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On October 13-14, 2023, the International Monetary and Financial Committee (IMFC) convened its 48th meeting in Marrakech, Morocco, and discussed issues regarding the global economic and financial landscape and the work of the International Monetary Fund (IMF). Pan Gongsheng, the PBOC Governor and SAFE Administrator attended the meeting and delivered remarks. Deputy Governor Xuan Changneng also attended the meeting. The meeting was of the view that the global economy has been resilient but the recovery has been slow and uneven. Current policy priorities are to durably reduce inflation, safeguard financial stability, ensure fiscal sustainability while protecting the most vulnerable, and boost inclusive and sustainable long-term growth. The participants reaffirmed commitment to a strong, quota-based, and adequately resourced IMF at the center of the global financial safety net, and commit to concluding the 16th General Review of Quotas in a timely manner. The meeting supports IMF's efforts to help countries durably address debt vulnerabilities, and welcomes the review and reform of IMF's lending facilities. Governor Pan pointed out that the Chinese economy has continued to recover and has generally been on an upward trajectory this year. Recently, positive factors and highlights in the Chinese economic performance are on the rise, and expectations have improved. The growth rates of manufacturing and service sectors went up, while the recovery of market sales accelerated, investment in fixed assets continued to grow, and investment in high-tech industries maintained fast growth. Going forward, China will pay more attention to the balance between economic growth and sustainability, and actively promote high-quality and sustainable development while maintaining a reasonable growth rate. Governor Pan stated that China has implemented a sound monetary policy in a targeted and forceful manner, and enhanced counter-cyclical adjustments. By so doing, China has effectively addressed risks and challenges at home and abroad, and reinforced the momentum of economic recovery. The PBOC will continue its efforts, ride on the momentum to intensify macro adjustments, and give full play to the role of monetary policy instruments in adjusting both the aggregate and the structure. It will also focus on expanding domestic demand, boosting confidence, and expediting a virtuous circle of the economy so as to provide stronger support for the real economy. Governor Pan stressed that, China always believes that the quota reform of the IMF is supposed to achieve quota increase and realignment, in order to show the quota-based nature of the IMF, reflect members' relative positions in the global economy, and strengthen the voice and representation of emerging markets and developing countries. China supports the IMF's efforts to promote the channeling of Special Drawing Rights (SDRs). China has implemented the G20 Debt Service Suspension Initiative (DSSI) in a responsible manner, and will work with other parties to make further progress. Collective action and fair burden sharing are required to solve sovereign debt issues. Multilateral Development Banks (MDBs) should bear their shares of contribution, and the private sector creditors should participate in a comparable manner. The IMF, as a key multilateral financial institution, should continue to call for the removal of arbitrary restrictions on trade, investment, and supply chains as soon as possible, prevent global economic and financial fragmentation, and promote more just and equitable global governance. 2023-10-14/en/2023/1014/2137.html
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The fourth meeting of G20 Finance Ministers and Central Bank Governors (FMCBG) was held in Marrakech, Morocco on 12-13 October 2023 during the International Monetary Fund Annual Meetings. The meeting focused on issues including promoting global economic recovery, improving the regulation of crypto assets and strengthening Multilateral Development Banks (MDBs). Pan Gongsheng, the Governor of the People’s Bank of China (PBC) and the Administrator of the State Administration of Foreign Exchange, delivered remarks in the meeting. Deputy Governor Xuan Changneng also attended the event. The overall assessment of Ministers and Governors was that the global economic recovery momentum subdued with increasing uncertainties. The Ministers and Governors agreed to strengthen macroeconomic policy coordination and work together to promote growth and maintain macroeconomic and financial stability. Members agreed to implement the G20 Common Framework for Debt Treatments. The meeting endorsed the 2023 G20 Sustainable Finance Report and called for further efforts to advance the G20 Sustainable Finance Roadmap, including, among others, the implementation of the G20 Transition Finance Framework. The Ministers and Governors agreed to strengthen international coordination on crypto assets regulation, and encouraged MDBs to improve operating models and increasing financing capacities. Governor Pan Gongsheng introduced China’s economic and financial developments, emphasizing that China’s economic recovery is gaining momentum as recent economic indicators continue to improve on the back of growing supportive factors, and the transition of economic growth model has seen positive progress. The PBC will implement a sound monetary policy in a targeted and effective manner to provide stronger support for the real economy. Governor Pan pointed out that the G20 should strengthen coordination and address the spillover effects of monetary policy adjustments in major advanced economies to emerging market economies and developing countries. He noted that, as co-chair of the G20 Sustainable Finance Working Group, the PBC will continue to advance sustainable finance with members. 2023-10-13/en/2023/1013/2133.html
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The State Administration of Foreign Exchange (SAFE) recently released data on China’s external debt as of the end of June 2023. Wang Chunying, SAFE’s Deputy Administrator and Press Spokesperson, addressed media questions regarding this matter. Q: Could you brief us on China’s external debt in the second quarter of 2023? A: In the second quarter of 2023, China’s external debt scale decreased, while its structure remained relatively stable. As of the end of June 2023, the total outstanding external debt (comprising domestic and foreign currencies) stood at USD 2433.8 billion. This marked a decrease of USD 57.1 billion, equivalent to a 2% decline from the end of March 2023. With respect to currency structures, the outstanding external debt denominated in domestic currency constituted 44% of China’s total external debt, representing a 1 percentage point decrease from the end of March 2023. In terms of maturity structure, medium- and long-term external debt made up 44%, unchanged from the end of March 2023. Q: What would you say about China’s external debt situation? A: The decline in external debt was mainly due to the factor of exchange rate translation. In the second quarter of 2023, the decrease of USD 54.5 billion in external debt was predominantly driven by exchange rate translation, accounting for approximately 95% of the decline in outstanding foreign debt. China’s external debt level is expected to exhibit stability. With major developed economies nearing the conclusion of their monetary policy tightening cycles, a reduction in spillover effects is anticipated. China’s economy retains its resilience, substantial potential, and vitality, and its robust long-term economic fundamentals remain intact. As the effects of macroeconomic policies materialize, the domestic economy is foreseen to maintain its positive recovery trajectory. The foundation for maintaining a stable external debt scale remains strong. 2023-09-28/en/2023/0928/2140.html
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According to the statistics of the State Administration of Foreign Exchange (SAFE), by the end of September 2023, China’s foreign exchange reserves registered USD 3115.1 billion, down by USD 45 billion, or 1.42%, from the end of August. In September 2023, influenced by the monetary policies and expectations of major economies, global macroeconomic data, and other factors, the US dollar index rose, and the prices of global financial assets declined in general. China’s foreign exchange reserves declined this month due to the combined effects of currency translation and asset price changes. China’s economy is on a path of recovery and exhibits promising progress, especially in terms of high-quality development. This favorable trend contributes to maintaining the essential stability of foreign exchange reserves. 2023-10-07/en/2023/1007/2139.html
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From October 12 to October 14, 2023, Pan Gongsheng, PBOC Governor and SAFE Administrator, met with First Deputy Prime Minister of Spain, Minister of Economic Affairs and Digital Transformation, and Chair of the International Monetary and Financial Committee Nadia Calviño. They exchanged views on the 16th General Review of Quotas and other issues of mutual interest. Governor Pan Gongsheng met with Governor of the Central Bank of Sri Lanka Nandalal Weerasinghe. They exchanged views on bilateral financial cooperation and other issues of mutual interest. Governor Pan Gongsheng also exchanged views with Governor of the Central Bank of Spain, Chair of the Basel Committee on Banking Supervision Pablo Hernández del Cos on the international financial supervision. 2023-10-14/en/2023/1014/2136.html
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On October 13, 2023, Pan Gongsheng, PBOC Governor and SAFE Administrator, met with U.S. Treasury Secretary Janet L. Yellen during the International Monetary Fund/World Bank Group Annual Meetings in Marrakech, Morocco. They exchanged views on their respective domestic economic situations and the international economic and financial landscape, debt issues of developing countries, and the 16th General Review of Quotas. They also discussed the issues related to the China-U.S. Financial Working Group. 2023-10-13/en/2023/1013/2134.html
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On October 19, 2023, Mr. Pan Gongsheng, PBOC Governor and SAFE Administrator, met with Paul Chan Mo-po, Financial Secretary of the HKSAR and Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA). They had exchanges over issues of common concern. After that, they witnessed the signing of a cooperation framework agreement on forming a Belt and Road investment platform by Silk Road Fund and the HKMA. 2023-10-20/en/2023/1020/2141.html
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On October 13, 2023, Pan Gongsheng, PBOC Governor and SAFE Administrator, met with Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva during the IMF/World Bank Group Annual Meetings in Marrakech, Morocco. They exchanged views on the Chinese and international economic and financial landscape, the cooperation between China and the IMF and other issues of mutual interest. 2023-10-14/en/2023/1014/2135.html
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On October 20, 2023, Mr. Pan Gongsheng, PBOC Governor and SAFE Administrator, met with Stephen A. Schwarzman, Chairman and CEO of Blackstone. They exchanged views on issues including global economic and financial situation and China’s economic development. Li Hongyan, Deputy Administrator of the SAFE, also attended the meeting. 2023-10-20/en/2023/1020/2142.html
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In the third quarter of 2023, China's current account registered a surplus of RMB 453.3 billion, including a surplus of RMB 1165.8 billion under trade in goods, a deficit of RMB 478.6 billion under trade in services, a deficit of RMB 250.7 billion under primary income, and a surplus of RMB 16.8 billion under secondary income. In the capital and financial accounts, direct investment assets increased by RMB 392.4 billion and liabilities decreased by RMB 84.7 billion, reserve assets decreased by RMB 273.8 billion. In the first three quarters of 2023, China's current account registered a surplus of RMB 1461.8 billion, including a surplus of RMB 3201.2 billion under trade in goods, a deficit of RMB 1187.6 billion under trade in services, a deficit of RMB 627.5 billion under primary income, and a surplus of RMB 75.7 billion under secondary income. In the capital and financial accounts, direct investment assets increased by RMB 1007.6 billion and liabilities increased by RMB 102.3 billion, reserve assets increased by RMB 14.1 billion. In the US dollar terms, in the third quarter of 2023, China's current account recorded a surplus of USD 62.6 billion, including a surplus of USD 160.9 billion under trade in goods, a deficit of USD 66.0 billion under trade in services, a deficit of USD 34.6 billion under primary income, and a surplus of USD 2.3 billion under secondary income. In the capital and financial accounts, direct investment assets increased by USD 54.0 billion and liabilities decreased by USD 11.8 billion, reserve assets decreased by USD 38.2 billion. In the US dollar terms, in first three quarters of 2023, China's current account recorded a surplus of USD 208.9 billion, including a surplus of USD 454.2 billion under trade in goods, a deficit of USD 168.2 billion under trade in services, a deficit of USD 87.8 billion under primary income, and a surplus of USD 10.8 billion under secondary income. In the capital and financial accounts, direct investment assets increased by USD 142.9 billion and liabilities increased by USD 15.5 billion, reserve assets increased by USD 3.5 billion. In SDR terms, in the third quarter of 2023, China posted a surplus of SDR 46.9 billion under the current account, including a surplus of SDR 120.8 billion under trade in goods, a deficit of SDR 49.6 billion under trade in services. In the capital and financial accounts, direct investment assets increased by SDR 40.7 billion and liabilities decreased by SDR 8.8 billion, reserve assets decreased by SDR 28.2 billion. In SDR terms, in first three quarters of 2023, China posted a surplus of SDR 155.9 billion under the current account, including a surplus of SDR 339.5 billion under trade in goods, a deficit of SDR 125.8 billion under trade in services. In the capital and financial accounts, direct investment assets increased by SDR 107.0 billion and liabilities increased by SDR 11.6 billion, reserve assets increased by SDR 2.9 billion. (End) China's Balance of Payments (Preliminary Data) Unit:RMB 100 million Item Line No. 2023Q3 2023First Three Quarters 1. Current account 1 4533 14618 Credit 2 69706 196630 Debit 3 -65173 -182012 1. A Goods and Services 4 6872 20136 Credit 5 64225 181279 Debit 6 -57354 -161143 1.A.a Goods 7 11658 32012 Credit 8 58708 164518 Debit 9 -47050 -132506 1.A.b Services 10 -4786 -11876 Credit 11 5517 16761 Debit 12 -10303 -28637 1.A.b.1 Processing services 13 215 622 Credit 14 232 665 Debit 15 -17 -43 1.A.b.2 Maintenance and Repair Services 16 94 210 Credit 17 201 506 Debit 18 -107 -296 1.A.b.3 Transport 19 -1569 -4460 Credit 20 1586 4592 Debit 21 -3154 -9052 1.A.b.4 Travel 22 -3545 -9175 Credit 23 269 705 Debit 24 -3813 -9880 1.A.b.5 Construction 25 50 325 Credit 26 221 732 Debit 27 -171 -408 1.A.b.6 Insurance and Pension Services 28 -269 -481 Credit 29 37 444 Debit 30 -306 -925 1.A.b.7 Financial Services 31 1 37 Credit 32 69 233 Debit 33 -68 -196 1.A.b.8 Charges for the Use of Intellectual Property 34 -626 -1663 Credit 35 167 605 Debit 36 -793 -2268 1.A.b.9 Telecommunications, Computer, and Information Services 37 375 922 Credit 38 1010 3044 Debit 39 -635 -2122 1.A.b.10 Other Business Services 40 602 2013 Credit 41 1679 5090 Debit 42 -1078 -3077 1.A.b.11 Personal, Cultural, and Recreational Services 43 -53 -116 Credit 44 23 71 Debit 45 -76 -186 1.A.b.12 Government Goods and Services n.i.e 46 -62 -109 Credit 47 22 75 Debit 48 -84 -185 1.B Primary Income 49 -2507 -6275 Credit 50 4929 13383 Debit 51 -7436 -19658 1.C Secondary Income 52 168 757 Credit 53 551 1968 Debit 54 -383 -1211 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -4533 -13290 2.1 Capital Account 56 -10 -16 Credit 57 2 10 Debit 58 -12 -26 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -4522 -13274 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -7261 -13133 Including: 2.2.1.1 Direct Investment 61 -4771 -9052 2.2.1.1.1 Assets 62 -3924 -10076 2.2.1.1.2 Liabilities 63 -847 1023 2.2.2 Reserve Assets 64 2738 -141 2.2.2.1 Monetary gold 65 -350 -792 2.2.2.2 Special drawing rights 66 -16 -81 2.2.2.3 Reserve position in the IMF 67 7 89 2.2.2.4 Foreign exchange reserves 68 3097 642 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / -1328 Note:1. The table is compiled according to BPM6. 2."Credit" is presented as positive value while "debit" as negative value, and the balance is the sum of the "Credit" and the "Debit". All items herein refer to balances, unless marked with "Credit" or "Debit". 3.The RMB denominated BOP statement is converted from the USD denominated BOP statementfor the quarter using the period average central parity rate of RMB against USD. 4.The preliminary amount for the first three quarters of 2023 is the sum of the official amounts of the BOP for 2023H1 and the preliminary amount for 2023Q3. 5.This table employs rounded-off numbers. China's Balance of Payments (Preliminary Data) Unit: USD 100 million Item Line No. 2023Q3 2023First Three Quarters 1. Current account 1 626 2089 Credit 2 9619 27928 Debit 3 -8992 -25839 1. A Goods and Services 4 949 2859 Credit 5 8862 25750 Debit 6 -7913 -22890 1.A.a Goods 7 1609 4542 Credit 8 8101 23365 Debit 9 -6492 -18823 1.A.b Services 10 -660 -1682 Credit 11 762 2385 Debit 12 -1422 -4067 1.A.b.1 Processing services 13 30 88 Credit 14 32 94 Debit 15 -2 -6 1.A.b.2 Maintenance and Repair Services 16 13 30 Credit 17 28 72 Debit 18 -15 -42 1.A.b.3 Transport 19 -216 -633 Credit 20 219 653 Debit 21 -435 -1286 1.A.b.4 Travel 22 -489 -1303 Credit 23 37 100 Debit 24 -526 -1403 1.A.b.5 Construction 25 7 46 Credit 26 30 104 Debit 27 -24 -58 1.A.b.6 Insurance and Pension Services 28 -37 -67 Credit 29 5 64 Debit 30 -42 -131 1.A.b.7 Financial Services 31 0 5 Credit 32 10 33 Debit 33 -9 -28 1.A.b.8 Charges for the Use of Intellectual Property 34 -86 -236 Credit 35 23 86 Debit 36 -110 -322 1.A.b.9 Telecommunications, Computer, and Information Services 37 52 131 Credit 38 139 433 Debit 39 -88 -302 1.A.b.10 Other Business Services 40 83 288 Credit 41 232 725 Debit 42 -149 -437 1.A.b.11 Personal, Cultural, and Recreational Services 43 -7 -16 Credit 44 3 10 Debit 45 -11 -26 1.A.b.12 Government Goods and Services n.i.e 46 -9 -15 Credit 47 3 11 Debit 48 -12 -26 1.B Primary Income 49 -346 -878 Credit 50 680 1898 Debit 51 -1026 -2777 1.C Secondary Income 52 23 108 Credit 53 76 280 Debit 54 -53 -172 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -626 -1894 2.1 Capital Account 56 -1 -2 Credit 57 0 1 Debit 58 -2 -4 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -625 -1891 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -1007 -1856 Including: 2.2.1.1 Direct Investment 61 -658 -1274 2.2.1.1.1 Assets 62 -540 -1429 2.2.1.1.2 Liabilities 63 -118 155 2.2.2 Reserve Assets 64 382 -35 2.2.2.1 Monetary gold 65 -48 -112 2.2.2.2 Special drawing rights 66 -2 -12 2.2.2.3 Reserve position in the IMF 67 1 13 2.2.2.4 Foreign exchange reserves 68 432 76 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / -195 Note:1. The table is compiled according to BPM6. 2."Credit" is presented as positive value while "debit" asnegative value, and the balance is the sum of the "Credit" and the "Debit". All items herein refer to balances, unless marked with "Credit" or "Debit". 3. The preliminary amount for the first three quarters of 2023 is the sum of the official amounts of the BOP for 2023H1 and the preliminary amount for 2023Q3. 4.This table employs rounded-off numbers. China's Balance of Payments (Preliminary Data) Unit:SDR 100 million Item Line No. 2023Q3 2023First Three Quarters 1. Current account 1 469 1559 Credit 2 7222 20882 Debit 3 -6753 -19322 1. A Goods and Services 4 712 2137 Credit 5 6654 19253 Debit 6 -5942 -17116 1.A.a Goods 7 1208 3395 Credit 8 6083 17470 Debit 9 -4875 -14075 1.A.b Services 10 -496 -1258 Credit 11 572 1783 Debit 12 -1067 -3041 1.A.b.1 Processing services 13 22 66 Credit 14 24 71 Debit 15 -2 -5 1.A.b.2 Maintenance and Repair Services 16 10 22 Credit 17 21 54 Debit 18 -11 -31 1.A.b.3 Transport 19 -163 -473 Credit 20 164 488 Debit 21 -327 -962 1.A.b.4 Travel 22 -367 -974 Credit 23 28 75 Debit 24 -395 -1049 1.A.b.5 Construction 25 5 35 Credit 26 23 78 Debit 27 -18 -43 1.A.b.6 Insurance and Pension Services 28 -28 -50 Credit 29 4 48 Debit 30 -32 -98 1.A.b.7 Financial Services 31 0 4 Credit 32 7 25 Debit 33 -7 -21 1.A.b.8 Charges for the Use of Intellectual Property 34 -65 -176 Credit 35 17 64 Debit 36 -82 -241 1.A.b.9 Telecommunications, Computer, and Information Services 37 39 98 Credit 38 105 324 Debit 39 -66 -226 1.A.b.10 Other Business Services 40 62 215 Credit 41 174 542 Debit 42 -112 -327 1.A.b.11 Personal, Cultural, and Recreational Services 43 -5 -12 Credit 44 2 8 Debit 45 -8 -20 1.A.b.12 Government Goods and Services n.i.e 46 -6 -11 Credit 47 2 8 Debit 48 -9 -19 1.B Primary Income 49 -260 -658 Credit 50 511 1419 Debit 51 -771 -2078 1.C Secondary Income 52 17 81 Credit 53 57 210 Debit 54 -40 -129 2. Capital and Financial Accounts (Including Net Errors and Omissions for the Quarter) 55 -469 -1415 2.1 Capital Account 56 -1 -2 Credit 57 0 1 Debit 58 -1 -3 2.2. Financial Account (Including Net Errors and Omissions for the Quarter) 59 -468 -1413 2.2.1 Financial Account (Excluding Reserve Assets, But Including Net Errors and Omissions for the Quarter) 60 -751 -1384 Including: 2.2.1.1 Direct Investment 61 -494 -954 2.2.1.1.1 Assets 62 -407 -1070 2.2.1.1.2 Liabilities 63 -88 116 2.2.2 Reserve Assets 64 282 -29 2.2.2.1 Monetary gold 65 -36 -84 2.2.2.2 Special drawing rights 66 -2 -9 2.2.2.3 Reserve position in the IMF 67 1 9 2.2.2.4 Foreign exchange reserves 68 319 54 2.2.2.5 Other reserves 69 0 0 3. Net Errors and Omissions 70 / -145 Notes:1. The table is compiled according to BPM6. 2."Credit" is presented as positive value while "debit" as negative value, and the balance is the sum of the "Credit" and the "Debit". All items herein refer to balances, unless marked with "Credit" or "Debit". 3.The SDR denominated quarterly BOP statement is converted from the USD denominated BOP statement for the quarter using the period average exchange rate of SDR against USD. 4.The preliminary amount for the first three quarters of 2023 is the sum of the official amounts of the BOP for 2023H1 and the preliminary amount for 2023Q3. 5.This table employs rounded-off numbers. 2023-11-03/en/2023/1103/2145.html