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Since the beginning of this year, the State Administration of Foreign Exchange (SAFE) has been committed to implementing the work plans and arrangements of the CPC Central Committee and the State Council. With a focus on serving the real economy, guarding against financial risks and deepening the financial reform, the SAFE has reinforced market regulation, investigated behaviors violating the laws and regulations, and cracked down on fabricated trading and frauds, thereby safeguarding the healthy and sound order in the foreign exchange market, and forestalling the systematic risks to maintain our bottom line. In accordance with the Regulations of the People’s Republic of China on the Disclosure of Government Information (Decree No. 492 of the State Council), a selection of typical cases of foreign exchange violations are announced as follows: Case 1: Evasion of foreign exchange by Guangzhou Changli Import and Export Co., Ltd. From May to July 2015, Guangzhou Changli Import and Export Co., Ltd fabricated its trading backgrounds and repeatedly used the import declarations to pay foreign exchange that amounted to USD 50.4868 million. Such behavior violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was considered evasion of foreign exchange. Involving a large amount of money, the behavior disrupted the order of the foreign exchange market with serious consequences. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a penalty of RMB 9.5239 million on the company. Case 2: Evasion of foreign exchange by Ningbo High-tech Zone Gaoan Trading Co., Ltd. In August 2015, Ningbo High-tech Zone Gaoan Trading Co., Ltd. used the bill of lading already used by other companies to pay foreign exchange worth USD 23.69 million under false entrepot trade. Such behavior violated Articles 12 and 14 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was considered evasion of foreign exchange that seriously disrupted the order of the foreign exchange market with severe consequences. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a penalty of RMB 5.87 million on the company. Case 3: Evasion of foreign exchange by LOUNIE Trade (Shanghai) Co., Ltd. In December 2015, LOUNIE Trade (Shanghai) Co., Ltd. massaged the bill of lading and illegally transferred USD 10.25 million abroad under false entrepot trade. Such behavior violated Articles 12 and 14 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was considered evasion of foreign exchange that seriously disrupted the order of the foreign exchange market with severe consequences. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a penalty of RMB 3.31 million on the company. Case 4: Evasion of foreign exchange by Ningbo Duo Fu Man Chemicals Co., Ltd. From March 2015 to November 2016, Ningbo Duo Fu Man Chemicals Co., Ltd. borrowed the bill of lading of other companies to pay USD 19.2362 million in foreign exchange. Such behavior violated Articles 12 and 14 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was considered evasion of foreign exchange that seriously disrupted the order of the foreign exchange market with severe consequences. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a penalty of RMB 3.793 million on the company. Case 5: Evasion of foreign exchange by Shandong Yongjia Group Co., Ltd. From June to September 2016, Shandong Yongjia Group Co., Ltd. fabricated bills of lading and paid USD 4.8975 million in foreign exchange. Such behavior violated Articles 12 and 14 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was considered evasion of foreign exchange that seriously disrupted the order of the foreign exchange market with severe consequences. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a penalty of RMB 1.6227 million on the company. Case 6: Entrepot trade transaction handled by the Agricultural Bank of China Shanghai Branch Huangpu Sub-branch in violation of regulations From January to March 2016, the Agricultural Bank of China Shanghai Branch Huangpu Sub-branch didn't conduct the due diligence investigation into the authenticity of entrepot trade and handled the payment of foreign exchange under entrepot trade without the presentation of the effective ownership voucher by the company. Such behavior violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration and seriously disrupted the order of the foreign exchange market with severe consequences. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE ordered the sub-branch for rectification within a prescribed time limit, and imposed a penalty of RMB 1 million on it. Case 7: Entrepot trade transaction handled by the Bank of China Zhoushan Branch in violation of regulations From May to July 2016, the Bank of China Zhoushan Branch didn't conduct the due diligence investigation into the authenticity of entrepot trade and handled the payment of foreign exchange under entrepot trade without the presentation of the ownership voucher by the company. Such behavior violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration and seriously disrupted the order of the foreign exchange market with severe consequences. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE ordered the branch for rectification within a prescribed time limit, confiscated its illegal gains of RMB 216,000, imposed a penalty of RMB 1 million, and suspended its sales of foreign exchange to businesses for 6 months. Case 8: Overseas loans under domestic guarantees issued by China Minsheng Bank Quanzhou Branch in violation of regulations From September 2014 to June 2015, and from September 2015 to July 2016, China Minsheng Bank Quanzhou Branch handled foreign exchange payments without the due diligence investigation into the qualification of the debtor, sources of guarantee funds, the purposes of funds under guarantees, sources of funds for the planned repayment of borrowings, and backgrounds of related transactions in terms of signing and performing the contracts for overseas loans under domestic guarantees. Such behaviors violated Articles 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees, and seriously disrupted the order of the foreign exchange market with severe consequences. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE ordered the branch for rectification within a prescribed time limit, confiscated its illegal gains of RMB 3.041 million, and imposed a penalty of RMB 8 million on it. Case 9: Overseas loans under domestic guarantees issued by Xiamen International Bank Zhuhai Branch in violation of regulations From August 2014 to August 2015, Xiamen International Bank Zhuhai Branch handled foreign exchange purchases and payments without the due diligence investigation into the solvency of overseas debtors and the sources of funds for their repayment of borrowings, or the continuous monitoring and tracking of the purposes of the loans in terms of the signing and performance of the contracts for overseas loans under domestic guarantees. Such behaviors violated Articles 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees, and seriously disrupted the order of the foreign exchange market with severe consequences. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE confiscated its illegal gains of RMB 816,000, imposed a penalty of RMB 1 million and suspended its sales of foreign exchange to businesses for 3 months. Case 10: Overseas loans under domestic guarantees issued by OCBC Wing Hang Bank (China) Limited Beijing Branch in violation of regulations From September to October 2015 and in September 2016, OCBC Wing Hang Bank (China) Limited Beijing Branch handled foreign exchange purchases and payments without the due diligence investigation into the borrowing contracts, expected sources of funds for the repayment of borrowings, and related transaction backgrounds in terms of the signing and performance of the contracts for overseas loans under domestic guarantees. Such behaviors violated Articles 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees, and seriously disrupted the order of the foreign exchange market with severe consequences. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE ordered the branch for rectification within a prescribed time limit, confiscated its illegal gains of RMB 3.879 million, imposed a penalty of RMB 4 million and suspended its sales of foreign exchange to businesses for 3 months. Case 11: Overseas loans under domestic guarantees issued by the Industrial Bank of Korea (China) Limited Shenzhen Branch in violation of regulations From September to November 2014, and from October to November 2016, the Industrial Bank of Korea (China) Limited Shenzhen Branch handled foreign exchange purchases and payments without the due diligence investigation into the expected sources of funds for the debtors' repayment of borrowings, the likelihood of performing the guarantee contracts and related transaction backgrounds, or the continuous monitoring and tracking of the purposes of the loans in terms of the signing and performance of the contracts for overseas loans under domestic guarantees, in spite of the inconsistency between the beneficiary of the bill of lading and the buyer/seller of the trade in the documents submitted by the company. Such behaviors violated Articles 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees, and seriously disrupted the order of the foreign exchange market with severe consequences. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE ordered the branch for rectification within a prescribed time limit, confiscated its illegal gains of RMB 229,000, and imposed a penalty of RMB 2 million. Case 12: Transfer of QDII quotas by Haitong Asset Management Co., Ltd. in violation of regulations From January 2015 to June 2016, Haitong Asset Management Co., Ltd. provided investment quotas to companies without the investment qualifications for QDII in violation of the foreign exchange administration regulations on QDII investment that involved net outward remittance of USD 16.28 million. Even worse, the company submitted inauthentic evidencing materials to the foreign exchange authority. Such behavior violated Article 6 of the Regulations on Foreign Exchange Administration for Overseas Securities Investments by Qualified Domestic Institutional Investors, and seriously disrupted the order of the foreign exchange market with severe consequences. In accordance with Article 44 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE warned the company and imposed a penalty of RMB 7.75 million. Case 13: Illegal arbitrage by Lion Fund Management Co., Ltd. In October 2015, Lion Fund Management Co., Ltd. purchased and remitted out USD 2.987 million in foreign exchange under investment by QDII and then had the money remitted back after overseas settlement on the same day, in order to gain the spread in interest rates between CNY and CNH. Such behavior violated Articles 2 and 16 of the Regulations on Foreign Exchange Administration for Overseas Securities Investments by Qualified Domestic Institutional Investors, seriously disrupting the order of the foreign exchange market. In accordance with Article 40 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a penalty of RMB 950,000 on the company. Case 14: Illegal trading of foreign exchange by a Mr. Chu from Henan Between September and October 2016, in order to transfer assets overseas against the laws, Chu transferred a total of RMB 30 million in three times into a domestic account controlled by an underground bank, and remitted a total of CAD 5.91 million into his account in Canada after having the money exchanged into foreign exchange through the underground bank. Such behavior violated Article 30 of the Measures for the Administration of Individual Foreign Exchange, and was considered illegal trading of foreign exchange. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a penalty of RMB 1.95 million on Chu. Case 15: Illegal trading of foreign exchange by a Mr. Liu from Shandong From February to August 2015, in order to transfer assets overseas against the laws, Chu transferred from his account a total of RMB 13.551 million in seven times into a domestic account controlled by an underground bank, and had his relative collect the illegal foreign exchange proceeds of AUD 2.5645 million after the remittances were exchanged through the underground bank. Such behavior violated Article 30 of the Measures for the Administration of Individual Foreign Exchange, and was considered illegal trading of foreign exchange. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a penalty of RMB 970,000 on Liu. Case 16: Illegal trading of foreign exchange by a Mr. Zhong from Jiangxi From January to May 2016, Zhong exchanged USD 1.1533 million into RMB 7.5776 million via an underground bank and transferred the money into his domestic account. Such behavior violated Article 30 of the Measures for the Administration of Individual Foreign Exchange, and was considered illegal trading of foreign exchange. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE warned Zhong and imposed a penalty of RMB 530,300 on him. Case 17: Illegal trading of foreign exchange by a Mr. Zheng from Macau From February 2013 to July 2015, Zheng made payments or collected receipts in RMB through his domestic personal account and collected receipts or made payments in HKD of equal value through his foreign account to convert foreign exchange for others against the laws. 33 such transactions were conducted, involving a total of RMB 65.0157 million. Such behavior violated Article 30 of the Measures for the Administration of Individual Foreign Exchange, and was considered illegal trading of foreign exchange, seriously disrupting the order of the foreign exchange market. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE warned Zheng, and imposed a penalty of RMB 3.2508 million on him. Case 18: Illegal trading of foreign exchange by a Mr. Zang from Jiangsu From April to May 2016, Zang exchanged the RMB into the banknotes of the Hong Kong dollar by making payments in RMB through the POS at a currency exchange store in Macau, which involved a total of RMB 11.746 million. Such behavior violated Article 30 of the Measures for the Administration of Individual Foreign Exchange, and was considered illegal trading of foreign exchange. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE warned Zang, and imposed a penalty of RMB 939,700 on him. Case 19: Evasion of foreign exchange by a Mr. Song from Inner Mongolia through split purchases of foreign exchange From July 2015 to December 2016, to illegally transfer his assets, Song used the annual quotas for individual purchases of foreign exchange of 54 persons including his family and friends to purchase foreign exchange in a split way for the fabricated purposes of studying abroad, seeking medical advice overseas and overseas trips, and then transferred the foreign exchange into his overseas account, which involved a total of USD 3.4927 million. Such behavior violated Article 7 of the Measures for the Administration of Individual Foreign Exchange, and was considered evasion of foreign exchange. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a penalty of RMB 683,000 on him. Case 20: Evasion of foreign exchange by a Mr. Jiang from Henan through split purchases of foreign exchange From January to April 2017, to illegally transfer his assets overseas, Jiang used the annual quotas of 55 persons for the purchases of foreign exchange to purchase foreign exchange in a split way for the fabricated purpose of overseas trips at his own expense, and then transferred the foreign exchange into his account in Hong Kong, which involved a total of USD 2.6938 million. Such behavior violated Article 7 of the Measures for the Administration of Individual Foreign Exchange, and was considered evasion of foreign exchange. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a penalty of RMB 389,700 on him. 2017-12-01/en/2017/1201/1383.html
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The State Administration of Foreign Exchange (SAFE) has recently disseminated the data on banks' foreign exchange sales and settlement and banks' foreign-related receipts and payments for customers for October 2017, and its press spokesperson answered media questions on recent cross-border capital flows. Q: China's cross-border capital flows remained balanced in the first three quarters of this year. Could you brief us on the situation in October? A: China's cross-border capital flows continued to be in balance in October. First, banks' foreign exchange sales and settlement remained in surplus. In October 2017, a surplus of USD 2.8 billion was registered in banks' foreign exchange sales and settlement, compared with a surplus of USD 300 million in September, indicating the domestic demand and supply of foreign exchange has sustained an equilibrium. Second, the non-banking sectors posted a further balance in foreign-related receipts and payments. In October, the non-banking sectors including enterprises and individuals recorded a surplus of USD 100 million in foreign-related receipts and payments, compared with a deficit of USD 1.7 billion in September. Third, the balance of China's foreign exchange reserves continued to recover. As at the end of October, China posted USD 3.1092 trillion in the balance of foreign exchange reserves, an increase of USD 98.7 billion from the end of 2016, and USD 700 million from the end of last month, marking the 9th consecutive month of growth. Currently market participants' foreign-related receipts and payments are more stabilized and orderly, providing a boost to the adaptive equilibrium between the demand and supply of foreign exchange. First, market participants are more sensible in selling and settling foreign exchange. In October, the desire to settle foreign exchange remained stable, with bank customers' foreign exchange settlement as a percentage of their income from foreign-related foreign exchange being 62.9%, slightly increasing by 0.1 percentage point from the first three quarters. Bank customers' desire to purchase foreign exchange declined further, with the ratio of foreign exchange purchases by bank customers to foreign-related foreign exchange payments reaching 61.6%, down by 4.5 percentage points from the first three quarters. Second, foreign exchange inflows through major channels such as trade in goods, use of foreign funds and cross-border financing continued to grow. In October, the surplus in banks' foreign exchange sales and settlement under trade in goods for customers rose by 42% year on year, foreign exchange settlement under FDI recorded both year-on-year and month-on-month increases, and cross-border financing continued stable recovery. Third, individuals' purchases of foreign exchange were more stable. In October, individuals' purchases of foreign exchange fell from the seasonal peak of the third quarter and also were much lower than the same period of the previous year. China's economy has recently sustained a stronger and more stable momentum for growth, fundamentally supporting more stable and balanced cross-border capital flows in China. The 19th CPC National Congress made a comprehensive plan for the realization of the two centenary goals, and proposed to build a modern economic system, continue to transform the way of development, optimize the economic structure and change the dynamics of growth, so as to boost the sustainable and healthy development of the economy, which will be the foundation to promote the equilibrium of China's balance of payments and ensure stable flows of cross-border capital in the medium and long term. 2017-11-16/en/2017/1116/1381.html
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The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (hereinafter referred to as the “SAFE") of all provinces, autonomous regions, and municipalities directly under the Central Government; the branches of the SAFE in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and all the designated Chinese-funded foreign exchange banks, To deepen the foreign permanent resident system reform, enhance the functions of foreign permanent resident ID cards and offer convenience for the use of foreign permanent resident ID cards, the Ministry of Public Security plans to issue the new version of the foreign permanent resident certificate starting from June 2017, and adjust the name to foreign permanent resident ID card. To facilitate the use of the ID cards, and standardize banks in handling foreign exchange sales and settlement for cardholders, relevant issues are notified as follows: I. The foreign permanent resident ID card is a valid ID certificate for the handling of foreign exchange sales and settlement, and the cardholders are eligible for the annual quota of the equivalent of USD 50,000 for foreign exchange settlement and purchase. II. When handling foreign exchange sales and settlement for foreign citizens holding the foreign permanent resident ID cards in the individual foreign exchange business monitoring system, banks shall choose the foreign permanent resident ID card as the certificate type, input the nationality code or the first three digits of the foreign permanent resident ID number as the code of country/region, input the full 15 digits as the foreign permanent resident ID number, choose use or not use of the quota, depending on the evidencing materials submitted or not, and input the choice as the business type. III. This Circular is also applicable to the institutions providing the franchised domestic and foreign currency exchange for individuals. Upon receipt of this Circular, all branches and foreign exchange administrative departments of the SAFE should immediately forward it to the central sub-branches, sub-branches, urban and rural commercial banks, foreign banks and franchised institutions providing domestic and foreign currency exchange for individuals which are engaging in foreign exchange settlement and sales for individuals. The designated Chinese-funded foreign exchange banks shall, upon receipt of this Circular, forward it immediately to their branches. Please contact the Current Account Management Department of the SAFE in a timely manner if any problems are encountered in implementing this Circular. Tel: 010-68402673. General Affairs Department of the State Administration of Foreign Exchange May 19, 2017 2017-11-29/en/2017/1129/1365.html
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The State Administration of Foreign Exchange (SAFE) has recently disseminated the preliminary data in the Balance of Payments for the third quarter and the first three quarters of 2017, and its spokesperson answered media questions on relevant issues. Q: Could you brief us on China's balance of payments for the first three quarters of 2017? A: According to the preliminary data in the Balance of Payments for the first three quarters of this year, a twin surplus was registered under the current account and the financial account (excluding reserve assets, but including net errors and omissions for the first three quarters, the same below), and reserve assets rose. First, the current account retained a reasonable surplus and foreign trade increased on a year on year basis. In the first three quarters, a surplus of USD 106.3 billion was recorded under the current account, and its ratio to GDP for the same period was 1.2%. Another surplus of USD 335.4 billion was recorded under trade in goods in the Balance of Payments, with import and export of goods rising by 10% and 17% year on year respectively, which indicates that foreign trade has recovered and maintains a good momentum for growth driven by the continued strengthening of domestic and foreign demand. Second, the financial account (excluding reserve assets) registered a surplus. In the first three quarters, the financial account (excluding reserve assets) recorded a surplus of USD 60.8 billion, compared with a deficit of USD 389.1 billion in the comparable coverage for the same period last year. In particular, direct investment recorded a net inflow of USD 21.3 billion, versus a net outflow of USD 79.8 billion for the same period last year. To be specific, ODI recorded a net outflow of USD 64.8 billion, and FDI, a net inflow of USD 86.1 billion, which are relatively high in both directions. Third, reserve assets rose. In the first three quarters, China's reserve assets rose by USD 58.9 billion as a result of the BOP transactions (excluding the impact of non-transaction factors such as exchange rate and price), compared with a drop of USD 294.1 billion for the same period last year. To be specific, foreign exchange reserves increased by USD 59.8 billion and the reserve position in the IMF fell by USD 900 million. Overall, China's balance of payments remained robust and its cross-border capital flows stayed stable with a good momentum for growth in the first three quarters, suggesting a more solid foundation for the basic equilibrium in the Balance of Payments in the future. 2017-11-06/en/2017/1106/1378.html
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FILE: Template on International Reserves аnd Foreign Currency Liquidity(аs аt Dec 31 2017) 2018-01-31/en/2018/0131/1372.html
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In the third quarter of 2017, China's current account registered a surplus of RMB 247.2 billion, and the capital and financial accounts (including net errors and omissions for the third quarter, the same below) recorded a deficit of RMB 247.2 billion. To be specific, the financial account (excluding reserve assets, but including net errors and omissions for the third quarter, the same below) recorded a deficit of RMB 47.8 billion, and reserve assets rose by RMB 199.5 billion. In the first three quarters, China's current account registered a surplus of RMB 722.6 billion, and the capital and financial accounts recorded a surplus of RMB 20.4 billion. To be specific, the financial account (excluding reserve assets) recorded a surplus of RMB 419.1 billion, and reserve assets rose by RMB 398 billion. In the US dollar terms, in the third quarter, China's current account recorded a surplus of USD 37.1 billion, including a surplus of USD 121 billion under trade in goods, a deficit of USD 68.1 billion under trade in services, a deficit of USD 13.3 billion under primary income and a deficit of USD 2.5 billion under secondary income. The capital and financial accounts registered a deficit of USD 37.1 billion, including a surplus of USD 10 million under the capital account, and a deficit of USD 7.2 billion under the financial account (excluding reserve assets) and an increase of USD 29.9 billion under reserve assets. In the US dollar terms, in the first three quarters, the current account registered a surplus of USD 106.3 billion, including a surplus of USD 335.4 billion under trade in goods, a deficit of USD 203.2 billion under trade in services, a deficit of USD 16.7 billion under primary income, and a deficit of USD 9.2 billion under secondary income. The capital and financial accounts recorded a surplus of USD 1.8 billion, including a deficit of USD 100 million under the capital account, a surplus of USD 60.8 billion under the financial account (excluding reserve assets) and an increase of USD 58.9 billion under reserve assets. In SDR terms, in the third quarter, China posted a surplus of SDR 26.3 billion under the current account, and a deficit of SDR 26.3 billion under the capital and financial accounts. To be specific, the financial account (excluding reserve assets) registered a deficit of SDR 5.1 billion, and reserves assets increased by SDR 21.2 billion. In SDR terms, in the first three quarters, China posted a surplus of SDR 76.6 billion under the current account, and a surplus of SDR 2.4 billion under the capital and financial accounts. To be specific, the financial account (excluding reserve assets) registered a surplus of SDR 44.6 billion, and reserves assets rose by SDR 42.1 billion. 2017-11-06/en/2017/1106/1379.html
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Q：The latest data disseminated by the People's Bank of China on foreign exchange reserves show that China's foreign exchange reserves as at the end of October 2017 grew by a slight USD 700 million from the end of September. Could you brief us on the causes behind such a change? What will be the future trends on foreign exchange reserves? A: As at the end of October, China's foreign exchange reserves hit USD 3.1092 trillion, USD 700 million more than that of September. In October, China's cross-border capital flows and the trading behaviors of domestic and overseas market participants were further balanced, indicating a basic equilibrium in the supply and demand of foreign exchange. In global financial markets, non-USD currencies depreciated against the USD, and asset prices rose. Under the combined impact of various factors, China's foreign exchange reserves stayed stable. China's economic performance has remained steady since the beginning of this year. With structure optimized, new dynamics' growth picking up, and quality and benefits remarkably enhanced, the economy has continued its stable growth while maintaining a good momentum, thereby boosting the balance of China's cross-border capital flows. The balance of payments has found a basic equilibrium. The foreign exchange reserves have reached a stable level after recovery. Looking ahead, along with the success of the 19th CPC National Congress, the market confidence in China' long-term economic and social development, domestic or overseas, will be strengthened further, and the foundation for the equilibrium and good order of cross-border capital flows and the balance of payments will be solidified, which will be favorable for foreign exchange reserves to stay stable. 2017-11-07/en/2017/1107/1380.html
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FILE: Template on International Reserves аnd Foreign Currency Liquidity(аs аt Nov 30 2017) 2017-12-29/en/2017/1229/1371.html
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The State Administration of Foreign Exchange (SAFE) has recently published the Guidelines on External Financial Assets and Liabilities and Foreign Transaction Statistics (2017 Version) (Huizongfa No. 106 [2017]). The guidelines, a supplement to the Statistics System of External Financial Assets and Liabilities and Foreign Transactions (Huifa No. 15 [2016]), are a summary of the answers to business problems encountered in the early period and the experience in verification, with the aim of further standardizing the declaration of external financial assets and liabilities and foreign transaction statistics, guiding the declarers to accurately understand the declaration requirements and enhance the data quality in statistics declaration. 2017-11-30/en/2017/1130/1382.html
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Since the beginning of 2018, the State Administration of Foreign Exchange (SAFE) has implemented the spirit of the 19 CPC National Congress and the arrangements of the CPC Central Committee and the State Council, with focus on serving the real economy, defending against financial risks and deepening financial reforms. The SAFE has tightened regulations of the foreign exchange market, investigated and punished acts violating foreign exchange laws and regulations, and cracked down on false transactions and frauds. In accordance with the Regulation of the People's Republic of China on the Disclosure of Government Information (Decree No. 492 of the State Council), a selection of typical cases where foreign exchange regulations were violated are presented as follows: Case 1: Entrepot trade handled by Huaxia Bank Shanghai Branch against regulations From November 2015 to January 2016, without carrying out due diligence investigations into the authenticity of entrepot trade as required, Huaxia Bank Shanghai Branch handled the payments and purchases of foreign exchange for entrepot trade based on the false bills of lading presented. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations, the bank was fined RMB 2 million and suspended from selling foreign exchange to companies for two years. Case 2: Entrepot trade handled by the Bank of Communications Xiamen Branch Qianpu Sub-branch against regulations From January to August 2016, without carrying out due diligence investigations into the authenticity of entrepot trade as required, the Bank of Communications Xiamen Branch Qianpu Sub-branch handled the payments and purchases of foreign exchange for entrepot trade based on the false bills of lading presented. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations, the bank was fined RMB 6 million and suspended from selling foreign exchange to companies for three months, with senior executives and other persons directly liable for the violation ordered to take responsibility for the violation. Case 3: Entrepot trade handled by Nanyang Commercial Bank (China) Hangzhou Branch against regulations From March to August 2016, without carrying out due diligence investigations into the authenticity of entrepot trade as required, Nanyang Commercial Bank (China) Hangzhou Branch handled the payments of foreign exchange for entrepot trade based on the false or irrelevant bills of lading presented. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations, RMB 1.31 million was fined and confiscated. Case 4: Entrepot trade handled by the Bank of Beijing Shanghai Branch against regulations In July 2017, without carrying out a due diligence investigation into the authenticity of entrepot trade as required, the Bank of Beijing Shanghai Branch handled the payment of foreign exchange for entrepot trade based on the bills of lading repetitively presented. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations, RMB 840,000 was fined and confiscated. Case 5: Trade financing handled by the Bank of Jinzhou Dalian Branch against regulations From September to October 2015, the Bank of Jinzhou Dalian Branch handled trade financing for a company based on the Customs Report of another company. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations, RMB 529,800 was fined and confiscated. Case 6: Trade financing handled by Huishang Bank Hefei Branch Tian'ehu Sub-branch against regulations From September to November 2016, Huishang Bank Hefei Branch Tian'ehu Sub-branch handled trade financing for a company based on a Customs report repetitively presented. The bank violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 47 of the Regulations, RMB 400,000 was fined. Case 7: Onshore guarantees by China Minsheng Bank Xiamen Branch for offshore loans against regulations From August 2014 to December 2016, China Minsheng Bank Xiamen Branch handled the payments of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, without carrying out required due diligence investigations with regard to qualifications of the debtors, purposes of the loans, expected sources of repayments, possibility of performing the contracts on guarantees, as well as relevant transaction backgrounds. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, a total of RMB 22.40 million was fined and confiscated, and the bank was suspended from selling foreign exchange to companies for three months. Case 8: Onshore guarantees by the Bank of Guangzhou Shenzhen Branch for offshore loans against regulations From May 2015 to January 2017, the Bank of Guangzhou Shenzhen Branch handled the payments of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, without carrying out required due diligence investigations, with regard to qualifications of the debtors, purposes of the loans, expected sources of repayments, possibility of performing the contracts on guarantees, as well as relevant transaction backgrounds. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, a total of RMB 2.958 million was fined and confiscated. Case 9: Onshore guarantees by Xiamen International Bank Quanzhou Branch for offshore loans against regulations From June 2015 to July 2016, Xiamen International Bank Quanzhou Branch handled the payments of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, despite the fact that the bank knew the companies' offshore loans were non-performing and it was set to perform the contracts on guarantees. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, RMB 2.80 million was fined. Case 10: Onshore guarantees by Hana Bank Guangzhou Branch for offshore loans against regulations From July to December 2015, Hana Bank Guangzhou Branch handled the payments of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, without carrying out required due diligence investigations with regard to expected sources of repayments, and relevant transaction backgrounds. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, a total of RMB 2.1626 million was fined and confiscated, and the bank was suspended from selling foreign exchange to companies for six months, with senior executives and other persons directly liable for the violation ordered to take responsibility for the violation. Case 11: Onshore guarantees by the Bank of Tianjin No. 6 Central Sub-branch for offshore loans against regulations From January 2016 to July 2017, the Bank of Tianjin No. 6 Central Sub-branch handled the payments of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, without carrying out required due diligence investigations with regard to expected sources of repayments, possibility of performing the contracts on guarantees, as well as relevant transaction backgrounds. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations of the People's Republic of China on Foreign Exchange Administration, a total of RMB 7.4025 million was fined and confiscated. Case 12: Individual foreign exchange business handled by the Bank of China Putian Branch against regulations From January 2016 to April 2017, the Bank of China Putian Branch handled split-up sales and payments of individual foreign exchange and withdrawals of foreign currency banknotes. The bank violated Article 7 and 34 of the Measures for the Administration of Individual Foreign Exchange. In accordance with Article 47 and 48 of the Regulations of the People's Republic of China on Foreign Exchange Administration, RMB 700,000 was fined. Case 13: Individual foreign exchange business handled by the Industrial and Commercial Bank of China Shenzhen Branch against regulations From October 2017 to January 2018, the Industrial and Commercial Bank of China Shenzhen Branch handled the settlements of individual foreign exchange without reviewing the valid ID certificates of individuals in China and the nature of funds as required. The bank violated Article 9 and 6 of the Measures for the Administration of Individual Foreign Exchange. In accordance with Article 47 and 48 of the Regulations of the People's Republic of China on Foreign Exchange Administration, RMB 430,000 was fined. Case 14: Foreign exchange evasion by DDBill Payment Co., Ltd. From January 2016 to October 2017, DDBill Payment Co., Ltd. went through cross-border payments of foreign exchange in the amount of USD 15.588 million, based on false logistic information. The company violated Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was involved in foreign exchange evasion, which had severely disturbed the order of the foreign exchange market and led to serious consequences. In accordance with Article 39 of the Regulations, the company was fined RMB 15.308 million. Case 15: Foreign exchange evasion by PayEase (Beijing) Technology Ltd. From February 2016 to June 2017, PayEase (Beijing) Technology Ltd. went through split-up purchases and payments of foreign exchange in the amount of USD 1.59 million, based on automatic setup of the system. The company violated Article 14 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was involved in foreign exchange evasion, which had severely disturbed the order of the foreign exchange market and led to serious consequences. In accordance with Article 39 of the Regulations, the company was fined RMB 1.0745 million. Case 16: Violations of regulations on foreign exchange administration by Alipay (China) Network Technology Co., Ltd. From January 2014 to May 2016, Alipay (China) Network Technology Co., Ltd. went through cross-border payments of foreign exchange beyond the approved scope and misstated the balance of payments. The company violated Article 6 of the Guidelines for the Pilot Program of Cross-border Payments of Foreign Exchange by Payment Institutions and Article 7 of the Measures for Declaration of Balance of Payments Statistics. In accordance with Article 48 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the company was fined RMB 600,000. Case 17: Violations of regulations on foreign exchange administration by Tenpay Payment Technology Co., Ltd. From January 2015 to June 2017, Tenpay Payment Technology Co., Ltd. handled cross-border payments of foreign exchange for non-residents without going through the filing procedures, and failed to submit the unusual risk report as required. The company violated Article 35 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 48 of the Regulations, the company was fined RMB 600,000. Case 18: Violations of regulations on foreign exchange administration by Shanghai Shengpay E-Payment Service Co., Ltd. From January 2015 to June 2017, Shanghai Shengpay E-Payment Service Co., Ltd. handled cross-border payments without abiding by relevant regulations and misstated the balance of payments. The company violated Article 9 and 6 of the Circular of the State Administration of Foreign Exchange on the Implementation of the Pilot Program of Cross-border Foreign Exchange Payment Business through Payment Institutions. In accordance with Article 39 and 48 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the company was fined RMB 625,000. Case 19: Foreign exchange evasion by Qingdao Zerui Kaimao Foreign Trade Co., Ltd. Between January and December 2016, Qingdao Zerui Kaimao Foreign Trade Co., Ltd. paid USD 16.9289 million in foreign exchange by fabricating trade backgrounds and using false contracts and invoices. The company violated Article 12 and 14 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was involved in foreign exchange evasion, which had severely disturbed the order of the foreign exchange market and led to serious consequences. In accordance with Article 39 of the Regulations, the company was fined RMB 5.60 million. Case 20: Foreign exchange evasion by HaiKe Chemical Group Ltd. in Shandong In July 2016, HaiKe Chemical Group Ltd. in Shandong paid USD 22.9683 million in foreign exchange by fabricating entrepot trade backgrounds and using false contracts and invoices. The company violated Article 9 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was involved in foreign exchange evasion, which had severely disturbed the order of the foreign exchange market and led to serious consequences. In accordance with Article 39 of the Regulations, the company was fined RMB 7 million. Case 21: False trade financing by Anhui Whywin International Co., Ltd. From January to December 2016, Anhui Whywin International Co., Ltd. went through procedures for trade financing that involved USD 16.6675 million in total by presenting invalid trade documents and repetitively using the trade documents. The company violated Article 12 and 14 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 40 of the Regulations, the company was fined RMB 5.25 million. Case 22: Illegal foreign exchange settlement by Nanjing Samu'er Medical Instruments Co., Ltd. From August 2013 to June 2016, Nanjing Samu'er Medical Instruments Co., Ltd. went through inward remittances of capital and settlements of foreign exchange of USD 34.60 million based on false contracts. The company violated Article 23 of the Regulations of the People's Republic of China on Foreign Exchange Administration and was involved in illegal foreign exchange settlements. In accordance with Article 41 of the Regulations, the company was fined RMB 4.2989 million. Case 23: Changes of the purposes of foreign exchange settlements for capital funds by Guangdong Heshan Ruishun Sales Co., Ltd. without permission From December 2016 to March 2017, Guangdong Heshan Ruishun Sales Co., Ltd. went through inward remittances of capital funds and settlements of foreign exchange of HKD 25.411 million by fabricating the purposes of the funds. By changing the purposes of foreign exchange settlements without permission, the company violated Article 23 of the Regulations of the People's Republic of China on Foreign Exchange Administration. In accordance with Article 44 of the Regulations, the company was fined RMB 1.125 million. Case 24: Illegal purchases and sales of foreign exchange by Mr. Zhong, native of Hunan From October 2013 to October 2016, to transfer his assets overseas without abiding by the law, Mr. Zhong transferred RMB 43.711 million into the domestic account controlled by an underground bank, exchanged the money into foreign exchange and then transferred the foreign exchange via the underground bank into his overseas account. Zhong violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was considered breaking the laws on the purchases and sales of foreign exchange. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Zhong was fined RMB 3.059 million. Case 25: Illegal purchases and sales of foreign exchange by Mr. Deng, native of Sichuan From February to August 2016, to obtain illegal gains, Mr. Deng exchanged RMB into HKD or vice versa many times via an underground bank, which involved RMB 13.6235 million in total. Deng violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and was considered breaking the laws on the purchases and sales of foreign exchange. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Deng was fined RMB 2.0436 million. Case 26: Purchases and sales of foreign exchange by Mr. Xu, native of Sichuan, without permission In March 2017, Mr. Xu paid RMB 60 million to a domestic enterprise via a company he controlled to purchase US dollars without permission. Xu violated Article 30 of the Measures for the Administration of Individual Foreign Exchange by getting involved in the purchases and sales of foreign exchange without permission. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Xu was fined RMB 5.70 million. Case 27: Foreign exchange evasion by Mr. Zhao, native of Hebei, through split-up From January 2016 to December 2017, to transfer his assets overseas without abiding by the law, Mr. Zhao split up his personal funds, used the annual quotas of 55 individuals including his own to buy foreign exchange and transferred the foreign exchange into the overseas accounts. The funds thus transferred hit USD 2.4531 million in total. Zhao violated Article 7 of the Measures for the Administration of Individual Foreign Exchange and was involved in foreign exchange evasion. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, Zhao was fined RMB 1.16 million. 2018-07-24/en/2018/0824/1446.html