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The Shanghai headquarters, branches, business management departments of the People’s Bank of China (PBC), and central sub-branches of the PBC in the capital cities of provinces (autonomous regions) and in sub-provincial cities; 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, and the branches of the SAFE in cities specifically designated in the state plan; China Development Bank, all policy banks, state-owned commercial banks, and joint-stock commercial banks and Postal Savings Bank of China, In order to regulate the management of domestic securities investment by RMB qualified foreign institutional investors (RQFIIs), relevant issues are notified as follows, in accordance with the Measures for the Pilot Program on Domestic Securities Investment by RMB Qualified Foreign Institutional Investors (Decree No. 90 of the China Securities Regulatory Commission, the People’s Bank of China, and the State Administration of Foreign Exchange), and relevant provisions: I. The PBC, SAFE and their branches and sub-branches shall supervise, manage and inspect RQFIIs' investment quota (investment quota), capital account, capital receipts and payments in accordance with the law. II. An RQFII approved by the China Securities Regulatory Commission (CSRC) to invest in domestic securities markets shall entrust its domestic custodian (custodian) with handling the procedures set forth in the Circular. An RQFII can mandate no more than three custodians. In the event of many custodians, the RQFII shall designate one custodian as the primary rapporteur (Only one custodian, if available, is the primary rapporteur as default) to be responsible for going through investment quota record filing, approval application and main information registration on behalf of the RQFII. III. The SAFE shall organize record filing or approval management with regard to the investment quota of a single RQFII. The RQFII, after obtaining the qualification from the CSRC, may obtain an investment quota (basic quota) no higher than a certain proportion of its assets or the securities assets under management ("asset size") through record filing; application of an investment quota higher than the basic quota is subject to approval by the SAFE. The investment quotas to institutions such as overseas sovereign wealth funds, central banks and monetary authorities are not required to be within a certain proportion of assets. They may obtain an investment quota based on their needs to invest in domestic securities markets, and will be subject to record filing management. IV. Criteria of basic quotas for RQFIIs: 1. Where the assets or AUM of an RQFII or the group it is subordinated to are located overseas, the formula is: equivalent of USD 100 million + average asset size over the past three years ＊0.2% - quota for the QFII already obtained (in RMB terms, "QFII quota"). 2. Where the assets or AUM of an RQFII or the group it is subordinated to are located in China, the formula is: RMB 5 billion + asset size of the previous year＊80% - QFII quota already obtained (in RMB terms). The foreign exchange rate involved above shall be calculated based on the conversion rates of various currencies against the USD published by the SAFE on the day of application for the previous month. The PBC and SAFE may adjust these criteria in consideration of balance of payments, and development and liberalization of capital markets. V. For record filing of an investment quota within the basic quota for an RQFII, the following submissions shall be provided to the primary rapporteur: 1. Description of the record filing of an investment quota, and the filled-out Registration Form for RMB Qualified Foreign Institutional Investors (see Appendix 1) 2. Audited balance of sheet of the RQFII for the past three years or the previous year (or audit report on securities assets under management, etc.) 3. Photocopy of qualification certificate from the CSRC. The primary rapporteur shall earnestly perform his/her responsibilities, carefully reviewing the materials evidencing the RQFII's assets size and QFII quota already obtained, and verifying the basic quota and the investment quota intended for record filing by relevant standards and based on the distribution of assets of its own or the group it is subordinated to, and collectively submit the record filing materials for the RQFII quota to the SAFE prior to the 10th day of every month (see Appendix 2 for format). The SAFE shall confirm the record filing materials and give feedback to the primary rapporteur. VI. For application for an investment quota beyond the basic quota for an RQFII, the following submissions shall be provided to the SAFE through the primary rapporteur: 1. Written applications of the primary rapporteur and the RQFII, detailing the reasons for increasing the quota and the use of existing quota. 2. Information of Record Filing Form for RQFII's Custodian (see Appendix 3 for format). 3. Audited balance of sheet of the RQFII for the past three years or the previous year (or audit report on securities assets under management, etc.) (4) Other materials required by the SAFE. An RQFII shall properly distribute the quotas between the primary rapporteur and other custodians, and effectively implement the requirements on quota management. The SAFE will regularly publish the information on the RQFIIs' investment quotas at its website, www.safe.gov.cn. VII. Where an RQFII that has obtained its investment quota before this Circular is issued applies for an additional investment quota, the following procedures shall be complied with: 1. The investment quota already obtained is within the basic quota: if the quota already obtained plus the extra quota applied for is within the basic quota, Article V herein shall be followed in record filing; if the quota already obtained plus the extra quota applied for is beyond the basic quota, application shall be made to the SAFE for approval in accordance with Article VI herein. 2. Where the investment quota already obtained is beyond the basic quota, application shall be made to the SAFE for approval in accordance with Article VI herein. VIII. The investment quota for RQFIIs is subject to balance management. This means that the RQFII's accumulated net inward remittances shall not surpass the already filed or approved investment quota. IX. Except open-end funds, the lock-up period of the principal of other products or funds of the RQFII is 3 months. The lock-up period shall be calculated as of the date when the RQFII's accumulated inward remittances as investment principal hits RMB 100 million. The aforesaid lock-up period refers to the period in which RQFIIs are prohibited from remitting the principal abroad. X. No RQFII shall sell or transfer the investment quota in any form to any other institution or individual. In case that an RQFII fails to effectively use the investment quota within one year following the day the quota is filed or approved, the SAFE shall have the right to recover the investment quota not yet used, in all or in part. XI. RQFIIs shall open a basic RMB deposit account for foreign institutions, in accordance with the Management Measures for RMB Bank Settlement Account for Foreign Institutions (Yinfa No. 249 [2010]), and the Circular of the People's Bank of China on Opening and Using RMB Bank Settlement Account for Foreign Institutions (Yinfa No. 183 [2012]). After opening a basic RMB deposit account, the RQFII shall open with a domestic commercial bank with the qualification for a QFII custodian a special deposit account for trading funds in the securities market of an exchange, and a special deposit account for settlement of trading funds in the interbank bonds markets, to be used for investing in the securities market of an exchange and the interbank bonds markets. Any RQFII who participates in stock index futures trading may open a special deposit account with a futures margin deposit and custodian bank for the settlement of the deposit of stock index futures. When opening such an account, the RQFII shall distinguish self-owned funds and AUM and open a separate account for each; A separate account for each open-end fund shall be opened. XII. An RQFII shall submit the following materials for opening a special deposit account: 1. Photocopy of the CSRC's qualification certificate for RQFIIs. 2. Record filing information or reply from the SAFE on quota. 3. Written custody qualification documents from a custodian bank. 4. Custody agreement between the RQFII and custodian bank. 5. Other documents required by the PBC. RQFIIs shall refer to the provisions in the Announcement No. 3 [2016] of the People’s Bank of China in investing in the interbank bonds markets. To open a special deposit account for settlement of trading funds in the interbank bonds markets, an RQFII shall also present the record filing notice for entry into the interbank bonds markets, and the written document on the custodian's qualification for commissioned settlement in the interbank bonds markets. XIII. The scope of receipts into an RQFII's special deposit account covers investment principal remitted from overseas by the RQFII, its gains from sales of securities, cash dividends, interest income, funds transferred from other special deposit accounts opened under this Circular, and other receipts prescribed by the PBC and SAFE. The scope of payments from an RQFII's special deposit account covers payment for securities bought, principal remitted outward, returns on investment, payment of investment-related taxes, funds transferred to other special deposit accounts opened under this Circular, and other spending prescribed by the PBC and SAFE. XIV. No transfer shall be allowed between an RQFII's special deposit accounts and other accounts it opened in China without approval; no transfer shall be allowed between the account for self-owned funds, the account for client funds and each account for open-end funds. Without approval, the funds in the RQFII's special deposit account shall not be used for purposes other than domestic securities investment. No cash shall be drawn from the RQFII's special deposit account. XV. The deposit rate of the funds in the bank settlement account an RQFII opens under this Circular is subject to the provisions developed by the PBC. XVI. In case of the following cases, an RQFII shall realize its assets and close its accounts within one month, with the corresponding investment quota nullified: 1. Its qualification has been revoked by the CSRC. 2. The SAFE cancels the investment quota of the RQFII in accordance with the law. 3. Other circumstances prescribed by the PBC and SAFE. XVII. For the open-end funds initiated by an RQFII, its custodian may handle the inward and outward remittances in RMB for it every day, based on the netting subscribed or redeemed. For other products or funds, the RQFII may entrust a custodian with handling the inward and outward remittances after the lock-up period expires. The custodian may handle the outward remittance of the realized accumulated income for the RQFII, based on the RQFII's written application or instruction, special audit report on returns on investment issued by Chinese certified accountants, and tax clearance or tax record filing certificates, if any. XVIII. A custodian, when handling inward and outward remittances for an RQFII, shall conduct the authenticity and compliance review of related receipts and payments, and perform its obligations of anti-money laundering and anti-terrorism. XIX. RQFIIs shall apply for a special institution code and undergo RQFII main information registration with the foreign exchange authority that governs the primary rapporteur within 10 working days after obtaining the investment quota for the first time via the primary rapporteur. Those that have obtained the special institution code in going through other cross-border or foreign exchange receipts and payments need not apply again. The custodian shall report the regulation and statistics data of the RQFII in accordance with the Circular of the State Administration of Foreign Exchange on Adjusting the Way of Data Reporting for QFIIs (Huifa No. 45 [2015]). XX. Where one of the following circumstances occurs to an RQFII, the primary rapporteur shall apply to the SAFE for alteration registration within 5 working days: 1. Major information of the RQFII such as its name and custodian changes. 2. Other circumstances prescribed by the PBC and SAFE. In case of the change of the primary rapporteur, the new primary rapporteur shall go through alteration registration for the RQFII. Where the RQFII or its major shareholders or actual controller face significant penalties by other regulatory authorities (including foreign authorities), and the penalties have a strong impact on the RQFII's investment operations, or lead to suspension or cancellation of its business qualifications, the primary rapporteur shall immediately report to the PBC and the SAFE. XXI. The custodian shall report an RQFII's account opening and cancellation, investment quota, cross-border capital receipts and payments, and asset allocation for domestic securities investment to the RMB cross-border receipts and payments information management system within 5 working days after the deal is made. XXII. The materials submitted as requested by this Circular shall be in Chinese. Should there be counterparts in both Chinese and a foreign language, the Chinese text shall prevail. XXIII. This Circular will come into force as of the date of issuance. In the meanwhile, the Circular of the People's Bank of China on Implementing the Pilot Program on Domestic Securities Investment by RMB Qualified Foreign Institutional Investors (Yinfa No. 105 [2013]), the Circular of the State Administration of Foreign Exchange on the Pilot Program on Domestic Securities Investment by RMB Qualified Foreign Institutional Investors (Huifa No. 9 [2013]) and the Circular of the Capital Account Management Department of the State Administration of Foreign Exchange on Issuing the Operating Guidance on Managing Investment Quotas of RMB Qualified Foreign Institutional Investors (Huizihan No. 2 [2014]) will be appealed. Appendices: 1. Registration Form for RMB Qualified Foreign Institutional Investors 2. Investment Quota Form 3. Information Record Filing Form for RQFII's Custodian People's Bank of China, State Administration of Foreign Exchange August 30, 2016 2016-11-08/en/2016/1108/1299.html
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The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government, the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks: To implement the requirements of the State Council on reformative measures such as streamlining administration and power delegation, combination of regulation and deregulation, and optimizing services, and to further promote trade facilitation, the SAFE has streamlined relevant regulatory documents and would here like to notify you of the effectiveness of a selection of regulatory documents: I. The following two regulatory documents on foreign exchange administration are abolished: (I) Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues Concerning Standardization of the Information System Codes (Huizongfa No. 101 [2009]) (II) Circular of the State Administration of Foreign Exchange on Issuing the Standards Version 1.0 for Collecting Data on Foreign Exchange Transactions by Financial Institutions (Huifa No. 18 [2014]) II. The following four regulatory documents on foreign exchange administration are announced invalid: (I) Supplementary Circular of the State Administration of Foreign Exchange on Issues Concerning Domestic Residents' Investments in the B-Share Market with their Personal Foreign Exchange Deposits (Huifa No. 33 [2001]) (II) Reply of the General Affairs Department of the State Administration of Foreign Exchange to Promoting the Use of Online Reporting and Approval System with Regard to Foreign Exchange Receipts and Payments of Foreign-funded Enterprises (Huizongfu No. 83 [2005]) (III) Circular of the Balance of Payments Department of the State Administration of Foreign Exchange on Using the National Information Sharing Platform with Regard to Organization Code (Huiguofa No. 14 [2006]) (IV) Circular of the General Affairs Department of the State Administration of Foreign Exchange on Launching the Statistical System for External Financial Assets and Liabilities and Foreign Transactions (Huizongfa No. 1 [2015]) The Circular will take effect as of the date of promulgation. Upon receipt of this Circular, all branches and foreign exchange administration departments of the SAFE shall immediately forward it to the central sub-branches, sub-branches, urban and rural commercial banks and foreign banks within their respective jurisdictions; and all designated Chinese-funded foreign exchange banks shall forward it to their branches and sub-branches as soon as possible. State Administration of Foreign Exchange December 1, 2017 2017-12-07/en/2017/1207/1396.html
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The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government, the SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks： To further deepen the foreign exchange administration reform, streamline administration and delegate powers, support the development of the real economy, promote trade and investment facilitation, and build and refine the capital flow management system under the macro-prudential management framework, we hereby provide notification on the relevant measures as follows: I. Expanding the scope of foreign exchange settlements for domestic foreign exchange loans. Foreign exchange settlements will be allowed for domestic foreign exchange loans for exports under trade in goods. Domestic institutions shall repay the loans with foreign exchange proceeds from exports under trade in goods, and in principle, they are not allowed to make repayment through buying foreign exchange. II. Allowing funds for overseas loans under domestic guarantees to be transferred back for domestic use. Debtors can transfer back, directly or indirectly, the funds under guarantees for domestic use through issuing loans to or equity participation in domestic institutions. Where the performance of guarantee occurs to a bank for overseas loans under domestic guarantees, the relevant foreign exchange settlements and sales will be included in the management of its own settlements and sales of foreign exchange. III. Providing further convenience for centralized operation and management of foreign exchange funds by multinationals. Under the principle of macro-prudential management, the share of the deposits attracted by domestic banks through the international foreign exchange master account for domestic use will be adjusted from being no higher than 50% of the daily average balance of deposits over the last 6 months into 100%; and the funds for domestic use shall not use the quota for outstanding short-term external debt. IV. Allowing overseas institutions in pilot free trade zones to have their foreign exchange settled through the non-resident account. Where RMB is transferred for domestic use after settlements of foreign exchange, domestic banks shall first review the valid commercial documents and vouchers of domestic institutions and individuals concerned, in accordance with the relevant provisions on cross-border deals. V. Further standardizing foreign exchange administration for trade in goods. Domestic institutions shall undergo the procedures of foreign exchange receipts and payments under trade in the principle of "whoever exports shall receive foreign exchange, and whoever imports shall make payments". They are required to go through the procedures of foreign exchange receipts on time, unless otherwise specified by the SAFE. VI. Enhancing statistics collection of foreign exchange revenues under the current account that are deposited overseas. Where a domestic institution deposits overseas its export revenues or revenues from trade in services, but fails to undergo registration and filing procedures for foreign exchange administration or report relevant information in accordance with the Circular of the SAFE on Printing and Distributing the Regulations on Foreign Exchange Administration for Trade in Goods (Huifa No. 38 [2012]), and the Circular of the SAFE on Printing and Distributing the Regulations on Foreign Exchange Administration for Trade in Services (Huifa No. 30 [2013]), the domestic institution shall report relevant information within one month after the release of this Circular. VII. Continuing to perform and refine the outward remittance administration policy for foreign exchange profits under ODI. In handling outward remittances of profits in the amount equivalent to USD 50,000 (exclusive) for domestic institutions, banks shall review the profit distribution resolution of the board of directors (or the partners), the original tax return filing form, and audited financial statements that are related to this outward remittance of the profits and affix the seal and endorsement to the original tax return filing form indicating the amount and date of the remittance. The domestic institution shall make up for the losses incurred in previous years before remitting the profits overseas. VIII. Enhancing authenticity and compliance reviews for ODI. When going through ODI registration and outward remittance procedures, a domestic institution shall explain to the bank the sources and purposes (use plan) of the investment funds, and present to the bank the resolutions of the board of directors (or of the partners), contracts and other authenticity evidencing materials, in addition to submitting relevant review materials as required. Banks shall enhance authenticity and compliance reviews under the business operation principles. IX. Adopting the management of full-scale overseas loans in domestic and foreign currencies. In issuing overseas loans, a domestic institution shall make sure the sum of the outstanding overseas loans in the domestic currency and those in foreign currencies is no higher than 30% of its owner's equity in the audited financial statements for the previous year. X. Any violation of this Circular will be subject to legal punishments by the SAFE in accordance with the Regulations of the People's Republic of China on Foreign Exchange Administration. XI. This Circular will be implemented as of the date of promulgation, and interpreted by the SAFE. The SAFE will regularly assess the outcomes of policy implementation and make adjustments in line with the balance of payments. This Circular shall prevail where there are inconsistencies between previous provisions and this Circular. Upon receipt of this Circular, the branches and foreign exchange administration departments shall immediately forward it to the central sub-branches, sub-branches and designated foreign exchange banks within your respective jurisdiction for implementation. 2017-01-26/en/2017/0126/1303.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 designated Chinese-funded foreign exchange banks: To further facilitate trade authenticity reviews by banks and enhance trade facilitation, the SAFE decides to give banks access to the "Customs declaration information verification" module of the foreign exchange monitoring system for trade in goods (bank version) in accordance with the Regulations of the People's Republic of China on Foreign Exchange Administration. Relevant issues are notified as follows: I. For a single transaction of foreign exchange payment for trade in goods (excluding offshore resale business, the same below) in an equivalent amount of more than USD 100,000 (exclusive), banks shall review relevant transaction documents in accordance with the existing provisions, and in principle also shall verify the electronic Customs declaration information for imports through the module of "Customs declaration information verification" of the system; and banks could waive the verification if enterprises' external payment of foreign exchange is confirmed to be true and legitimate. For a single transaction of foreign exchange payment for trade in goods in an equivalent amount of not more than USD 100,000, banks could independently decide whether to verify the electronic Customs declaration information for imports through the system, under the principles of "know your customer, understand your business and due diligence". II. Enterprises shall provide true Customs declaration information to banks for making external payment of foreign exchange under trade in goods. III. Banks shall verify the electronic Customs declaration information for imports through the system in the following way: (I) For enterprises that have finished the import declaration procedures, banks shall verify the information in the system within 5 working days after handling the payment of foreign exchange under trade in goods, based on the amount of foreign exchange paid this time under trade in goods. (II) For enterprises that have not finished the import declaration procedures, banks shall require them to provide relevant declaration information within 40 days since the date when they finish the declaration procedures (or the import date, the same below), and to go through verification procedures through the system based on the amount of foreign exchange payments made under trade in goods this time (III) For enterprises that have finished the import declaration procedures but could not provide the declaration information in time due to proper reasons, banks could handle the procedures for payment of foreign exchange after confirming that the transaction is authentic and legitimate, and shall handle verification procedures for the enterprises within 40 days since they finish the declaration procedures. For the enterprises do fail to provide declaration information, banks shall make a note on the transaction of foreign exchange payment in the system. (IV) In the event that the external payment of foreign exchange under trade in goods is higher than the amount declared due to proper reasons such as tolerance, banks shall indicate the reasons in the system when handling verification. IV. In any of the following cases, banks shall make notes of the enterprises in the system on a transaction-by-transaction basis, and such notes shall be made known to other banks across the country through the system: (I) Fail to provide declaration information and give convincing explanations in a given period; (II) Suspected of repeated use of declaration information and fail to give convincing explanations; (III) Suspected of the use of falsified declaration information; (IV) Other information to be noted. The notes will remain effective in 24 months. Where an enterprise is mistakenly noted due to misoperation by a bank, the note can be revoked after internal approval of the bank. V. Where the electronic declaration information for imports is missing from the system due to the incompleteness of the data transmitted or other reasons, banks can handle payment of foreign exchange after confirming the transaction is authentic and legitimate and handle verification in time in the system. Banks shall note the payment of foreign exchange in the system in case that the electronic declaration information for imports is missing from the system for a long time. In case of the failure to log on to the system, banks shall respond in accordance with the Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Issues for Doing a Good Job in the Foreign Exchange Administration of Trade in Goods under Emergency Situations (Huizongfa No. 123 [2012]). VI. Banks shall amend the internal control systems of relevant businesses in time in accordance with this Circular, and guarantee the security of the enterprises' electronic declaration data for imports. VII. The SAFE and its branches and sub-branches (foreign exchange authorities) shall ensure the guidance to banks on declaration information verification, solve problems in time and review or inspect irregularly banks' efforts in declaration information verification. VIII. The foreign exchange authorities shall, in accordance with the Regulations of the People’s Republic of China on Foreign Exchange Administration, punish whoever violates the provisions of this Circular. IX. This Circular shall be interpreted by the State Administration of Foreign Exchange, and shall come into force as of May 1, 2017. Upon receipt of this Circular, the SAFE branches and foreign exchange administrative departments should immediately forward it to the central sub-branches (sub-branches), local commercial banks, and foreign banks within their respective jurisdiction, and all Chinese-funded banks should promptly forward it to their branches. For any problems arising from implementation of this Circular, please provide timely feedback to the SAFE. 2017-04-04/en/2017/0404/1306.html
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FILE: Annual Report of the State Administration of Foreign Exchange (2003) 2004-07-26/en/2004/0726/1272.html
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FILE: The_time-series_data_of_Balance_of_Payments_of_China 2017-09-28/en/2017/0928/1331.html
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FILE: Annual Report of the State Administration of Foreign Exchange (2013) 2014-07-07/en/2014/0707/1279.html
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FILE: Annual Report of the State Administration of Foreign Exchange (2005) 2006-11-02/en/2006/1102/1274.html
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FILE: Official reserve assets（2017） 2017-12-07/en/2017/1207/1345.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 of the SAFE in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and national Chinese-funded banks: To boost the opening up of the foreign exchange market and facilitate management of foreign exchange risks by foreign institutional investors (foreign investors) in the interbank bond market, we hereby provide notification of the issues related to foreign institutional investors' participation in China's foreign exchange market as follows, in accordance with the Regulations of the People's Republic of China on Foreign Exchange Administration and relevant provisions: I. Domestic financial institutions with the qualification approved by the SAFE for derivatives business of RMB against foreign exchange for customers (foreign exchange derivatives business), and meeting the conditions for settlement agents in the interbank market (settlement agent) set out in the Announcement No. 3 of the People's Bank of China [2016] are allowed to handle the foreign exchange derivatives business for foreign institutional investors that entrust the institution with providing agent transactions and settlement services. The foreign investors hereunder refer to the foreign investors defined by the Announcement No. 3 of the People's Bank of China [2016]. II. Settlement agents are required to observe the principle of transaction for actual requirements in handling foreign exchange derivatives business for foreign investors. The foreign exchange derivatives business for foreign investors is designed only to hedge against the foreign exchange risk exposure arising from the investment with the inward remittances in the interbank bond market. The foreign exchange derivative exposure and the foreign exchange risk exposure as the transaction basis under bond investment shall be properly related. Where the foreign exchange risk exposure varies with the changes in investments in the interbank bond market, foreign investors shall adjust the exposure of foreign exchange derivatives they hold in five working days, ensuring the alignment with the principle of transaction for actual requirements. III. The foreign exchange derivatives handled by a settlement agent for foreign investors shall include forward derivatives, foreign exchange swaps, currency swaps and options as laid out in the Detailed Rules for the Implementation of the Administration Measures for Foreign Exchange Settlement and Sales by Banks (Huifa No. 53 [2014]). Based on the real and reasonable needs for foreign exchange risk management, a settlement agent could flexibly provide transaction mechanisms including reverse position closing, balance settlement or gross settlement for the foreign exchange derivatives business of foreign investors. For the currencies and reference settlement prices for reverse position closing and balance settlement, please refer to the Detailed Rules for the Implementation of the Administration Measures for Foreign Exchange Settlement and Sales by Banks (Huifa No. 53 [2014]). IV. The foreign exchange receipts and payments involved in the foreign exchange derivatives business carried out by foreign investors shall be handled in the special foreign exchange account as specified in the Circular of the State Administration of Foreign Exchange on Foreign Exchange Administration for the Investments of Foreign Institutional Investors in the Interbank Bond Market (Huifa No. 12 [2016]). V. Any settlement agent shall, when handling the foreign exchange derivatives business for foreign investors, comply with the provisions on the management of synthetic positions in the foreign exchange settlement and sales and is obligated to prepare the statistical reports for foreign exchange settlement and sales in accordance with the Circular of the State Administration of Foreign Exchange on Issuing the Statistical System for the Bank's Foreign Exchange Settlement and Sales (Huifa No. 42 [2006]), the Circular of the General Affairs Department of the State Administration of Foreign Exchange on Adjusting the Statistical Statements for Synthetic Position of the Banks’ Foreign Exchange Settlement and Sales and Submission Methods (Huizongfa No. 129 [2012]), and the Circular of the General Affairs Department of the State Administration of Foreign Exchange on Adjusting the Statistical Statements for the Banks’ Foreign Exchange Settlement and Sales (Huizongfa No. 4 [2017]). VI. This Circular shall come into force as of the date of release. In case of any inconsistency between the former provisions on the management of foreign exchange derivatives business handled by banks for their customers and this Circular, this Circular shall prevail. Upon receipt, the branches and foreign exchange administrative departments of the SAFE shall timely forward it to the relevant financial institutions within their respective jurisdictions. Please follow the Circular in your implementation. State Administration of Foreign Exchange February 24, 2017 2017-02-27/en/2017/0227/1304.html