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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 September 2017. Its press spokesperson answered media questions on relevant issues. Q 1: Could you brief us on the characteristics of China's cross-border capital flows in the first three quarters of this year? A: China's cross-border capital flows found an equilibrium in the first three quarters, and the supply and demand of foreign exchange has been balanced recently. The main characteristics are as follows: First, the deficits in banks' settlement and sales of foreign exchange and in their foreign-related receipts and payment contracted significantly. In the first three quarters, the deficit in banks' settlement and sales was USD 112.9 billion, down by 54% year on year, versus a deficit of USD 3.8 billion in August, and a surplus of USD 300 million in September. In the same period, banks' foreign-related receipts and payments for customers recorded a deficit of USD 111.5 billion, down by 56% year on year, compared with a deficit of USD 3.5 billion in August, and a further deficit of USD 1.7 billion in September. Second, the sales rate of foreign exchange plummeted on a year-on-year basis and corporate demand for foreign exchange financing was on the rise. In the first three quarters, the foreign exchange sales rate that measures the motives of companies for purchasing foreign exchange, or the ratio of customers' purchase of foreign exchange from banks to customers' foreign-related foreign exchange payments, reached 66%, down by eight percentage points year on year. In particular, the rate was 68%, 67% and 63% in the first, second and third quarters respectively, suggesting companies are more sensible in buying foreign exchange, and have conducted foreign exchange financing based on demand, with their purchases of foreign exchange to service debt becoming a rarer case. The domestic outstanding foreign exchange loans by the end of September dropped slightly from the end of the previous year, and went down by more than USD 70 billion year on year. Third, the sales settlement rate rose on a year-on-year basis while maintaining stability, and companies' and individuals' desire to hold foreign exchange was weakened. In the first three quarters, the sales settlement rate that measures the desire to settle foreign exchange, or the ratio of customers' sales of foreign exchange to banks to customers' foreign-related foreign exchange receipts was 63%, up by two percentage points year on year. The ratio was 62%, 63% and 64% in the first, second and third quarters respectively. As for companies' domestic foreign exchange deposits, the balance rose by nearly USD 40 billion in the first quarter, compared with an increase of USD 9 billion in the second quarter and a decrease of USD 25.3 billion in the third quarter. According to the individuals' domestic foreign exchange deposits, the balance rose slightly by USD 300 million in the first quarter, versus a deficit of USD 2 billion in the second and third quarters respectively, indicating a weaker desire to hold foreign exchange among domestic market participants, and a rise in using self-owned foreign exchange in making external payments. Fourth, banks' forward foreign exchange sales and settlement recorded a surplus. In the first three quarters, the value of foreign exchange contracted for forward settlement by banks for customers grew 1.2 times year on year, while that of foreign exchange contracted for forward sales dropped by 5%, leading to a surplus of USD 7.7 billion, compared with a deficit of USD 58.1 billion for the same period last year, indicating markedly weaker expectations of RMB depreciation, and the demand for forward foreign exchange settlement and sales was adjusted. Fifth, the foreign exchange market recorded a basic equilibrium between supply and demand, boosting the balance of foreign exchange reserves to rise continuously. As at the end of September, China's balance of foreign exchange reserves hit USD 3.1085 trillion, up by USD 98 billion from the end of 2016. In particular, the balance of foreign exchange reserves went up for eight consecutive months from February to September. Q2: Could you explain why China's cross-border capital flows have been further balanced recently? What would you say about the prospects? A: China's cross-border capital flows have been increasingly balanced since the beginning of this year, which indicates the developments and changes in the economic and financial environment both at home and abroad. Firstly, China, perseverant in implementing new development concepts in building its economy, deepens the supply-side structural reform, enhances the quality and benefits of developments, and optimizes its economic structure, leading to an obvious trend of more stable economy with a good momentum for growth and stronger internal foundation. Specifically, the new open economic system has been refined, the reform and opening up measures in the financial market have been implemented and the equilibrium of cross-border capital flows has been boosted, including the optimization and improvement of the RMB exchange rate market formation mechanism, introduction of a series of policies for fueling the growth of foreign-owned enterprises, the official launch of the Bond Connect between mainland China and Hong Kong, as well as the inclusion of A shares in the MSCI Emerging Markets index. Secondly, the global economy continues to recover, and the financial markets have been less fluctuating, suggesting a stable external environment. The latest projections from the International Monetary Fund (IMF) show that the global economy will grow at a rate of 3.6% in 2017, 0.4 percentage point faster than in 2016. Moreover, although the FED has raised the interest rates for two times thus far and plans to shrink the balance sheet, market expectations are stable, and the USD exchange rates have been depreciating since the beginning of this year. Going forward, China's cross-border capital flows will continue to stay stable, which is supported by three fundamentals. Firstly, the economic fundamentals will be stronger. Since the beginning of this year, international organizations have revised upward their projections of China's economy for 2017 many times. The IMF, for example, increased its expectations from 6.5% that was projected at the beginning of this year to the current 6.8%, and the World Bank, from 6.5% to 6.7%, denoting the international community is more optimistic about China's economy. China will continue to implement the new development concepts and build a modern economic system to boost the sustained and healthy development of the economy. Secondly, the policy fundamentals will provide guarantee. China will participate more in and boost economic globalization and developed a higher-level open economy. On the one hand, along with the improving business environment in China and the implementation of opening up policies, foreign capital inflows will continue to stay stable. On the other hand, the domestic bond and stock markets will cement their ties with global markets and relevant facilitation measures will be introduced, which will be helpful to promote overseas investors to invest in the domestic capital market. Thirdly, the market fundamentals will be strengthened. The enhancement of the RMB exchange rate formation mechanism, further diversified market participants, and weaker expectations of one-way sustained appreciation and depreciation will help to curb the significant fluctuations of cross-border capital and ensure the overall equilibrium between supply and demand of foreign exchange. The above fundamentals will continue to play a fundamental role in the future. In particular, after the success of the 19th CPC National Congress, China will secure a decisive victory in building a moderately prosperous society to achieve its first centennial goals and open up a new chapter to build a modern socialist country with Chinese characteristics to move on to achieve its second centennial goals. Under such circumstances, there surely will be a stronger confidence in the long-term economic and social development of China in both domestic and overseas markets, and a more solid foundation for stable cross-border capital flows in China. Q3: What impact will the Fed's shrinking of the balance sheet on China's cross-border capital flows? A: The Fed's interest rate hikes and shrinking of the balance sheet will not fundamentally shake the stability of China's cross-border capital flows. Since the Fed's first interest rate hiked at the end of 2015, China has witnessed a process from outflows to equilibrium in its cross-border capital flows. The main causes are: First, a gradual process will remain as the main characteristics of the Fed's boost to the normalization of its monetary policy. Since the Fed began to raise the interest rates, the gradual process has proved to have weakened the impact on the markets. After the September FOMC meeting, the chair of the Fed stressed in answering media questions that "the balance sheet will be shrunk in a gradual and predictable process". As a matter of fact, this accords with the economic and financial performance in the US. Given that the US' long-term economic growth prospects remain weak, an in-depth analysis shall be required on the impact of the Fed's monetary policy adjustment on its economy; the US' inflation has been low with fluctuations recently; and the rapid growth in the US' asset prices in recent years has drawn wide concern in the market that the fast adjustment of the Fed's monetary policy will prick the asset bubble. Second, the US' interest rates and exchange rates are exposed to more diversified factors, including the Fed's monetary policy adjustment. As for interest rates, after the first interest rate hike at the end of 2015, the Federal Funds rate rose by one percentage point overnight, but the longer-term interest rates have grown in a descending order, indicating market interest rate will also be impacted by the long-term prospects of economic growth. As for foreign exchange rates, there are complex contributing factors, such as the US economic performance, and the economic and financial conditions in other major economics, in addition to the Fed's monetary policy. For example, during the Fed's balance sheet expansion, the USD exchange rate did not fall continuously, but featured two-way fluctuations; but since the beginning of this year, the Fed has raised interest rates for two times, but the USD exchange rate has depreciated. Third, China has been stronger in adapting and responding to the changes in external environment. Firstly, China still has various fundamental advantages, such as relatively higher economic growth, a stable big picture, robust financial market, surplus under the current account, and adequate foreign exchange reserves. Secondly, China's ability to make response has been strengthened, such as a more remarkable momentum for growth in China's economy while maintaining stability, further opening up of domestic markets, enhanced RMB exchange rate formation mechanism, and more sensible investing and financing activities among market participants. Q4: Since the beginning of this year, China has witnessed strengthened elasticity in two-way fluctuations of the RMB exchange rate. Do you have any ideas on hedging against exchange rate risk? Will the SAFE enhance relevant education and training? A: As the RMB exchange rate is increasingly volatile, exchange rate risk management is more crucial to companies' production and operation. But some domestic enterprises have to raise their awareness of hedging against exchange rate risks: firstly, exchange rate risk shall be looked at in an objective manner. Some enterprises lack the concept of risk neutrality, and are used to betting on unilateral direction such as appreciation or depreciation, thus replacing precise risk management with subjective market judgment. Secondly, an accurate understanding of hedging shall be developed. Some enterprises are reluctant to pay for hedging, or use hedging as a profit tool, neglecting its essential function of risk aversion by locking up the impact of exchange rate uncertainties on companies' profits from primary business. The SAFE will continue to guide the market to accurately understand exchange rate risk and improve exchange rate risk management. Firstly, boosting the in-depth development of the foreign exchange market by supporting financial institutions to make innovations to serve the real economy and foreign exchange products that adapt to the market demand. Secondly, guiding banks in prudential operations and urging banks to ensure customer risk education and management. Thirdly, guiding enterprises to build an accurate awareness of exchange rate risk, develop an accurate understanding of exchange rate risk aversion instruments, and hedge exchange rate exposure, avoiding deviation from principal business and reality. Our experience and recommendation of corporate exchange rate hedging: enterprises shall adapt to the normal of two-way fluctuations of RMB exchange rate, change the uncertainties into certainties of two-way fluctuations through hedging, with a focus on primary business; enterprises shall understand their transactions, valuate derivatives before transaction and decide on the level of risk restriction; enterprises shall also engage in proper hedging, regarding derivative deals as the instruments to lock up risks rather than a way to make money. For enterprises, hedging against foreign exchange rate risk through RMB foreign exchange derivatives requires continuous education on risks to investors, and also is a process of learning from doing and accumulation. Q5: As China's cross-border capital flows are being stabilized with a good momentum, what changes will take place to the orientation of policies for foreign exchange administration? A: Going forward, foreign exchange authorities will get united around the CPC Central Committee with Comrade Xi Jinping at its core and implement the gist of the 19th CPC National Congress. They will support the unified leadership of the CPC Central Committee on finance and carry out the decisions and plans of the CPC Central Committee and the State Council. With a focus on serving the real economy, guarding against financial risks and deepening financial reform, they will strive to enhance cross-border trade and investment facilitation, boost sustained and healthy economic development, guard against cross-border capital flow risks, and safeguard China's economic and financial security, so as to make great contribution to the fulfillment of the two centennial goals and the realization of the Chinese dream of the great renewal of the Chinese nation. Two basic principles shall be adhered to in foreign exchange administration: first, foreign exchange administration shall serve the real economy and the reform and opening up, and support and boost the two-way liberalization of the financial market to enhance trade and investment facilitation. Second, efforts shall be made to guard against risks arising from cross-border capital flows, protect the macro-economy and financial stability from being impacted by disorderly and high-intensity cross-border capital flows and maintain the stability of the foreign exchange market, in a bid to create a healthy, benign, and stable foreign exchange market environment for reform and opening up. Four basic connotations shall be stressed on the orientation of policies: first, adhering to reform and opening up and refining the foreign exchange administration framework to further promote trade and investment facilitation and ramp up the efficiency and level of foreign exchange administration in serving the real economy. Second, stably realizing capital account convertibility to drive reform and opening up in finance in an active and prudent way. Third, establishing a macro-prudential administration and micro market regulation system for cross-border capital flows, and cracking down on foreign exchange irregularities to maintain China's financial stability and economic security. Fourth, refining the RMB exchange rate formation mechanism to drive the in-depth development of the foreign exchange market. Efforts shall be made to preserve and grow the value of foreign exchange reserves while ensuring the security and liquidity of foreign exchange reserves. 2017-10-19/en/2017/1019/1377.html
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On the afternoon of September 28, 2017, the Theory Study Central Team of the CPC Leadership of the State Administration of Foreign Exchange (SAFE) got the opportunity of celebrating the 80th anniversary since On Practice and On Contradiction were published to organize the study on philosophy and its use, along with the implementation of the gist of the National Financial Work Conference and of the speech delivered by Secretary General Xi Jinping on July 26, as well as his remarks on Party governance based on systems and regulations and intra-Party regulations and systems. At the study, which was chaired by Pan Gongsheng, Secretary of the CPC Leadership and Administrator of the SAFE, members of the CPC Leadership had in-depth discussions and exchanges concerning foreign exchange administration and thinking. Attendees of the study included officials from relevant departments of the SAFE Head Office. At the study, comprehensive and in-depth learning and discussions were held on the theoretical contributions and contemporary value of Marxist philosophy against the background of the production of On Practice and On Contradiction. The CPC Leadership of the SAFE believes that On Practice and On Contradiction by Mao Zedong are great accomplishments based on China's revolution and traditional philosophy, provide a significant philosophical basis for Marxist philosophy with Chinese characteristics, and help CPC members build a scientific worldview and methodology, playing a significant part in the history of Chinese revolution, or even in the history of the CPC, and therefore will serve a guiding role in building a socialist economy with Chinese characteristics. Since the 18th National Congress of the Communist Party of China, the CPC Central Committee with Comrade Xi Jinping at its core has focused on pressing ahead with the supply-side structural reform, and enriched and refined the new concepts, ideas and strategies on governing China, achieving remarkable progress that is of great practical and historical importance in reform, development, and stability, internal politics, diplomacy and national defense, and governance of the CPC, the country and its military forces, and making breakthroughs in reforms in key areas and links. These new practices that integrate Marxism with China's reality give a full display of the strong vitality of On Practice and On Contradiction in modern times. The SAFE's CPC Leadership stresses that CPC organizations and leaders at various levels develop a full understanding of the practical significance of studying philosophy and its use, and study classics such as On Practice and On Contradiction, to raise their awareness, sum up experience and make innovations. They shall have an in-depth understanding of the theoretical principles of Marxist epistemology and material dialectics, and of the underlying meanings of "seeking truth from facts"," proceeding from reality in all things we do", "no investigation, no right to speak", and "analysis of contradictions", to base their beliefs and convictions on the rational recognition of sciences and theories. They shall also have a profound knowledge of the rationales, basic views and methodology of Marxist philosophy, and further their understanding and grasp of the gist of important speeches by Secretary General Xi Jinping and the stance, views and methodology of Marxism laid out in the new philosophy, thinking and strategies on state governance by the CPC Central Committee. By following the experience of integrating Marxism with China's reality, they shall study and use philosophy, become more conscious of emancipating their minds and seeking truth from facts, and more ready to do things with critical thinking, and integrate Marxist stances, views and methodology with the theories, directions, guidelines and policies of the CPC and implement them in foreign exchange administration. They shall study and implement the gist of the National Financial Work Conference and understand the accomplishments in financial reform and developments in China. With a focus on "serving the real economy, guarding against financial risks and deepening financial reform", they shall analyze and understand the current economic and financial conditions, capture the principal contradictions and principal aspects of contradictions in social and economic developments, and strengthen critical and strategic thinking, to adapt to the new normal of foreign exchange administration and be poised for the upcoming 19th National Congress of the Communist Party of China with excellent performance. As emphasized by the CPC Leadership of the SAFE, the remarks of Secretary General Xi Jinping on Party governance based on systems and regulations address major issues regarding the building of intra-Party regulations and systems under the new circumstances, and show the progress of the building of intra-Party regulations and systems, key measures adopted, accomplishments already made and fresh experience accumulated by the CPC Central Committee with Comrade Xi Jinping at its core. These remarks enrich and develop the Marxist theory of Party building and provide a significant reference for enhancing the building of intra-Party regulations and systems. Party organizations of the SAFE at various levels and all Party members shall develop a comprehensive and systematic understanding of the thoughts of Xi Jinping on governing the CPC based on systems and regulations, and of the significant impact of intra-Party regulations and systems on governing the CPC based on systems and regulations, enhance the study and promotion of intra-Party regulations and systems, and boost the effective implementation of intra-Party regulations and systems so as to deepen the comprehensive and strict governance of the CPC. According to Pan Gongsheng, in the run-up to the 19th National Congress of the Communist Party of China, foreign exchange authorities shall act in strict compliance with the political discipline and norms, and raise the "four awareness" to become highly aligned with the CPC Central Committee with Comrade Xi Jinping at its core in thoughts, politics and action, and firmly uphold the authority of the CPC Central Committee. They shall intensify monitoring and analysis of foreign exchange markets and cross-border capital flows to maintain the stable performance of foreign exchange markets. They shall also keep strict confidentiality, ensure national security, and pay attention to safe production to safeguard stable operation of all business systems for foreign exchange. They shall pay close attention to market expectation management to effectively keep market confidence stable. Persistent efforts shall be made to clean up undesirable work styles, uphold integrity, combat corruption, and keep alert to corruption. The leaders shall strictly perform their responsibilities in shift work and leading teams on different shifts, to ensure efficient operation of the emergency mechanism. Moreover, a prior plan shall be made to get well prepared for the in-depth study and implementation of the gist of the 19th National Congress of the Communist Party of China. 2017-09-29/en/2017/0929/1335.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 November 2017, and 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 November? A: China's foreign exchange market continued to see equilibrium between supply and demand in November. According to the foreign exchange reserves data released on December 7, the balance of foreign exchange reserves as at the end of November amounted to USD 3.1193 trillion, up by USD 10.1 billion month on month, recovering for 10 consecutive months, primarily due to the basic equilibrium between domestic demand and supply of foreign exchange. As for the composition of the demand and supply of foreign exchange, a deficit of USD 7.5 billion was recorded in foreign exchange sales and settlements in November. On the other hand, to mitigate risks and preserve value, enterprises' net sales of foreign exchange in RMB-foreign exchange derivatives markets including forwards and options rose in the month, leading to a decrease of USD 4.1 billion in foreign exchange position of banks for the month, hence increasing the supply of foreign exchange. With other factors taken into consideration, the supply and demand of foreign exchange in China found a basic equilibrium in the month. In addition, foreign-related receipts and payments of non-banking sectors such as companies and individuals registered a deficit of USD 12.9 billion for the month, of which, the receipts and payments of foreign exchange were relatively balanced with a small deficit of USD 1.4 billion. Cross-border capital flows through major channels were stable and reasonable. First, the willingness of market participants to settle foreign exchange was strengthened while their desire to purchase foreign exchange was weakened. In November, the ratio of foreign exchange settlement by bank customers to foreign-related foreign exchange receipts reached 61.0%, up by 5.4 percentage points year on year; the ratio of foreign exchange purchases by bank customers to foreign-related foreign exchange payments was 62.7%, down by 9.5 percentage points year on year. Second, foreign exchange sales and settlement under trade in goods remained in surplus and capital inflows and foreign exchange settlement under FDI climbed. In November, foreign exchange sales and settlements under trade in goods of banks for customers recorded a surplus of USD 15.7 billion, up by 29% year on year; foreign exchange capital settlement under FDI almost doubled on a year-on-year basis. Third, foreign exchange purchased by individuals continued to fall stably. In November, foreign exchange purchased by individuals plummeted by 44% year on year and was 15% lower than the monthly average of January-October 2017, indicating a low level in recent years. China's economy continued to perform stably with good momentum for growth, providing a fundamental guarantee for stable cross-border capital flows. In November, foreign demand continued to be strengthened and domestic demand remained robust, driving USD-denominated exports to rise by 12% year on year, a sub-high since the beginning of this year; and China's imports grew by 18%; official PMI was 51.8, up by 0.2 percentage point month on month, falling within the expansion range for 16 straight months. Following the general work guideline of making progress while maintaining stability and the new concept for development, China will focus on the supply-side structural reform going forward, pressing ahead with the efforts of stabilizing growth, promoting reform, adjusting structure, benefiting the public and guarding against risks, with the aim of boosting the sustainable and healthy development of the economy and society and laying a solid foundation for the basic equilibrium of China's balance of payments in the medium and long term. 2017-12-18/en/2017/1218/1387.html
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Q: The latest data on foreign exchange reserves disseminated by the People's Bank of China show China's foreign exchange reserves as at the end of September 2017 went up by USD 17 billion month on month. Could you brief us on the causes behind such a change? A: As at the end of September, China posted USD 3.1085 trillion in foreign exchange reserves, up by USD 17 billion or 0.5% month on month, marking the eighth consecutive month of increases. In September, China's cross-border capital flows and trading behaviors of domestic and foreign market participants were further stabilized and balanced. In global financial markets, major exchange rates and asset prices went through ups and downs, and the overall foreign exchange reserve investments rose, boosting foreign exchange reserves to pick up. In the first three quarters, China's foreign exchange reserves bottomed out in January 2017 and recorded increases for the eighth-straight month in September, representing the longest period for continuous increases since June 2014. The foreign exchange reserves as at the end of September rose by USD 98 billion or 3.3% from the beginning of 2017, while those for the same period of the previous year fell by USD 164 billion. Overall, the supply and demand in the domestic foreign exchange market have found an equilibrium, non-USD currencies appreciate against US dollars in the global financial markets, and asset prices rise. All of these have contributed to the recovery of foreign exchange reserves. Q: What would you say about the recovery of China's foreign exchange reserves for the eighth-straight month? What will be the future trends of foreign exchange reserves? A: Since the very beginning of this year, China's economic and financial performance have stayed stable with a good momentum for growth, providing a fundamental guarantee for the continued and stable recovery of China's foreign exchange reserves. In the first three quarters, China's economy grew within a reasonable range, its structural adjustment was deepened, and quality and benefit kept rising, indicating its economy is stable with a good momentum for growth. The RMB exchange rate recorded two-way fluctuations and grew while maintaining stability, the cross-border capital flows were stable and orderly, and the balance of payments was basically balanced. All of these have facilitated the stable recovery of foreign exchange reserves. Going forward, as the domestic economy remains stable with a good momentum for growth, the reform and opening up goes deeper, and market expectations become further stabilized, China will see a more solid foundation for stable cross-border capital flows. As the three tasks, namely, finance serving the real economy, guarding against financial risks and deepening the financial reform, are pressed ahead with in an orderly manner, China's economy and finance will achieve benign circulation and healthy development, which will continue to promote the equilibrium and stability in the balance of payments and foreign exchange reserves. 2017-10-09/en/2017/1009/1376.html
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Q: The foreign exchange reserves data recently disseminated by the People's Bank of China show that China's foreign exchange reserves for November 2017 rose by USD 10.1 billion month-on-month. Could you explain such a rise in foreign exchange reserves? What will be the future trends in foreign exchange reserves? A: As at the end of November 2017, China posted USD 3.1193 trillion in foreign exchange reserves, up by USD 10.1 billion or 0.3% month-on-month, marking the tenth consecutive month of increases. In November, China's cross-border capital flows and trading behaviors of domestic and foreign market participants remained stable and balanced; the global financial markets went through slight fluctuations, the foreign exchange rates of major non-USD currencies rose and the asset prices changed, thus leading to the rise in China's foreign exchange reserves. Since the beginning of this year, China's economy has developed steadily with a remarkable momentum for growth, restructuring has gone deeper, the shift between new and old dynamics has sped up, and the quality and benefits have kept increasing, providing a strong boost to more stable and balanced cross-border capital flows. The robust balance of payments has provided a solid guarantee for the continuous and stable recovery of foreign exchange reserves. Looking ahead, the success of the 19th CPC National Congress has strengthened the confidence of domestic and foreign market participants in China's economic development, indicating stronger foundation and conditions for China to sustain stable economic development with a strong momentum for growth. Along with the deepening of the interest rate and foreign exchange rate market reforms, market expectations will be improved, suggesting the foundation for the equilibrium of the balance of payments and stable cross-border capital flows will be solidified, which will be favorable for the overall stability of foreign exchange reserves. 2017-12-07/en/2017/1207/1385.html
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FILE: Template on International Reserves аnd Foreign Currency Liquidity(аs аt Aug 31 2017) 2017-09-30/en/2017/0930/1330.html
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FILE: Template on International Reserves аnd Foreign Currency Liquidity(аs аt Oct 31 2017) 2017-11-30/en/2017/1130/1347.html
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To implement the requirements of the State Council on streamlining administration and delegating power to lower levels, combining regulation and deregulation, and optimizing services, as well as other reform measures, and further promote trading policy facilitation, the State Administration of Foreign Exchange (SAFE) has continued streamlining regulations, abolishing and nullifying more than 900 copies of documents on foreign exchange administration since 2009. The SAFE has recently released the Circular of the State Administration of Foreign Exchange on Announcing 6 Regulatory Documents on Foreign Exchange Administration Abolished and Nullified(Huifa No. 25 [2017]), to step up efforts to streamline regulations, announcing two regulatory documents on foreign exchange administration abolished and four invalid. The six regulatory documents involved individual foreign exchange-related business and the construction of the foreign exchange system. The contents abolished and made invalid were abolished in accordance with the requirements of the ongoing reform of "delegation, regulation and service" such as all-in-one certificates, or were substituted by new regulatory documents on relevant regulatory requirements, or were about temporary work that is not in line with current management practices. But none of them involved new policy adjustment. Next the SAFE will continue to implement the requirements on the reform of "delegation, regulation and service", refine the regulatory system of foreign exchange, deepen the streamlining and integration of regulations, and enhance policy transparency, so as to better serve the development of the real economy. 2017-12-07/en/2017/1207/1384.html
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Qualified Domestic Institutional Investors（QDII）with Investment Quotas Granted by the SAFE 2026-05-29/en/2019/0731/1537.html
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The State Administration of Foreign Exchange (SAFE) held a press conference on the foreign exchange receipts and payments for the first half of 2018 in the State Council Information Office on Thursday, July 19, 2018 at 10 am and answered press questions. Moderator Hu Kaihong: Good morning, ladies and gentlemen. Welcome to the press conference held by the State Council Information Office. Today we are very glad to invite Ms. Wang Chunying, Director of the Department of Balance of Payments of the State Administration of Foreign Exchange (SAFE). First of all, let’s welcome Director Wang to make an introduction. 2018-07-19 10:00:00 Wang Chunying: Good morning, everyone. Welcome to today's conference. I would first like to unveil foreign exchange receipts and payments for the first half of this year, and then answer your questions. In the first half of 2018, the global economic recovery has slowed down but maintained overall stability, and the fluctuation of the international financial market has increased.China's economic operation has maintained an overall stable trend with improved development. The results in transformation and upgrading have been outstanding and quality and efficiency have continued to improve. The exchange rate of RMB against US dollar fluctuates in both directions, and the exchange rate is expected to be basically stable. The SAFE adheres to the general tone of steadiness with progress, and further deepens the reform and opening-up of foreign exchange administration around promoting the formation of a new pattern of comprehensive opening-up. Overall, in the first half of 2018, China's cross-border capital flows were generally stable, and supply and demand in the domestic foreign exchange market were basically balanced. 2018-07-19 10:01:30 Wang Chunying: Banks settled foreign exchange in the amount of RMB 5.91 trillion (equivalent to USD 928.2 billion) and sold foreign exchange in the amount of RMB 5.82 trillion (equivalent to USD 914.4 billion) for the first half of 2018, with a surplus of RMB 88 billion (equivalent to USD 13.8 billion). The data on banks' foreign-related receipts and payments for customers show that banks' foreign-related receipts for customers amounted to RMB 10.86 trillion (equivalent to USD 1.71 trillion), and their external payments hit RMB 10.94 trillion (equivalent to USD 1.72 trillion), representing a deficit of RMB 74.6 billion (equivalent to USD 12.1 billion). China’s foreign exchange receipts and payments for the first half of the year present the following characteristics: First, banks’ foreign exchange settlement and sales turned from deficit to surplus, and deficit of foreign-related receipts and payments declined.In the first half of 2018, in US dollar terms, foreign exchange settlement by banks was up by 20% year on year, and foreign exchange sales by bank was up by 6%, resulting in a surplus of USD13.8 billion, from a deficit of USD93.8 billion in the same period last year;banks' foreign-related receipts for customers were up by 23% year on year, and the payments up by 17%, leading to a deficit of USD 12.1 billion, representing a decrease of 86% year on year. 2018-07-19 10:01:48 Wang Chunying: Second, the supply and demand of foreign exchange market maintained basic balance.Based on data on banks' foreign-related foreign exchange receipts and payments for customers, the first quarter and second quarter of 2018 registered a surplus of USD15.8 billion and USD4.6 billion respectively. Except for February and March, all other months achieved surplus;The foreign exchange settlement and sales registered a deficit of USD18.3 billion in the first quarter, which turned into a surplus of USD32 billion in the second quarter.Overall, China’s foreign exchange supply and demand maintained basic equilibrium in the first half of this year. 2018-07-19 10:03:54 Wang Chunying: Third, the foreign exchange sales rate dropped while foreign exchange financing of enterprises maintained general stability.In the first half of 2018, the foreign exchange sales rate which measures the willingness to buy foreign exchange, or the ratio of foreign exchange purchased by customer from banks to customer’s foreign-related foreign exchange payments was 64%, down by 4 percentage points from the same period last year. The ratio for the first quarter and the second quarter was 64% and 63% respectively, indicating that the willingness of enterprises to buy foreign exchange declined as a whole while foreign exchange financing became more stable.At the end of June 2018, the balance of cross-border trade financing denominated in foreign currencies for imports such as refinancing and forward L/C etc. of enterprises rose by USD12.6 billion from the end of last year, while banks’ balance of foreign exchange loans in China maintained basically stable as compared with that at the end of last year. Fourth, the foreign exchange settlement rate climbed, indicating market players were less willing to hold foreign exchange.In the first half, the foreign exchange settlement rate that measures the wiliness to settle foreign exchange, or the ratio of foreign exchange sold to banks by customers to their foreign-related foreign exchange receipts was 66%, up by 3 percentage points year on year. To be specific, the ratio was 62% and 70% respectively for the first and second quarter, indicating rising wiliness of market players to settle foreign exchange. At the end of June, the balance of domestic foreign exchange deposits of banks decreased by USD19.3 billion from the end of last year, while the same period last year registered an increase of USD41.4 billion. 2018-07-19 10:04:46 Wang Chunying: Fifth, bank’s forward foreign exchange settlement and sales registered a small deficit. In the first half of 2018, the value of forward foreign exchange settlement contracted by banks for customers was up by 91% year on year, while that of forward foreign exchange sales contracted was up by 163%, leading to a deficit of USD 24.8 billion in forward foreign exchange settlement and sales contracted with banks. Specifically, forward foreign exchange settlement and sales contracts posted a deficit of USD17.8 billion in the first quarter, a deficit of USD7 billion in the second quarter, with deficit narrowed by 60% quarter-on-quarter. Sixth, foreign exchange reserve maintained overall stability. As of the end of June 2018, affected by non-trading factors such as exchange rate conversion and asset price changes, the balance of China’s foreign exchange reserves stood at USD3,112.1 billion, down by USD27.8 billion from the end of 2017. These are the data unveiled and characteristics of China’s foreign exchange receipts and payments in the first half year. 2018-07-19 10:05:45 ModeratorHu Kaihong: Thank you, Director Wang. Please mention the news organization you represent before you ask questions. 2018-07-19 10:08:01 CCTV reporter: What changes have taken place in the situation of cross-border capital flows in the first half of this year? Could you tell us something about this change and how do you evaluate it? 2018-07-19 10:08:45 Wang Chunying: Thank you for your question. This year, especially since the second quarter, the international financial market has changed considerably. We see that the US dollar exchange rate has changed its previous downward trend, and the US dollar interest rates have also risen, some emerging economies have been relatively impacted, global trade frictions have intensified, risk aversion of markets has increased, and fluctuation of international capital markets has increased.Therefore, the complexity, fluctuation and uncertainty of the external environment have increased significantly. However, under this context, the domestic economy in the first half of the year has remained stable, opening-up has continued to deepen, the foreign exchange market has maintained a relatively stable pattern, and the overall performance has been outstanding. We can make two comparisons and share with you the situation of cross-border capital flows in China in the first half of this year. First of all, from the vertical comparison, China's foreign exchange market operation in the first half was more stable and balanced than that of previous years.On the one hand, there was a surplus in the banks' foreign exchange settlement and sales and cross-border foreign exchange receipts and payments, while there were relatively large deficit in the same period before.In the first half of this year, the surplus of banks' foreign exchange settlement and sales was USD13.8 billion, while for the first half of 2015 to 2017, the deficits were USD105.4 billion, USD173.8 billion and USD93.8 billion respectively.In the first half of this year, the surplus of banks' foreign-related receipts and payments for customers was USD20.4 billion while for the first half of 2015 to 2017, the deficits were USD22.8 billion, USD25.9 billion and USD14.3 billion respectively.From this perspective, both the foreign exchange settlement and sales and the cross-border foreign exchange receipts and payments witness surpluses, which have changed greatly compared with previous years. 2018-07-19 10:10:06 Wang Chunying: On the other hand, viewed from the vertical comparison, the two-way fluctuation of RMB exchange rate has intensified, market expectations have been reasonably differentiated, and the trading behaviors of market players have become more diversified.In the first half of this year, the exchange rate of RMB against the US dollar showed a two-way fluctuation of rising first and falling afterwards. The banks’ foreign exchange settlement and sales and cross-border receipts and payments in different months witnessed alternation of slight surplus and deficit, rather than the previous one-way change, which reflects the fact that market players tend to decide and arrange their cross-border receipts and payments as well as foreign exchange settlement and sales in light of their actual demands. 2018-07-19 10:21:12 Wang Chunying: Horizontal comparison shows that China's foreign exchange market and RMB exchange rate are relatively stable across the globe.In the first half of this year, the US dollar index rose by 2.7%, indicating that the currencies of major developed economies fell by 2.7% against the US dollar. EMCI fell by 7.3%; meanwhile the middle rate of RMB against the US dollar slightly fell by 1.2% and the CFETS of RMB slightly increased by 0.9%. During the turbulent period of emerging markets, because of the stable economic fundamentals, good balance of payments, the level of external liabilities within the safety range, and relatively abundant foreign exchange reserves, China has effectively responded to external shocks, and our cross-border capital flows have not been greatly affected. Therefore, both from vertical and horizontal comparisons, in the first half of the year, when the external environment fluctuation rises, cross-border capital flows in China have been generally stable, supply and demand in the foreign exchange market have been basically balanced, and the two-way fluctuation of RMB exchange rate has intensified. 2018-07-19 10:25:03 Reporter of People's Daily Overseas Edition: Under the background of Sino-US trade friction, will our pressure of cross-border capital outflow increase in the future?At the same time, how will the operation of the foreign exchange market be affected? 2018-07-19 10:30:32 Wang Chunying: Sino-US trade friction is a matter of great concern to all of us. We are also very concerned about it whose future evolution needs to be continuously observed.As regards impact on cross-border capital flows and foreign exchange market operation as you just mentioned, I would like to make a few comments. Firstly, from the perspective of China's economic fundamentals, China's economic resilience, adaptability and large space for maneuver are the solid foundation for the smooth operation of the foreign exchange market. At present, China's economic growth has shifted from mainly industry driven to industry and services driven, from mainly investment driven to investment and consumption driven, and from a major exporting country to a major exporting and importing country. All these changes have enhanced the stability and resilience of China's economy.Moreover, China's economy is now entering a stage of high-quality development, especially as the manufacturing industry chain is complete, and the transformation and upgrading is steadily advancing, China’s comparative advantage in the world will continue to exist and further consolidate. In the first half of this year, the national fixed assets investment (excluding farmers) increased by 6.0% year on year, of which the investment on high-tech manufacturing industry increased by 13.1% year on year, whose growth rate was 7.1 percentage points faster than that of the total investment.This is also directly related to the fact that we are in the high-quality development stage and our focus is on the upgrading of the manufacturing industry.In addition, the domestic market has huge potential, financial risks are generally controllable, foreign exchange reserves are sufficient, space for policy regulation is large, and we have conditions, capabilities and confidence to meet various challenges. 2018-07-19 10:31:38 Wang Chunying: Secondly, from the perspective of fundamentals of China's policy, adhering to the goal of reform and opening-up will create favorable conditions for the balanced flow of cross-border capital in China. This year marks the 40th anniversary of China's reform and opening up. When President Xi Jinping attended the Boao Forum in Asia in April, he once again demonstrated China's determination to expand its opening up. Recent relevant measures have been actively promoted. For example, in early June, the State Council issued a circular on the utilization of foreign capital, putting forward six measures: investment liberalization, facilitation, investment promotion and protection, regional opening up optimization, and promoting innovation and upgrading of national development zones, so as to further create a fair, transparent, convenient and more attractive investment environment.Moreover, for example, the 2018 version of Negative List of Foreign Investment Access issued at the end of June has reduced items from 63 to 48, and a series of major opening up measures have been introduced, including a substantial expansion of the opening up of services in the fields of finance, infrastructure, transportation, trade and circulation, a basic opening up of manufacturing industries and easing access to fields like agriculture and energy resources.In addition, the domestic capital market has been further opened up, and major international indices have gradually been incorporated into the stock market and bond market, which have shown relevant effects.In the first half of this year, the net cross-border capital inflows of foreign securities investment in China increased by two times over the same period last year. At present, the share of foreign investors in domestic stock market and bond market is less than 3% and 2%. Compared with the major developed countries and some emerging market economies, the proportion is low, and there is still much room for growth in the future. 2018-07-19 10:37:33 Wang Chunying: In addition, over the past few years, we have further accumulated management experience and enriched policy instruments in dealing with external pressures.The SAFE will continue to adhere to the general tone of steadiness with progress. On the one hand, the reform of foreign exchange administration will be deepened to promote the two-way opening up of financial markets and serve the new pattern of comprehensive opening up in China. On the other hand, the stability of the foreign exchange market will be maintained to guard against the risk of cross-border capital flows, safeguard the security, liquidity, value preservation and appreciation of foreign exchange reserves, and safeguard the national economic and financial security. Generally speaking, the economic and policy fundamentals closely related to the operation of China's foreign exchange market remain stable, and cross-border capital flows and the operation of China's foreign exchange market have conditions to maintain overall stability. 2018-07-19 10:43:52 Nikkei reporter: Deficit occurred in China's current account in the first quarter. What impact do you think it will have on China's cross-border capital flows? 2018-07-19 10:45:43 Wang Chunying: Thank you for your questions. In the first quarter of this year, China's current account witnessed slight deficit, but it has tended to be balanced.This change has drawn much concern so I would like to take this opportunity to share some views with you on this issue. First, in recent years, China's current account continued to reach basic equilibrium of receipts and payments, which it is still in.In 2016 and 2017, the ratio of surplus under the current account to GDP was 1.8% and 1.3% respectively. The ratio of surplus to GDP in some quarters was as low as 0.5%.This shows that in recent years, China's current account has reached a very stable range of receipts and payments, and a small surplus can easily turn into a small deficit in a certain period, both of which fall into the range of basic equilibrium. In practice, international studies have shown that whether the deficit under the current account continues to exceed about 5% of GDP is a very critical early warning indicator.Therefore, in the first quarter of this year, China's current account is still within a stable and healthy reasonable range. 2018-07-19 10:48:08 Wang Chunying: Secondly, the basic equilibrium of receipts and payments under the current account in China reflects the effect of domestic economy transforming to high-quality development, and it is also an important contribution to global economic rebalancing. Balance of payments is an external manifestation of the operation of the domestic economy. The current account status of the balance of payments mainly reflects the characteristics of two aspects of China's domestic economic development in recent years. On the one hand, it shows that substantial progress has been made in China's economic restructuring, and the role of domestic demand in economic growth has been significantly enhanced.According to the estimates of the National Bureau of Statistics, from 2008 to 2017, the annual contribution rate of domestic demand to China's economic growth reached 105.7%. Among them, final consumption expenditure has been the first engine of China's economic growth for five consecutive years, and the contribution rate of final consumption expenditure to economic growth reached 78.5% in the first half of this year. This shows that substantial progress has been made in China's economic restructuring; that is, the role of domestic demand in economic growth has been significantly enhanced.On the other hand, it reflects the continuous growth of residents' income and the upgrading of consumption. With the continuous improvement of people's living standards and the rapid rise of consumption, it is normal for people to increase their demand for imported goods, outbound tourism and studying abroad. In addition, China's balance of payments approaching basic equilibrium is also very important for global economic rebalancing. 2018-07-19 10:55:11 Wang Chunying: Thirdly, China's economic development model determines that it is impossible for China's current account to sustain a large deficit in the future.Looking from the history of economic development worldwide, most of the economies with developed manufacturing, such as Germany, Japan, Korea and Taiwan China, have maintained surplus under the current account for a long time, and the occurrence of deficit was rare or the duration of deficit was very short. If the surplus fell, it usually occurred in the stage of transformation and upgrading. China's manufacturing industry will be in a very important position in the national economy for a long time. It has a very mature manufacturing infrastructure. What cannot be ignored is that we have a large number of skilled workers, our industrial chain is relatively complete and our competitiveness in the world is still relatively strong. At present, we are in the process of transformation and upgrading from middle and low-end industries to middle and high-end industries. This upgrading will still help to maintain a reasonable surplus under trade in goods in the medium and long term. At the same time, China's consumption upgrading will gradually move from a fast rising period to a stable period. For example, the growth rate of rapidly increasing overseas tourism and studying abroad in recent years has stabilized, and this trend is also in line with international experience. 2018-07-19 10:58:53 Wang Chunying: Therefore, from the above aspects, China's current account balance will remain within a reasonable range in the future. 2018-07-19 11:05:06 Reporter of South China Morning Post: It is estimated that the Sino-US trade war will lead to capital outflow from China. If there is capital outflow, what measures will the SAFE take to cope with it? 2018-07-19 11:07:52 Wang Chunying: Preventing the risk of cross-border capital flows is an important task of foreign exchange authorities. We are highly concerned about the situation of cross-border capital flows.What you asked was a hypothetical question, but the current operation of our foreign exchange market is relatively stable.We have calculated the recent data performance; since June 25 this year, market fluctuations have increased, but from daily data of individual foreign exchange settlement and sales and cross-border capital flows of non-banking sector, it was far from reaching the period with higher pressure of capital outflow in 2015 and 2016, and the average deficit of individual foreign exchange settlement and sales was only 28% of the daily average on the month with highest pressure at that time. And the daily net outflow of cross-border capital was only 12% of the daily average on the month with highest pressure at that time.So your hypothesis didn't come up. 2018-07-19 11:08:56 Wang Chunying: To guard against the risk of cross-border capital flows, we continue to enrich our response plans and policy reserves, and always adhere to two basic considerations.The first is to deepen the reform of foreign exchange administration, promote the two-way opening up of financial markets and serve the new pattern of comprehensive opening up in China.The second is to maintain the stability of the foreign exchange market, guard against the risk of cross-border capital flows, safeguard the security, liquidity, value preservation and appreciation of foreign exchange reserves, and safeguard the national economic and financial security. In the long run, while accelerating the reform of key areas and links of foreign exchange administration, we will continuously improve and optimize macro-prudential management and micro-market supervision of cross-border capital flows.First, establishing a macro-prudential management system for cross-border capital flows, counter-cyclically adjusting short-term fluctuations in the foreign exchange market, and safeguarding the security of the financial system and the equilibrium of balance of payments.Second, improving the micro-regulatory framework of the foreign exchange market, cracking down on foreign exchange irregularities to maintain the order of the foreign exchange market. 2018-07-19 11:22:54 Wang Chunying: As for macro-prudential policy, first, the monitoring, early warning and response mechanism of macro-prudential management of cross-border capital flows should be established and improved.Secondly, the toolbox of macro-prudential management of cross-border capital flows should be enriched, which will be adjusted continuously according to the changing situation and open policies, including the risk reserve used in the past, and macro-prudential management policies focusing on banks and short-term capital flows. As for the supervision of micro-market, the first is to adhere to the verification of authenticity, compliance and legality, fulfill the obligations of anti-money laundering, anti-terrorist financing and anti-tax avoidance, and protect the legitimate rights and interests of market players. The second is to maintain the stability and consistency of policies across cycles. The third is to adhere to the principle of "leaving traces" in cross-border transactions and strengthen penetrating supervision. 2018-07-19 11:29:11 China Daily reporter: Since this year, the spreads between China and the United States have narrowed as a whole, and the Federal Reserve will continue to raise interest rates in the future. Will this put some pressure on China's capital outflow? 2018-07-19 11:34:25 Wang Chunying: Thank you for your question. The impact of interest rate spreads on cross-border capital flows needs to be analyzed and judged more comprehensively. Spreads do affect cross-border capital flows, but they are not the only or fundamental factor.We can cite several examples: First, in recent years, the interest rate of the US dollar has been significantly higher than that of the Euro zone and Japan, but international capital has not flowed from Europe and Japan to the United States continually, and the exchange rate of the US dollar has not continued to appreciate in the past few years.It shows that international capital needs to consider the comparison of economic growth expectations, monetary policy adjustment, and the resultant exchange rate changes, and also the decentralization of different assets.Secondly, historically, in order to curb capital outflow, many emerging economies raised interest rates by a large margin, even to tens of percentage points, but they failed to attract more capital inflows or retain domestic capital outflow. The related risks brought by economic vulnerability is a very important consideration for all kinds of investment capital.Thirdly, for most of the time period from 2006 to 2007, the interest rate of RMB in China was lower than that of US dollar. At that time, we were faced with continuous net cross-border capital inflows, which showed that factors such as domestic economic conditions, long-term investment prospects and RMB exchange rate expectations had significantly greater impact than that of spreads.So we say that spreads will affect cross-border capital flows, but they are not the only nor the most fundamental factor. 2018-07-19 11:35:38 Wang Chunying: Therefore, factors such as relatively stable economic fundamentals, still high comprehensive investment returns, and increasingly improving demand for RMB asset allocation will have a more important impact on China's cross-border capital flows. First, the uncertainties in the current international financial market have increased and investment risks have increased. However, China's economic fundamentals are generally stable with progress, and the overall social and political situation is stable. At present, China is in the deepening period of reform and opening up. A stable investment environment and huge market development space are still conducive to attracting investment. Secondly, the comprehensive return of overseas investment in China is still very high.According to the data of balance of payments, we estimate that the average return on investment of all kinds of capital coming to China in 2017 was 5.9%. Among them, the return on direct investment in China was higher, which was obviously higher than that of foreign direct investment in developed countries like Europe and America. Thirdly, China's securities market has been continuously opened up to the outside world. At present, RMB assets are still in the stage of low allocation in international capital investment. Just now, I mentioned that the market value of foreign investors in stock market and bond market is less than 3% and 2%, respectively, so there is great room for improvement in the future. Fourthly, the two-way fluctuation of the RMB exchange rate against the US dollar has increased, and it is a relatively stable and powerful currency in the global currency.According to the daily data released by the Bank for International Settlements, it is estimated that CFETS of RMB appreciated by 2.8% in the first half of this year, ranking 10th out of 61 currencies monitored by the Bank for International Settlements. 2018-07-19 11:38:36 Wang Chunying: In addition, the impact of the Federal Reserve raising interest rate on the long-term interest rate of the US dollar needs to be observed.Looking back on 2017, the Federal Reserve raised interest rates three times, but the yield of 10-year Treasury bonds remained basically unchanged. Market expectations of the U.S. economic outlook and other factors will affect its long-term interest rate movements. These are my views on your questions. Thank you. 2018-07-19 11:41:44 Economic Daily reporter: How has China's external debt changed since the beginning of this year, and would you please analyze the causes and risks of this change? 2018-07-19 11:44:47 Wang Chunying: According to the latest published data, at the end of March this year, China's total external debt balance reached USD 1,843.5 billion, an increase of USD132.9 billion over the end of last year. From the perspective of term structure, China's external debt structure has been further optimized, and the proportion of short-term external debt has declined significantly.At the end of March this year, the medium- and long-term external debt balance accounted for 36% of the total external debt, which was basically the same as that at the end of 2017, up by 9 percentage points from that at the end of 2014 when the full-scale external debt statistics were first published.We have observed that 80% of the newly growing external debt is debt securities. Foreign investors have increased their investment in China's medium- and long-term bonds, reflecting their confidence in China's long-term economic growth. At the end of March, the ratio of outstanding short-term external debt was 64%, which was the same as that at the end of 2017, down by 9 percentage points from that at the end of 2014. 2018-07-19 11:45:19 Wang Chunying: According to the classification of debt instruments, the growth of money and deposits, and debt securities is obvious. The increase of both accounts for about 70% of the total increase of external debt, which is mainly because of the increased deposits in domestic banks by overseas non-resident institutions and individuals. Meanwhile, the willingness of overseas non-resident institutions to invest in domestic bond market is strong. Overall, China's external debt risk is controllable.Several external debt risk indicators, such as liability ratio, debt ratio, debt servicing ratio, are within the safety line of international standards. Preliminary judgment shows that China's outstanding external debt will grow steadily in the second quarter, which is conducive to promoting domestic market players to make better use both the domestic and international resources and markets under controllable risks. Thank you. 2018-07-19 11:46:25 Moderator Hu Kaihong: This is the end of today's conference. Thank you, Director Wang! Thank you all! (The original text is available at www.china.com.cn) 2018-07-19/en/2018/0719/1475.html