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In November 2019, China’s international trade in goods and services recorded receipts of RMB 1651 billion and payments of RMB 1490.6 billion based on statistics of balance of payments (BOP), registering a surplus of RMB 160.4 billion. Specifically, trade in goods registered receipts of RMB 1511.7 billion,payments of RMB 1222.4 billion, recording a surplus of RMB 289.3 billion; trade in services recorded receipts of RMB 139.3 billion,payments of RMB 268.2 billion, resulting in a deficit of RMB 128.9 billion. In the US dollar terms, in November 2019, China's BOP-based receipts and payments of international trade in goods and services were USD 235.3 billion and USD 212.4 billion respectively, registering a surplus of USD 22.8 billion. Specifically, the receipts and payments from trade in goods were USD 215.4 billion and USD 174.2 billion respectively, resulting in a surplus of USD 41.2 billion.Trade in services registered receipts and payments of USD 19.9 billion and USD 38.2 billion respectively, recording a deficit of USD 18.4 billion. (End) International Trade in Goods and Services of China (Based on the BOP statistics) November2019 Item In 100 million of RMB In 100 million of USD Goods and services 1,604 228 Credit 16,510 2353 Debit -14,906 -2124 1. Goods 2,893 412 Credit 15,117 2154 Debit -12,224 -1742 2. Services -1,289 -184 Credit 1,393 199 Debit -2,682 -382 2.1 Manufacturing services on physical inputs owned by others 77 11 Credit 80 11 Debit -3 0 2.2 Maintenance and repair services n.i.e 23 3 Credit 42 6 Debit -19 -3 2.3 Transport -350 -50 Credit 285 41 Debit -635 -90 2.4 Travel -992 -141 Credit 228 33 Debit -1,221 -174 2.5 Construction 21 3 Credit 78 11 Debit -56 -8 2.6 Insurance and pension services -38 -5 Credit 32 5 Debit -69 -10 2.7 Financial services 6 1 Credit 20 3 Debit -13 -2 2.8 Charges for the use of intellectual property -143 -20 Credit 35 5 Debit -178 -25 2.9 Telecommunications, computer and information services 34 5 Credit 187 27 Debit -153 -22 2.10 Other business services 96 14 Credit 394 56 Debit -298 -42 2.11 Personal, cultural, and recreational services -21 -3 Credit 4 1 Debit -25 -4 2.12Government goods and services n.i.e -3 0 Credit 8 1 Debit -11 -2 Notes: 1. The trade in goods and services in this table refers to the transactions between residents and non-residents, based on the same standard as that for BOP statement. The monthly data are preliminary and may be inconsistent with the quarterly data in the BOP statement. 2. The data on international trade in goods and services are prepared in USD, and the RMB data for the current month is derived by converting the USD data at the monthly average central parity rate of the RMB against the USD. 3. This table employs rounded-off numbers. Definition of Indicators: Goods and Services: refers to the trade in goods and services between residents and non-residents, which is based on the same standard as that for the BOP statement. 1. Goods:refers to transactions in goods whereby the economic ownership is transferred between the Chinese residents and non-residents. The credit side records export of goods, while the debit side records import of goods. The data of goods account are mainly from the customs statistics of imports and exports, but differ from the statistics of the customs mainly in the following aspects:first, the goods in the BOP statement only reflect the goods whose ownership has been transferred (e.g. goods under the trade modes such as general trade and processing trade with imported materials), while the goods whose ownershipis not transferred (e.g. manufacturing services with supplied materials or with exported materials) are included in the statistics of trade in services instead of the statistics of trade in goods; second, as required by the BOP statistics, the goods imported and exported are valued on the FOB basis, but as required by the customs, the goods exported are valued on the FOB basis, whereas goods imported are on the CIF basis. Therefore, for the purpose of the BOP statistics, the international transport and insurance premiums are taken out from the value of imported goods and included in the trade in services; and third, the data on net export of goods in merchanting which are not included in the customs statistics are supplemented. 2. Services:includes manufacturing services on physical inputs owned by others,maintenance and repair services n.i.e, transport, travel,construction, insurance and pension services, financial services, charges for the use of intellectual property, telecommunications, computer and information services, other business services, personal, cultural and recreational services, and government goods and services n.i.e. The credit side records services supplied, while the debit side records services received. 2.1 Manufacturing services on physical owned by others: processor only provides processing, assembly, packaging and other services and charges service fee from the owner, while the ownership of the goods isnot transferred between the owner and the processor. The credit side records the manufacturing services supplied by the Chinese residents on physical inputs owned by non-residents, and vice versa for debit side. 2.2 Maintenance and repair services: refer to the maintenance and repair services supplied by residents to non-residentsor vice versa on goods and equipment (such as vessel, aircraft, and other transportation facility) owned by the receiving party. The credit side records the maintenance and repair services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.3 Transport:refers to the process of transporting people and goods from one place to another, and the relevant supporting and auxiliary services, as well as postal and delivery services. The credit side records the international transport,postal and delivery services supplied by residents to non-residents, and vice versa for debitside. 2.4 Travel:refers to goods consumed and services purchased by travelers in various economies as non-residents. The credit side records the goods and services provided by the Chinese residents to non-residents who have stayed in China for less than one year, as well as non-residents studying abroad and seeking medical treatment for indefinite period of stay. The debit side records the goods and services purchased by the Chinese residents when traveling, studying or seeking medical services abroad from non-residents. 2.5 Construction services:refer to the establishment, renovation, maintenance or expansion of fixed assets in the form of buildings, land improvement, roads, bridges and dams and other engineering buildings of engineering nature, relevant installation, assembly,painting, pipeline construction, demolition and project management, as well as site preparation, measurement and blasting and other special services. The credit side records the construction services provided by the Chinese residents outside the economic territory. The debit side records the construction services received by the Chinese residents in the Chinese economic territory from non-residents. 2.6 Insurance and pension services: refers to various insurance services and commission to agents related with insurance transaction. The credit side records the life insurance and annuity, non-life insurance, reinsurance, standardized guarantee services and relevant supporting services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.7 Financial services: refer to financial intermediation and supporting services, excluding those covered by insurance and pension services. The credit side records the financial intermediation and supporting services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.8 Chargesfor the use of intellectual property:refer to licensed use of intangible, non-productive / non-financial assets and exclusive rights between residents and non-residents and the licensed use of existing original works or prototypes. The credit side records the intellectual property-related services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.9 Telecommunications, computer andinformation services: refer to communications services between residents and non-residents and transactions of services related to computer data and news, excluding commercial services delivered via telephone, computer and Internet. The credit side records the telecommunications, computer and information services supplied by residents to non-residents, and vice versa for debit side. 2.10 Other business services: refer to other types of services between residents and non-residents, including research and development services, professional and management consulting services,technical and trade-related services. The credit side records the other business services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.11 Personal,cultural and recreational services: refer to transactions of personal, cultural and recreational services between residents and non-residents, including audiovisual and related services (films,radio, television programs and music recordings) and other personal, cultural and recreational services (health, education, etc.). The credit side records the related services supplied by the Chinese residents to non-residents, and vice versa for debit side. 2.12 Government goods and services n.i.e:refer to various goods and services provided and purchased by governments and international organizations not included in other categories of goods and services. The credit side records the goods and services not included elsewhere and supplied by the Chinese residents to non-residents, and vice versa for debit side. 2019-12-26/en/2019/1226/1610.html
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As shown in the statistics of the State Administration of ForeignExchange (SAFE), in November 2019, the amount offoreign exchange settlement and sales by banks was RMB 1043 billion and RMB 1082.6 billion,respectively, with a deficit of RMB 39.6billion.In the US dollar terms，the amount of foreign exchange settlement and sales by banks wasUSD 148.6 billion and USD 154.3billion, respectively, with a deficit of USD 5.6billion. Inparticular, the amount of foreign exchange settlement and sales by banks forcustomers was RMB 981.2 billion and RMB 1013.1billion,respectively, with a deficit of RMB 31.9 billion; the amount of foreign exchange settlement andsales for banks themselves was RMB 61.8 billion and RMB 69.5billion,respectively, with a deficit of RMB 7.7 billion. During the period, newly signed contract amount of forward foreign exchange settlement and sales was RMB 134.9 billion and RMB 40 billion, respectively, with a net newly signedcontract amountof forward foreign exchange settlement of RMB 94.9 billion. At the end of November, outstanding amount of forward foreign exchange settlement and sales by the end of the current period was RMB 517 billion and RMB 436.7 billion, respectively, with a net outstanding amount of forward foreign exchange settlement of RMB 80.2billion;the net Delta exposure of outstanding options was RMB -264.3billion. During January to November 2019, theaccumulative amount of foreign exchange settlement and sales by banks was RMB 11502.6 billion and RMB 11902.5 billion, with an accumulative deficit of RMB399.9 billion. In the US dollarterms，the accumulative amount of foreign exchangesettlement and sales by banks was USD 1669.5 billion and USD 1727.8 billion, with an accumulative deficit of USD 58.2 billion. In particular, the accumulative amount offoreign exchange settlement and sales by banks for customers was RMB 10602.6 billion and RMB 10925.4 billion, respectively, with an accumulativedeficit of RMB 322.8 billion; the accumulative amount of foreignexchange settlement and sales for banks themselves was RMB 900 billion and RMB 977.1 billion, respectively, with an accumulative deficit ofRMB 77.1 billion. During the period, newly signed contract amount of forward foreign exchange settlement and sales was RMB 1408.5 billion and RMB 516.9 billion, respectively, with a net newly signedcontract amountof forward foreign exchange settlement of RMB 891.7 billion. In November 2019, the amount of cross-border receiptsand payments by non-banking sectors was RMB 2193.1 billion and RMB 2196.4billion, respectively, with a deficit of RMB 3.2 billion.During January to November2019, the amount of cross-border receipts and payments by non-banking sectorswas RMB 22287.3 billion and RMB 22203.5 billion, respectively, with a surplusof RMB 83.7 billion. In the US dollar terms, in November 2019, theamount of cross-border receipts andpayments by non-bankingsectors was USD 312.5 billion and USD 313.0 billion, respectively, with a deficit of USD 0.5 billion.DuringJanuary to November 2019, the amount of cross-border receipts and paymentsby non-banking sectorswas USD 3235.5 billion and USD 3222.5 billion, respectively, with a surplus of USD 13.0 billion. Addendum:Glossary and relevant definitions Balance of payments (BOP)refers to all economic transactions between residents and non-residents. Foreignexchange settlement and sales by banks refers to settlement and sale transaction that bank executes for customersand for the banks themselves, including statistic data onsettlements of forward contracts for foreign exchange settlementand sales and the exercises of option, and excludingthe transactions in the interbank foreign exchange market. The statistic reporting date of Foreign exchangesettlement and sales by banks should be the trade day of theForeignexchange settlement and sales transaction. By definition, foreignexchange settlement means foreign exchange holders sell foreignexchange to designated foreign exchange bank, and foreignexchange sales means designated bank sells foreign exchange to foreign exchange buyers. The net position of foreign exchange settlement andforeign exchange sales could be position squared throughtransactions on the inter-bank foreign exchange market, and it is one ofthe major contributors to the country’sforeign exchange reserve fluctuation, though it is not equal to netchange in foreign exchange reserves during the same period Unlike theprinciple of balance-of-payments statistics, which cover the transactionsbetween residents and non-residents, foreign exchange settlement and sales bybanks only cover transactions of RMB and foreign currencies between banks and customers or on banks for themselves. Thenewly signed contract amount of forward foreign exchange settlement and sales refers to the binding forward contract between designated foreignexchange bank and client that predetermines foreign exchange currency, amount,exchange rate and tenor which to be executed upon maturity. Thenewly signed forward contract enables corporate to lock inadvance the exchange rate for the purchase or sale of a currency on a futuredate to manage relevant foreign exchange risk arising fromRMB volatility. In general, bank will hedge its foreign exchange risk exposures arise from the newly signed forward contract in the Interbank foreign exchange market. For example,when bank has net foreign exchange long position, bankwill short the equivalent amount of foreign exchange in the Interbank foreignexchange market in advance, or vice versa. Therefore, the newly signedcontract amount of forward foreign exchange settlement and sales is also one of contributors to China’s foreign exchange reserve fluctuation. Theunwind amount of forward foreign exchange settlement and sales refers to, where client is unable to perform the original forwardcontract due to change in its real demand, client to fully or partially closeits forward position by executing another deal with opposite direction to theoriginal contract. Therolling amount of forward foreign exchange settlement and sales refers to client to adjust the settlement date of original contract dueto change in its real demand. Theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period refers to the total amount of forwardcontracts accumulated from all non-matured forward contracts with client. Thenewly signed contractamount and the outstanding amount should satisfy the equationthat: theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period = theoutstanding amount of forward foreign exchange settlement and sales at the endof the previous period + the newly signed contract amount of forward foreignexchange settlement and sales for the period - settlements of forwardcontracts for foreign exchange settlement and sales for the period - the unwindamount of forward foreign exchange settlement and sales for the period. The net Deltaexposure of outstanding options refers to the implied foreignexchange spot risk exposure from outstanding option contracts that bank executedwith client. Bank shall hedge such risk in the foreign exchange market for risk management during deal life cycle. The cross-border receipts and payments by non-banking sectors refers to the receipts and payments betweendomestic non-banking sectors (including institutional and individual residents) andnon-residents through domestic banks, excludingreceipts and payments in cash. In particular, the statistics includescross-border receipts and payments between non-banking sectors andnon-residents through domestic banks (including RMB and foreign currency), and domestic receipts andpayments between non-banking sectors and non-residents through domestic banks(temporarily excluding domestic receiptsand payments in RMB between individual residents and non-resident individuals).Data are collected when customers conductreceipts and payments withnon-resident counterparties at domestic banks. Specifically, the receiptsrefer to the capital of non-banking sectors received from non-residents via domesticbanks; the payments refer to the capital of non-banking sectors paid tonon-residents via domestic banks. The cross-borderreceipts and payments bynon-banking sectors is basedon cash basis, different from the accrual basis required by the Balance of Payments Statistics. The statistics merely reflectsthe cash flows between non-bankingsectors and non-residents and doesnot include barter transactions or transactions with non-residents conducted by the banks themselves. Therefore, the scope of the statistics is narrower than thatof the Balance of Payments Statistics. 2019-12-20/en/2019/1220/1607.html
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The State Administration of Foreign Exchange (SAFE) has recently disseminated the data on banks' foreign exchange settlement and sales as well as their foreign-related receipts and payments for customers for October 2019. The SAFE spokesperson and Chief Economist Wang Chunying answered media questions on foreign exchange receipts and payments for October 2019. Q: What changes occurred in China’s foreign exchange receipts and payments in October 2019? A: In October, the supply and demand of China’s foreign exchange market maintained a basic equilibrium, and the cross-border capital flows remained stable. First, foreign exchange settlement and sales by banks were in an equilibrium. A deficit of USD 4.4 billion was recorded in October, lower than the average of the first 9 months. If other supply and demand factors e.g. forward transactions and options transactions were considered, China's foreign exchange market was in balance in October. Second, foreign-related receipts and payments by banks for their customers represented a surplus. In the month, the non-banking sector, including companies and individuals, registered a surplus of USD 10.9 billion in foreign-related receipts and payments, versus a slight deficit in March to September. Third, the balance of foreign exchange reserves climbed, hitting USD 3,105.2 billion at the end of October, an increase of USD 12.7 billion month on month. Market expectations of foreign exchange stayed stable and cross-border capital flows through major channels increased while maintaining stability. On the one hand, foreign exchange supply through major channels of inflows rose steadily. For example, the surpluses in cross-border receipts and payments and foreign exchange settlement and sales under trade in goods climbed both month-on-month and year-on-year; cross-border capital inflows from FDI and securities investment continued growing on a year-on-year basis. On the other hand, foreign exchange demand through major channels of outflows remained stable. For example, cross-border payments and purchases of foreign exchange under trade in services declined steadily, representing 6% and 14% year-on-year respectively in October due to lower payments for individual trips and for purchases of foreign exchange; cross-border capital outflows and purchases of foreign exchange under ODI remained stable. Despite the complex and challenging external environment, China's economy shows great resilience, potential and vibrancy. The economic performance remains within a reasonable range and the high-level opening up is advanced, laying a solid foundation for the stability of the foreign exchange market. Further, market players are rational and maintain a good order in carrying out foreign exchange transactions, suggesting China's foreign exchange market is maturing, which is favorable for a continued equilibrium in the supply and demand of foreign exchange. 2019-11-19/en/2019/1119/1604.html
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Q: The State Administration of Foreign Exchange has just released the latest data on foreign exchange reserves. Could you explain why those changes occurred in November 2019? What would be the future trends of foreign exchange reserves? A: By the end of November 2019, China's foreign exchange reserves had hit USD 3.0956 trillion, up by USD 22.9 billion or 0.7% from the beginning of the year China's foreign exchange market was in an equilibrium in November, with overall market expectations staying stable. Along with global economic growth, expectations of monetary policies, and trade situations, the US Dollar Index rose slightly and bond prices fell in major countries. The valuation factors like exchange rate conversion and asset price changes were the major contributors to the changes in foreign exchange reserves for the month. In the year to date, China's economy has continued its growth momentum of maintaining overall stability while achieving progress, with major indicators falling in the reasonable ranges, and therefore, China has effectively coped with increasing risks and challenges from global markets. Thanks to this, China's balance of payments has remained in an equilibrium and its foreign exchange reserves have stayed stable. Although the global economic growth is slowing down and there are many destabilizing factors and uncertainties externally, China's economy features ample resilience, enormous potential and large room for strengthening, so our economic fundamentals will remain sound over the long term. We will also adopt the new development concepts to drive the high quality economic growth and advance the higher-level opening up, which will be favorable for stable operations of China's foreign exchange market and underpin the overall stability of foreign exchange reserves. 2019-12-07/en/2019/1207/1606.html
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Q: The latest foreign exchange reserve data from the State Administration of Foreign Exchange (SAFE) shows that China's foreign exchange reserves for October 2019 grew by USD 12.7 billion month-on-month. Could you explain why there is such a change? What would you say about the future trends? A: As at the end of October 2019, China posted USD 3.1052 trillion in foreign exchange reserves, up by USD 12.7 billion or 0.4% month-on-month. China's foreign exchange market performed stably in October. Under the combined impacts of the global trade situations, monetary policies of major central banks and the prospects of Brexit, the US Dollar Index declined and bond prices of major countries dropped. Further, due to exchange rate conversion and asset price changes, China's foreign exchange reserves increased. In the year to date, despite dramatic increases in risks and challenges in global markets, China's economy has maintained stability while achieving progress, with major indicators meeting expectations and structural adjustment stably advanced. As a result, China's cross-border capital flows remained steady, the supply and demand in foreign exchange markets were in a basic equilibrium and foreign exchange reserves rose stably. Looking ahead, as the world economy slows down, the global financial market will continue to be faced with numerous destabilizing factors and uncertainties. But China's economic fundamentals and its long-term positive trends have not changed, with efforts on reform and opening up increased, momentum for organic growth strengthened and resilience against risks and challenges enhanced, which lay a solid foundation for the overall stability of China's foreign exchange reserves. 2019-11-07/en/2019/1205/1603.html
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As at the end of September 2019, China's banking sector recorded external financial assets of USD 1135.5 billion, external liabilities of USD 1315.4 billion, and net external liabilities of USD 179.9 billion including net RMB liabilities of USD 314.0 billion and net foreign currency assets of USD 134.1 billion. Among the external financial assets of the banking sector, deposits and loans were USD 813.3 billion,bonds investment,USD 161.7 billion, and other assets including equity, USD 160.5 billion,accounting for 72 percent, 14 percent and 14 percent of the sector's total external financial assets respectively. By currency, RMB assets were USD 109.7 billion, USD assets, USD 789.0 billion, and other currency assets, USD 236.8 billion,accounting for 10 percent, 69 percent and 21 percent respectively. Among the external financial assets of the banking sector, the amount invested in the overseas banking sector was USD 563.4 billion, accounting for approximately 50 percent; the amount invested in the overseas non-banking sector was USD 572.1 billion,accounting for approximately 50 percent. Among the external liabilities of the banking sector, deposits and loans were USD 727.6 billion,bonds investment, USD 219.6 billion, and other liabilities including equity, USD 368.2 billion, accounting for 55 percent, 17 percent and 28 percent of the sector's total external liabilities respectively. By currency, RMB liabilities were USD 423.7billion, USD liabilities, USD 542.8 billion, and other currency liabilities, USD 348.9 billion, accounting for 32 percent, 41 percent and 27 percent respectively. Of the external liabilities of China’s banking sector, USD 548.1 billion was from overseas banking sector, accounting for 42 percent; while USD 767.4 billion was from overseas non-banking sector, accounting for 58 percent. (End) 2019-12-26/en/2019/1226/1608.html
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External_Financial_Assets_and_Liabilities_of_China's_Banking_Sector_(As_of_September_30_2019) 2019-12-26/en/2019/1226/1611.html
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According to the statistics of the StateAdministration of Foreign Exchange (SAFE), the Chinese foreign exchange market(excluding foreign currency pairs, the same below) recorded total transaction ofRMB 16.08 trillion (equivalent to USD 2.29 trillion) in November 2019. Specifically,the transaction volume of the bank to customer market was RMB 2.36 trillion(equivalent to USD 335.7 billion), the transaction volume of interbank marketwas RMB 13.73 trillion (equivalent to USD 1.96 trillion), the cumulativetransaction volume of the spot market was RMB 6.96 trillion (equivalent to USD 992.3billion), and that of the derivatives market was RMB 9.12 trillion (equivalentto USD 1.30 trillion). From January to November2019, a total of RMB 183.46 trillion (equivalent to USD 26.68 trillion) wastraded in the Chinese foreign exchange market. 2019-12-27/en/2019/1227/1612.html
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On December 5, 2019, Pan Gongsheng, Administrator of the State Administration of Foreign Exchange (SAFE), met with a delegation led by Stanley Fischer, former FED Vice Chairman. Mr. Pan also invited Prof. Fischer to give a lecture at the SAFE on topics covering global macroeconomic conditions, international trade, and monetary policy. 2019-12-06/en/2019/1210/1605.html
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As shown in the statistics of the StateAdministration of Foreign Exchange (SAFE), in December 2019, the amount offoreign exchange settlement and sales by banks was RMB 1260.8 billion and RMB 1245.2billion, respectively, with a settlement of RMB 15.6 billion. In the US dollarterms，the amount of foreign exchange settlement andsales by banks was USD 179.8 billion and USD 177.6 billion, respectively, witha settlement of USD 2.2 billion. In particular, the amount of foreign exchangesettlement and sales by banks for customers was RMB 1189.2 billion and RMB 1163.6billion, respectively, with a settlement of RMB 25.5 billion; the amount offoreign exchange settlement and sales for banks themselves was RMB 71.6 billionand RMB 81.6 billion, respectively, with a deficit of RMB 10 billion. Duringthe period, newly signed contract amount of forward foreign exchange settlementand sales was RMB 142.5 billion and RMB 34.8 billion, respectively, with a net newlysigned contract amount of forward foreign exchange settlement of RMB 107.7billion. At the end of December, outstanding amount of forward foreign exchangesettlement and sales by the end of the current period was RMB 515.8 billion andRMB 421.9 billion, respectively, with a net outstanding amount of forward foreignexchange settlement of RMB 93.8 billion; the net Delta exposure of outstandingoptions was RMB -266.6 billion. During January to December 2019, theaccumulative amount of foreign exchange settlement and sales by banks was RMB 12763.4billion and RMB 13147.7 billion, with an accumulative deficit of RMB 384.3billion. In the US dollar terms, the accumulative amount of foreign exchangesettlement and sales by banks was USD 1849.3 billion and USD 1905.3 billion,with an accumulative deficit of USD 56 billion. In particular, the accumulativeamount of foreign exchange settlement and sales by banks for customers was RMB 11791.8billion and RMB 12089 billion, respectively, with an accumulative deficit ofRMB 297.3 billion; the accumulative amount of foreign exchange settlement andsales for banks themselves was RMB 971.6 billion and RMB 1058.7 billion,respectively, with an accumulative deficit of RMB 87.1 billion. During theperiod, newly signed contract amount of forward foreign exchange settlement andsales was RMB 1551 billion and RMB 551.6 billion, respectively, with a net newlysigned contract amount of forward foreign exchange settlement of RMB 999.4 billion. In December 2019, the amount of cross-border receiptsand payments by non-banking sectors was RMB 2689.9 billion and RMB 2609.3billion, respectively, with a surplus of RMB 80.6 billion.During January to December2019, the amount of cross-border receipts and payments by non-banking sectorswas RMB 24977.2 billion and RMB 24812.8 billion, respectively, with a surplusof RMB 164.4billion. In the US dollar terms, in December 2019, theamount of cross-border receipts and payments by non-banking sectors was USD 383.6billion and USD 372.1 billion, respectively, with a surplus of USD 11.5 billion.DuringJanuary to December 2019, the amount of cross-border receipts and payments by non-bankingsectors was USD 3619.1 billion and USD 3594.6 billion, respectively, with asurplus of USD 24.5 billion. Addendum: Glossary andrelevant definitions Balance of payments(BOP) refers to all economic transactionsbetween residents and non-residents. Foreignexchange settlement and sales by banks refers to settlement and sale transaction that bank executes for customersand for the banks themselves, including statistic data onsettlements of forward contracts for foreign exchange settlementand sales and the exercises of option, and excludingthe transactions in the interbank foreign exchange market. The statistic reporting date of Foreign exchangesettlement and sales by banks should be the trade day of theForeignexchange settlement and sales transaction. By definition, foreignexchange settlement means foreign exchange holders sell foreignexchange to designated foreign exchange bank, and foreignexchange sales means designated bank sells foreign exchange to foreign exchange buyers. The net position of foreign exchange settlement andforeign exchange sales could be position squared throughtransactions on the inter-bank foreign exchange market, and it is one ofthe major contributors to the country’sforeign exchange reserve fluctuation, though it is not equal to netchange in foreign exchange reserves during the same period Unlikethe principle of balance-of-payments statistics, which cover the transactionsbetween residents and non-residents, foreign exchange settlement and sales bybanks only cover transactions of RMB and foreign currencies between banks and customers or on banks for themselves. Thenewly signed contract amount of forward foreign exchange settlement and sales refers to the binding forward contract between designated foreignexchange bank and client that predetermines foreign exchange currency, amount,exchange rate and tenor which to be executed upon maturity. Thenewly signed forward contract enables corporate to lock inadvance the exchange rate for the purchase or sale of a currency on a futuredate to manage relevant foreign exchange risk arising fromRMB volatility. In general, bank will hedge its foreign exchange risk exposures arise from the newly signed forward contract in the Interbank foreign exchange market. For example,when bank has net foreign exchange long position, bankwill short the equivalent amount of foreign exchange in the Interbank foreignexchange market in advance, or vice versa. Therefore, the newly signedcontract amount of forward foreign exchange settlement and sales is also one of contributors to China’s foreign exchange reserve fluctuation. Theunwind amount of forward foreign exchange settlement and sales refers to, where client is unable to perform the original forwardcontract due to change in its real demand, client to fully or partially closeits forward position by executing another deal with opposite direction to theoriginal contract. Therolling amount of forward foreign exchange settlement and sales refers to client to adjust the settlement date of original contract dueto change in its real demand. Theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period refers to the total amount of forwardcontracts accumulated from all non-matured forward contracts with client. Thenewly signed contractamount and the outstanding amount should satisfy the equationthat: theoutstanding amount of forward foreign exchange settlement and sales by the endof the current period = theoutstanding amount of forward foreign exchange settlement and sales at the endof the previous period + the newly signed contract amount of forward foreignexchange settlement and sales for the period - settlements of forwardcontracts for foreign exchange settlement and sales for the period - the unwindamount of forward foreign exchange settlement and sales for the period. The net Deltaexposure of outstanding options refers to the implied foreignexchange spot risk exposure from outstanding option contracts that bank executedwith client. Bank shall hedge such risk in the foreign exchange market for risk management during deal life cycle. The cross-border receiptsand payments bynon-banking sectors refers to the receipts andpayments between domestic non-banking sectors (including institutional and individual residents)and non-residentsthrough domestic banks, excluding receipts and payments in cash. In particular,the statisticsincludescross-border receipts and payments between non-banking sectors andnon-residents through domestic banks (including RMB and foreign currency), and domesticreceipts and payments between non-banking sectors and non-residents throughdomestic banks (temporarily excluding domestic receipts and payments in RMBbetween individual residents and non-resident individuals). Data are collected whencustomers conduct receipts and payments with non-resident counterparties atdomestic banks. Specifically, the receipts refer to the capitalof non-bankingsectors received fromnon-residents via domestic banks; the payments refer to the capitalof non-bankingsectors paid to non-residents via domestic banks. Thecross-border receipts and payments by non-banking sectors is based on cash basis,different from the accrual basis required by the Balance of Payments Statistics. The statisticsmerely reflects the cashflows between non-banking sectors and non-residents and does not include bartertransactions or transactions with non-residents conducted by the banksthemselves. Therefore,the scope of thestatistics is narrower than that of the Balance of Payments Statistics. 2020-01-17/en/2020/0117/1620.html