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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 branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, and all designated Chinese-funded foreign exchange banks, In response to the Central Government's and the State Council's requirements on accelerating the transformation of government functions, pushing forward administration streamlining, power delegation, combination of decentralization and regulation, and service optimization, stabilizing growth, promoting reform, adjusting restructure and benefiting people, as well as comprehensively sorting out regulations and policy documents, and to further promote trade and investment facilitation, the effectiveness of selected regulatory documents on foreign exchange administration is notified as follows: I. With agreement of the Ministry of Finance, the Circular of the State Administration of Foreign Exchange and the Ministry of Finance on Adjusting the Table of Foreign Exchange Issues for Annual Inspection of Foreign Exchange Business of Foreign-Invested Enterprises (Huifa No. 124 [2002]) is abolished. II. The following two regulatory documents, with the main content replaced by new content and not conforming to current management practices, are abolished: (I) Circular of the State Administration of Foreign Exchange on Distributing the Streamlining Status of Foreign Exchange Statements (Huifa No. 12 [2004]); (II) Circular of the State Administration of Foreign Exchange on Starting Use of Relevant Vouchers of Domestic Banks for Foreign-related Receipts and Payments and Clarifying the Relevant Requirements on Data Submission (Huifa No. 42 [2012]). III. The following 11 regulatory documents on foreign exchange administration whose applicable period has expired or objects of adjustment have disappeared are nullified: (I) Reply of the State Administration of Foreign Exchange on Issues Concerning Foreign Exchange Settlement for Income from B-Share Investments by Domestic Individual Investors (Huifu No. 283 [2007]); (II) Circular of the State Administration of Foreign Exchange on the Examination and Ratification of Short-term External Debt Quotas of Financial Institutions for 2009 (Huifa No. 14 [2009]); (III) Circular of the State Administration of Foreign Exchange on Issues Concerning Distributing the 2010 Quotas for Outstanding Short-term External Debt (Huifa No. 18 [2010]); (IV) Circular of the State Administration of Foreign Exchange on Issues Concerning the Ratification of the 2011 Quotas for Outstanding Short-term External Debt of Domestic Institutions (Huifa No. 14 [2011]); (V) Circular of the General Affairs Department of the State Administration of Foreign Exchange on Relevant Work Concerning Launching the Pilot Foreign Exchange Monitoring System for Trade in Goods (Huizongfa No. 125 [2011]); (VI) Circular of the State Administration of Foreign Exchange on Issues Concerning the Ratification of the 2012 Quotas for Outstanding Short-term External Debt of Domestic Institutions (Huifa No. 12 [2012]); (VII) Circular of the General Affairs Department of State Administration of Foreign Exchange on Relevant Items Concerning Carrying out the Acceptance and Joint Debugging of Bank Data Interface Program on the Online Balance of Payments Declaration System (Huizongfa No. 14 [2012]); (VIII) Circular of the State Administration of Foreign Exchange on Issues Concerning the Ratification of the 2013 Quotas for Outstanding Short-term External Debt of Domestic Institutions (Huifa No. 6 [2013]); (IX) Circular of the State Administration of Foreign Exchange on Issues Concerning the Ratification of the 2014 Quotas for Outstanding Short-term External Debt of Domestic Institutions (Huifa No. 14 [2014]); (X) Circular of the General Affairs Department of the State Administration of Foreign Exchange on Printing and Distributing the Content of Assessment and Scoring Criteria of Banks in Implementing the Provisions on Foreign Exchange Administration (2014) (Huizongfa No. 52 [2014]). (XI) Reply of the General Affairs Department of the State Administration of Foreign Exchange Concerning Simplifying Documents and Improving the Foreign Exchange Administration of Individual Trade by the SAFE Branches in Fujian and Zhejiang (Huizongfu No. 40 [2014]). IV. “Settlement of foreign exchange shall be handled based on the export agent contract or agreement signed with the agent and the agent's Customs declaration for exports” in Subparagraph 2 of Article 9 of the Appendix " Detailed Rules on Implementation of the Measures for the Administration of Individual Foreign Exchange" to the Circular of the State Administration of Foreign Exchange on Printing and Distributing the Detailed Rules on Implementation of the Measures for the Administration of Individual Foreign Exchange (Huifa No. 1 [2007]) is modified as "Settlement of foreign exchange shall be handled based on the contract or the commercial documents issued by the logistics company." The Circular will come into force on the day of promulgation. Upon receipt of this Circular, all branches and foreign exchange administrative departments of the SAFE shall immediately forward it to the central sub-branches, sub-branches, urban and rural commercial banks and foreign banks; and all designated Chinese-funded foreign exchange banks shall forward it to their branches and sub-branches as soon as possible. Please follow the Circular in your implementation. State Administration of Foreign Exchange May 29, 2016 2016-11-08/en/2016/1108/1297.html
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The State Administration of Foreign Exchange (SAFE) has recently disseminated the data on banks' foreign exchange sales and settlements and banks' foreign-related payments and receipts for customers for July 2017, and its press spokesperson answered media questions on recent cross-border capital flows. Q: China's cross-border capital flows remained steady in the first half, with a good momentum for growth. Could you brief us on China's cross-border capital flows for July? A: China's cross-border capital flows maintained a basic equilibrium in July. First, the supply and demand of foreign exchange remained balanced in China. In July, banks registered a deficit of USD 15.5 billion in foreign exchange settlements and sales, down by 26% month on month. In particular, a deficit of USD 6.3 billion was recorded in banks' foreign exchange settlements and sales for customers, down by 53%. In the same month, the value of foreign exchange contracted for forward settlements and sales recorded a surplus for fourth consecutive month, which was USD 2.6 billion. Under the combined impact of banks' spot and forward foreign exchange settlements and sales, and foreign exchange supply and demand factors such as options, a better equilibrium between the supply and demand of foreign exchange was maintained in China in the month than in the prior two months. Second, the deficit in foreign-related payments and receipts of non-banking sectors remained steady. In the month, the deficit was USD 22 billion, consistent with that of May and June. To be specific, the deficit of foreign-related receipts and payments in RMB and foreign currencies registered USD 13.8 billion and USD 8.2 billion respectively. Moreover, China's foreign exchange reserves as at the end of July, which were unveiled on August 7, had climbed for 6 consecutive months and amounted to USD 3.0807 trillion, representing a month-on-month increase of USD 23.9 billion. Domestic participants witnessed more stable and orderly foreign-related receipts and payments. First, market participants' desire to settle foreign exchange stayed stable while their desire to purchase foreign exchange was weakened. In July, the ratio of banks' foreign exchange settlements for customers to foreign-related foreign exchange receipts was 62%, down by 1 percentage point; the ratio of banks' foreign exchange purchases for customers to foreign-related foreign exchange payments was 63%, down by four percentage points month on month. Second, enterprises' enthusiasm for funding in foreign currencies was strengthened stably. In July, China continued to see stable growth in the outstanding external debt registered; and the foreign exchange purchased by enterprises to repay domestic foreign exchange loans hit a new low in recent years, down by 46% month on month. Third, foreign exchange purchased by individuals dropped. Since the beginning of this year, as market expectations are further stabilized, individuals' use of foreign exchange has become more reasonable and orderly. In July, foreign exchange purchased by individuals went down by 35% month on month and 27% year on year. Since the beginning of this year, China's economy has been more stabilized with a good momentum for stronger growth, and market expectations have become further stabilized, boosting remarkable improvement in China's foreign exchange situations. Going forward, China's cross-border capital flows will remain stable, economic fundamentals will be more supportive, expansion and further opening of domestic markets is expected to deliver stronger outcomes, and domestic market participants' adjustment of external assets and liabilities will be more stable. 2017-08-16/en/2017/0816/1294.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, and the branches of the SAFE in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and all designated Chinese-funded foreign exchange banks: To further facilitate foreign exchange receipts and payments under trade in goods, and satisfy the demand of the designated foreign exchange banks (bank) and domestic institutions (enterprise) for handling foreign exchange business through the Internet, the State Administration of Foreign Exchange (SAFE) has formulated the Guidelines on Reviews of Electronic Documents for Foreign Exchange Receipts and Payments under Trade in Goods (Guidelines, see appendix for details) and hereby issues it to you for implementation. Relevant issues are notified as follows: I. Starting from November 1, 2016, banks may review the electronic documents of qualified enterprises in handling foreign exchange receipts and payments under trade in goods, in accordance with the existing provisions on foreign exchange administration for trade in goods, as well as the Guidelines. II. 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. Please report any problems encountered in the implementation to the SAFE in time. Appendix: Guidelines on Reviews of Electronic Documents for Foreign Exchange Receipts and Payments under Trade in Goods State Administration of Foreign Exchange September 28, 2016 FILE: Guidelines on Reviews of Electronic Documents for Foreign Exchange Receipts аnd Payments under Trade in Goods 2016-09-28/en/2016/0928/1296.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: Given the changes and adjustments to the provisions on foreign exchange administration from June 2015 to the present, the SAFE has formulated the Contents and Scoring Criteria for the Assessment of Banks’ Implementation of Regulations on Foreign Exchange Administration (2016) (see the Appendix). The relevant issues are hereby notified as follows: 1. The contents and scoring criteria for the assessment of banks’ implementation of regulations on foreign exchange administration for the year 2016 (from October 1, 2015 to September 30, 2016) are subject to the contents of the Appendix to this Circular. 2. After receiving this Circular, all branches and foreign exchange administrative departments of the SAFE shall immediately forward this Circular to the central sub-branches, sub-branches, urban commercial banks, rural commercial banks, wholly foreign-funded banks, Chinese-foreign equity joint venture banks, branches of foreign banks, and rural cooperative financial institutions within their respective jurisdictions, and shall carry out fair and just assessments of the banks within their respective jurisdictions in implementing the regulations of foreign exchange administration in line with the revised contents and scoring criteria. 3. All national Chinese-funded banks shall forward this Circular to their branches within their respective jurisdictions as soon as possible, and conduct their various businesses in accordance with the relevant laws and regulations. If any problems are encountered during implementation, please report them to the relevant departments of the SAFE in a timely manner. Telephone numbers: 010-68402113 (General Affairs Department), 010-68402593 (Balance of Payments Department), 010-68402104 (Current Account Management Department), 010-68402127 (Capital Account Management Department), 010-68402378 (Supervision and Inspection Department) and 010-68402028 (Data Monitoring Center for Foreign Exchange Transaction). Appendix: Contents and Scoring Criteria for the Assessment of Banks’ Implementation of Regulations on Foreign Exchange Administration (2016) General Affairs Department of the State Administration of Foreign Exchange March 2, 2016 FILE: Contents and Scoring Criteria for the Assessment of Banks’ Implementation of Regulations on Foreign Exchange Administration (2016) 2016-12-19/en/2016/1219/1300.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; To step up efforts to streamline laws and regulations on foreign exchange administration and to facilitate trade and investment, we hereby notify you of the validity of some regulatory documents on foreign exchange administration as follows: I. 18 regulatory documents, of which the main content has been replaced by new content and does not conform to current management practices, shall be abolished. Please refer to Annex 1 for a list. II. 9 regulatory documents on foreign exchange administration, of which either the application period has expired or the objects have ceased to exist, are rendered and declared invalid. Please refer to Annex 2 for a list. The Circular will take effect as of the date of promulgation. Annex: 1. Checklist of 18 Regulatory Documents on Foreign Exchange Administration Abolished by the State Administration of Foreign Exchange 2. Checklist of 9 Regulatory Documents on Foreign Exchange Administration Declared Invalid by the State Administration of Foreign Exchange State Administration of Foreign Exchange October 28, 2016 FILE: Checklist of 18 Regulatory Documents on Foreign Exchange Administration Abolished by the State Administration of Foreign Exchange FILE: Checklist of 9 Regulatory Documents on Foreign Exchange Administration Declared Invalid by the State Administration of Foreign Exchange 2016-12-19/en/2016/1219/1302.html
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See the Appendix. FILE: Catalogue of Major Existing Laws аnd Regulations in Effect on Foreign Exchange Administration (аs of June 30, 2016) 2016-11-08/en/2016/1108/1298.html
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Since the beginning of 2018, the State Administration of Foreign Exchange (SAFE) has implemented the spirit of the 19 CPC National Congress and the arrangements of the CPC Central Committee and the State Council, with focus on serving the real economy, defending against financial risks and deepening financial reforms. The SAFE has tightened regulation of the foreign exchange market and investigated and dealt with illegal or irregular inflows and outflows of foreign exchange. It also has cracked down on false and fraudulent transactions to ensure the robust operation of the foreign exchange market and guard against and address financial risks. In accordance with the Regulation of the People's Republic of China on the Disclosure of Government Information (Decree No. 492 of the State Council), a selection of typical cases where foreign exchange regulations were violated are presented as follows: Case 1: Evasion of foreign exchange by Tianjin Binhai Haitong Logistics Co., Ltd. From January 2015 to January 2016, Tianjin Binhai Haitong Logistics Co., Ltd. fabricated the background of entrepot trade and paid foreign exchange of USD 46.518 million using the bills of lading already accomplished by other companies. The company violated Article 12 and 14 of the Regulations on Foreign Exchange Administration and is considered getting involved in foreign exchange evasion, which has severely disturbed the order of the foreign exchange market. With a large amount of money involved, this is a serious case in nature. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 11.05 million. Case 2: Evasion of foreign exchange by Xilong Scientific Co., Ltd. From January 2015 to December 2016, Xilong Scientific Co., Ltd. in Shantou, Guangdong fabricated the background of entrepot trade and paid foreign exchange of USD 17.6102 million using the invalid bills of lading. The company violated Article 12 and 14 of the Regulations on Foreign Exchange Administration and is considered getting involved in foreign exchange evasion, which has severely disturbed the order of the foreign exchange market. This is a serious case in nature. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 5.77 million. Case 3: Evasion of foreign exchange by Chengdu Weiyi Trading Co., Ltd. In June 2015, Chengdu Weiyi Trading Co., Ltd. fabricated the background of entrepot trade and paid foreign exchange of USD 4.2528 million using the false bill of lading. The company violated Article 12 and 14 of the Regulations on Foreign Exchange Administration and is considered getting involved in foreign exchange evasion, which has severely disturbed the order of the foreign exchange market. This is a serious case in nature. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 1.3 million. Case 4: Evasion of foreign exchange by Zhejiang Juxiong Import and Export Co., Ltd. In February 2016, Zhejiang Juxiong Import and Export Co., Ltd. fabricated the background of entrepot trade and paid foreign exchange of USD 5.2476 million using the bills of lading already accomplished by other companies. The company violated Article 12 and 14 of the Regulations on Foreign Exchange Administration and is considered getting involved in foreign exchange evasion, which has severely disturbed the order of the foreign exchange. This is a serious case in nature. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 1.3752 million. Case 5: Evasion of foreign exchange by Guangxi Beitou ThangLong Import & Export Co., Ltd. From December 2016 to February 2017, Guangxi Beitou ThangLong Import & Export Co., Ltd. fabricated the background of entrepot trade and paid foreign exchange of USD 13.3822 million using the false bills of lading. The company violated Article 12 and 14 of the Regulations on Foreign Exchange Administration and is considered getting involved in foreign exchange evasion, which has severely disturbed the order of the foreign exchange market. This is a serious case in nature. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, the company was fined RMB 4.5 million. Case 6: Inward Remittances of Foreign Exchange by Tianjin Haohua Minsheng Technology Development Co., Ltd. against foreign exchange regulations In June 2015, Tianjin Haohua Minsheng Technology Development Co., Ltd. fabricated the background of export and remitted USD 2 million under "advances from customers" into China, which is recognized as inward remittance in violation of the foreign exchange regulations. The company violated Article 12 and 13 of the Regulations on Foreign Exchange Administration, and the company was fined RMB 200,000 in accordance with Article 41 thereof. Case 7: Illegal foreign exchange settlement by Lianyungang Yunong Agricultural Technology Co., Ltd. From July to September 2015, Lianyungang Yunong Agricultural Technology Co., Ltd. in Jiangsu handled procedure for inward remittance of capital and settled USD 4.89 million in foreign exchange using the false contract. The company violated Article 23 of the Regulations on Foreign Exchange Administration and Article 9 of the Provisions on the Foreign Exchange Administration of Domestic Direct Investment from Foreign Investors and is considered getting involved in illegal foreign exchange settlement. In accordance with Article 41 of the Regulations on Foreign Exchange Administration, the company was fined RMB 980,000. Case 8: Illegal foreign exchange settlement by Rugao Chengyang Agricultural Technology Co., Ltd. On June 28, 2016, Rugao Chengyang Agricultural Technology Co., Ltd. in Jiangsu handled procedure for inward remittance of capital and settled USD 2.8 million in foreign exchange using the false contract. The company violated Article 23 of the Regulations on Foreign Exchange Administration and Article 9 of the Provisions on the Foreign Exchange Administration of Domestic Direct Investment from Foreign Investors and is considered getting involved in illegal foreign exchange settlement. In accordance with Article 41 of the Regulations on Foreign Exchange Administration, the company was fined RMB 400,000. Case 9: Illegal foreign exchange settlement by Xuzhou Haisheng Electronics Co., Ltd. In December 2016, Xuzhou Haisheng Electronics Co., Ltd. handled procedure for inward remittance of capital and settled USD 9.9999 million in foreign exchange by fabricating the purposes of funds, and after settlement, the company used the funds for personal purposes other than its normal production and operations, which is considered illegal foreign exchange settlement. The company violated Article 23 of the Regulations on Foreign Exchange Administration. In accordance with Article 41 of the Regulations on Foreign Exchange Administration, the company was fined RMB 1.234 million. Case 10: Illegal foreign exchange settlement by Nantong Tongzhou District Shuoqing Machinery Co., Ltd. From March to April 2017, Nantong Tongzhou District Shuoqing Machinery Co., Ltd. in Jiangsu handled procedure for inward remittance of capital and settled USD 8 million in foreign exchange using the false contract. The company violated Article 23 of the Regulations on Foreign Exchange Administration and Article 9 of the Provisions on the Foreign Exchange Administration of Domestic Direct Investment from Foreign Investors and is considered getting involved in illegal foreign exchange settlement. In accordance with Article 41 of the Regulations on Foreign Exchange Administration, the company was fined RMB 1.1 million. Case 11: Onshore guarantees by China Merchants Bank Quanzhou Branch for offshore loans against regulations From October 2013 to October 2015, China Merchants Bank Quanzhou Branch didn't carry out a due diligence investigation as required, with regard to the purposes of the loans, expected sources of repayment, possibility of performing the contracts for onshore guarantees and relevant transaction background, when handling the execution and performance of the contracts for onshore guarantees for offshore loans. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the illegal gains of RMB 2.1319 million were confiscated and the bank was ordered to rectify within the prescribed time limit and fined RMB 5.8 million. Case 12: Onshore guarantees by the Industrial and Commercial Bank of China TEDA Branch for offshore loans against regulations From December 2013 to January 2016, the Industrial and Commercial Bank of China TEDA Branch handled the purchase and payment of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, without carrying out a due diligence investigation as required, with regard to the purposes of the loans under guarantees, use of loans and relevant transaction background, although the messages on the use of loans were illegible, use of loans under guarantees was not specified in the letter of intent for loan extension, and the amount of funds for performance of the contracts was higher than that of loans. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the illegal gains of RMB 670,000 were confiscated and the bank was fined RMB 1.2 million. Case 13: Onshore guarantees by Hana Bank (China) Company Limited Tianjin Branch for offshore loans against regulations From August 2014 to August 2016, when handling the purchase and payment of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, Hana Bank (China) Company Limited Tianjin Branch didn't carry out a due diligence investigation as required, with regard to the qualifications of debtors, circulation of the ownership of goods during transactions and relevant transaction background. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the illegal gains of RMB 366,000 were confiscated, and the bank was fined RMB 2 million and suspended from handling foreign exchange settlement for and sales to enterprises for three months. Case 14: Onshore guarantees by China Minsheng Bank Taiyuan Branch for offshore loans against regulations From September 2014 to August 2015, when handling the purchase and payment of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, China Minsheng Bank Taiyuan Branch didn't carry out a due diligence investigation as required, with regard to the sources of repayment of debtors. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the illegal gains of RMB 2.07 million were confiscated, whilst the bank was ordered to rectify within the prescribed time limit and fined RMB 1.6 million. Case 15: Onshore guarantees by the Agricultural Bank of China Xinxiang Branch for offshore loans against regulations In December 2016, when handling the purchase and payment of foreign exchange for the execution and performance of the contracts on onshore guarantees for offshore loans, the Agricultural Bank of China Xinxiang Branch didn't carry out a due diligence investigation as required, with regard to the purposes of funds under guarantees and relevant transaction background. Nor did it conduct continuous monitoring and tracking of the purposes of loans. The bank violated Article 12 and 28 of the Regulations on Foreign Exchange Administration for Cross-border Guarantees. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the bank was ordered to rectify within the prescribed time limit and fined RMB 1 million, with the illegal gains of RMB 472,100 confiscated. Case 16: Foreign exchange settlement for advances from customers by Harbin Bank Shenyang Branch against regulations From May to July 2015, Harbin Bank Shenyang Branch settled foreign exchange for advances from customers under trade in goods without carrying out a due diligence investigation into corporate documents such as export contracts and invoices, and consistency between foreign exchange receipt and payment. The bank violated Article 12 of the Regulations on Foreign Exchange Administration. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the bank was ordered to rectify within the prescribed time limit and fined RMB 400,000. Case 17: Foreign exchange receipts for individual trade handled by China Merchants Bank Jiangmen Branch against regulations From November 2015 to May 2017, China Merchants Bank Jiangmen Branch handled foreign exchange receipts for cross-border trade through the individual foreign exchange savings account against regulations. The bank violated Article 32 of the Measures for the Administration of Individual Foreign Exchange. In accordance with Article 48 of the Regulations on Foreign Exchange Administration, the bank was ordered to rectify within the prescribed time limit and fined RMB 160,000. Case 18: Foreign exchange settlement for external debt by China Construction Bank Taian Branch against regulations From February to May 2016, China Construction Bank Taian Branch settled foreign exchange for external debt of companies without reviewing and keeping the materials such as contracts and invoices that could prove the purposes of funds from settlement of foreign exchange of external debt and reviewing the consistency between the purposes of such funds and contract provisions. The bank violated Article 15 of the Measures for the Registration and Management of External Debt and the provisions of "Materials for Bank Review" and "Review Elements" in Chapter VI of Operating Guidelines on External Debt Registration and Management. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the bank was fined RMB 400,000. Case 19: Foreign exchange settlement for trade in goods by the Industrial and Commercial Bank of China Binzhou Xincheng Sub-branch against regulations From February to December 2016, the Industrial and Commercial Bank of China Binzhou Xincheng Sub-branch handled foreign exchange receipt and settlement in foreign currency banknotes for trade in goods without carrying out a due diligence investigation into the background where companies changed the way of foreign exchange receipt under trade and the necessity of receiving foreign exchange in foreign currency banknotes. The bank violated Article 6, 9 and 10 of the Measures for Managing the Receipts and Payments of Foreign Currency Banknotes by Domestic Institutions. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the bank was fined RMB 300,000. Case 20: Entrepot trade handled by Ping An Bank Ningbo Branch against regulations From June to December 2016, Ping An Bank Ningbo Branch handled foreign exchange payment for entrepot trade although the due diligence investigation into the authenticity of the entrepot trade was not carried out as required and the transaction documents for entrepot trade were not effective for picking up the goods. The bank violated Article 12 of the Regulations on Foreign Exchange Administration. In accordance with Article 47 of the Regulations on Foreign Exchange Administration, the bank was ordered to rectify within the prescribed time limit and fined RMB 800,000, with the illegal gains of RMB 506,200 confiscated. Case 21: Mr. Zhang, native of Shanghai, evaded foreign exchange through split-up In 2016, to transfer his assets overseas illegally, Mr. Zhang split up his personal funds, used the annual quotas of 27 individuals including his own to buy foreign exchange and transferred the foreign exchange into his overseas account. The funds thus transferred equaled USD 1.3419 million in total. Zhang violated Article 7 of the Measures for the Administration of Individual Foreign Exchange and is considered getting involved in the evasion of foreign exchange. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, Zhang was fined RMB 460,000. Case 22: Illegal purchase and sales of foreign exchange by Mr. Chen, native of Shaanxi From August to September 2016, to transfer his assets overseas illegally, Mr. Chen transferred RMB 26 million into the domestic account controlled by an underground bank, exchanged the money into foreign exchange and then transferred the foreign exchange into his Hong Kong account. The funds thus transferred equaled USD 3.8906 million in total. Chen violated Article 30 of the Measures for the Administration of Individual Foreign Exchange and is considered getting involved in the illegal purchase and sales of foreign exchange. In accordance with Article 45 of the Regulations on Foreign Exchange Administration, Chen was fined RMB 1.69 million. Case 23: Mr. Tang, native of Jiangxi, evaded foreign exchange through split-up From January to October 2016, to transfer his assets overseas illegally, Mr. Tang split up his personal funds, used the annual quotas of 69 individuals including his own to buy foreign exchange and transferred the foreign exchange into several overseas accounts. The funds thus transferred equaled USD 3.211 million in total. Tang violated Article 7 of the Measures for the Administration of Individual Foreign Exchange and is considered getting involved in the evasion of foreign exchange. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, Tang was fined RMB 1.5 million. Case 24: Mr. Tu, native of Jiangsu, evaded foreign exchange through split-up From January 2016 to April 2017, to transfer his assets overseas illegally, Mr. Tu split up his personal funds, used the annual quotas of 43 individuals in China including his own to buy foreign exchange and transferred the foreign exchange into his overseas account. The funds thus transferred equaled USD 2.1238 million in total. Tu violated Article 7 of the Measures for the Administration of Individual Foreign Exchange and is considered getting involved in the evasion of foreign exchange. In accordance with Article 39 of the Regulations on Foreign Exchange Administration, Tu was fined RMB 724,500. 2018-05-04/en/2018/0627/1442.html
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The State Administration of Foreign Exchange (SAFE) has recently released the Balance of Payments (BOP) and International Investment Position (IIP) for the first quarter of 2018. Its press spokesperson answered media questions on relevant issues. Q: Could you brief us on China's balance of payments for the first quarter of 2018? A: China's BOP found an adaptive equilibrium in the first quarter of 2018. The financial account excluding reserve assets was in surplus, the receipts and payments under the current account were further balanced and reserve assets rose. The financial account excluding reserve assets registered a higher surplus. In the first quarter, the financial account excluding reserve assets recorded a surplus of USD 98.9 billion, growing 1.7-fold year on year. On the one hand, outbound investments stayed stable. In the quarter, the external financial assets arising from BOP transactions jumped by USD 72 billion net, up by 32% year on year. Specifically, ODI went up by USD 17.9 billion net, external securities investment rose by USD 33.5 billion net, and other investments such as external deposits and loans increased by USD 20.8 billion net. On the other hand, overseas investors continued to increase investments in China. In the quarter, external liabilities grew by USD 170.9 billion net. To be specific, FDI grew by USD 73 billion net, securities investment in China rose by USD 43.8 billion net; and other investments in China such as non-resident deposits attracted and overseas loans obtained jumped by USD 54.4 billion net. The receipts and payments under the current account were further balanced. In the first quarter, the current account registered a deficit of USD 34.1 billion. The surplus under trade in goods shrank as imports outpaced exports. Driven by the higher deficit under transportation and travel, trade in services recorded an increased deficit. The balance of the current account contributed -1.1% to China's GDP, which was within the reasonable range though. Reserve assets rose. In the first quarter, China witnessed an increase of USD 26.2 billion in reserve assets as a result of BOP transactions (excluding non-trading factors such as foreign exchange rates and prices), versus a decrease of USD 2.6 billion a year earlier. In particular, foreign exchange reserves went up by USD 26.6 billion and its reserve position in the IMF decreased by USD 400 million. Q: What would you say about China's international investment position for March 2018? A: As at the end of March, China's international investment position remained robust, with external assets and liabilities rising from a year earlier. China recorded USD 1.5725 trillion in net external assets as at the end of March. To be specific, China's external assets amounted to USD 7.0252 trillion and its external liabilities hit USD 5.4527 trillion, up by 1.4% and 6.7% quarter on quarter respectively (same below). External assets went up. Specifically, direct investment assets rose by USD 24.5 billion or 1.7%; securities investments picked up by USD 17.3 billion or 3.5%; financial derivative assets perked up by USD 1.8 billion or 30.1%; other investment assets climbed by USD 51.5 billion or 3.0%; and reserve assets increased by USD 4.4 billion or 0.1%. External liabilities rose. Direct investment liabilities rose by USD 165.5 billion or 5.7%, owing to higher direct investments of foreign investors in the Chinese market, as well as foreign exchange rate conversion along with RMB appreciation; securities investment liabilities increased by USD 109.6 billion or 10.5%, as a result that foreign investors increased their holding of securities issued by China domestically and globally, as well as of value reassessment; financial derivative liabilities grew by USD 700 million or 20.4%; and other investment liabilities went up by USD 65.3 billion or 5.6%. Looking at the items, we found from external assets that direct investment assets reached USD 1.4974 trillion, 21% of total assets; securities investment assets amounted to USD 514.5 billion, 7% of total assets; financial derivative assets were USD 7.8 billion, 0.1% of total assets; other investment assets reached USD 1.7652 trillion, 25% of total assets; and reserve assets hit USD 3.2403 trillion, 46% of total assets. Of external liabilities, direct investment liabilities hit USD 3.0670 trillion, 56% of total liabilities, making it No. 1 in external liabilities; securities investment liabilities reached USD 1.1535 trillion, 21% of total liabilities; financial derivative liabilities were USD 4.1 billion, 0.1% of total liabilities; and other investment liabilities amounted to USD 1.2281 trillion, 23% of total liabilities. 2018-06-29/en/2018/0709/1444.html
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The State Administration of Foreign Exchange (SAFE) has recently disseminated the data on banks' foreign exchange settlement and sales and banks' foreign-related receipts and payments for customers for April 2018. Its press spokesperson answered media questions on recent cross-border capital flows. Q: Could you brief us on China's cross-border capital flows for April 2018? A: China's foreign exchange market remained stable in April. First, banks recorded a surplus of USD 10.6 billion in their foreign exchange settlement and sales in the month, and an accumulated deficit of USD 7.6 billion for January to April, indicating a relative equilibrium in the supply and demand in the foreign exchange market. Second, non-banking sectors such as enterprises registered a deficit of USD 9.9 billion in foreign-related receipts and payments in the month, and an accumulated surplus of USD 800 million for January to April, suggesting relevant market participants have maintained balanced cross-border capital flows in the year to date. In particular, a surplus of USD 900 million was recorded in foreign-related foreign exchange receipts and payments in the month. Third, the balance of China's foreign exchange reserves declined in the month, due to foreign exchange rate conversion and asset price correction. All these showed that the foreign exchange market has been operated stably. Major items on the supply and demand in the foreign exchange market presented a momentum for stable and orderly growth. First, trade in goods remained a major supply item of foreign exchange. The non-banking sectors like enterprises reported a surplus of USD 30.6 billion in foreign exchange settlement and sales under trade in goods in April, up by 84% month on month, which was generally aligned with the balance of foreign trade reported by the Customs and its movement trends. Second, a basic balance with slight earnings was registered in foreign exchange settlement and sales under the capital and financial account. In the month, the non-banking sectors recorded a surplus of USD 2.3 billion in foreign exchange settlement and sales under the capital and financial account, down by 42% month on month. Third, the deficit in foreign exchange settlement and sales under trade in services for enterprises and individuals dropped slightly but stably. In the month, the deficit was USD 17.8 billion, down by 19% month on month and by a slight 2% year on year. Foreign exchange purchases by individuals stayed steady. In the month, the amount of the contracts signed for forward foreign exchange settlement and sales rose by 1.6 and 3.1 times year on year respectively, leading to a surplus of USD 5 billion, indicating risk aversion associated with foreign exchange rate was remarkably strengthened under the impact of two-way fluctuations of the RMB exchange rate. Since the beginning of April, the global financial markets have witnessed heightened volatility. The USD exchange rate and interest rate were strengthened, emerging markets were under heavier pressure from capital outflows and currency depreciation, but China's cross-border capital flows stayed steady, indicating China's economic fundamentals have played a fundamental role in stabilizing the expectations of the foreign exchange market. Going forward, as China's economy continues to perform stably, China's foreign exchange market will adapt better to the changes in external environment and continue with the rational and balanced landscape of cross-border capital flows. 2018-05-18/en/2018/0613/1439.html
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The State Administration of Foreign Exchange (SAFE) has recently disseminated the data on banks' foreign exchange settlement and sales and banks' foreign-related receipts and payments for customers for May 2018. Its press spokesperson answered media questions on recent cross-border capital flows. Q: Could you brief us on China's cross-border capital flows for May 2018? A: China's cross-border capital flows stay stable currently. In May, banks registered a surplus of USD 19.4 billion in foreign exchange settlement and sales, as a result that companies and individuals adjusted their domestic assets in RMB and foreign currencies as expectations of foreign exchange remained stable. The non-banking sector like domestic companies posted a deficit of USD 7.4 billion in foreign-related receipts and payments, 26% lower than that of April, while foreign-related foreign exchange receipts and payments recorded a surplus of USD 2.6 billion, which was relatively balanced. The balance of foreign exchange reserves fell by USD 14.2 billion in May, owing to the combined impact of depreciation of the non-USD currencies against the US dollars and higher asset prices. The domestic foreign exchange market continued stable operation. Cross-border capital flows through major channels grew stably and remained balanced. On the one hand, trade in goods remained as the major channel for net cross-border capital inflows and foreign exchange supply. In May, banks' foreign-related receipts and payments under trade in goods for customers (customs coverage) was in surplus and picked up by 42% month on month; banks' foreign exchange settlement and sales under trade in goods for customers was also in surplus and climbed by 32% month on month. The foreign-related receipts and payments and foreign exchange settlement and sales under direct investment and portfolio investment of domestic non-banking sector such as domestic companies remained in surplus. On the other hand, due to seasonal factors, companies' purchases of foreign exchange under returns of investment and individuals' purchases of foreign exchange both rose. In May, foreign exchange purchased under ROI neared USD 7 billion, up by 98% month on month; and foreign exchange purchased by individuals perked up by a slight 2% month on month but fell by 10% year on year. Moreover, as companies' risk aversion associated with foreign exchange rates became stronger, the amounts of the contracts signed for forward foreign exchange settlement and sales grew by 5% and 22% month on month respectively, or rose 1.3-fold and twice year on year. Banks' forward foreign exchange settlements and sales recorded a surplus of USD 1.7 billion, suggesting companies' overall expectations of foreign exchange rates remained stable. The global financial markets have continued to be volatile since May, with some emerging economies struggling with capital outflows and currency depreciation. Nevertheless, China's economy has stayed stable with a strong momentum for growth. The market expectations have been stabilized and changes in external environment have been dealt with, providing a fundamental guarantee for the stable operation of China's foreign exchange market. 2018-06-19/en/2018/0709/1443.html