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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: To further facilitate trade and investment facilitation and serve the real economy, the State Administration of Foreign Exchange (SAFE) has revised the Regulations on the Centralized Operation and Management of the Foreign Exchange Funds of MNCs (Interim). Relevant issues are notified as follows: I. Pilot for Self-Disciplinary Management of External Debt Proportion. Member enterprises of an MNC will be subject to self-disciplinary management of external debt proportion when borrowing external debt and the host enterprise may centralize all or part of external debt quotas of its member enterprises; foreign exchange settled under external debt can be used to pay RMB loans or make equity investments in accordance with the laws.Upon registration of external debt, an enterprise can select the currency for repayment at its sole discretion according to its commercial principles. II. The functions of overseas master accounts will be optimized. Domestic banks may utilize in China the deposits that are absorbed through the overseas master accounts for foreign exchange funds and which do not exceed 50% (inclusive) of the average daily deposit balance over the last six months; when included in banks' overall positions of foreign exchange settlement and sales for management, funds in an overseas master account can be used for foreign exchange settlement and sales at a certain proportion. III. Account opening requirements will be simplified. MNCs will be allowed to operate the foreign exchange receipts of class-A member enterprises that do not need to be in the account for export income to be verified. A qualified host enterprise of an MNC will be allowed to open domestic and overseas master accounts for foreign exchange funds with non-local banks. IV. Procedures for foreign exchange receipts and payments will be simplified. Banks will be allowed to verify the authenticity of relevant electronic documents and handle foreign exchange receipts and payments under the current account in the principle of "knowing your customer", "understanding your business" and "due diligence", while purchases and payments of foreign exchange for external payment under the current and capital accounts will be allowed to be processed with different banks. V. Procedures for the declaration of foreign-related receipts and payments will be improved. Procedures for the declaration of the centralized receipts and payments of foreign exchange and the receipts and payments for net settlement will be simplified, and the way of declaration of the foreign-related receipts and payments that is fit for the automatic sweeping model of the cash pool will be established to allow banks to sign a package of sweeping agreements regarding foreign-related receipts and payments with enterprises. VI. Ongoing and ex-post management will be strengthened. First, banks and enterprises are required to report accurate data such as pilot business data in time in accordance with regulations. Second, foreign exchange authorities should intensify monitoring of cross-border capital flows involved in the centralized operation and management of foreign exchange funds by MNCs, issue risk reminder notices in case of abnormalities or suspicious activities and conduct onsite verification and inspection in accordance with the laws. Third, the SAFE branches and foreign exchange administrative departments (the SAFE branches) can require a host enterprise to conduct a one-time update of the filing materials and redevelop operating rules for filing, or to file new businesses such as self-disciplinary management of external debt proportion alone. The SAFE branches are required to file with the SAFE pursuant to the above regulation and those that conduct new businesses should file the overall business operating rules with the SAFE. Fourth, when reviewing an enterprise' operating rules for filing, a SAFE branch must review the quotas of external debt and external loans, making sure they are accurate. The SAFE branches should ensure that systems run well to enhance cross-departmental coordination and regulation of banks and enterprises. The revised Regulations on the Centralized Operation and Management of the Foreign Exchange Funds of MNCs are now issued to you for implementation. Please be kindly noted that any special case should be reported to the SAFE. Contact Number: 010-68402113; 68402448; 68402381; 68402383 Appendix: Regulations on the Centralized Operation and Management of the Foreign Exchange Funds of MNCs State Administration of Foreign Exchange August 5, 2015 FILE: Appendix 2015-11-11/en/2015/1111/769.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: For the purpose of further standardizing domestic and foreign currency exchange franchise business for individuals and foreign currency exchange business, the relevant issues are notified as follows, in accordance with the Administrative License Law, Regulations on Foreign Exchange Administration, the Interim Measures for Administration of Foreign Currency Exchange Agencies (the Decree of the People’s Bank of China (No. 6 [2003]), and the Circular of the State Administration of Foreign Exchange on Printing and Distributing the Measures for Administration of the Pilot Program on Domestic and Foreign Currency Exchange Franchise Businesses for Individuals(Huifa No. 27 [2012]): I. Further enhancing administration of market access of franchised institutions engaging in domestic and foreign currency exchange for individuals (the franchised institutions).For the franchised institutions newly established or with equity transfer, the branches of the State Administration of Foreign Exchange (including the foreign exchange administrative departments, hereinafter referred to as the SAFE branches) shall earnestly carry out onsite inspection and acceptance, strictly examine the qualifications, equity structure of the applying institutions and the business background of the transferee, and shall adequately take into consideration the actual demand of local individuals for domestic and foreign currency exchange, so as to rationally control the frequency of approval of franchised institutions and avoid excessive competition. II. Further reinforcing day-to-day business management of franchised institutions and foreign currency exchange agencies (I) Franchised institutions and foreign currency exchange agencies shall carry out daily operation activities within the business scope, and perform various statistics and reporting obligations, in strict accordance with the relevant regulations. (II) Authorized banks shall strengthen administration and monitoring of foreign currency exchange agencies. Once the foreign currency exchange agencies that have conducted exchange business in violation with relevant regulations are identified, the banks shall correct them in a timely manner and report such cases to the local SAFE branches. (III) All SAFE branches shall establish a working mechanism for onsite and offsite verifications of franchised institutions, strengthen day-to-day monitoring and administration of franchised institutions, and learnthe construction and implementation of their internal control systemsso as to guard against illegal publicity, investment invitation and operation beyond the scope. The SAFE branches shall reinforce communications with each other, investigate and grasp the situations of branch establishment by local franchised institutions in other regions, and by non-local franchised institutions in this locality, and track their business developments. III. Dealing with the irregular operational activities of franchised institution and foreign currency exchange agencies. For franchised institutions that carry out business without authorization, run business beyond the approved scope or are suspected of engaging in online foreign exchange speculation, the SAFE branches shall suspend or cancel their qualification for conducting a pilot program on domestic and foreign currency exchange franchise business for individuals. For foreign currency exchange agencies, the SAFE branches shall urge authorized banks to suspend or cancel their foreign currency exchange business in a timely manner. For franchised institutions thathave engaged in the afore-mentioned activities since the implementation of the Measures for Administration of the Pilot Program on Domestic and Foreign Currency Exchange Franchise Businesses for Individuals, they shall be handled in accordance with the preceding paragraph. IV. The SAFE branches shall, upon receipt of this Circular, promptly forward it to the central sub-branches and sub-branches of the SAFE as well as to the commercial banks and franchised institutions, within their respective jurisdiction. The General Affairs Department of the State Administration of Foreign Exchange February 12, 2015 2015-06-05/en/2015/0605/761.html
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The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches of the SAFE in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and national Chinese-funded banks: To further promote smooth progress in the assessment of the banks' implementation of regulations on foreign exchange administration and to make this work more scientific and fair, the State Administration of Foreign Exchange has once again amended the Measures for Assessment ofBanks’ Implementation of Regulations on Foreign Exchange Administration (see Appendix, hereinafter referred to as the “Measures”). We hereby provide notification on the relevant issues as follows: I. After receiving this Circular, all branches and foreign exchange administrative departments of the State Administration of Foreign Exchange shall immediately forward this Circular to the central sub-branches, sub-branches, urban commercial banks, rural commercial banks, wholly foreign-funded banks, Chinese-foreign joint venture banks, branches of foreign banks, and rural cooperative financial institutions within their respective jurisdictions, complete as soon as possible the operational training for their central sub-branches and sub-branches within their respective jurisdictions, and, in strict accordance with the Measures, carry out fair and just assessments of the banks within their respective jurisdictions. II. All national Chinese-funded banks shall forward this Circular to their branches within their respective jurisdictions as soon as possible, earnestly implement the relevant requirements of the Measures, and conduct their various businesses in accordance with the relevant laws and regulations. Ⅲ. The Circular of the State Administration of Foreign Exchange on Revising the Measures for Assessment of Banks' Implementation of Regulations on Foreign Exchange Administration (Huifa No. 38 [2010]), the Circular of the General Affairs Department of the State Administration of Foreign Exchange on Supplementary Entry of Assessment Information in the System for Assessment of Banks' Implementation of Regulations on Foreign Exchange Administration (Huizongfa No. 128 [2010]) , and the Circular of the State Administration of Foreign Exchange on Adjusting the Assessment Period of Banks' Implementation of Regulations on Foreign Exchange Administration (Huifa No. 42 [2014]) shall be annulled from the date of issuance of the Circular. Assessments ofbanks’ implementation of regulations on foreign exchange administration in 2015 shall be governed by the Measures. 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), 010-68402348 (Capital Account Management Department), 010-68402378 (Supervision and Inspection Department) and 010-68402028 (Data Monitoring Center for Foreign Exchange Transaction). Appendix: Measures for Assessment ofBanks’ Implementation of Regulations on Foreign Exchange Administration State Administration of Foreign Exchange June 17, 2015 FILE: Measures for Assessment of Banks’ Implementation of Regulations on Foreign Exchange Administration 2015-08-18/en/2015/0818/766.html
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The branches and foreign exchange administration departments of the State Administration of Foreign Exchange (SAFE) in all provinces, autonomous regions, and municipalities directly under the Central Government; the branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; and all designated Chinese-funded foreign exchange banks: To meet the demands of foreign central banks, monetary authorities, other official reserves administrations, international financial organizations and sovereign wealth funds (collectively referred to as "foreign central banks and similar institutions") for investing in China's interbank market, relevant issues are notified as follows regarding their opening foreign exchange accounts with Chinese commercial banks: I. To access China's interbank bond market and foreign exchange market, foreign central banks and similar institutions can open a special domestic account for foreign exchange with a Chinese bank by presenting the filing form for investments in China's interbank foreign exchange market or the reply from a relevant department on conducting transactions of funds for relevant businesses. The code of the account is 3400 and the nature of the account is a domestic foreign exchange account for foreign institutions/individuals. Relevant foreign exchange receipts and payments involved in the transactions by foreign central banks and similar institutions in China's interbank bond market and foreign exchange market can be directly processed through their special foreign exchange accounts based on the payment order. II. A Chinese bank is required to report all the data of foreign central banks and similar institutions accurately and in time, in accordance with the Circular of the State Administration of Foreign Exchange on Printing and Distributing the Statistical System for External Financial Assets and Liabilities and Foreign Transactions (Huifa No. 43 [2013]), the Circular of the State Administration of Foreign Exchange on Issuing the Standards for Collecting Data on Foreign Exchange Transactions by Financial Institutions (Version 1.0) (Huifa No. 18 [2014])), the Circular of the State Administration of Foreign Exchange on Printing and Distributing the Detailed Rules for the Implementation of the Declaration of Balance of Payments Statistics through Banks (Huifa No. 27 [2015]). III. For any other matters not covered herein, please refer to the Circular of the State Administration of Foreign Exchange on Relevant Issues Concerning the Management of Domestic Foreign Exchange Accounts of Overseas Institutions (Huifa No. 29 [2009]) for implementation. IV. All branches and foreign exchange administration departments of the SAFE should immediately forward the Circular to the central sub-branches, sub-branches and foreign banks within their respective jurisdiction; while all the designated Chinese-funded foreign exchange banks shall forward it to their subsidiaries as soon as possible. If any problems are encountered during implementation, please report them to the SAFE in a timely manner. Contact person & number: Zhou Haiwen, 010-68402366. State Administration of Foreign Exchange October 28, 2015 2015-11-17/en/2015/1117/770.html
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The SAFE recently released Chinas International Investment Position for the year 2009. The statistics reveal that at the end of 2009, China's external financial assets hit USD3460.1 billion, up 17 percent over that at the end of 2008; external financial liabilities reached USD1638.1 billion, a rise of 12 percent year on year; external net financial assets totaled USD1821.9 billion, an increase of 22 percent year on year. Among the external financial assets, direct investments abroad totaled USD229.6 billion, portfolio investments totaled USD242.8 billion, other investments totaled USD536.5 billion, and reserves assets reached USD2451.3 billion, accounting for 7 percent, 7 percent, 16 percent, and 71 percent of external financial assets respectively. In terms of external financial liabilities, foreign direct investments totaled USD997.4 billion, portfolio investments USD190 billion, and other investments USD450.8 billion, accounting for 61 percent, 12 percent, and 28 percent of external financial liabilities respectively. The International Investment Position (hereinafter referred to as the IIP) is a statistical statement which reflects at a specific point the stocks of financial assets and liabilities of one country or region to other countries or regions in the world; together with the Balance of Payments Statement (BOP statement) it constitutes the complete international accounts system of the country or region indicating the trade flows. The SAFE adjusted its IIP from 2004 to 2008 according to the latest data. China's International Investment Position Unit: 100 million US dollars Items End of 2004 End of 2005 End of 2006 End of 2007 End of 2008 End of 2009 Net Position 2764 4077 6402 11881 14938 18219 A. Assets 9291 12233 16905 24162 29567 34601 1. Direct Investments Abroad 527 645 906 1160 1857 2296 2. Portfolio Investment 920 1167 2652 2846 2525 2428 2.1 Equity Securities 0 0 15 196 214 546 2.2 Debt Securities 920 1167 2637 2650 2311 1882 3. Other Investment 1658 2164 2539 4683 5523 5365 3.1 Trade Credits 432 661 922 1160 1102 1646 3.2 Loans 590 719 670 888 1071 942 3.3 Currency and Deposits 553 675 736 1380 1529 1409 3.4 Other Assets 83 109 210 1255 1821 1368 4. Reserves Assets 6186 8257 10808 15473 19662 24513 4.1 Monetary Gold 41 42 123 170 169 371 4.2 Special Drawing Rights 12 12 11 12 12 125 4.3 Reserves Position in the Fund 33 14 11 8 20 25 4.4 Foreign Exchange 6099 8189 10663 15282 19460 23992 B. Liabilities 6527 8156 10503 12281 14629 16381 1. Foreign Direct Investments 3690 4715 6144 7037 9155 9974 2. Portfolio Investment 566 766 1207 1466 1677 1900 2.1 Equity Securities 433 636 1065 1290 1505 1748 2.2 Debt Securities 133 130 142 176 172 152 3. Other Investment 2271 2675 3152 3778 3796 4508 3.1 Trade Credits 809 1063 1196 1487 1296 1617 3.2 Loans 880 870 985 1033 1030 1114 3.3 Currency and Deposits 381 484 595 791 918 1034 3.4 Other Liabilities 200 257 377 467 552 742 Note: 1. This IIP employs rounded-off numbers. 2. Net position refers to assets minus liabilities, + refers to net assets, and -refers to net liabilities. Compilation Principles and Indexes for the IIP I. Compilation Principles for the IIP In accordance with the standards of the Balance of Payments Manual (Fifth Edition) published by the International Monetary Fund (IMF), the IIP is a statistical statement which reflects at a specific point the stocks of financial assets and liabilities of one country or region to other countries or regions of the world. Changes in the IIP can be caused by changes in transactions, prices, or exchange rates, as well as by other adjustments during a specific period. The IIP is consistent with the BOP statement with regard to the principles of valuation, measurement, and conversion, and together with the BOP Statement constitutes a complete international accounts system of the country or region. Chinas IIP is a statistical statement which reflects at a specific point the stocks of financial assets and liabilities of China (excluding that of Hong Kong SAR, Macao SAR, and Taiwan Province) to other countries or regions of the world. II. Explanation of the Major IIP Indexes According to IMF standards items on the IIP are categorized according to assets and liabilities. Assets are divided into China's direct investments abroad, portfolio investments, other investments, and reserves assets, and liabilities are divided into foreign direct investments, portfolio investments, and other investments. The net position refers to external assets minus external liabilities. The items are specifically defined as follows: 1. Direct Investment refers to external investment whereby an investor of one country operates an enterprise located in another country with the aim of acquiring effective control over the enterprise. It consists of direct investment abroad and foreign direct investment. Direct investment abroad includes the stocks of the direct investment abroad conducted by China's non-financial sectors, the stocks of the capital fund and working capital allocated by domestic banks to set up branches overseas, as well as the stocks of loans between the parent companies and the subsidiaries both in China and abroad, and the stocks of other receivables and payables. Foreign direct investment includes the stocks of foreign direct investment absorbed by Chinas non-financial sectors, the stocks of direct investment overseas absorbed by the financial sectors (including foreign investment attracted by branches of foreign financial sectors and Chinese-funded financial sectors, and investments by foreign parties in joint financial sectors), as well as the stocks of loans between the parent companies and the subsidiaries both in China and abroad, and the stocks of other receivables and payables. 2. Portfolio Investment includes some types of investment such as shares, long- and medium-term bonds, and money-market instruments. Portfolio investment assets refer to holdings of negotiable securities, such as shares, bonds, money-market instruments, and derivative financial instruments, which are held by Chinese residents but issued by non-resident enterprises. Portfolio investment liabilities refer to shares and bonds held by non-resident enterprises but issued by resident enterprises. 2.1 Equity Securities consist of securities in the form of stocks. 2.2 Debt Securities include long- and medium-term bonds, short-term (one year or less) bonds, and money-market instruments or transferable debt instruments, such as short-term treasury notes, commercial papers, and large-sum short-term negotiable certificates of deposits. 3. Other Investment refers to all financial assets and liabilities, including trade credits, loans, currency, and deposits, as well as other assets and liabilities, but excluding direct investments, portfolio investments, and reserves assets. Long term refers to a contract period for the relevant financial assets/liabilities that is longer than one year, whereas short term refers to a contract period that is one year or less. 3.1 Trade Credits refer to direct business credit arising from the import and export of goods between China and other countries. Assets refer to the receivables of China's exporters and the advance payments by Chinas importers, and liabilities refer to the payables of Chinas importers and the advance receipts of China's exporters. 3.2 Loans refer to the external assets held by domestic institutions by providing loans and lending to overseas institutions; and liabilities refer to loans borrowed by domestic institutions, such as loans from foreign governments, loans from international institutions, loans from foreign banks, and sellerscredit. 3.3 Currency and Deposits. Assets refer to the funds deposited abroad and the foreign cash in stock held by China's financial institutions; and liabilities refer to overseas private deposits and short-term funds from foreign banks absorbed by China's financial institutions, as well as other short-term funds, for instance loans from foreign exporters and individuals. 3.4 Other Assets or Liabilities refer to investments other than trade credits, loans, currency, and deposits, for example, capital paid by non-currency international institutions and other receivables and payables. 4. Reserves Assets refer to external assets that can be used at any time and are effectively controlled by the PBOC, consisting of monetary gold, special drawing rights (SDRs), the reserves position in the fund, and foreign exchange. 4.1 Monetary Gold: refers to the gold held by the PBOC as reserve. 4.2 Special Drawing Rights is a type of ledger assets, which is allocated by the IMF according to the capital share of its members; it can be used to repay debt to the IMF and can make up for a deficit in the balance of payments between the governments of member countries. 4.3 Reserves Position in the Fund refers to assets in the ordinary accounts of the IMF that can be used freely. 4.4 Foreign Exchange refers to current assets and liabilities that are retained by the PBOC and that can be used as a means of international compensation. 2010-05-04/en/2010/0504/929.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 SAFE branches in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo, all Chinese-funded designated foreign exchange banks and the China Foreign Exchange Trade System: In the early morning of April 14, 2010, a severe earthquake hit Yushu county in Yushu Tibetan Autonomous prefecture of Qinghai province, which resulted in heavy casualties and huge property losses. To enhance policy support in terms of foreign exchange administration to fight the quake and to carry out relief work, this emergency circular is hereby promulgated as follows: I. The branches and foreign exchange administration departments under the State Administration of Foreign Exchange (hereinafter referred to as SAFE branches) shall make all-out efforts to fight the earthquake and to carry out relief work by implementing the overall requirements of the Party Central Committee and the State Council on fighting the earthquake and carrying out relief work and complying with the uniform planning of the Party Committees of the Peoples Bank of China in their respective localities. The chief persons-in-charge of the SAFE branches shall serve as the primary duty officers for fighting the earthquake and for carrying out the relief work, and they shall take full responsibility for implementing the relevant tasks within their jurisdictions. The job responsibility system for fighting the earthquake and carrying out relief work shall be implemented in all respects and at all levels. II. The SAFE branches shall establish Green Channels for fighting the quake, carrying out relief work, and implementing post-disaster reconstruction. All kinds of foreign exchange services work shall be earnestly fulfilled. 1. Efforts shall be made to facilitate timely provision of donations for fighting the earthquake and carrying out relief work. When receiving donations for disaster relief from overseas countries or regions, government departments above the county level (inclusive) in Qinghai province and legally-established domestic NGOs are allowed to complete the procedures for account entry and settlement of the foreign exchange funds (including foreign currencies in cash), provided that it is explicitly noted in the transaction remarks that the funds are to be used for fighting the earthquake and carrying out relief work, or that a written explanation is provided by the organizations that have received the fund. Nevertheless, the funds shall not be deposited in accounts other than the foreign exchange accounts for receiving donations. Foreign exchange funds in the foreign exchange accounts of domestic institutions or personal accounts under the current account can be transferred directly to the foreign exchange donation accounts for fighting the quake and carrying out relief work. If there is a need to settle the exchange before remitting the relevant funds to the foreign exchange donation accounts, the existing policies on the administration of foreign exchange accounts under the current account as well as on the personal foreign exchange accounts shall be implemented. During the disaster relief period, domestic enterprises registered in Yushu Tibetan Autonomous Prefecture may, while receiving overseas foreign exchange donations for earthquake relief and post-disaster reconstruction for the affected enterprises, complete the procedures for account entry and settlement of the foreign exchange funds directly at the banks based on the validity of the application letters. With respect to overseas funds which are donated via domestic enterprises to domestic legally-established NGOs and are to be used for earthquake relief and post-disaster reconstruction in Yushu county, the domestic enterprises can proceed with the account entry formalities based on the validity of the donation agreement which specifies the purposes of the funds, and can transfer such funds to the relevant NGOs. The donated foreign exchange funds must be used for earthquake relief and post-disaster reconstruction work and conform to Chinese laws, regulations, and other relevant provisions. All donation recipients shall carefully keep proof of the expenditures of the foreign exchange donations for future inspection. 2. For the remittance of donations with the payee being domestic government departments or legally-established NGOs, the relevant procedures for the pre-settlement of exchange and remittances of funds can be handled by qualified overseas branches of the Bank of China, the Industrial and Commercial Bank of China, and the China Construction Bank. 3. During the period for fighting the earthquake and carrying out relief work, banks are allowed to make statistical declarations of the balance of payments (hereinafter referred to as the declaration) for the quake-fighting and relief funds remitted from overseas countries or regions that have been received by government departments and NGOs, such as the Ministry of Civil Affairs, the Head Office of the Red Cross Society of China, the China Charity Federation, the China Environmental Protection Foundation, the China Children and TeenagersFund, and the China Association for NGO Cooperation. The declaration banks shall transmit the relevant information in a timely manner to the local administrations of foreign exchange, and shall sign and keep in safety the declaration agreements with the aforementioned special entities prior to handling the relevant declarations. 4. The short-term external debt quotas shall be increased in an appropriate manner for Qinghai province in 2010. Chinese-funded enterprises within the jurisdiction of the Qinghai Provincial Government will be allowed to borrow short-term external debts within the ratified quotas. 5. After consultation with the China Foreign Exchange Trading System, it has been decided that all transactional terminal fees, transaction fees, and settlement fees arising from transactions on the inter-bank foreign exchange market for corporate financial institutions of Qinghai province will be exempted for the full amount for the year 2010. The foregoing temporary measures adopted during the period of fighting the earthquake and carrying out relief work shall remain in effect for one year. III. The SAFE branches shall, in compliance with overall planning, keep a close eye on the operational condition of the networks and foreign exchange business systems within their jurisdictions and enhance the monitoring of the networks and systems so as to ensure the stable operation of the networks and foreign exchange business systems as well as the smooth implementation of various business tasks. IV. The SAFE branches shall further enhance emergency duties and information submissions, carry out earnestly the 24-hour duty system, and ensure the smooth transmission of government orders. Information about fighting the earthquake and carrying out relief work shall be submitted uniformly to the General Affairs Department of the SAFE (duty room) and the relevant departments. V. The SAFE branches shall, in compliance with overall planning, carry out the Love Contribution donation activities in an orderly manner, vigorously support the post-disaster reconstruction of the quake-hit areas, fully carry forward the spirit of devoting collaborated efforts to assisting those suffering from disasters, and give strong support to reconstruction work through conscientious efforts. 2010-04-20/en/2010/0420/927.html
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The SAFE recently released revised data for China's 2009 Balance of Payments Statement. The statistics reveal that the current account and the capital and financial account continued to post a "twin surplus" in 2009. In 2009, China's surplus under the current account totaled USD 297.1 billion, a decrease of 32 percent compared with that of the previous year. Specifically, according to the statistical coverage of the balance of payments, the surpluses in goods, income, and current transfers reached USD 249.5 billion, USD 43.3 billion, and USD 33.7 billion, respectively, whereas the deficit in services amounted to USD 29.4 billion. In 2009, the surplus under the capital and financial account totaled USD 144.8 billion, a 6.64-fold increase over that in the previous year. In particular, net inflows of direct investments, portfolio investments, and other investments amounted to USD 34.3 billion, USD 38.7 billion, and USD 67.9 billion respectively. China's international reserves assets from transactions increased by USD 398.4 billion. Specifically, foreign exchange reserves assets registered a net increase of USD 382.1 billion (exclusive of the influence of the change in the value of non-transaction factors such as the exchange rates, prices, and so forth), whereas special drawing rights, the reserve position in the IMF, and monetary gold posted increases of USD 11.1 billion, USD 0.4 billion, and USD 4.9 billion respectively. Following the release of these data, in compliance with international conventions data on the foreign exchange reserves assets in Chinas Balance of Payments Statement will only record changes in transactions; changes in the value of the reserves assets due to non-transaction factors, such as exchange rates and prices, will be reflected in the International Investment Position. The SAFE has made retroactive adjustments to the data in the Balance of Payments Statements since 2003 according to the above specifications and is releasing them simultaneously with this statement (see the attachment). In addition, the BOP Analysis Team of the SAFE released China's Balance of Payments Report for 2009 in order to facilitate an understanding of the data and analysis of China's balance of payments among all groups in the society. China's Balance of Payments Statement 2009 Unit: USD 100 million Items # Balance Credit Debit I. Current Account 1 2,971 14,846 11,874 A. Goods and Services 2 2,201 13,333 11,132 a. Goods 3 2,495 12,038 9,543 b. Services 4 -294 1,295 1,589 1.Transportation 5 -230 236 466 2.Travel 6 -40 397 437 3.Communications Services 7 0 12 12 4.Construction Services 8 36 95 59 5.Insurance Services 9 -97 16 113 6.Financial Services 10 -3 4 7 7.Computer and Information Services 11 33 65 32 8.Royalties and Licensing Fees 12 -106 4 111 9.Consulting Services 13 52 186 134 10.Advertising and Public Opinion Polling 14 4 23 20 11.Audio-visual and Related Services 15 -2 1 3 12. Other Business Services 16 59 247 188 13. Government Services, n.i.e. 17 1 9 8 B. Income 18 433 1,086 653 1.Employee Compensation 19 72 92 21 2.Investment Income 20 361 994 632 C. Current Transfers 21 337 426 89 1.General Government 22 -2 0 3 2.Other Sectors 23 340 426 86 II. Capital and Financial Account 24 1,448 7,464 6,016 A. Capital Account 25 40 42 2 B. Financial Account 26 1,409 7,422 6,014 1. Direct Investment 27 343 1,142 799 1.1 Abroad 28 -439 42 481 1.2 In China 29 782 1,100 318 2. Portfolio Investment 30 387 981 594 2.1 Assets 31 99 669 570 2.1.1 Equity Securities 32 -338 122 461 2.1.2 Debt Securities 33 437 547 110 2.1.2.1 Bonds and Notes 34 370 479 110 2.1.2.2 Money Market Instruments 35 67 68 0 2.2 Liabilities 36 288 312 24 2.2.1 Equity Securities 37 282 288 7 2.2.2 Debt Securities 38 6 23 17 2.2.2.1 Bonds and Notes 39 6 23 17 2.2.2.2 Money Market Instruments 40 0 0 0 3. Other Investment 41 679 5,299 4,620 3.1 Assets 42 94 1,174 1,080 3.1.1 Trade Credits 43 -544 0 544 Long-term 44 -38 0 38 Short-term 45 -506 0 506 3.1.2 Loans 46 130 450 320 Long-term 47 -315 0 315 Short-term 48 445 450 5 3.1.3 Currency and Deposits 49 52 267 216 3.1.4 Other Assets 50 456 457 1 Long-term 51 0 0 0 Short-term 52 456 457 1 3.2 Liabilities 53 585 4,125 3,540 3.2.1 Trade Credits 54 321 321 0 Long-term 55 22 22 0 Short-term 56 298 298 0 3.2.2 Loans 57 37 3,222 3,185 Long-term 58 -97 135 232 Short-term 59 134 3,087 2,953 3.2.3 Currency and Deposits 60 116 456 340 3.2.4 Other Liabilities 61 111 126 15 Long-term 62 110 110 0 Short-term 63 1 16 15 III. Reserves Assets 64 -3,984 0 3,984 3.1 Monetary Gold 65 -49 0 49 3.2 Special Drawing Rights 66 -111 0 111 3.3 Reserves Position in the Fund 67 -4 0 4 3.4 Foreign Exchange 68 -3,821 0 3,821 3.5 Other Claims 69 0 0 0 IV. Net Errors and Omissions 70 -435 0 435 1. This statement employs rounded-off numbers. 2. After this release, according to international convention, the SAFE has made adjustments to the methods for recording the reserves assets, i.e., only changes in reserves assets due to transactions will be recorded in the balance of payments statement, which will be exclusive of changes in the value of reserves assets due to non-transaction factors such as exchange rates and prices. 2010-04-19/en/2010/0419/926.html
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At the end of 2009, China's outstanding external debt (excluding that of Hong Kong SAR, Macao SAR, and Taiwan Province) reached USD 428.647 billion, of which the outstanding registered external debt was USD 266.947 billion and the balance of trade credit was USD 161.7 billion.Note According to comparable specifications, the outstanding long- and medium-term external debt (with the remaining term) was USD 169.388 billion, accounting for 39.52 percent of the total outstanding external debt. The outstanding short-term external debt (with the remaining term) was USD 259.259 billion, accounting for 60.48 percent of the outstanding external debt. In terms of China's outstanding short-term external debt, the balance of trade credit was USD 161.7 billion. The outstanding registered short-term external debt (with the remaining term) was USD 97.559 billion, accounting for 37.63 percent of the outstanding short-term external debt and 22.76 percent of the total outstanding external debt. Of the outstanding registered external debt of USD 266.947 billion, the outstanding sovereign debt borrowed by ministries under the State Council totaled USD 36.855 billion, accounting for 13.81 percent; the outstanding debt of Chinese-funded financial institutions was USD 94.079 billion, accounting for 35.24 percent; the outstanding debt of foreign-funded enterprises was USD 93.181 billion, accounting for 34.91 percent; the outstanding debt of foreign-funded financial institutions in China was USD 38.34 billion, accounting for 14.36 percent; the outstanding debt of Chinese-funded enterprises was USD 4.184 billion, accounting for 1.57 percent; and the outstanding debt of other institutions was USD 308 million, accounting for 0.11 percent. The amount of long- and medium-term external debt in 2009 was USD 22.445 billion, a decrease of USD 13.862 billion or 38.18 percent from that during the previous year. The principal repayment of long- and medium-term external debt was USD 34.186 billion, an increase of USD 10.895 billion, or 46.78 percent over that in the previous year. The interest payment of long- and medium-term external debt was USD 3629 million, a decrease of USD 525 million or 12.64 percent from that in the previous year. In 2009, in terms of types of debt, international commercial loans constituted the majority of Chinas external debt. The balance of international commercial loans amounted to USD 198.649 billion at year-end 2009, accounting for 74.42 percent of the outstanding registered external debt; the balance of foreign government loans and loans granted by international financial organizations amounted to USD 68.298 billion, accounting for 25.58 percent of the outstanding registered external debt. In terms of the currency structure, debt in U.S. dollars constituted the majority of Chinas external debt in 2009. Of the total registered external debt at year-end 2009, debt in U.S. dollars accounted for 67.76 percent, debt in Japanese yen accounted for 11.89 percent, and debt in Euro was 6.38 percent; other debts, including SDRs and Hong Kong dollars, accounted for 13.97 percent of the total. The medium- and long-term debt was mainly absorbed by the manufacturing sector and the construction of infrastructure such as communications and transportation sector, warehousing, postal-service facilities, and so on. According to the industrial classifications of the national economy, of the USD 188.138 billion of outstanding registered medium- and long-term external debt (based on contract terms), USD 39.082 billion was channeled to the manufacturing sector, accounting for 20.77 percent of the total; USD 23.783 billion was absorbed by the communications and transportation sector, the warehousing sector, and the postal-service sector, accounting for 12.64 percent of the total; USD 16.564 billion went to the production and supply of electric power, coal, gas, and water, accounting for 8.80 percent; USD 12.231 billion was absorbed by the information technology services sector, accounting for 6.50 percent; and USD 11.825 billion was channeled to the real estate sector, accounting for 6.29 percent. Initial calculations reveal that the debt service ratio in 2009 was 2.87 percent, the ratio of outstanding external debt to foreign exchange income was 32.16 percent, the ratio of outstanding external debt to GDP was 8.73 percent, and the ratio of short-term external debt to foreign exchange reserves was 10.81 percent. All of these indicators are within the safe range of international standards. Note Adjustments have been made to the sampling survey method for trade credit in 2009. According to the new method, the balance of trade credit at year-end 2009 was USD 161.7 billion. To ensure data comparability, the balance of trade credit at year-end 2008 was adjusted to USD 129.6 billion (the pre-adjustment amount was USD 114.1 billion). 2010-04-06/en/2010/0406/925.html
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In order to harshly crack down on the inflow of "hot money" and other abnormal cross-border funds, as well as to preserve the economic and financial security of the nation, since February 2010 the SAFE has launched a special campaign in 13 provinces (municipalities) with a relatively large volume of foreign exchange business to deal with and combat the inflow of "hot money." Well-targeted efforts were made to investigate and punish the inflow of "hot money" by major entities through the main channels. So far the current phase of the work, i.e., field inspections, has wrapped up by following a specified plan of action. A number of typical cases and entities involved in illegal foreign exchange activities have been uncovered and confirmed, with satisfactory results reached for the current phase of the special campaign. During the special campaign, 3.47 million cases of cross-border foreign exchange transactions were examined through off-site inspections, involving a total of more than USD440 billion. So far 190 cases suspected of having violated foreign exchange regulations have been confirmed, involving a total amount of USD7.35 billion. Among these cases, 6 cases, involving more that USD27 million, have been closed. A number of other clues still need to be followed. Efforts have been made to further improve the inspection methods. In the off-site inspections during the early stage of the campaign in particular, comparison and analysis of supervisory data were conducted using electronic approaches to obtain relevant clues before further verifications were conducted in a well-targeted manner, thus ensuring smooth operations of trade and investment activities by most exchange-related entities. It is preliminarily indicated by the data obtained from the special campaign that cross-border capital flows and foreign exchange receipts and payments are on the whole legitimate and in compliance with the relevant regulations, and no massive and intentional inflow of "hot money" has been discovered. Much of the inflow of "hot money" in breach of the regulations tends to be disguised by many smaller deals characterized by multiple channels and gradual infiltration. The major channels mainly involve traditional fields of trade and investment, such as trade, trade in services, foreign direct investment, banking, and individual transactions. It was discovered that a few commercial banks fail to strictly abide by the relevant regulations, and in some cases even accommodate the operating entities to evade foreign exchange supervision. In terms of the fields to which the "hot money" is headed, some hot money becomes involved in financing activities beyond the scope of business, and some flows into lucrative fields such as the real estate sector either directly or in a roundabout manner. With regard to the next stage of the work, the SAFE will continue to inspect relevant clues for cases. Meanwhile, concentrated efforts will be made to ascertain cases in breach of the regulations, and to settle these cases in accordance with the law. As to new developments and problems surfacing during the inspections, proactive efforts will be made to enhance coordination with relevant departments so as to bring a supervisory synergy into full play and to enhance the relevance and effectiveness of the battle against the inflow of "hot money". 2010-05-25/en/2010/0525/931.html
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Recently, Yi Gang, deputy governor of the People's Bank of China (PBOC) and administrator of the State Administration of Foreign Exchange (SAFE), conducted a field survey in Zhongguancun with his entourage. Zhao Fengtong, member of the Standing Committee of the Beijing Municipal Party Committee, Liu Zhi, deputy secretary general of the Beijing Municipal Government, and Wang Hong, director- general of the Financial Work Bureau of Beijing Municipality, participated in the survey. Yi Gang conducted the field survey in some enterprises in Zhongguancun and held informal discussions with relevant persons-in-change from the Zhongguancun Management Committee and representatives from Zhongguancun enterprises. Guo Hong, director of the Zhongguancun Management Committee, presented an overview of progress in constructing a national independent innovation demonstration zone in Zhongguancun, and proposed policy recommendations on foreign exchange administration, based on the development situation in Zhongguancun. In 2009, the State Council approved construction of a national independent innovation demonstration zone in Zhongguancun, said Zhao Fengtong. Meanwhile, a number of pilot policy measures were specified for Zhongguancun's development in terms of equity incentives, technological and financial innovations, and so forth. The development of Zhongguancun has received vigorous support from the foreign exchange administration departments for a long time. It is hoped that Zhongguancun will continue to serve as a test field site for foreign exchange administration to support innovative development, and will be allowed to carry out trial operations in the area of foreign exchange administration so as to effectively explore its demonstrative role for other regions nationwide. Yi Gang expressed congratulations to the Zhongguancun Management Committee for the impressive achievements made in Zhongguancun. He pointed out that armed with effective mechanisms, efficient systems, a tremendous talent pool, and technological advantages Zhongguancun will be able to serve as an important source for national development and innovation. The foreign exchange administration departments will continue to provide vigorous support to Zhongguancun. Yi Gang gave a briefing on the current foreign exchange situation and said that the SAFE will earnestly investigate problems raised by enterprises during this survey and will provide differentiated solutions to address the various issues. In addition to safeguarding the security of the macro-economy and the financial stability of the nation, said the Administrator, based on the actual needs of economic development, the SAFE will constantly reform its mechanisms and systems, innovate administration methods, improve administration approaches, make great efforts to promote the facilitation of trade and investment, and play a greater role to meet the needs of national economic development. 2010-06-01/en/2010/0601/932.html