 Credit 2 7,405 12,964 Debit 3 -6,209 -12,105 1. A Goods and Services 4 1,319 1,079 Credit 5 6,599 11,802 Debit 6 -5,280 -10,723 1.A.a Goods 7 1,613 1,844 Credit 8 6,038 10,697 Debit 9 -4,425 -8,853 1.A.b Services 10 -294 -765 Credit 11 561 1,105 Debit 12 -855 -1,870 1.A.b.1 Processing services 13 31 65 Credit 14 32 67 Debit 15 -1 -2 1.A.b.2 Maintenance and Repair Services 16 8 21 Credit 17 17 36 Debit 18 -9 -15 1.A.b.3 Transport 19 -74 -191 Credit 20 140 243 Debit 21 -215 -434 1.A.b.4 Travel 22 -202 -617 Credit 23 42 88 Debit 24 -244 -705 1.A.b.5 Construction 25 12 14 Credit 26 29 53 Debit 27 -17 -39 1.A.b.6 Insurance and Pension Services 28 -20 -32 Credit 29 13 23 Debit 30 -33 -55 1.A.b.7 Financial Services 31 2 5 Credit 32 10 19 Debit 33 -8 -14 1.A.b.8 Charges for the Use of Intellectual Property 34 -79 -129 Credit 35 22 44 Debit 36 -101 -174 1.A.b.9 Telecommunications, Computer, and Information Services 37 8 12 Credit 38 93 178 Debit 39 -85 -165 1.A.b.10 Other Business Services 40 20 98 Credit 41 150 334 Debit 42 -130 -236 1.A.b.11 Personal, Cultural, and Recreational Services 43 -5 -10 Credit 44 2 4 Debit 45 -7 -14 1.A.b.12 Government Goods and Services n.i.e 46 5 -1 Credit 47 10 15 Debit 48 -5 -16 1.B Primary Income 49 -133 -246 Credit 50 722 986 Debit 51 -855 -1,232 1.C Secondary Income 52 9 25 Credit 53 84 175 Debit 54 -74 -150 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -1,196 -1,085 2.1 Capital Account 56 -0.1 -1 Credit 57 0 1 Debit 58 0 -2 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -1,196 -1,084 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -1,004 -1,143 Including: 2.2.1.1 Direct Investment 61 24 187 2.2.1.1.1 Assets 62 -292 -472 2.2.1.1.2 Liabilities 63 316 659 2.2.2 Reserve Assets 64 -191 59 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 2 1 2.2.2.3 Reserve position in the IMF 67 -15 -12 2.2.2.4 Foreign exchange reserves 68 -178 70 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / 226 Note:1. The table is compiled according to BPM6. 2."Credit" is presented as positive value while "debit" as negative value, and the balance is the sum of the "Credit" and the "Debit". All items herein refer to balances, unless marked with "Credit" or "Debit". 3. The preliminary amount for the first half of 2020 is the sum of the official amounts of the BOP for 2020Q1 and the preliminary amount for 2020Q2. 4.This table employs rounded-off numbers. China's Balance of Payments (PreliminaryData) Unit: SDR 100 million Item Line No. 2020 Q2 2020 H1 1. Current account 1 873 623 Credit 2 5,409 9,537 Debit 3 -4,536 -8,914 1. A Goods and Services 4 963 785 Credit 5 4,820 8,684 Debit 6 -3,857 -7,899 1.A.a Goods 7 1,178 1,350 Credit 8 4,411 7,870 Debit 9 -3,233 -6,521 1.A.b Services 10 -215 -564 Credit 11 410 814 Debit 12 -624 -1,378 1.A.b.1 Processing services 13 23 48 Credit 14 24 49 Debit 15 -1 -2 1.A.b.2 Maintenance and Repair Services 16 6 15 Credit 17 12 27 Debit 18 -7 -11 1.A.b.3 Transport 19 -54 -141 Credit 20 102 179 Debit 21 -157 -320 1.A.b.4 Travel 22 -147 -456 Credit 23 31 65 Debit 24 -178 -521 1.A.b.5 Construction 25 8 10 Credit 26 21 39 Debit 27 -13 -29 1.A.b.6 Insurance and Pension Services 28 -15 -23 Credit 29 10 17 Debit 30 -24 -40 1.A.b.7 Financial Services 31 1 4 Credit 32 7 14 Debit 33 -6 -10 1.A.b.8 Charges for the Use of Intellectual Property 34 -57 -95 Credit 35 16 33 Debit 36 -74 -128 1.A.b.9 Telecommunications, Computer, and Information Services 37 6 9 Credit 38 68 131 Debit 39 -62 -122 1.A.b.10 Other Business Services 40 15 72 Credit 41 109 246 Debit 42 -95 -173 1.A.b.11 Personal, Cultural, and Recreational Services 43 -4 -7 Credit 44 2 3 Debit 45 -5 -10 1.A.b.12 Government Goods and Services n.i.e 46 4 -1 Credit 47 7 11 Debit 48 -4 -12 1.B Primary Income 49 -97 -181 Credit 50 527 724 Debit 51 -624 -905 1.C Secondary Income 52 7 19 Credit 53 61 129 Debit 54 -54 -111 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -873 -791 2.1 Capital Account 56 -0.1 -1 Credit 57 0 0 Debit 58 0 -1 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -873 -790 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -734 -837 Including: 2.2.1.1 Direct Investment 61 17 138 2.2.1.1.1 Assets 62 -213 -347 2.2.1.1.2 Liabilities 63 231 485 2.2.2 Reserve Assets 64 -140 46 2.2.2.1 Monetary gold 65 0 0 2.2.2.2 Special drawing rights 66 1 1 2.2.2.3 Reserve position in the IMF 67 -11 -9 2.2.2.4 Foreign exchange reserves 68 -130 54 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / 168 Notes: 1. The table is compiled according to BPM6. 2."Credit" is presented as positive value while "debit" as negative value, and the balance is the sum of the "Credit" and the "Debit". All items herein refer to balances, unless marked with "Credit" or "Debit". 3. The SDR denominated quarterly BOP statement is converted from the USD denominated BOP statement for the quarter using the quarterly average exchange rate of SDR against USD. 4. The preliminary amount for the first half of 2020 is the sum of the official amounts of the BOP for 2020Q1 and the preliminary amount for 2020Q2. 5. This table employs rounded-off numbers. 2020-08-07/en/2020/0807/1734.html
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In June 2020, China’s international trade in goods and services recorded receipts of RMB 1572.7 billion and payments of RMB 1328.8 billion based on statistics of balance of payments (BOP), registering a surplus of RMB 243.9 billion. Specifically, trade in goods registered receipts of RMB 1441.7 billion, payments of RMB 1123.9 billion, recording a surplus of RMB 317.8 billion; trade in services recorded receipts of RMB 131 billion, payments of RMB 204.9 billion, resulting in a deficit of RMB 73.9 billion. In the US dollar terms, in June 2020, China's BOP-based receipts and payments of international trade in goods and services were USD 221.9 billion and USD 187.5 billion respectively, registering a surplus of USD 34.4 billion. Specifically, the receipts and payments from trade in goods were USD 203.4 billion and USD 158.6 billion respectively, resulting in a surplus of USD 44.9 billion. Trade in services registered receipts and payments of USD 18.5 billion and USD 28.9 billion respectively, recording a deficit of USD 10.4 billion.(End) International Trade in Goods and Services of China (Based on the BOP statistics) June 2020 Item In 100 million of RMB In 100 million of USD Goods and services 2439 344 Credit 15727 2219 Debit -13288 -1875 1. Goods 3178 449 Credit 14417 2034 Debit -11239 -1586 2. Services -739 -104 Credit 1310 185 Debit -2049 -289 2.1Manufacturing services on physical inputs owned by others 69 10 Credit 71 10 Debit -2 0 2.2Maintenance and repair services n.i.e 15 2 Credit 45 6 Debit -29 -4 2.3Transport -217 -31 Credit 331 47 Debit -548 -77 2.4Travel -481 -68 Credit 115 16 Debit -595 -84 2.5Construction 25 4 Credit 62 9 Debit -36 -5 2.6Insurance and pension services -26 -4 Credit 43 6 Debit -69 -10 2.7Financial services 4 1 Credit 22 3 Debit -18 -3 2.8Charges for the use of intellectual property -193 -27 Credit 45 6 Debit -238 -34 2.9Telecommunications, computer and information services 33 5 Credit 207 29 Debit -174 -25 2.10Other business services 32 5 Credit 347 49 Debit -315 -45 2.11Personal, cultural, and recreational services -13 -2 Credit 5 1 Debit -18 -3 2.12Government goods and services n.i.e 13 2 Credit 18 3 Debit -5 -1 Notes: 1. The trade in goods and services in this table refers to the transactions between residents andnon-residents, based on the same standard as that for BOP statement. The monthly data are preliminary and may be inconsistent with the quarterly data in the BOP statement. 2. The data on international trade in goods and services are prepared in USD, and the RMB data for the current month is derived by converting the USD data at the monthly average central parity rate of the RMB against the USD. 3. This table employs rounded-off numbers. Definition of Indicators: Goods and Services: refers to the trade in goods and services between residents and non-residents, which is based on the same standard as that for the BOP statement. 1. Goods: refers to transactions in goods whereby the economic ownership is transferred between the Chinese residents and non-residents. The credit side records export of goods, while the debit side records import of goods. The data of goods account are mainly from the customs statistics of imports and exports, but differ from the statistics of the customs mainly in the following aspects: first, the goods in the BOP statement only reflect the goods whose ownership has been transferred (e.g. goods under the trade modes such as general tradeand processing trade with imported materials), while the goods whose ownership is not transferred (e.g. manufacturing services with supplied materials or with exported materials) are included in the statistics of trade in services instead of the statistics of trade in goods; second, as required by the BOP statistics, the goods imported and exported are valued on the FOB basis, but as required by the customs, the goods exported are valued on the FOB basis, whereas goods imported are on the CIF basis. Therefore, for the purpose of the BOP statistics, the international transport and insurance premiums are taken out from the value of imported goods and included in the trade in services; and third, the data on net export of goods in merchanting which are not included in the customs statistics are supplemented. 2. Services: includes manufacturing services on physical inputs owned by others, maintenance and repair services n.i.e, transport, travel, construction, insurance and pension services, financial services, charges for the use of intellectual property, telecommunications, computer and information services, other business services, personal, cultural and recreational services, and government goods and services n.i.e. The credit side records services supplied, while the debit side records services received. 2.1 Manufacturing services on physical owned by others: processoronly provides processing, assembly, packaging and other services and charges service fee from the owner, while the ownership of the goods is not transferred between the owner and the processor. The credit side records the manufacturing services supplied by the Chinese residents on physical inputs owned by non-residents, and vice versa for debit side. 2.2 Maintenance and repair services: refer to the maintenance and repair services supplied by residents to non-residentsor vice versa on goods and equipment (such as vessel, aircraft, and other transportation facility) owned by the receiving party. The credit side records the maintenance and repair services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.3 Transport: refers to the process of transporting people and goods from one place to another, and the relevant supporting and auxiliary services, as well as postal and delivery services. The credit side records the international transport,postal and delivery services supplied by residents to non-residents, and vice versa for debitside. 2.4 Travel:refers to goods consumed and services purchased by travelers in various economies as non-residents. The credit side records the goods and services provided by the Chinese residents to non-residents who have stayed in China for less than one year, as well as non-residents studying abroad and seeking medical treatment for indefinite period of stay. The debit side records the goods and services purchased by the Chinese residents when traveling, studying or seeking medical services abroad from non-residents. 2.5 Construction services:refer to the establishment, renovation, maintenance or expansion of fixed assets in the form of buildings, land improvement, roads, bridges and dams and other engineering buildings of engineering nature, relevant installation, assembly,painting, pipeline construction, demolition and project management, as well as site preparation, measurement and blasting and other special services. The credit side records the construction services provided by the Chinese residents outside the economic territory. The debit side records the construction services received by the Chinese residents in the Chinese economic territory from non-residents. 2.6 Insurance and pension services: refers to various insurance services and commission to agents related with insurance transaction. The credit side records the life insurance and annuity, non-life insurance, reinsurance, standardized guarantee services and relevant supporting services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.7 Financial services: refer to financial intermediation and supporting services, excluding those covered by insurance and pension services. The credit side records the financial intermediation and supporting services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.8 Charges for the use of intellectual property:refer to licensed use of intangible, non-productive/non-financial assets and exclusive rights between residents and non-residents and the licensed use of existing original works or prototypes. The credit side records the intellectual property-related services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.9 Telecommunications, computer and information services: refer to communications services between residents and non-residents and transactions of services related to computer data and news, excluding commercial services delivered via telephone, computer and Internet. The credit side records the telecommunications, computer and information services supplied by residents to non-residents, and vice versa for debit side. 2.10 Other business services: refer to other types of services between residents and non-residents, including research and development services, professional and management consulting services,technical and trade-related services. The credit side records the other business services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.11 Personal, cultural and recreational services: refer to transactions of personal, cultural and recreational services between residents and non-residents, including audiovisual and related services (films, radio, television programs and music recordings) and other personal, cultural and recreational services (health, education, etc.). The credit side records the related services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.12 Government goods and services n.i.e: refer to various goods and services provided and purchased by governments and international organizations not included in other categories of goods and services. The credit side records the goods and services not included elsewhere and supplied by the Chinese residents to non-residents, and vice versa for debit side. 2020-07-31/en/2020/0731/1732.html