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We are an official institution under the State Administration of Foreign Exchange (SAFE), responsible for China ’s foreign exchange reserve management. We are now looking for high caliber professionals who share our commitment to “professional, responsible and international” asset management to join us. Our Culture Composed of young, qualified and motivated staff from diversified academic backgrounds of finance, economics, engineering, maths, computer science, languages and human resources etc., we embrace “Dedication, Discipline, Enterprise and Cooperation” as our core value and we attach utmost importance to the safety, liquidity, diversification and return of reserve assets under our management. We value human capital as the most important resources and offer competitive reward incentives. Vacancies Currently, we have the job vacancies in our asset allocation group (Strategist and Macro economist), external managers group (Alternative Assets Investment and Management) and risk management group (Market risk and Legal affairs), based in Beijing headquarter. Basic requirements 1. Masters or above degree from world renowned universities; 2. Relevant working experience with renowned financial institutions; 3. Good command of both Chinese and English as working language; 4. Computer proficiency; 5. Healthy; 6. Other criteria specific to the vacancies. Application procedures 1. Please visit the website of http://rmdhr.safe.gov.cn to submit your application. We ONLY receive the application through our website; 2. Application deadline: refer to the vacancy list; 3. Short-listed applicants will be invited to written test and interview after documentation screening; 4. New recruits will be required to sign Employment Contracts (with probation) in accordance with Chinese and local regulations. Contact Fax: 86-10-66213319 Email: HR@mail.rmd-safe.gov.cn (recommended) FILE: 2012 Experienced Professional Recruitment Program, Reserve Management Department, SAFE 2012-03-30/en/2012/0330/1041.html
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The State Administration of Foreign Exchange recently convened a conference to summarize the comprehensive work of foreign exchange administration in 2011 and to set forth the tasks for the comprehensive work of foreign exchange administration in 2012. The conference pointed out that in 2011 cadres and staff in the comprehensive work system of foreign exchange administration deeply implemented the scientific outlook on development, and in accordance with the requirements of the “Five Kinds of Transformation” of the concepts and methods of foreign exchange administration, focusing on the central tasks and serving the overall situation, continuously improved the level of policy research, strictly promoted law-based administration, reinforced publicity work, did a good job in internal management, and achieved new progress in all work. The conference concluded that in 2012, in confronting the face of the complicated and volatile economic and financial situations both at home and abroad, in terms of the comprehensive work of foreign exchange administration, the foreign exchange authorities should conscientiously implement the spirit of the Central Economic Work Conference and the National Financial Work Conference, and in accordance with the overall arrangements decided upon at in the National Foreign Exchange Administration Work Conference of 2012, adhere to the essential requirements of finance to serve the real economy and continuously deepen the reform of foreign exchange administration. The foreign exchange authorities should maintain the risk limits, keep a close eye on unusual cross-border capital flows, establish a system and mechanism guarding against the impact of bilateral flows of cross-border capital, actively promote work to realize the “Five Kinds of Transformation” of the concepts and methods of foreign exchange administration, further change the work style, improve the capability of the foreign exchange authorities in terms of comprehensive coordination, provide services and advice regarding the comprehensive work, and continuously improve the effectiveness of foreign exchange administration. The conference set the tasks for the comprehensive work of foreign exchange administration in 2012: first, the foreign exchange authorities should further strengthen forward-looking and relevant research on foreign exchange administration policies; second, the foreign exchange authorities should unswervingly deepen work on law-based administration and on putting the regulations in order; third, the foreign exchange authorities should continuously improve the transparency of foreign exchange administration policies, and; fourth, the foreign exchange authorities should effectively do a good job in all aspects of the basic work. 2012-04-16/en/2012/0416/1043.html
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Since the State Administration of Foreign Exchange (SAFE) expanded the pilot of the domestic and foreign currency exchange franchise business for individuals in November 2009, the number of franchise operation institutions (hereinafter referred to as “Franchised Institutions”) has steadily increased, the exchange service level has improved continuously, and the pilot work has achieved good results. In order to further regulate the continuous and sound development of the domestic and foreign currency exchange franchise business for individuals, the SAFE recently printed and distributed the Measures for the Administration of the Pilot on the Domestic and Foreign Currency Exchange Franchise Business for Individuals (HuiFa No.27 [2012], hereinafter referred to as the “Pilot Measures”) which came into effect as of May 1, 2012. The main contents of the pilot measures include: first, simplifying market access management, expanding the scope of the franchise business, improving the flexibility of the excess reserve adjustment, further reducing the operating costs of the Franchised Institutions, and increasing the capital earnings; second, encouraging chain businesses of Franchised Institutions to achieve economies of scale, and meanwhile, increasing the minimum registered capital requirement for Franchised Institutions operating within a single region to RMB 5 million, and for those Franchised Institutions operating nationwide to RMB 30 million; third, emphasizing risk control. The pilot measures further regulate over-the-counter business and excess reserve management of the franchised institutions, and establish a system to retain relevant data and vouchers for future reference. The pilot measures strengthen the regular monitoring system for capital operations of Franchised Institutions and the regular inspection system for business activities of Franchised Institutions, to supervise and encourage the Franchised Institutions to comply with regulatory operations. Implementation of the pilot measures facilitates market access and the day-to-day business of the Franchised Institutions under controllable risks, and provides them with space for future development. Furthermore, implementation of the pilot measures emphasizes ex-post data monitoring, increases efforts for ex-post regular on-site and off-site supervision, and promotes the sustainable development of the Franchised Institutions. 2012-05-15/en/2012/0515/1048.html
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The SAFE recently released China’s balance of payments statement for the fourth quarter and the year 2011, revised and released data on China’s Balance of Payments Statement for each quarter and the year 2010 according to the updates on the undistributed profits of foreign-funded enterprises for the year 2010, and so forth. In the fourth quarter of 2011 the current account posted a surplus whereas the capital and financial account posted a deficit. International reserves maintained a growing momentum. The surplus under the current account totaled USD60.5 billion. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD70.6 billion, USD2.7 billion, and USD2.3 billion, respectively, whereas the deficit in trade in services amounted to USD15.2 billion. Meanwhile, China ’s deficit under the capital and financial account totaled USD29 billion. In particular, net inflows of direct investments, portfolio investments, and net outflows of other investments amounted to USD49 billion, USD1.3 billion, and USD80.5 billion respectively. International reserves registered an increase of USD12.4 billion (exclusive of changes in the value of non-transaction factors such as exchange rates and prices). Specifically, foreign exchange reserve assets posted an increase of USD11.7 billion. For the year 2011, the surplus under the current account was USD201.7 billion and the surplus under the capital and financial account was USD221.1 billion, whereas international reserves registered an increase of USD387.8 billion. In addition, the BOP Analysis Team of the SAFE released China ’s Balance of Payments Report for 2011 in order to facilitate understanding among all groups in society about the data and analysis of China ’s balance of payments. 2012-05-15/en/2012/0515/1047.html
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An interview was recently conducted with a responsible person from the State Administration of Foreign Exchange (SAFE) on the revised Methods for Reporting the Balance of Payments Statistics (hereafter referred to as the Methods). 1. For what types of transactions does China require that the statistics on the balance of payments be reported? A: In principle, balance-of-payments (BOP) statistics are required for all economic transactions between Chinese and non-Chinese residents, and all financial assets and liabilities arising therefrom, settled in either RMB or foreign currency: “residents” refer to individuals and institutions; “non-Chinese residents” refer to overseas individuals and institutions. “Economic transactions” refer to all activities involving economic incomes and expenditures, including purchases and sales of commodities, provision and use of services, and donations and financial investments, thus emphasizing the capital flows as the relevant activities occur. “Financial assets and liabilities arising therefrom” refer to a creditor’s rights and debt obligations after the occurrence of financial investments, with an emphasis on capital stock. 2. Among non-Chinese residents, who is required to report the BOP statistics? Is this also required of overseas Chinese? A: According to the revised Methods, non-Chinese residents who engage in economic transactions with Chinese residents within the territory of China are required to report the BOP statistics. Currently, statistical data on the balance of payments regarding transactions between Chinese and non-Chinese residents are primarily collected from the Chinese residents. The SAFE does not require non-Chinese residents to report the BOP statistics. However, as these transactions continue to expand in size and type, it will become more difficult and more costly to collect data only from the Chinese residents and will be more difficult to effectively guarantee the quality of the data. Thus, the revised Methods include a reporting requirement for non-Chinese residents who engage in economic transactions within China. The SAFE will introduce specific requirements in this regard at an appropriate time based on the actual circumstances. As overseas Chinese have been residing outside of China for a long period of time and most of their economic interests are in other countries, they are deemed to be non-Chinese residents. When they engage in economic transactions with Chinese residents within China it is difficult to collect high-quality statistical data, thus they are required to carry out the reporting obligation. But they need not report the BOP statistics on all their economic transactions, including those carried out with other non-Chinese residents outside of China, as these transactions are beyond the scope of the statistics in China. 3. Through what channels should the BOPS be reported? A: Entities now report the BOP statistics to the SAFE primarily through two channels: (1) direct reporting. This applies to large (financial and non-financial) institutions that are required to make timely reports on their transactions with respect to bulk foreign-related goods, services, stocks and bonds investments, deposits, and loans and financial derivatives investments; (2) indirect reporting, or reporting through relevant intermediaries. This applies to small and medium enterprises (SMEs) and individuals. Such an approach is designed to reduce the burden of on reporting entities, given the characteristics of their foreign-related economic transactions. The relevant intermediaries include banks, insurance companies, securities and fund companies, and institutions engaging in securities registration and settlement as well as custody of funds. 4. What is the meaning of “foreign financial assets and liabilities”? A: According to the revised Methods, the statistical scope of the balance of payments is expanded to include foreign financial assets and liabilities of Chinese residents. Simply put, assets with corresponding creditors and debtors are financial assets, including stocks, bonds, financial derivatives, deposits, loans, trade credits, and other receivables and payables. These assets are financial assets for the creditors and liabilities for the debtors. In contrast, there are non-financial assets, or assets without corresponding debtors, such as machinery equipment, inventories, gems, and intangible assets. To better understand the operations of the reporting entities, the SAFE enumerated the concept in the Notice of the State Administration of Foreign Exchange on Issuing Statistical Systems for Foreign Financial Assets, Liabilities, and Trading (Huifa [2013] No.43). 5. After the revised Methods have been implemented, how will Chinese individuals report their foreign financial assets? A: During the recent years Chinese individuals have made foreign financial investments based primarily on the system for qualified domestic institutional investors (QDII). Data on the stock of financial assets generated from these investments are primarily collected through the QDII custodian banks. The SAFE currently does not require individuals to report their stock of foreign financial assets. But as China's economy develops rapidly, individuals will have a broader range of channels for making foreign financial investments, and financial assets will continue to expand in size. To improve the quality of the statistical data, the revised Methods begin by improving the relevant systems and clarifying the obligations of individuals within China in terms of reporting their foreign financial assets and liabilities. The rules for the new Methods will be introduced in detail in the future, focusing on supervising the major financial investments made by Chinese individuals and easing controls over minor investments, with the aim of reducing the reporting burdens. 6. What penalties will be imposed if entities fail to report the BOP statistics? A: According to the revised Methods, the SAFE, or its branches/sub-branches, will penalize institutions and individuals that fail to report the BOP statistics in accordance with Article 48 of the Regulations of the People’s Republic of China on Foreign Exchange Administration. Penalties include warnings by foreign exchange administration authorities issued to the violating institutions and to individuals and orders that they correct their violations; institutions will be fined by a maximum of RMB300,000 and individuals will be fined by a maximum of RMB50,000 . 7. How will the SAFE ensure the timeliness, accuracy, and integrity of the BOP statistical data that are reported? A: China has created a complete and effective administrative system for collecting the BOP statistics. Further, the SAFE will take the following measures to ensure the timeliness, accuracy, and integrity of the BOP statistical data that are reported after the revised Methods are implemented. First, further improving the relevant laws and regulations. With implementation of the new Methods, the SAFE will standardize the content of the data and the channels for collection of the BOP statistics in accordance with the implementation rules and normative documents and will clarify the reporting obligations and channels for the relevant institutions and individuals. The SAFE has recently revised the Statistical System for Foreign Financial Assets, Liabilities, and Trading in line with the statistical scope of the “foreign financial assets and liabilities” highlighted in the new Methods. It will continue to supplement and improve the standards and rules for statistical reporting in light of the development of foreign exchange business and statistical needs. Second, enhancing the building of a data acquisition system to make overall improvements in the quality of the statistical data. The SAFE will accelerate development of a data submission system that will be aligned with the revised Methods and will provide banks and other reporting entities with rapid-reporting access. This will help the SAFE to employ wide-scale IT applications in terms of data collection, summaries, and processing. Third, intensify training and verification efforts. The foreign exchange administration authorities at all levels will provide data- reporting institutions such as banks with regular business training to improve the professional expertise of those statisticians involved in balance-of-payments transactions. The authorities will also conduct off-site verifications of the BOP statistical data that has been reported, track the quality of the relevant data in a timely manner, and even conduct on-site verifications if necessary. 8. What is the purpose of the BOP statistical data? Will the new Methods play an active role in combating corruption, money laundering, and tax evasion? A: According to Article 16 of the new Methods, “The SAFE and its branches and sub-branches shall keep the reported data strictly confidential and shall use them only for BOP statistical efforts. Unless otherwise provided by law, BOPS statisticians shall not provide the reported data to any institutions and individuals in any form.” Thus, the reported data on the BOP statistics are primarily used by the SAFE for monitoring and analyzing the foreign exchange situation and cross-border capital flows, and for compiling foreign-related macro-economic statistical data, including balance-of-payments statements, the international investment position, and foreign-related receipts and payments through banks. Thus far, independent management systems and data sources have been created to combat corruption, money laundering, and tax evasion. Unless otherwise provided for by the law, the SAFE will not provide the reported statistical data on the BOP to the above administrative authorities. These authorities shall not combat or penalize illegal practices by using the above data. 9. With the implementation of the new Methods, more entities will be required to report the BOP statistics. Will this contravene those policies that have been designed to facilitate external investments? A: No, it will not. First, as we allow the market to play a decisive role in allocating resources so as to facilitate external investments, China will be exposed to growing external economic risks. Only by acquiring timely, accurate, and integrated BOP statistical data can the potential risks be effectively warded off, thereby creating conditions for a bi-directional opening-up of the capital market. Second, in the wake of the global financial crisis, the major economies have imposed more stringent statistical requirements on foreign-related transactions by expanding the scope of the statistics, increasing the statistical elements, and enhancing the timeliness of the statistics. Major economic organizations including the IMF have increased the statistical standards for foreign-related transactions. China has tightened its requirements on reporting the BOP statistics in accordance with international conventions. Third, with implementation of the new Methods, the SAFE will develop scientific rules to reduce the burdens on the reporting entities by optimizing the channels and simplifying the procedures, thus enabling the entities to engage in more efficient reporting. The SAFE will also disclose the relevant BOP statistical data in a timely manner, thus revealing the development of China's foreign-related economy, with the aim of providing data support to develop investment strategies and to mitigate risks. 2013-12-31/en/2013/1231/1098.html
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A recap meeting on carrying out the CPC's mass line campaign was recently held by the State Administration of Foreign Exchange (SAFE) to study the spirit of the speech delivered by General Secretary Xi Jinping at the CPC meeting for summarizing the first stage of the mass line campaign and for making plans for the second stage, and to sum up the SAFE's efforts in carrying out the campaign and to make plans for implementation of the "two programs and one plan," i.e., The Rectification and Implementation Program for Carrying Out the CPC's Mass Line Campaign by the Party Leadership Group of the NDRC, The Special Rectification Program for Carrying Out the CPC's Mass Line Campaign by the Party Leadership Group of the NDRC, and The Plan for Developing Systems for Carrying Out the CPC's Mass Line Campaign by the Party Leadership Group of the NDRC. Yi Gang, secretary and administrator of the Party Leadership Group and group leader of the Educational Practice Group, chaired the meeting and, on behalf of the SAFE Party Leadership Group, summed up the SAFE's efforts in implementing the campaign. The twenty-ninth Supervisory Team of the CPC's mass line campaign attended the meeting. Zhang Geng, head of the Supervisory Team, confirmed the achievements made by the SAFE in implementing the campaign and offered guidance on carrying out the spirit of Xi's speech and on further rectifying and carrying out the campaign. Also present were deputy administrators, heads of the discipline team, chief economists, chief accountants, and CPC members and officials, as well as heads of public institutions directly under the SAFE. It was agreed by the participants that Xi's profound speech is thought-provoking, relevant, and instructive, and is of significance for guiding the SAFE to sum up the mass line campaign. The meeting pointed out that under the guidance of the twenty-ninth Supervisory Team, CPC organizations at all levels, and CPC members of the SAFE, while focusing on building a progressive and clean government, have worked pragmatically for the people, have studied the CPC's mass line theories, have examined and corrected undesirable work styles, including formalism, bureaucracy, hedonism, and extravagance, have carried out rigorous criticisms and self-criticisms, and have worked hard to ensure verification and implementation, thus realizing obvious improvements in terms of awareness, reform and practice, and system building. As a result, CPC cadres and members have secured their ideals and beliefs, and their thinking and understanding have improved significantly. To be specific, the SAFE carried out “five shifts” in the concept and methodology of foreign exchange administration, straightened out the laws and regulations and streamlined administration, delegated power to lower levels more rigorously, deepened the results of the reform of the institutional mechanisms, and worked very hard to clean up undesirable work styles so as to achieve practical results. The meeting stressed that CPC organizations at all levels and CPC members of the SAFE must comply with the requirements of the twenty-ninth Supervisory Team of the CPC's mass line campaign to learn and implement the spirit of General Secretary Xi’s speech and align their thoughts and actions with the plans of the central government so as to perform their tasks well. Specifically, efforts should be made to improve the political life of the CPC by drawing on the valuable experiences of the first stage of the campaign, to clean up undesirable work styles as a long-term task, and to advance implementation of the "two programs and one plan" by focusing on verification and implementation and strengthening systemic construction, and especially rigorously combating formalism, bureaucracy, hedonism, and extravagance. As required by the meeting, all branches and sub-branches of the SAFE should participate in the second stage of the campaign under the leadership of the local branches of the People’s Bank of China. Drawing on the experiences of the first stage of the campaign, they are expected to improve their across-the-board capabilities to perform their tasks, enhance the cleaning up of undesirable work styles in the spirit of reform and innovation, and gather strength from the results of correcting undesirable work styles for deepening the reforms in an all-round way and with the aim of driving foreign exchange administration to a new high. 2014-01-24/en/2014/0124/1104.html
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The National Foreign Exchange Administration Work Conference that was recently held in Beijing conveyed the spirit of the 18th CPC National Congress, the Second and Third Plenary Sessions of the 18th CPC Central Committee, and the Central Economic Work Conference. It summed up foreign exchange administration work in 2013 in an all-round way, deeply analyzed the current status of the economy, finance, and the BOP, and made plans for foreign exchange administration in 2014. Yi Gang, deputy governor of the People's Bank of China (PBC) and director of the State Administration of Foreign Exchange (SAFE), delivered the work report, and deputy directors, discipline team heads, chief economists, chief accountants, and heads of the SAFE branches (foreign exchange administration departments) and divisions of the SAFE attended the meeting. It was pointed out at the meeting that under the guidance of the PBC party committee, foreign exchange administration departments have accelerated changes in the concept and approach to foreign exchange administration, vigorously streamlining administration and delegating power to lower levels, adhering to administration by law, and continuously deepened reform and innovations of the foreign exchange administration system in 2013 consistent with the unified arrangements of the CPC Central Committee and the State Council, with the aim of promoting a BOP equilibrium. They also improved monitoring and management of cross-border capital flows and enhanced the response to risks. They organized and carried out the CPC's mass line campaign, improved their practical work styles, and further strengthened their capability to serve the real economy, thus completing the tasks defined at the beginning of the year and delivering good performance. It was stressed at the meeting that acquiring a deep understanding of the strategic plans of the CPC Central Committee and the State Council is a foundation for delivering good performance in foreign exchange administration in 2014. The foreign exchange administration departments should follow the uniform arrangements of the Third Plenary Session of the 18th CPC Central Committee and the Central Economic Work Conference as well as the guidance of the "five shifts" in the concept and approach to foreign exchange administration to make progress while maintaining stability and carrying out reforms and innovations. With a focus on promoting a BOP equilibrium, they should accelerate reform and liberalization of foreign exchange administration, promote facilitation of trade and investment, speed up advancing the convertibility of the RMB capital account, and make use of the market's decisive role in allocating foreign exchange resources. They should also improve the operation and management of foreign exchange reserves, guard against shocks from two-way capital flows across borders, and maintain a bottom line of avoiding systemic and regional financial risks, so as to drive the economy and the society in the direction of continued and healthy development. Plans for work priorities in foreign exchange administration in 2014 were also made at the meeting: First, accelerating advancement of reforms and innovations in foreign exchange administration by giving the market a decisive role. Second, accelerating improvements in the construction of a regulatory system for cross-border capital flows based on the requirement of promoting a BOP equilibrium. Third, speeding up the functional transformation of foreign exchange administration in accordance with the requirements of making better use of the role of government. Fourth, accelerating the pace of improving the operations and management system for large-scale foreign exchange reserves so as to maintain and to increase the value of the foreign exchange reserves. Fifth, accelerating advances in CPC construction, government integrity, the building of official teams, and internal management for the purpose of building a long-term mechanism for the CPC's mass line campaign. 2014-01-10/en/2014/0110/1100.html
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To further deepen the reform of foreign exchange administration under the capital account, advance the streamlining of administration and delegating power to lower levels, and promote the facilitation of trade and investment, the State Administration of Foreign Exchange (SAFE) recently released the “Circular of the SAFE on Further Improving and Adjusting Policies on Foreign Exchange Administration under the Capital Account” (HuiFa [2014] No. 2, hereafter referred to as the Circular) The highlights of the Circular are as follows: First, streamlining foreign exchange administration under the foreign debts of financial leasing companies. Overseas financial leasing of these companies should be implemented after registration with the local foreign exchange bureaus. These companies can open a special account directly at a local bank for overseas lending to retain the rental income from overseas financial leasing, with the foreign exchange income under the account settled directly with the bank. The companies will not be subject to the existing limits on overseas lending for domestic companies. Second, simplifying foreign exchange administration under non-performing assets (NPA) transferred to foreign investors. Approvals by the SAFE for foreign exchange receipts, payments, and conversions involved in the disposal of NPAs by financial asset management companies will be cancelled. The registration procedures for transferring domestic NPAs to foreign investors will be simplified. Verification by the SAFE for settling the foreign exchange in the disposal of the income from NPAs by financial asset management companies will be canceled. Verification by the SAFE of purchases and payments of foreign exchange using returns from the disposal of NPAs by foreign investors will also be canceled. Guarantee items involved in the overseas disposal of NPAs will be clarified. Third, further liberalizing upfront management of expenses for outbound direct investments. Chinese institutions can carry out the relevant business after registering with a local foreign exchange bureau if the upfront expenses are less than USD 3 million and less than 15 percent of the total investments by the Chinese side. Fourth, further liberalizing management of overseas lending by Chinese companies. Qualification requirements for overseas lenders will be lowered to allow Chinese companies to lend money to associated overseas companies that have either direct or indirect shareholding relationships with them. The 2-year limits on the validity of overseas lending limits will be removed and domestic companies can apply to a local foreign exchange bureau to extend the validity of the overseas lending limits based on their business needs. Domestic companies will also be allowed to apply to a local foreign exchange bureau to write off the registration, if they are really unable, for objective reasons, to recover the principal and interest from overseas lending. Fifth, streamlining verification of the profit remittances by Chinese institutions. The requirement that, in principle, the amount of profits disposed of in the current year should not exceed, in principle, the combined dividend payable and the unappropriated profits of foreign shareholders during the latest issue of the financial audit report will be removed. Sixth, improving management of the “Business License for Foreign Exchange Involved in the Securities Business for Securities Companies.” The requirement that licenses be renewed every three years will be canceled and securities companies will be required to report to the SAFE their foreign exchange business every year for filing. The Circular will come into force as of February 10, 2014. 2014-01-24/en/2014/0124/1103.html
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A briefing on policies for inspections of trade financing by banks was recently held by the State Administration of Foreign Exchange. The heads of the relevant business in thirty-six Chinese and foreign banks attended the meeting. The meeting provided information about the special campaign to combat false intermediary trade (the special campaign) launched in 2013. By the end of November 2013, 1,076 documents had been inspected for false intermediary trade, involving 112 enterprises and a total amount in excess of USD2.5 billion. Forty-one enterprises were subject to the procedures for administrative penalties, with the twelve enterprises that were suspected of committing crimes transferred to the public security organs. The meeting, providing information on the recently adopted foreign exchange administration policies for trade financing, urged banks to carry out the policies earnestly, to actively support the authentic trade financing demands of the real economy, and to prevent the defrauding of bank loans by enterprises with fictitious trading activities. The SAFE will intensify monitoring of the authenticity and compliance of trade financing by banks, evaluate the due diligence of bank transactions, and when necessary carry out on-site verifications or inspections. Emphasis was placed on the relaxation in the banks’ procedures for the handling of foreign exchange business, as was identified in the “special campaign.” It was stressed at the meeting that banks should follow the correct operating philosophies, bring into full play the role of finance in serving the real economy, and promote the healthy development of trade financing. Banks should follow the prudential operating principle of “understanding your client,” strengthen verification of the authenticity and compliance of trade financing, improve the mechanism for risk prevention and internal control, and control funding risks. Banks should provide trade financing services to serve the needs of the real economy, strictly examine the authenticity of trading activities to prevent operations of fictitious funds, and guard against speculation and arbitrage of foreign exchange funds. Banks should implement the foreign exchange administration policies in an earnest manner and should prevent non-compliance in implementation of the relevant rules or in the provision of assistance to evade the foreign exchange administration regulations. It was stressed at the meeting that the SAFE will actively carry out the spirit of the Third Plenary Session of the Eighteenth Party Congress, vigorously promote facilitation of trade and investment, and intensify efforts to support and facilitate operations of law-abiding and compliant enterprises. Efforts will be made to enhance analysis and monitoring of cross-border fund flows, to crack down severely on illegal and non-compliant foreign exchange transactions in accordance with the law, to guard against the risks of cross-border flows of abnormal foreign exchange funds, and to ensure the security of the foreign-related economy and finance. 2013-12-16/en/2013/1216/1096.html
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A meeting was recently held by the State Administration of Foreign Exchange (SAFE) on broadening theoretical studies among the central teams of the party leadership group. The meeting was convened to convey the spirit of the Third Plenum of the 18th CPC Central Commission for Discipline Inspection (CCDI) and to formulate a plan for implementation of the relevant measures. Yi Gang, administrator and secretary of the Party Leadership Group of the SAFE, chaired the meeting. It was agreed by the participants that Xi Jinping, general secretary of the CPC Central Committee, had provided in his speech an overview of current circumstances regarding the construction of a clean government and the fight against corruption, offering in-depth insights into the significant theoretical and practical issues related to the building of a clean government and putting forward the general ideas and major assignments for combating corruption and for upholding integrity both in the present and in the foreseeable future. This is of far-reaching significance to the spirit of reform in CPC self-discipline by Party members, in the rigorous enforcement of Party discipline, and in the advancement of the building of a clean government and an anti-corruption campaign . The meeting will require that all participants carry out the spirit of Xi's speech as a current key political task. Officials and staff members under the administration of the SAFE are required to acquire a deep understanding of Xi's speech, align both thoughts and actions with the strategic planning of the CPC Central Committee, and implement the relevant measures to meet the needs of the foreign exchange administration. They are required to make innovations in the current mechanisms for combating corruption, implement relevant measures including institutional guarantees, strictly enforce CPC political, organizational, and financial discipline, earnestly carry out the eight-point guidelines issued by the CPC leadership, and persistently rectify undesirable work styles, including formalism, bureaucratism, hedonism, and extravagance. The use of power by officials will be placed under stricter scrutiny, with intensified efforts to combat corruption. A system of punishment and prevention of wrongdoings will be introduced to promote the building of a system and a mechanism to prevent the risks of corruption. Efforts will be intensified to combat corruption and to uphold integrity in a more scientific manner, thus making more significant contributions to the building of a clean government and to the implementation of the anti-corruption campaign. It was decided at the meeting that in the near future the SAFE will hold a working conference on construction of Party conduct and construction of honest and clean government, with the aim of conveying and studying the theory of the Third Plenum of the 18th CPC Central Commission for Discipline Inspection, and formulating a plan for implementation of the relevant measures. 2014-01-17/en/2014/0117/1101.html