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As shown in the statistics of the State Administration of ForeignExchange (SAFE), in October 2019, the amount of foreign exchange settlement andsales by banks was RMB 975.6 billion and RMB 1006.7 billion, respectively, witha deficit of RMB 31.1 billion. In the US dollar terms，the amount offoreign exchange settlement and sales by banks was USD 138 billion and USD 142.4billion, respectively, with a deficit of USD 4.4 billion. In particular, theamount of foreign exchange settlement and sales by banks for customers was RMB 890billion and RMB 920 billion, respectively, with a deficit of RMB 30 billion; theamount of foreign exchange settlement and sales for banks themselves is RMB 85.6billion and RMB 86.7 billion, respectively, with a deficit of RMB 1.1 billion.During the period, newly signed contract amount of forward foreign exchange settlementand sales was RMB 111.4 billion and RMB 35 billion, respectively, with a net newlysigned contract amount of forward foreign exchange settlement of RMB 76.4billion. At the end of October, outstanding amount of forward foreign exchange settlementand sales by the end of the current period was RMB 492.6 billion and RMB 455.8billion, respectively, with a net outstanding amount of forward foreignexchange settlement of RMB 36.8 billion; the net Delta exposure of outstandingoptions was RMB -261.3 billion. During January to October 2019, the accumulative amount of foreignexchange settlement and sales by banks was RMB 10459.5 billion and RMB 10819.9billion, with an accumulative deficit of RMB 360.3 billion. In the US dollarterms，theaccumulative amount of foreign exchange settlement and sales by banks was USD 1520.9billion and USD 1573.5 billion, with anaccumulative deficit of USD 52.6 billion. In particular, the accumulativeamount of foreign exchange settlement and sales by banks for customers was RMB 9621.3billion and RMB 9912.2 billion, respectively, with an accumulative deficit ofRMB 290.9 billion; the accumulative amount of foreign exchange settlement andsales for banks themselves was RMB 838.2 billion and RMB 907.6 billion,respectively, with an accumulative deficit of RMB 69.4 billion. During theperiod, newly signed contract amount of forward foreign exchange settlement andsales was RMB 1273.6 billion and RMB 476.8 billion, respectively, with a net newlysigned contract amount of forward foreign exchange settlement of RMB 796.7 billion. In October 2019, the amount of cross-border receipts and payments by non-bankingsectors was RMB 2061.3 billion and RMB 1984 billion, respectively, with asurplus of RMB 77.3 billion.During January to October 2019, the amount of cross-borderreceipts and payments by non-banking sectors was RMB 20094.1 billion and RMB 20007.1billion, respectively, with a surplus of RMB 87 billion. In the US dollar terms, in October 2019, the amount of cross-border receiptsand payments by non-banking sectors was USD 291.5 billion and USD 280.6billion, respectively, with a surplus of USD 10.9 billion.During January to October2019, the amount of cross-border receipts and payments by non-banking sectorswas USD 2923 billion and USD 2909.5 billion, respectively, with a surplus of USD13.5 billion. Addendum:Glossary and relevant definitions Balance of payments(BOP) refers to all economic transactionsbetween residents and non-residents. Foreignexchange settlement and sales by banks refers to settlement and sale transaction that bank executes for customersand for the banks themselves, including statistic data onsettlements of forward contracts for foreign exchange settlementand sales and the exercises of option, and excludingthe transactions in the interbank foreign exchange market. The statistic reporting date of Foreign exchangesettlement and sales by banks should be the trade day of theForeignexchange settlement and sales transaction. By definition, foreignexchange settlement means foreign exchange holders sell foreignexchange to designated foreign exchange bank, and foreignexchange sales means designated bank sells foreign exchange to foreign exchange buyers. The net position of foreign exchange settlement andforeign exchange sales could be position squared throughtransactions on the inter-bank foreign exchange market, and it is one ofthe major contributors to the country’sforeign exchange reserve fluctuation, though it is not equal to netchange in foreign exchange reserves during the same period Unlikethe principle of balance-of-payments statistics, which cover the transactionsbetween residents and non-residents, foreign exchange settlement and sales bybanks only cover transactions of RMB and foreign currencies between banks and customers or on banks for themselves. Thenewly signed contract amount of forward foreign exchange settlement and sales refers to the binding forward contract between designated foreignexchange bank and client that predetermines foreign exchange currency, amount,exchange rate and tenor which to be executed upon maturity. Thenewly signed forward contract enables corporate to lock inadvance the exchange rate for the purchase or sale of a currency on a futuredate to manage relevant foreign exchange risk arising fromRMB volatility. In general, bank will hedge its foreign exchange risk exposures arise from the newly signed forward contract in the Interbank foreign exchange market. For example,when bank has net foreign exchange long position, bankwill short the equivalent amount of foreign exchange in the Interbank foreignexchange market in advance, or vice versa. Therefore, the newly signedcontract amount of forward foreign exchange settlement and sales is also one of contributors to China’s foreign exchange reserve fluctuation. Theunwind amount of forward foreign exchange settlement and sales refers to, where client is unable to perform the original forwardcontract due to change in its real demand, client to fully or partially closeits forward position by executing another deal with opposite direction to theoriginal contract. Therolling amount of forward foreign exchange settlement and sales refers to client to adjust the settlement date of original contract dueto change in its real demand. Theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period refers to the total amount of forwardcontracts accumulated from all non-matured forward contracts with client. Thenewly signed contractamount and the outstanding amount should satisfy the equationthat: theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period = theoutstanding amount of forward foreign exchange settlement and sales at the endof the previous period + the newly signed contract amount of forward foreignexchange settlement and sales for the period - settlements of forwardcontracts for foreign exchange settlement and sales for the period - the unwindamount of forward foreign exchange settlement and sales for the period. The net Deltaexposure of outstanding options refers to the implied foreignexchange spot risk exposure from outstanding option contracts that bank executedwith client. Bank shall hedge such risk in the foreign exchange market for risk management during deal life cycle. The cross-borderreceipts and payments bynon-banking sectors refers to the receipts andpayments between domestic non-banking sectors (including institutional and individual residents)and non-residentsthrough domestic banks, excluding receipts and payments in cash. In particular,the statisticsincludescross-border receipts and payments between non-banking sectors andnon-residents through domestic banks (including RMB and foreign currency), and domesticreceipts and payments between non-banking sectors and non-residents throughdomestic banks (temporarily excluding domestic receipts and payments in RMBbetween individual residents and non-resident individuals). Data are collected whencustomers conduct receipts and payments with non-resident counterparties atdomestic banks. Specifically, the receipts refer to the capitalof non-bankingsectors received fromnon-residents via domestic banks; the payments refer to the capitalof non-bankingsectors paid to non-residents via domestic banks.The cross-border receiptsand payments by non-banking sectors is based on cash basis, different from the accrual basis required by the Balance of Payments Statistics. The statistics merely reflects the cash flows between non-bankingsectors and non-residents and does not include bartertransactions or transactions with non-residents conducted by the banks themselves. Therefore, the scope of the statistics is narrowerthan that of the Balance of Payments Statistics. 2019-11-19/en/2019/1119/1598.html
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In the third quarter of 2019, inflows and outflows of inward foreign direct investments in domestic financial institutions (see appendix for the definition )amounted to RMB 38,608 million and RMB 46,869 million respectively, resulting in a net outflow of RMB 8,261 million.Outflows and inflows of outward foreign direct investments by domestic financial institutions amounted to RMB 26,057 million and RMB 9,723 million respectively, resulting in a net outflow of RMB 16,334 million (see table 1). In the US dollar terms, in the third quarter of 2019, inflows and outflows of inward foreign direct investments in domestic financial institutions amounted to USD 5,525 million and USD 6,708 million respectively, resulting in a net outflow of USD 1,182 million.Outflows and inflows of outward foreign direct investments by domestic financial institutions amounted to USD 3,729 million and USD 1,392 million respectively, resulting in a net outflow of USD 2,338 million (seetable 2). In the third quarter of 2019, the changes in inward foreign direct investments in domestic financial institutions were mainly due to the inter-company debt allocations between domestic financial institutions and their foreign non-financial related companies, which were normal fluctuations.Equity investments from foreign investors maintained net inflows. Meanwhile, outward foreign direct investments by domestic financial institutions remained stable. Table1: Foreign Direct Investment Flows in Financial Sector(Quarterly) Unit:RMB 100 million Item Q3 2019 Net Flows of Inward Foreign Direct Investment in domestic financial institutions -82.61 Inflows 386.08 Outflows 468.69 Net Flows of Outward Foreign Direct Investment from domestic financial institutions -163.34 Inflows 97.23 Outflows 260.57 Notes: 1.This table employs rounded-off numbers. 2.The RMB value of quarterly flows is converted from the correspondent USD value for the quarter, the conversion rate is the quarterly average central parity rate of RMB against USD. 3.Net flow is the difference between inflow and outflow; the positive value represents net inflow, and the negative represents net outflow. Table2: Foreign Direct Investment Flows in Financial Sector(Quarterly) Unit:USD 100 million Item Q3 2019 Net Flows of Inward Foreign Direct Investment in domestic financial institutions -11.82 Inflows 55.25 Outflows 67.08 Net Flows of Outward Foreign Direct Investment from domestic financial institutions -23.38 Inflows 13.92 Outflows 37.29 Notes:1. This table employs rounded-off numbers. 2.Net flow is the difference between inflow and outflow; the positive value represents net inflow, and the negative represents net outflow. Appendix:Glossary Financial institutions include the headquarters,branches, and subsidiaries of institutions engaging in banking, securities, insurance, and other financial businesses which are established within the territory of China according to the law. Direct investments of financial institutions refer to equity or bond investments either by foreign investors in China’s domestic financial institutions or by China’s domestic financial institutions in overseas enterprises, which enable the investors to have voting rights of 10 percent or more in the invested enterprises. The table of Direct Investment Flows of Financial Institutions exhibits the data on equity or bond investment flows of inward and outward foreign direct investments (excluding profit reinvestments). Specifically, the inflows of inward foreign direct investment refer to the equity or bond investments made or increased by foreign investors in China’s domestic financial institutions; the outflows of inward foreign direct investment refer to the equity or bond investments decreased or withdrawn by foreign investors from China’s domestic financial institutions. The outflows of outward foreign direct investment referto the equity or bond investments made or increased by China’s domestic financial institutions in overseas enterprises; the inflows of outward foreign direct investment refer to the equity or bond investments decreased or withdrawn by China’s domestic financial institutions from overseas enterprises. 2019-11-15/en/2019/1115/1597.html
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To implement the policies that "encourage high-level trade and investment liberalization and facilitation" and advance the reform of "combining power delegation with regulation & optimizing services", as required by the 19th CPC National Congress and the State Council respectively, the State Administration of Foreign Exchange (SAFE) released the Circular on Further Promoting Cross-border Trade and Investment Facilitation (Huifa No. 28 [2019], "Circular") in accordance with the spirit of the executive meeting of the State Council held on October 23, 2019. According to the Circular, the foreign exchange administration reform for cross-border trade and investment will be deepened with procedures simplified to facilitate foreign exchange processing by banks and enterprises and to provide tangible support for the growth of the real economy. The Circular contains 12 initiatives that support trade and investment facilitation. For cross-border trade, first, expanding piloting for the facilitation of foreign exchange receipts and payments under trade to further benefit enterprises with integrity. Second, simplifying procedures for micro and small cross-border ecommerce players to handle receipts and payments under trade. Third, optimizing reporting of foreign exchange under trade in goods. Fourth, simplifying procedures to recognize export revenues and allowing enterprises to open an account pending verification at their discretion. Fifth, facilitating directory registration of branches or sub-branches for foreign exchange receipts and payments under trade in goods. Sixth, allowing engineering contractors to centralize the management of offshore funds. For cross-border investment and financing, first, allowing non-investment-oriented foreign investors to invest in equities with their capital in China in compliance with laws. Second, expanding piloting for the facilitation of receipts and payments under the capital account to facilitate domestic payments with foreign exchange receipts under the capital account and RMB funds obtained through foreign exchange settlement. Third, facilitating foreign exchange settlement for the consideration obtained from share transfers by domestic institutions to foreign investors and allowing foreign investors to use the margins for investment contribution and payments after hitting the bid. Fourth, empowering banks to handle write-offs of companies' external debt and piloting the cancellation of transaction-by-transaction registration of corporate external debt. Fifth, removing the limits on the number of foreign exchange accounts opened under the capital account. Sixth, piloting cross-border transfers for banks' non-performing assets and trade finance. Next, the SAFE will continue to follow the decisions and arrangements of the CPC Central Committee and the State Council to advance the financial supply-side structural reform, deepen the foreign exchange reform, and open financial and foreign exchange markets wider to the outside world with further pragmatism and scrutiny, in a bid to effectively serve the real economy. 2019-10-25/en/2019/1025/1595.html
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China's External Portfolio Investment Assets (by Country or Region) at the End of June 2019 2019-11-29/en/2019/1129/1602.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 13.56 trillion (equivalent to USD 1.92 trillion) in October 2019. Specifically, the transaction volume of the bank to customer market was RMB 2.15 trillion (equivalent to USD 303.8 billion), the transaction volume of interbank marketwas RMB 11.42 trillion (equivalent to USD 1.61 trillion), the cumulative transaction volume of the spot market was RMB 5.93 trillion (equivalent to USD 838.8billion), and that of the derivatives market was RMB 7.63 trillion (equivalentto USD 1.08 trillion). From January to October 2019, a total of RMB 167.38 trillion(equivalent to USD 24.39 trillion) was traded in the Chinese foreign exchange market. 2019-11-22/en/2019/1122/1599.html
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The State Administration of Foreign Exchange (SAFE) releases data on China's external portfolio investment assets (by country/region) at the end of June2019.The statistics show that China's external portfolio investment assets (excluding reserve assets) amounted to USD 560.2 billion by the end of June 2019, including USD 303.4 billion in equity investments and USD 256.8 billion in bond investments. The top 5 recipients of Chinese investments were Hong Kong, the U.S., CaymanIslands, the British Virgin Islands and the UK, with the amount being USD 179.7 billion, USD 144.3 billion, USD 47.9 billion, USD 40.3 billion and USD 18.1 billion respectively. (End) 2019-11-29/en/2019/1129/1601.html
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As shown in the statistics of the State Administration of ForeignExchange (SAFE), in January 2020, the amount of foreign exchange settlement and sales by banks wasRMB 1006.7 billionand RMB 962.5 billion, respectively, with a settlement of RMB 44.2 billion. In the US dollarterms，the amount of foreign exchangesettlement and sales by banks was USD 145.5 billion andUSD 139.1billion, respectively, with a settlement of USD 6.4 billion. In particular,the amount of foreign exchange settlement and sales by banks for customers wasRMB 913.9 billionand RMB 856.6 billion,respectively, with a settlement of RMB 57.3 billion; theamount of foreign exchange settlement and sales for banks themselves was RMB 92.8 billion andRMB 105.9 billion,respectively, with a deficit of RMB 13.1 billion.During the period, newlysignedcontractamountof forwardforeignexchangesettlementand sales was RMB 99.2 billion andRMB 37 billion,respectively, with a net newly signed contract amount offorward foreign exchange settlement of RMB 62.2 billion. Atthe end of January,outstandingamountof forwardforeignexchangesettlementand salesby the endof the currentperiod was RMB 500.4 billion andRMB 409.3billion, respectively, with a net outstanding amountof forward foreignexchange settlement of RMB 91.1 billion; the net Delta exposureof outstanding options was RMB -255.9 billion. Please note that the data for few banks isincomplete due to the disease caused by COVID-19. Addendum: Glossary and relevant definitions Balance of payments(BOP) refers to all economic transactionsbetween residents and non-residents. Foreignexchange settlement and sales by banks refers to settlement and sale transaction that bank executes for customersand for the banks themselves, including statistic data onsettlements of forward contracts for foreign exchange settlementand sales and the exercises of option, and excludingthe transactions in the interbank foreign exchange market. The statistic reporting date of Foreign exchangesettlement and sales by banks should be the trade day of theForeignexchange settlement and sales transaction. By definition, foreignexchange settlement means foreign exchange holders sell foreignexchange to designated foreign exchange bank, and foreignexchange sales means designated bank sells foreign exchange to foreign exchange buyers. The net position of foreign exchange settlement andforeign exchange sales could be position squared throughtransactions on the inter-bank foreign exchange market, and it is one ofthe major contributors to the country’sforeign exchange reserve fluctuation, though it is not equal to netchange in foreign exchange reserves during the same period Unlikethe principle of balance-of-payments statistics, which cover the transactionsbetween residents and non-residents, foreign exchange settlement and sales bybanks only cover transactions of RMB and foreign currencies between banks and customers or on banks for themselves. Thenewly signed contract amount of forward foreign exchange settlement and sales refers to the binding forward contract between designated foreignexchange bank and client that predetermines foreign exchange currency, amount,exchange rate and tenor which to be executed upon maturity. Thenewly signed forward contract enables corporate to lock inadvance the exchange rate for the purchase or sale of a currency on a futuredate to manage relevant foreign exchange risk arising fromRMB volatility. In general, bank will hedge its foreign exchange risk exposures arise from the newly signed forward contract in the Interbank foreign exchange market. For example,when bank has net foreign exchange long position, bankwill short the equivalent amount of foreign exchange in the Interbank foreignexchange market in advance, or vice versa. Therefore, the newly signedcontract amount of forward foreign exchange settlement and sales is also one of contributors to China’s foreign exchange reserve fluctuation. Theunwind amount of forward foreign exchange settlement and sales refers to, where client is unable to perform the original forwardcontract due to change in its real demand, client to fully or partially closeits forward position by executing another deal with opposite direction to theoriginal contract. Therolling amount of forward foreign exchange settlement and sales refers to client to adjust the settlement date of original contract dueto change in its real demand. Theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period refers to the total amount of forwardcontracts accumulated from all non-matured forward contracts with client. Thenewly signed contractamount and the outstanding amount should satisfy the equationthat: theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period = theoutstanding amount of forward foreign exchange settlement and sales at the endof the previous period + the newly signed contract amount of forward foreignexchange settlement and sales for the period - settlements of forwardcontracts for foreign exchange settlement and sales for the period - the unwindamount of forward foreign exchange settlement and sales for the period. The net Deltaexposure of outstanding options refers to the implied foreignexchange spot risk exposure from outstanding option contracts that bank executedwith client. Bank shall hedge such risk in the foreign exchange market for risk management during deal life cycle. The cross-border receiptsand payments bynon-banking sectors refers to the receipts andpayments between domestic non-banking sectors (including institutional and individual residents)and non-residentsthrough domestic banks, excluding receipts and payments in cash. In particular,the statisticsincludescross-border receipts and payments between non-banking sectors andnon-residents through domestic banks (including RMB and foreign currency), and domesticreceipts and payments between non-banking sectors and non-residents throughdomestic banks (temporarily excluding domestic receipts and payments in RMBbetween individual residents and non-resident individuals). Data are collected whencustomers conduct receipts and payments with non-resident counterparties atdomestic banks. Specifically, the receipts refer to the capitalof non-bankingsectors received fromnon-residents via domestic banks; the payments refer to the capitalof non-bankingsectors paid to non-residents via domestic banks. Thecross-border receipts and payments by non-banking sectors is based on cash basis,different from the accrual basis required by the Balance of Payments Statistics. The statisticsmerely reflects the cashflows between non-banking sectors and non-residents and does not include bartertransactions or transactions with non-residents conducted by the banksthemselves. Therefore,the scope of thestatistics is narrower than that of the Balance of Payments Statistics. 2020-03-06/en/2020/0306/1643.html
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The State Administration of Foreign Exchange (SAFE) has recently revised and issued the Measures for Administration of the Pilot Program on Domestic and Foreign Currency Exchange Franchise Businesses for Individuals (Huifa No. 6 [2020], "Measures"). SAFE Press Spokesperson and Chief Economist Wang Chunying answered media questions on relevant issues. 1. What is the background of the Measures? A: A pilot program on domestic and foreign currency exchange franchise businesses for individuals ("exchange franchise business") was initiated in Beijing and Shanghai in 2008. In April 2012, the SAFE published the Circular of the State Administration of Foreign Exchange on Issuing the Measures for Administration of the Pilot Program on Domestic and Foreign Currency Exchange Franchise Businesses for Individuals (Huifa No. 27, [2012]) to further expand the pilot program. Over the years, with its scope continuously expanded, the exchange franchise business has maintained stable growth. Featuring flexible service time, a large variety of currencies, small amount for exchange per transaction, and outlet location in transport hubs such as airports and ports, the exchange franchise business is a favorable complement to the bank exchange business to meet individuals' demands for exchange of domestic and foreign currencies. To improve administration of the exchange franchise businesses in line with the reform requirements of the State Council of delegating power, improving regulation, and upgrading services, the SAFE has revised the Measures for Administration of the Pilot Program on Domestic and Foreign Currency Exchange Franchise Businesses for Individuals based on its surveys and research, with no changes to the permitted scope of domestic and foreign currency exchange franchise businesses for individuals and the administration principles of foreign exchange settlement and sales for individuals. Upholding easy access and rigorous regulation, the Measures will be favorable for reducing costs of institutions engaged in the domestic and foreign currency exchange franchise businesses ("exchange franchise institution") and will have a positive impact on optimizing the business environment, guarding against financial risks and further facilitating domestic and foreign currency exchange for individuals. 2. How will the Measures facilitate business activities of exchange franchise institutions? A: first, the Measures will help streamline administrative approval. The approval for the qualification of exchange franchise institutions for nationwide operations will be delegated to the SAFE branches with whom they have registered. Approval for opening a foreign exchange reserve account by exchange franchise institutions and for preparation for market access by their branches/sub-branches will be canceled. Second, the Measures can help optimize processes. Exchange franchise institutions will be allowed to start electronic exchange business for individuals, sales and redemption of electronic travelers' cheques, and handle changes of business address after prior reporting. Third, the Measures will be conducive to license streamlining and offering convenience to the public. For market access, the supporting materials like business license and no-action letter will no longer be required from application institutions. 3. Will the Measures impact the domestic and foreign currency exchange businesses for individuals? A: No, it won't. According to the Measures, no change has been made to the existing administration principles for domestic and foreign currency exchange businesses for individuals. With their authentic ID certificates presented, individuals can easily handle domestic and foreign currency exchange through the business channels offered by exchange franchise institutions. 4. Are there any measures set forth in the Measures to guard against risks arising from cross-border flows such as money laundering? A: Following the reform requirements of the State Council of delegating power, improving regulation, and upgrading services, and the guideline of combining power delegation and stringent regulation, the revised Measures allows transfer of ex-ante approval for more administrative resources to enhanced ongoing and ex-post regulation. On the one hand, the Measures requires that exchange franchise institutions should build an effective mechanism for internal verification and correction, intensify monitoring and authentication of suspected exchange transactions that are cumulatively large-sized, and tighten management of customers handling unusual transactions, so as to prevent individuals from splitting its transactions through exchange franchise businesses and circumventing foreign exchange administration with fake certificates. On the other hand, the Measures requires local foreign exchange authorities to increase off-site and on-site verification of business activities of exchange franchise institutions within their jurisdictions and clarify scenarios where measures like risk reminder and rectification orders are implemented. (The end) 2020-02-19/en/2020/0219/1640.html
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The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government, and the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and national Chinese-funded banks, To boost healthy development of the domestic and foreign currency exchange franchise businesses for individuals ("exchange franchise business") in compliance with regulations, the SAFE has revised the Measures for Administration of the Pilot Program on Domestic and Foreign Currency Exchange Franchise Businesses for Individuals ("Measures") (see the appendix). Relevant contents are highlighted as follows: First, following the arrangements of the State Council of streamlining administration and delegating power, improving regulation, and upgrading services, foreign exchange administration departments at various levels shall tighten regulation of institutions engaged in exchange franchise business within your jurisdictions. Under the guideline of easy access and stringent regulation, foreign exchange administration departments shall intensify ongoing and ex-post management, and perform the responsibility of territorial financial regulation to guard against financial risk. SAFE branches and foreign exchange administration departments ("branches" for short) shall report to the SAFE for filing before approving for the first time non-financial institutions to engage in exchange franchise business in their jurisdictions, based on local situations. Second, domestic non-financial institutions and its branches/sub-branches who have obtained the qualification for engaging in the exchange franchise business before this Circular is published shall apply to local foreign exchange authorities for renewal of the License for Engaging in Domestic and Foreign Currency Exchange Franchise Businesses for Individuals ("Exchange Business License") before August 31, 2020. In particular, the headquarters of domestic non-financial institutions shall also submit the Letter of Commitment on Engaging in Domestic and Foreign Currency Exchange Franchise Businesses for Individuals, and materials stating automatic interfacing of their exchange business systems with the SAFE's individual foreign exchange business system. If they fail to submit these materials on time, local SAFE branches shall disqualify them from engaging the exchange franchise business and write of the Exchange Business License. Third, upon receipt of this Circular, SAFE branches shall forward it immediately to the central sub-branches, sub-branches, city commercial banks, rural commercial banks, wholly foreign-owned banks, Sino-foreign joint venture banks, branches of foreign-owned banks, rural cooperative financial institutions, and exchange franchise business institutions within their jurisdictions, while national Chinese-funded banks shall forward it promptly to the branches and sub-branches within their jurisdictions and accurately convey policy requirements to ensure implementation efforts. Fourth, this Circular will become effective as of the date of issuance. Meanwhile, the Circular of the State Administration of Foreign Exchange on Issuing the Measures for Administration of the Pilot Program on Domestic and Foreign Currency Exchange Franchise Businesses for Individuals (Huifa No. 27, [2012]), the Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Handling of Exchange Business by Franchised Institutions of Domestic and Foreign Currency Exchange for Individuals Through the Internet (Huifa No. 41 [2015]), the Reply of the State Administration of Foreign Exchange to Franchised Institutions Providing Domestic and Foreign Currency Exchange for Individuals to Engage in Transport of Foreign Currency Cash into or out of the Territory and Foreign Currency Wholesale Business (Huifu No. 169 [2015]), and the Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Standardizing Domestic and Foreign Currency Exchange Franchise Business for Individuals and Foreign Currency Exchange Business (Huizongfa No. 38 [2015]) will be rescinded. Appendix: Measures for Administration of the Pilot Program on Domestic and Foreign Currency Exchange Franchise Businesses for Individuals State Administration of Foreign Exchange February 13, 2020 2020-02-19/en/2020/0219/1641.html
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The State Administration of Foreign Exchange (SAFE) has recently disseminated the data on banks' foreign-related receipts and payments for customers for January 2020. SAFE Press Spokesperson and Chief Economist Wang Chunying answered media questions on foreign exchange receipts and payments for January 2020. Q: Could you brief us on the situations of China’s foreign exchange receipts and payments in January 2020? What changes have occurred recently? A: China’s foreign exchange receipts and payments remained generally stable and the supply and demand of the foreign exchange market maintained a basic equilibrium in January. The highlights are as follows: Firstly, the foreign-related receipts and payments of non-banking sectors remained in surplus in January, which hit USD 7.4 billion, indicating net inflows have been maintained since December 2019. Secondly, based on the preliminary data, banks’ foreign exchange settlement and sales represented a slight surplus in the month. Considering the forward foreign exchange settlement and sales, options and other supply and demand factors, the supply-demand of the foreign exchange market was in a basic equilibrium. Thirdly, foreign exchange reserves rose steadily. The balance of foreign exchange reserves stood at USD 3.1155 trillion at the end of January, up by USD 7.6 billion from the end of 2019. Fourthly, the cross-border capital flows via major channels were relatively stable, and foreign-related receipts and payments under trade in goods, direct investment and portfolio investment remained in surplus. Since the beginning of February, despite the impact of the COVID-19 epidemic, the foreign exchange market has maintained stable operation, showing the market is becoming more mature and rational. After a short adjustment, the RMB exchange rate has continued to show slight two-way fluctuations with both ups and downs. The supply and demand of foreign exchange market maintains a basic equilibrium, the foreign-related receipts and payments of non-banking sectors remain stable, and the foreign-related transactions of market players including enterprises and individuals are rational and orderly, indicating that China’s foreign exchange market has become more mature, and can better absorb and adapt to the impact of relevant events. Going forward, China’s foreign exchange market is expected to maintain stable operation, based on a solid foundation and favorable conditions. On the one hand, the impact of the epidemic will be short-lived and limited, while China’s economy is resilient, there’s ample room for macro-control policies, and the fundamentals sustaining sound and high-quality economic growth over the long term haven't changed, which will continue to bolster the stability of China’s foreign exchange market. On the other hand, China’s opening-up has been deepened, the domestic business environment has been improving, and the internationalization level of the capital market has been rising, which will continue to attract mid- and long-term investment. 2020-02-21/en/2020/0221/1639.html