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Distinguished Party Secretary Chen Jining, Former PBOC Governor Zhou Xiaochuan, Mayor Gong Zheng, Deputy Director Wang Jiang, Governor Pan Gongsheng, Minister Li Yunze, Chairman Wu Qing, Vice Minister Hu Haifeng, and dear guests, Good morning! It’s a great pleasure to join you at the Lujiazui Forum. I would like to take this opportunity to exchange some ideas with you on firmly advancing in-depth reforms and high-level opening-up in the foreign exchange sector, with a view to better supporting high-quality economic development. Since April, the international economic and trade order has faced severe disruptions, and global financial markets have experienced significant volatility. Under the strong leadership of the Communist Party of China (CPC) Central Committee, China has strengthened counter-cyclical adjustments to macroeconomic policies, effectively responding to external shocks. As a result, the foreign exchange market has remained generally stable despite the complex and challenging environment. Since the beginning of this year, the RMB exchange rate has moved in both directions with enhanced flexibility. The RMB exchange rate has appreciated by 1.6 percent against the US dollar and remained generally stable against a basket of currencies. China’s foreign trade has demonstrated strong resilience, with the current account surplus staying within a reasonable and balanced range. Cross-border investment has become more active, with net increase in domestic bonds holdings by overseas investors at a relatively high level, and foreign buying of domestic equities increasing recently. Looking ahead, China’s foreign exchange market remains well-positioned to maintain overall stability. First, China’s economy is expected to maintain its recovery and growth momentum. China is stepping up the implementation of more proactive and effective macroeconomic policies, placing greater strategic emphasis on expanding domestic demand and strengthening the domestic economic circulation, while also fostering and scaling up new quality productive forces. These efforts will strongly support steady and sound economic growth. Recently, multiple international organizations and investment banks have raised their growth forecasts for China in 2025. Second, the balance of payments will maintain a basic equilibrium. China remains unwavering in its commitment to opening-up, with strengthened policy measures to stabilize foreign trade and investment, and a steady expansion of financial market access. These factors will help foster more balanced cross-border capital flows. Third, China’s foreign exchange market will become more resilient. Market participants have become more mature and rational, with the proportion of corporate foreign exchange hedging and the share of RMB cross-border settlements in goods trade both rising to around 30 percent, significantly enhancing their ability to cope with exchange rate fluctuations. In recent years, we have also accumulated rich experience in managing various risks. Despite continued uncertainties and instabilities in the external environment, we have both the capability and confidence to maintain the sound operation of the foreign exchange market and keep the RMB exchange rate basically stable at an adaptive and equilibrium level, thereby creating a favorable environment for high-quality economic development. Ladies and gentlemen, General Secretary Xi Jinping has emphasized the importance of staying committed to running our own affairs well and steadfastly expanding high-level opening-up, so as to counter the uncertainties of a rapidly changing external environment with the certainties of high-quality development. We will strike a balance between development and security, continue to deepen reform and opening-up in the foreign exchange sector, and promote the modernization of the foreign exchange governance system and governance capacity. Efforts will be made to build a sound foreign exchange management system featuring "greater convenience, expanded opening-up, enhanced security, and upgraded intelligence". We will unswervingly pursue a path of financial development with Chinese characteristics, thus providing stronger foreign exchange support for China’s high-quality economic development. First, in terms of "greater convenience", we will continue to improve a foreign exchange policy system that rewards integrity with greater access, and proactively enhance the quality and efficiency of foreign exchange services for the real economy. We will step up reform and innovation in foreign exchange management, and grant greater convenience to entities with strong records of compliance and integrity, thus further facilitating the cross-border trade, investment and financing. Firstly, we will focus on sci-tech enterprises and small and medium-sized enterprises (SMEs) to make significant efforts in the areas of technology finance, green finance, inclusive finance, old-age finance and digital finance. Also, we will actively support the development of new quality productive forces, and provide comprehensive foreign exchange services along the entire chain for major national strategies, key areas, and weak links. Secondly, we will steadily advance reform of bank foreign exchange operations by comprehensively optimizing the management framework for pre-transaction due diligence, differentiated review during transactions, and post-transaction monitoring and reporting, thereby achieving a better balance between improving efficiency and managing risks. Thirdly, we will establish a policy evaluation mechanism and an ecosystem assessment mechanism for foreign exchange management. Taking alignment with national strategic goals, consistency with local development realities, and the tangible benefits delivered to enterprises and the public as key criteria, we will continuously boost the real impact of policies to ensure that people and businesses gain a stronger sense of fulfillment. Second, in terms of “expanded opening-up”, we will promote high-level institutional opening-up in the foreign exchange sector to support the development of a new system for a higher-standard open economy. We will strengthen the overall planning and systematic integration of reforms, promoting RMB internationalization and the high-quality opening-up of the capital account in a coordinated manner. In addition, we will enhance the integrated management of domestic and foreign currencies, thus fostering a world-class business environment that is market-oriented, law-based, and internationalized. Firstly, we will deepen the reform of foreign exchange managements for direct investment, streamline the foreign exchange registration process for foreign direct investment (FDI), and shorten the negative list for fund use, so as to steadily support enterprises in participating in international cooperation across industrial and supply chains. Secondly, we will prudently and steadily expand the connectivity of financial markets, and refine the qualified foreign institutional investor (QFII/RQFII) program, thus facilitating foreign financial institutions in investing and operating in China. Thirdly, we will advance the reform of foreign debt management by optimizing quota management, shortening the “negative list” for the fund use of external debts, and gradually shifting the business of foreign debt registration to banks in an orderly manner. Fourthly, we will deepen the development and opening-up of the foreign exchange market, improve the product system, expand the range of market participants, and continue to enhance services for enterprises in managing exchange rate risks. Fifthly, we will support region-specific opening-up and development, explore integrated reform and innovation of foreign exchange management policies in pilot free trade zones, and actively support the development of key regions such as the Hainan Free Trade Port and the Guangdong-Hong Kong-Macao Greater Bay Area. Third, regarding "enhanced security", we will strengthen the dual management framework of "macro-prudential plus micro-regulation" in the foreign exchange market to safeguard its stability and ensure national economic and financial security. Adhering to a bottom-line thinking, we will enhance open regulatory capabilities and risk prevention measures, fostering a positive interaction between high-quality development and high-level security. Firstly, we will mitigate risks rising from external shocks. We will intensify monitoring and early warning mechanisms for cross-border capital flows, strengthen macro-prudential management and expectation guidance, and maintain the RMB exchange rate at an adaptive and equilibrium level while ensuring a balanced international payments. Secondly, we will strengthen oversight in foreign exchange. We will advance the shift to entity-based regulatory approaches in the foreign exchange sector, crack down on illegal activities with heightened enforcement, and improve our capacity to identify and combat emerging criminal and illegal activities. Fourth, in "upgraded intelligence", we will leverage advanced technologies such as artificial intelligence and big data to elevate the digital and intelligent capabilities of foreign exchange regulation. Through the development of "Smart Foreign Exchange Administration", we will provide more intelligent, efficient, secure, and user-friendly services to individuals and businesses. Simultaneously, we will enhance the intelligence, precision, and effectiveness of risk identification and regulatory oversight, empowering foreign exchange regulation with cutting-edge technological solutions. Ladies and Gentlemen, Currently, transformations of the world unseen in a century are unfolding at a faster pace. Confronted with drastic external changes, we will conscientiously implement the guiding principles of the Political Bureau meeting of the CPC Central Committee held on April 25, committing ourselves to both goal-oriented and problem-oriented approaches, staying attuned to market demand, and rolling out a basket of supportive policies to keep employment stable, sustain business operations, maintain market stability, and anchor the expectations. Firstly, we will support foreign trade enterprises through multiple policy measures. We will further deepen the reform of trade-related foreign exchange management by launching a suite of facilitating policies. For example, we will launch high-level opening-up pilot programs for expanding cross-border trade, encourage banks to include more trade-related entities in emerging industries into the targets of facilitating policy support, optimize foreign exchange fund settlements for comprehensive foreign trade service providers, and facilitate the centralized overseas fund management for trustworthy engineering contracting firms. These policies are designed to support the innovation and development in trade. Secondly, we will proactively facilitate cross-border investment and financing. We will implement a facilitating policy mix to better support the international economic and trading cooperation and exchange of personnel. For example, we will support research institutions across the country in attracting and leveraging foreign capital, further facilitate the cross-border financing and investment of technology-based companies, and shorten the negative list for the use of income generated under the capital account. We will promote nationwide the integrated RMB and foreign currency cash pooling program for multinational corporations, to facilitate the centralized use of fund within the corporate group. Through the pilot program for green foreign debt policies, we will encourage eligible enterprises to borrow foreign debts for green projects. Meanwhile, we will improve the fund management of domestic enterprises that list abroad by harmonizing the policies for domestic and foreign currency management, thereby facilitating the repatriation and domestic use of fund raised overseas. In the coming future, a batch of investment quotas under the Qualified Domestic Institutional Investor (QDII) scheme will be issued, to meet the reasonable overseas investment demand by domestic entities in an orderly manner. Thirdly, we will implement a package of innovative policies related to foreign exchange businesses in the pilot free trade zones, to actively support the strategy of upgrading the pilot free trade zones. The policy package includes measures such as optimizing settlement processes for new international trade forms, and expanding the pilot program for Qualified Foreign Limited Partnerships (QFLP), among a total of ten facilitating policies. Ladies and Gentlemen, Accelerating the construction of Shanghai as an international financial center is a major strategic decision made by the CPC Central Committee. It holds special significance in serving the new development paradigm and promoting high-quality economic growth. In recent years, remarkable progress has been made in developing Shanghai as an international financial center. Today, Shanghai has evolved into a city with the most comprehensive financial market system, the most diverse range of financial institutions, and the highest level of financial opening-up in China. Since the beginning of this year, we have continued to step up support for building Shanghai into an international financial center. Not long ago, the People’s Bank of China (PBOC), the National Financial Regulatory Administration (NFRA), the State Administration of Foreign Exchange (SAFE), and the Shanghai Municipal People’s Government jointly released the Action Plan for Further Facilitating Cross-Border Financial Services in Shanghai International Financial Center. Recently, the PBOC and the SAFE approved the plan for upgrading the functions of Free Trade Accounts (FTAs) in the China (Shanghai) Pilot Free Trade Zone and the pilot plan for comprehensive reform of offshore trade financial services in the Lin-gang Special Area. Moving forward, we will continue to strengthen the provision of high-quality policies and services to support entities of all types in participating in international competition and cooperation in a safer, more convenient, and more efficient manner. This will further enhance the competitiveness and global influence of Shanghai as an international financial center. To conclude, I wish the Forum a full success! Thank you! 2025-06-18/en/2025/0618/2310.html
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Distinguished Party Secretary Chen Jining, Former PBOC Governor Zhou Xiaochuan, Mayor Gong Zheng, Deputy Director Wang Jiang, Governor Pan Gongsheng, Minister Li Yunze, Chairman Wu Qing, Vice Minister Hu Haifeng, and dear guests, Good morning! It’s a great pleasure to join you at the Lujiazui Forum. I would like to take this opportunity to exchange some ideas with you on firmly advancing in-depth reforms and high-level opening-up in the foreign exchange sector, with a view to better supporting high-quality economic development. Since April, the international economic and trade order has faced severe disruptions, and global financial markets have experienced significant volatility. Under the strong leadership of the Communist Party of China (CPC) Central Committee, China has strengthened counter-cyclical adjustments to macroeconomic policies, effectively responding to external shocks. As a result, the foreign exchange market has remained generally stable despite the complex and challenging environment. Since the beginning of this year, the RMB exchange rate has moved in both directions with enhanced flexibility. The RMB exchange rate has appreciated by 1.6 percent against the US dollar and remained generally stable against a basket of currencies. China’s foreign trade has demonstrated strong resilience, with the current account surplus staying within a reasonable and balanced range. Cross-border investment has become more active, with net increase in domestic bonds holdings by overseas investors at a relatively high level, and foreign buying of domestic equities increasing recently. Looking ahead, China’s foreign exchange market remains well-positioned to maintain overall stability. First, China’s economy is expected to maintain its recovery and growth momentum. China is stepping up the implementation of more proactive and effective macroeconomic policies, placing greater strategic emphasis on expanding domestic demand and strengthening the domestic economic circulation, while also fostering and scaling up new quality productive forces. These efforts will strongly support steady and sound economic growth. Recently, multiple international organizations and investment banks have raised their growth forecasts for China in 2025. Second, the balance of payments will maintain a basic equilibrium. China remains unwavering in its commitment to opening-up, with strengthened policy measures to stabilize foreign trade and investment, and a steady expansion of financial market access. These factors will help foster more balanced cross-border capital flows. Third, China’s foreign exchange market will become more resilient. Market participants have become more mature and rational, with the proportion of corporate foreign exchange hedging and the share of RMB cross-border settlements in goods trade both rising to around 30 percent, significantly enhancing their ability to cope with exchange rate fluctuations. In recent years, we have also accumulated rich experience in managing various risks. Despite continued uncertainties and instabilities in the external environment, we have both the capability and confidence to maintain the sound operation of the foreign exchange market and keep the RMB exchange rate basically stable at an adaptive and equilibrium level, thereby creating a favorable environment for high-quality economic development. Ladies and gentlemen, General Secretary Xi Jinping has emphasized the importance of staying committed to running our own affairs well and steadfastly expanding high-level opening-up, so as to counter the uncertainties of a rapidly changing external environment with the certainties of high-quality development. We will strike a balance between development and security, continue to deepen reform and opening-up in the foreign exchange sector, and promote the modernization of the foreign exchange governance system and governance capacity. Efforts will be made to build a sound foreign exchange management system featuring "greater convenience, expanded opening-up, enhanced security, and upgraded intelligence". We will unswervingly pursue a path of financial development with Chinese characteristics, thus providing stronger foreign exchange support for China’s high-quality economic development. First, in terms of "greater convenience", we will continue to improve a foreign exchange policy system that rewards integrity with greater access, and proactively enhance the quality and efficiency of foreign exchange services for the real economy. We will step up reform and innovation in foreign exchange management, and grant greater convenience to entities with strong records of compliance and integrity, thus further facilitating the cross-border trade, investment and financing. Firstly, we will focus on sci-tech enterprises and small and medium-sized enterprises (SMEs) to make significant efforts in the areas of technology finance, green finance, inclusive finance, old-age finance and digital finance. Also, we will actively support the development of new quality productive forces, and provide comprehensive foreign exchange services along the entire chain for major national strategies, key areas, and weak links. Secondly, we will steadily advance reform of bank foreign exchange operations by comprehensively optimizing the management framework for pre-transaction due diligence, differentiated review during transactions, and post-transaction monitoring and reporting, thereby achieving a better balance between improving efficiency and managing risks. Thirdly, we will establish a policy evaluation mechanism and an ecosystem assessment mechanism for foreign exchange management. Taking alignment with national strategic goals, consistency with local development realities, and the tangible benefits delivered to enterprises and the public as key criteria, we will continuously boost the real impact of policies to ensure that people and businesses gain a stronger sense of fulfillment. Second, in terms of “expanded opening-up”, we will promote high-level institutional opening-up in the foreign exchange sector to support the development of a new system for a higher-standard open economy. We will strengthen the overall planning and systematic integration of reforms, promoting RMB internationalization and the high-quality opening-up of the capital account in a coordinated manner. In addition, we will enhance the integrated management of domestic and foreign currencies, thus fostering a world-class business environment that is market-oriented, law-based, and internationalized. Firstly, we will deepen the reform of foreign exchange managements for direct investment, streamline the foreign exchange registration process for foreign direct investment (FDI), and shorten the negative list for fund use, so as to steadily support enterprises in participating in international cooperation across industrial and supply chains. Secondly, we will prudently and steadily expand the connectivity of financial markets, and refine the qualified foreign institutional investor (QFII/RQFII) program, thus facilitating foreign financial institutions in investing and operating in China. Thirdly, we will advance the reform of foreign debt management by optimizing quota management, shortening the “negative list” for the fund use of external debts, and gradually shifting the business of foreign debt registration to banks in an orderly manner. Fourthly, we will deepen the development and opening-up of the foreign exchange market, improve the product system, expand the range of market participants, and continue to enhance services for enterprises in managing exchange rate risks. Fifthly, we will support region-specific opening-up and development, explore integrated reform and innovation of foreign exchange management policies in pilot free trade zones, and actively support the development of key regions such as the Hainan Free Trade Port and the Guangdong-Hong Kong-Macao Greater Bay Area. Third, regarding "enhanced security", we will strengthen the dual management framework of "macro-prudential plus micro-regulation" in the foreign exchange market to safeguard its stability and ensure national economic and financial security. Adhering to a bottom-line thinking, we will enhance open regulatory capabilities and risk prevention measures, fostering a positive interaction between high-quality development and high-level security. Firstly, we will mitigate risks rising from external shocks. We will intensify monitoring and early warning mechanisms for cross-border capital flows, strengthen macro-prudential management and expectation guidance, and maintain the RMB exchange rate at an adaptive and equilibrium level while ensuring a balanced international payments. Secondly, we will strengthen oversight in foreign exchange. We will advance the shift to entity-based regulatory approaches in the foreign exchange sector, crack down on illegal activities with heightened enforcement, and improve our capacity to identify and combat emerging criminal and illegal activities. Fourth, in "upgraded intelligence", we will leverage advanced technologies such as artificial intelligence and big data to elevate the digital and intelligent capabilities of foreign exchange regulation. Through the development of "Smart Foreign Exchange Administration", we will provide more intelligent, efficient, secure, and user-friendly services to individuals and businesses. Simultaneously, we will enhance the intelligence, precision, and effectiveness of risk identification and regulatory oversight, empowering foreign exchange regulation with cutting-edge technological solutions. Ladies and Gentlemen, Currently, transformations of the world unseen in a century are unfolding at a faster pace. Confronted with drastic external changes, we will conscientiously implement the guiding principles of the Political Bureau meeting of the CPC Central Committee held on April 25, committing ourselves to both goal-oriented and problem-oriented approaches, staying attuned to market demand, and rolling out a basket of supportive policies to keep employment stable, sustain business operations, maintain market stability, and anchor the expectations. Firstly, we will support foreign trade enterprises through multiple policy measures. We will further deepen the reform of trade-related foreign exchange management by launching a suite of facilitating policies. For example, we will launch high-level opening-up pilot programs for expanding cross-border trade, encourage banks to include more trade-related entities in emerging industries into the targets of facilitating policy support, optimize foreign exchange fund settlements for comprehensive foreign trade service providers, and facilitate the centralized overseas fund management for trustworthy engineering contracting firms. These policies are designed to support the innovation and development in trade. Secondly, we will proactively facilitate cross-border investment and financing. We will implement a facilitating policy mix to better support the international economic and trading cooperation and exchange of personnel. For example, we will support research institutions across the country in attracting and leveraging foreign capital, further facilitate the cross-border financing and investment of technology-based companies, and shorten the negative list for the use of income generated under the capital account. We will promote nationwide the integrated RMB and foreign currency cash pooling program for multinational corporations, to facilitate the centralized use of fund within the corporate group. Through the pilot program for green foreign debt policies, we will encourage eligible enterprises to borrow foreign debts for green projects. Meanwhile, we will improve the fund management of domestic enterprises that list abroad by harmonizing the policies for domestic and foreign currency management, thereby facilitating the repatriation and domestic use of fund raised overseas. In the coming future, a batch of investment quotas under the Qualified Domestic Institutional Investor (QDII) scheme will be issued, to meet the reasonable overseas investment demand by domestic entities in an orderly manner. Thirdly, we will implement a package of innovative policies related to foreign exchange businesses in the pilot free trade zones, to actively support the strategy of upgrading the pilot free trade zones. The policy package includes measures such as optimizing settlement processes for new international trade forms, and expanding the pilot program for Qualified Foreign Limited Partnerships (QFLP), among a total of ten facilitating policies. Ladies and Gentlemen, Accelerating the construction of Shanghai as an international financial center is a major strategic decision made by the CPC Central Committee. It holds special significance in serving the new development paradigm and promoting high-quality economic growth. In recent years, remarkable progress has been made in developing Shanghai as an international financial center. Today, Shanghai has evolved into a city with the most comprehensive financial market system, the most diverse range of financial institutions, and the highest level of financial opening-up in China. Since the beginning of this year, we have continued to step up support for building Shanghai into an international financial center. Not long ago, the People’s Bank of China (PBOC), the National Financial Regulatory Administration (NFRA), the State Administration of Foreign Exchange (SAFE), and the Shanghai Municipal People’s Government jointly released the Action Plan for Further Facilitating Cross-Border Financial Services in Shanghai International Financial Center. Recently, the PBOC and the SAFE approved the plan for upgrading the functions of Free Trade Accounts (FTAs) in the China (Shanghai) Pilot Free Trade Zone and the pilot plan for comprehensive reform of offshore trade financial services in the Lin-gang Special Area. Moving forward, we will continue to strengthen the provision of high-quality policies and services to support entities of all types in participating in international competition and cooperation in a safer, more convenient, and more efficient manner. This will further enhance the competitiveness and global influence of Shanghai as an international financial center. To conclude, I wish the Forum a full success! Thank you! 2025-06-18/en/2025/0618/2311.html
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In April 2025, the export and import of China’s international trade in goods and services totalled RMB 4370.6 billion, up 6 percent over the same time last year. Of this, the export of goods recorded RMB 2101.0 billion and the import recorded RMB 1654.6 billion, resulting in a surplus of RMB 446.4 billion. The export of services recorded RMB 250.5 billion and the import recorded RMB 364.4 billion, resulting in a deficit of RMB 113.8 billion. In terms of the major items, the export and import of travel, transport, other business services, telecommunications, computer and information services registered RMB 171.8 billion, RMB 170.9 billion, RMB 106.7 billion and RMB 73.3 billion respectively. In the US dollar terms, in April 2025, the export and import of China’s international trade in goods and services were USD 326.5 billion and USD 280.3 billion respectively, with a surplus of USD 46.2 billion.(End) International Trade in Goods and Services of China April 2025 Item In 100 million of RMB In 100 million of USD Goods and services 3326 462 Credit 23516 3265 Debit -20190 -2803 1. Goods 4464 620 Credit 21010 2917 Debit -16546 -2297 2. Services -1138 -158 Credit 2505 348 Debit -3644 -506 2.1Manufacturing services on physical inputs owned by others 57 8 Credit 74 10 Debit -17 -2 2.2Maintenance and repair services n.i.e 26 4 Credit 76 11 Debit -50 -7 2.3Transport -315 -44 Credit 697 97 Debit -1012 -140 2.4Travel -1054 -146 Credit 332 46 Debit -1386 -192 2.5Construction 26 4 Credit 82 11 Debit -56 -8 2.6Insurance and pension services -77 -11 Credit 2 0 Debit -79 -11 2.7Financial services 1 0 Credit 25 4 Debit -24 -3 2.8Charges for the use of intellectual property -261 -36 Credit 49 7 Debit -310 -43 2.9Telecommunications, computer and information services 205 29 Credit 469 65 Debit -264 -37 2.10Other business services 283 39 Credit 675 94 Debit -392 -54 2.11Personal, cultural, and recreational services -15 -2 Credit 14 2 Debit -30 -4 2.12Government goods and services n.i.e -14 -2 Credit 9 1 Debit -23 -3 Notes: 1. The international trade in goods and services in this table refers to the transactions between residents and non-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 trade and 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: processor only 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-residents or 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 debit side. 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-lifeinsurance, 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 tocommunications 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. 2025-05-30/en/2025/0530/2305.html
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As shown in the statistics of the State Administration of Foreign Exchange (SAFE), in May 2025, the amount of foreign exchange settlement and sales by banks was RMB 1386.1 billion and RMB 1305.1 billion, respectively. During January to May 2025, the accumulative amount of foreign exchange settlement and sales by banks was RMB 6723.5 billion and RMB 7086.7 billion, respectively. In the US dollar terms, in May 2025, the amount of foreign exchange settlement and sales by banks was USD 192.7 billion and USD 181.4 billion, respectively. During January to May 2025, the accumulative amount of foreign exchange settlement and sales by banks was USD 935.6 billion and USD 986.2 billion, respectively. In May 2025, the amount of cross-border receipts and payments by non-banking sectors was RMB 4480.0 billion and RMB 4242.6 billion, respectively. During January to May 2025, the accumulative amount of cross-border receipts and payments by non-banking sectors was RMB 23086.2 billion and RMB 22354.0 billion, respectively. In the US dollar terms, in May 2025, the amount of cross-border receipts and payments by non-banking sectors was USD 622.7 billion and USD 589.7 billion, respectively. During January to May 2025, the accumulative amount of cross-border receipts and payments by non-banking sectors was USD 3212.8 billion and USD 3110.9 billion, respectively. Addendum: Glossary and relevant definitions Balance of payments (BOP) refers to all economic transactions between residents and non-residents. Foreign exchange settlement and sales by banks refers to settlement and sale transaction that bank executes for customers and for the banks themselves, including statistic data on settlements of forward contracts for foreign exchange settlement and sales and the exercises of option, and excluding the transactions in the interbank foreign exchange market. The statistic reporting date of Foreign exchange settlement and sales by banks should be the trade day of the Foreign exchange settlement and sales transaction. By definition, foreign exchange settlement means that foreign exchange holders sell foreign exchange to banks, and foreign exchange sales means that banks sell foreign exchange to foreign exchange buyers. The newly signed contract amount of forward foreign exchange settlement and sales refers to the binding forward contract between a bank and its client that predetermines foreign exchange currency, amount, exchange rate and tenor which to be executed upon maturity. The unwind amount of forward foreign exchange settlement and sales refers to, where client is unable to perform the original forward contract due to change in its real demand, client to fully or partially close its forward position by executing another deal with opposite direction to the original contract. The rolling amount of forward foreign exchange settlement and sales refers to client to adjust the settlement date of original contract due to change in its real demand. The outstanding amount of forward foreign exchange settlement and sales by the end of the current period refers to the total amount of forward contracts accumulated from all non-matured forward contracts with client. The net Delta exposure of outstanding options refers to the implied foreign exchange spot risk exposure from outstanding option contracts that bank executed with client. The cross-border receipts and payments by non-banking sectors refers to the receipts and payments between domestic non-banking sectors (including institutional and individual residents) and non-residents through domestic banks, excluding receipts and payments in cash. In particular, the statistics includes cross-border receipts and payments between non-banking sectors and non-residents through domestic banks (including RMB and foreign currency), and domestic receipts and payments between non-banking sectors and non-residents through domestic banks (temporarily excluding domestic receipts and payments in RMB between individual residents and non-resident individuals). Data are collected when customers conduct receipts and payments with non-resident counterparties at domestic banks. Specifically, the receipts refer to the capital of non-banking sectors received from non-residents via domestic banks; the payments refer to the capital of non-banking sectors paid to non-residents via domestic banks. 2025-06-17/en/2025/0617/2308.html
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China's External Portfolio Investment Assets at the End of 2024 2025-05-30/en/2025/0530/2307.html
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As at the end of March 2025, China's banking sector recorded external financial assets of USD 1698.0 billion, external liabilities of USD 1511.8 billion, and net external assets of USD 186.2 billion, including net RMB liabilities of USD 309.2 billion and net foreign currency assets of USD 495.4 billion. Among the external financial assets of the banking sector, by instrument, deposits and loans were USD 1019.7 billion, bonds investment, USD 437.6 billion, and other assets including equity, USD 240.7 billion, accounting for 60 percent, 26 percent and 14 percent of the sector's total external financial assets respectively. By currency, RMB assets were USD 489.5 billion, USD assets were USD 867.6 billion, and other currency assets were USD 340.9 billion, accounting for 29 percent, 51 percent and 20 percent respectively. By counterpart sector, the amount invested in the overseas banking sector was USD 836.8 billion, accounting for 49 percent; the amount invested in the overseas non-banking sector was USD 861.3 billion, accounting for 51 percent. Among the external liabilities of the banking sector, by instrument, deposits and loans were USD 675.2 billion, bonds investment, USD 373.4 billion, and other liabilities including equity, USD 463.3 billion, accounting for 45 percent, 25 percent and 31 percent of the sector's total external liabilities respectively. By currency, RMB liabilities were USD 798.7 billion, USD liabilities, USD 342.1 billion, and other currency liabilities, USD 371.0 billion, accounting for 53 percent, 23 percent and 25 percent respectively. By counterpart sector, USD 637.2 billion was from overseas banking sector, accounting for 42 percent; while USD 874.7 billion was from overseas non-banking sector, accounting for 58 percent. (End) 2025-06-26/en/2025/0626/2312.html
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Recently, the State Administration of Foreign Exchange (SAFE) releases data on China's external portfolio investment assets by country/region and by sector of resident holder at the end of 2024. The statistics show that China's external portfolio investment assets (excluding reserve assets) amounted to USD 1417.3 billion by the end of 2024, including USD 859.8 billion in equity investments and USD 557.5 billion in bond investments. The top 5 recipients of Chinese investments were Hong Kong SAR, the United States, Cayman Islands, the British Virgin Islands and the United Kingdom, with the amounts being USD 610.1 billion, USD 331.6 billion, USD 115.6 billion, USD 72.0 billion and USD 36.0 billion respectively. By the end of 2024, other financial corporations (non-bank financial institutions), bank and non-financial sector were the main sectors holding external portfolio investment assets, with the amounts being USD 795.5 billion, USD 422.1 billion and USD 199.8 billion respectively, accounting for 56 percent, 30 percent and 14 percent of China’s total external portfolio investment assets. (End) 2025-05-30/en/2025/0530/2306.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 transactions of RMB 29.04 trillion (equivalent to USD 4.03 trillion) in April 2025. In terms of markets, the transactions volume of client market was RMB 4.18 trillion (equivalent to USD 0.58 trillion), and the transactions volume of interbank market was RMB 24.86 trillion (equivalent to USD 3.45 trillion). In terms of products, the cumulative transactions volume of the spot market was RMB 9.55 trillion (equivalent to USD 1.33 trillion), and that of the derivatives market was RMB 19.49 trillion (equivalent to USD 2.71 trillion). From January to April 2025, a total of RMB 100.28 trillion (equivalent to USD 13.96 trillion) was traded in the Chinese foreign exchange market. 2025-05-23/en/2025/0523/2304.html
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The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the central government; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and all designated Chinese-funded foreign exchange banks: To enhance quality and improve efficiency in foreign trade, speed up the development of new forms of trade including cross-border ecommerce, and improve facilitation of the foreign exchange receipts and payments under trade, relevant issues are notified as follows: I. In accordance with the Circular of the State Administration of Foreign Exchange on Printing and Issuing Measures for the Administration of Foreign Exchange Business of Payment Institutions (SAFE Document No.13〔2019〕) when meeting the conditions for customer identification, electronic transaction information collection, and authenticity verification, banks can apply to provide foreign exchange sales and settlement and relevant receipts and payments services to market players of new forms of trade including cross-border ecommerce and comprehensive foreign trade services based on electronic transaction information. As for payment institutions, they can provide these services to cross-border ecommerce players based on electronic transaction information. II. Cross-border ecommerce players can conduct netting settlement between expenses on overseas warehousing, logistics and taxes, and export proceeds, and make declaration of actual receipts and payments data and original data as required. In exports to overseas warehouses by cross-border ecommerce players, the actual sales revenue repatriated can be different from the amount of the same goods on the export declaration form. Cross-border ecommerce players need to submit foreign exchange reports in accordance with the existing regulations on foreign exchange administration for trade in goods. III. Domestic companies engaged in international delivery services, logistics providers and cross-border ecommerce platform companies can pay the overseas warehousing and logistics charges, and taxes that are related to cross-border ecommerce for their customers in advance, but not longer than 12 months in principle. If the advance is paid for non-affiliates or has not been repaid for longer than 12 months, the above domestic companies shall report it to local foreign exchange authorities as required. IV. Domestic individuals engaging in cross-border ecommerce can handle foreign exchange settlement for cross-border ecommerce through their individual foreign exchange accounts. Their annual facilitation quotas will not be employed, provided that they can provide supporting materials or electronic transaction information indicating trading amounts to handle foreign exchange sales and settlement under cross-border ecommerce. V. Any market player that entrusts a third party with export declaration under market procurement trade, if meeting the following conditions, can handle foreign exchange receipts in its own name: (1) The market player engaging in market procurement trade has been filed with the local government platform for market procurement trade ("market procurement trade platform"). The market procurement trade platform shall be able to collect whole process trading and export information, and provide detailed export data corresponding to enterprises and self-employed individuals. (2) The handling bank is technically eligible for receiving and storing trading information, with its system interfaced with the market procurement trade platform, and can use necessary technologies to identify its customers' identities, verify the authenticity of the transactions and guard against repeated use of trading information. VI. Domestic and overseas individuals engaging in market procurement trade can handle foreign exchange settlement for market procurement trade through their individual foreign exchange accounts, in accordance with Article V above. Their annual facilitation quotas will not be employed, provided that they can provide supporting materials or electronic transaction information indicating trading amounts to handle foreign exchange settlement under market procurement trade. VII. Comprehensive foreign trade service providers can handle foreign exchange receipts from exports on a commission basis. Handling banks can handle foreign exchange receipts for exports based on the electronic transaction information pushed by the comprehensive foreign trade service providers, and directly transfer foreign exchange or settled funds into the entrusting customers' accounts. Comprehensive foreign trade service providers and handling banks should meet the following conditions for this business: (1) The handling banks need to meet the requirements of Article I above. (2) The comprehensive foreign trade service providers need to sign the comprehensive service contracts (agreements) with their customers, and have provided comprehensive services including customs and quarantine declaration, logistics, export tax refunding, settlement and credit insurance to their customers. (3) The comprehensive foreign trade service providers have sound risk control systems and are technically eligible for "tracking transactions and keeping risks under control". (4) The comprehensive foreign trade service providers shall explicitly show their customers the real exchange rates and will not be allowed to make illegal gains from exchange rate spreads. VIII. The SAFE will support enterprises to optimize the foreign exchange business processes using technologies. Market players of new forms of trade can access the foreign exchange monitoring system for trade in goods through the connected interface service to search for the status of the list, submit foreign exchange reports for trade in goods, and so on. They can declare the balance of payments based on banks' electronic documents, or declare foreign-related receipts on the ASONE enterprise version online. IX. Banks and payment institutions who verify electronic transaction information shall handle actual receipts and payments data and original data declaration in accordance with the Circular of the State Administration of Foreign Exchange on Printing and Distributing the Guidelines for the Declaration of Balance of Payments Statistics through Banks (2019 Version) (SAFE Document No. 25 〔2019〕). For original data, summary declaration shall be made in the names of banks and payment institutions if a single transaction is within the maxium of US$ 5,000 (US$ 5,000 is permitted). For foreign-related receipts and payments that involve export tax refunding and financing, summary declaration of transactions of the same nature and with the same counterparty can be made on a transaction-by-transaction basis and in the names of enterprises. When handling foreign-related receipts and payments for trade in goods and in services relating to cross-border ecommerce, market procurement trade and comprehensive foreign trade services, banks shall indicate "cross-border ecommerce", "market procurement trade" or "comprehensive foreign trade services" in the remarks on transactions for foreign-related receipts and payments declaration. X. For foreign-related receipts and payments under new forms of trade including cross-border ecommerce, market procurement trade and comprehensive foreign trade services, the SAFE will perform supervision, management, monitoring, verification and inspection in compliance with laws. It will adopt a key list approach to manage unusual transaction players and issue the list to banks and payment institutions. It will keep assessing banks and payment institutions that verify electronic transaction information and disqualify ineligible banks or payment institutions in accordance with laws. XI. Based on the business principles, banks and payment institutions serving new forms of trade shall improve identification and management systems for customers engaging in new forms of trade, tighten classified credit management and conduct sample inspections and verifications of customer IDs and transactions. They shall improve compliance restriction and classified labeling mechanisms, and prudentially handle foreign exchange transactions for market players on the key list and guide customers to handle foreign exchange receipts and payments in compliance with regulations. XII. The SAFE will track innovative development in new forms of trade closely in line with the principle of "serving the real economy, facilitating opening up, tracking transactions and keeping risks under control" to actively respond to market demand. For receipts and payments for new forms of trade that are aligned with the directions of reform and development and are true and reasonable, the branches and foreign exchange administration departments of the SAFE can address them, if necessary, through collective review and deliberation in appropriate processes, but no new administrative permission will be allowed. XIII. Any violations of this Circular and related regulations on foreign exchange administration will be punished in accordance with the Regulations of the People's Republic of China on Foreign Exchange Administration. XIV. Definitions (1) Cross-border ecommerce refers to import and export activities through information networks like the Internet for trade in goods or in services. (2) Market procurement trade is a type of trade where commodities are purchased in recognized marketplaces, with export clearance handled by eligible operators. (3) Comprehensive foreign trade service providers refer to enterprises that have foreign trade qualifications and are entrusted by domestic and foreign customers to handle comprehensive services including customs and quarantine declaration, logistics, export tax refunding, settlement, and credit insurance, and to assist with financing through the comprehensive service information platform based on the comprehensive service contracts (agreements) lawfully signed. XV. This Circular will become effective as of issuance. It will prevail in case of any discrepancies with the previous regulations. Upon receiving this Circular, the branches and foreign exchange administration departments of the SAFE shall promptly forward it to the central sub-branches, sub-branches, city commercial banks, rural commercial banks, foreign-funded banks and rural cooperative banks in their respective jurisdictions, and national Chinese-funded banks shall immediately forward it to their branches and sub-branches. In case of any problems during implementation, please contact the SAFE without hesitation. State Administration of Foreign Exchange May 20, 2020 2020-05-20/en/2020/0520/1700.html
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General Secretary Xi Jinping has stressed that deepening financial reform and opening-up is essential both for the improvement of financial services and for the prevention of financial risks. As required in the government work report delivered by Premier Li Keqiang at the third session of the 13th National People’s Congress, the greater the difficulties and challenges we face, the more important it is for us to go further in reform, remove institutional barriers, and boost internal driving forces for development. In line with the overall arrangements of the Financial Stability and Development Committee (FSDC) under the State Council and the principle of “launching a reform measure when conditions are ripe”, FSDC members, including the National Development and Reform Commission, the Ministry of Finance, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission, and the State Administration of Foreign Exchange, have conducted in-depth research and will roll out the following 11 financial reform measures in the near future. 1. The Measures for the Regulatory Assessment of Commercial Banks’ Financial Services for Micro and Small Enterprises will be introduced to improve the incentive and restraint mechanism for the provision of financial services for micro and small enterprises (MSEs). Assessments will be made in terms of credit allocation, specialized internal institution building, implementation of regulatory policies, and innovation of products and services, with differentiated assessment indicators put in place. Relevant requirements for commercial banks will be implemented so that those who have fulfilled their duties will not be held liable for losses. MSE loans will be priced on a differentiated basis. More importance will be attached to the application of assessment results. 2. The Work Plan for Deepening the Reform and Replenishing the Capital of Small and Medium-sized Banks will be released to further push ahead with the reform of small and medium-sized banks and to speed up their capital replenishment. Based on market- and law-based principles, funds will be raised through multiple channels, while capital replenishment will be combined with the optimization of corporate governance. In addition, the Opinions on Deepening the Reform of Rural Credit Cooperatives will be formulated, which is aimed at keeping their county-level legal person status generally stable, enhancing positive incentives, and coordinating reform with risk prevention. 3. The Guidelines on Performance Appraisal of Government-backed Financing Guarantee and Re-guarantee Institutions will be released. It is aimed at prompting government-backed financing guarantee institutions at all levels to prioritize support for MSEs and the agricultural sector and to lower the guarantee fees, so that they will fully play their role in risk sharing and help enterprises resume production and pull through the difficulties. 4. Four regulations, such as the Administrative Measures for Registration-based Initial Public Offerings on ChiNext (For Trial Implementation), and eight major rules, such as the Rules for the Listing of Stocks on ChiNext, will be introduced. They are aimed at advancing the reform of the ChiNext board, launching the pilot registration-based system, and establishing or improving the supporting rules, such as those for the arrangements of the registration-based system, ongoing supervision over ChiNext-listed enterprises, and the sponsorship of offerings on ChiNext. 5. The Guidelines on Companies Listed on the National Equities Exchange and Quotations Switching Boards for Listing will be released to accelerate the reform of the so-called “new third board”. Active but prudent steps will be taken to launch public offerings, while qualified enterprises will enter the selected tier, and investments by publicly offered funds will be allowed. A mechanism will be established for companies listed on the new third board to switch to other boards for listing, with basic requirements laid down for the scope, conditions, and procedures, so that the role of the new third board as a transitional link will be brought into full play to strengthen the connection between multiple tiers of the capital market. 6. The Administrative Measures for Standardized Commercial Papers will be introduced to regulate the mechanism of financing via standardized commercial papers. Measures will be taken to support bond market circulation of products backed by commercial paper packages and to promote investments in standardized commercial papers by asset management products, so that the bond market will play its part in investment pricing, regulatory arbitrage will be reduced, and better services will be provided for small and medium-sized enterprises as well as supply chain financing. 7. The Rules for the Recognition of Standard Debt Assets will be released to implement the requirements of the new regulations on asset management. The scope and criteria for the recognition of standard debt assets will be defined; a mechanism will be established to recognize the conversion of non-standard debt assets into standard debt assets; and transitional arrangements will be made for existing debt assets that fall into neither standard nor non-standard categories so as to steadily advance the transformation of asset management businesses and enhance the ability of the financial sector to serve the real economy. 8. The Guidelines on the Participation of Foreign Governmental Agencies and International Development Institutions in Bond Businesses will be released, which will further improve the requirements for information disclosures of panda bonds, set detailed rules for the issuance of panda bonds, and encourage issuers with authentic needs for RMB funds to issue bonds in an effort to steadily promote the development of the panda bond market. 9. Efforts will be made to further open up the credit rating sector to both domestic and foreign agencies, allowing qualified international rating agencies as well as private rating agencies to conduct bond credit ratings in China and also encouraging domestic rating agencies to expand their international business. 10. The certified public accountant (CPA) industry will be guided to pursue well-regulated and orderly development. Accounting firms will be urged to improve their quality control systems, and implementation plans will be made to adjust the management of their practices and to improve audit quality effectively so that the overall management of accounting firms will be improved. Moreover, administrative measures will be introduced for the record filing of accounting firms participating in the securities service industry, with the procedures of qualification review and approval abolished for such participation. 11. The Opinions on Strengthening Administrative Penalties for Illegal Financial Conduct will be introduced. Based on the current legal framework and in line with the principle that penalties should be commensurate with the gravity of the offense, the Opinions specifies the criteria for imposing penalties per incident on financial institutions for illegal conduct and the criteria for determining illegal gains. Financial institutions and intermediaries as well as individuals responsible for the illegal conduct will be strictly held accountable according to the law, while efforts will be intensified to crack down on illegal financial conduct so as to effectively deter law breakers and protect the legitimate rights and interests of financial consumers. Office of the State Council Financial Stability and Development Committee May 27, 2020 2020-05-27/en/2020/0527/1693.html