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Following the work plans of the CPC Central Committee and the State Council, the State Administration of Foreign Exchange (SAFE) was committed to clearing up market disorder, cracking down on violating behaviors and imposing strict penalties on foreign exchange irregularities in 2016. In accordance with the Regulations of the People’s Republic of China on the Disclosure of Government Information (Decree No. 492 of the State Council), the typical cases of enterprises and individuals violating foreign exchange regulations are notified as follows, in a bid to promote market players to raise their awareness of carrying out foreign exchange activities in compliance with regulations, and sustain the healthy and benign order in the foreign exchange market. I. Cases of enterprises violating foreign exchange regulations Case No. 1: Wuhan Yanzhi Property Management Co., Ltd. helped domestic individuals illegally transfer funds overseas under the guise of outbound investment From September 2014 to December 2015, Wuhan Yanzhi Property Management Co., Ltd. illegally transferred funds overseas for domestic individuals many times under the guise of outbound investment. It charged 22 domestic individuals RMB 71.9249 million in total. Then it bought foreign exchange worth a total of RMB 67.3817 million in 23 transactions to help individuals illegally transfer the money overseas under the guise of outbound investment. The company obtained RMB 4.5432 million from the deals. Such behavior violates Article 2 and 4 of the Regulations for Foreign Exchange Administration of Overseas Direct Investments by Domestic Institutions (Huifa No. 30 [2009]) and is considered an evasion of foreign exchange. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a fine of RMB 3.369 million upon the company as an administrative penalty. Case No. 2: Evasion of Foreign Exchange by Jiangxi Ganzhou Sichuang Trading Co., Ltd. On April 2, 2015, Jiangxi Ganzhou Sichuang Trading Co., Ltd. applied to the bank for USD 9.6249 million in a working capital loan due within one year. Then the company counterfeited contracts and business invoices, altered the information on the bill of lading without permission, and even fabricated entrepot trade, based on which the company remitted all the loan to Hong Kong under "payments for entrepot trade". This behavior violates Article 14 of the Regulations of the People's Republic of China on Foreign Exchange Administration, and Article 3 of the Guidance on Foreign Exchange Administration under Trade in Goods (Huifa No. 38 [2012]) and is considered an evasion of foreign exchange. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a fine of RMB 650,000 upon the said company as an administrative penalty. Case No. 3: Evasion of Foreign Exchange by Guangxi Qinzhou Yongjiashun Trading Co., Ltd. Between June and July 2015, Guangxi Qinzhou Yongjiashun Trading Co., Ltd. handled payments of foreign exchange worth USD 10.3688 million in 11 transactions with a bank, by presenting its import contracts and the Customs list of entry records, and did so with another bank through repeated presentation of the same instruments. This behavior violates Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration, and Article 3 of the Guidance on Foreign Exchange Administration under Trade in Goods (Huifa No. 38 [2012]) and is considered an evasion of foreign exchange. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a fine of RMB 1.2996 million upon the said company as an administrative penalty. Case No. 4: Evasion of Foreign Exchange by Shandong Longyang Chemical Co., Ltd. Between June and August 2015, Shandong Longyang Chemical Co., Ltd. fabricated import deals many times. By counterfeiting or altering import contracts, invoices, bills of lading and Customs Declaration Forms of Imported Goods, the company handled 4 transactions for the payment of foreign exchange of USD 4.0765 million in total with 3 banks, thus illegally transferring the funds overseas. This behavior violates Article 12 of the Regulations of the People's Republic of China on Foreign Exchange Administration, and is considered an evasion of foreign exchange. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a fine of RMB 282,000 upon the said company as an administrative penalty. II. Cases of individuals violating foreign exchange regulations Case No. 1: A Mr. Wu illegally traded foreign exchange through underground banks From March to December 2014, a Mr. Wu, native of Zhejiang, transferred a total of USD 30.4337 million for 118 times through an offshore account (OSA) it controlled to an offshore USD account controlled by an underground bank in accordance with the order of a Mr. Ji, owner of the underground bank, so as to obtain illegal interests. Such behavior violates Article 32 of the Regulations for the Administration of Settlement and Sales of and Payment in Foreign Exchange (Yinfa No. 210 [1996]) and is considered illegal trading of foreign exchange. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a fine of RMB 2.125 million upon Mr. Wu as an administrative penalty. Case No. 2: A Mr. Su evaded foreign exchange through split-out Between July and August 2015, a Mr. Su, native of Tianjin, remitted RMB 11.8811 million in total into 39 individual accounts in a split-out way and purchased foreign exchange worth CAD 2.4675 million on an ATM using the bank cards of the 39 individuals. Later he remitted CAD 2.4675 million into a Hong Kong account he controlled using the ID cards and bank cards of the 39 individuals under study abroad, thus illegally transferring the money overseas. Such behavior violates Article 7 of the Measures for the Administration of Individual Foreign Exchange (Decree No. 3 [2006] of the People's Bank of China) and Article 1 of the Circular of the State Administration of Foreign Exchange on Further Perfecting the Administration of Foreign Exchange Settlement and Sales for Individuals (Huifa No. 56 [2009]) and is considered an evasion of foreign exchange. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a fine of RMB 120,000 upon Mr. Su as an administrative penalty. Case No. 3: A Mr. Wang evaded foreign exchange through split-out From July to August 2015, a Mr. Wang, native of Shanxi, transferred his funds into the accounts of 30 employees of his company，who then purchased foreign exchange under study abroad and remitted the money totaling the equivalent of USD 1.4463 million into Wang's overseas individual account in 30 transactions. Such behavior violates Article 7 of the Measures for the Administration of Individual Foreign Exchange (Decree No. 3 [2006] of the People's Bank of China) and is considered an evasion of foreign exchange. In accordance with Article 39 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a fine of RMB 90,000 upon Mr. Wang as an administrative penalty. Case No. 4: A Mr. Huang illegally traded foreign exchange through an underground bank On November 17, 2016, a Mr. Huang, native of Guangdong, contacted a Mr. Ruan, owner of an underground bank, to illegally exchange RMB for the equivalent of HKD 140,000 for overseas gambling. Such behavior violates Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration and is considered illegal trading of foreign exchange. In accordance with Article 45 of the Regulations of the People's Republic of China on Foreign Exchange Administration, the SAFE imposed a fine of RMB 25,000 upon Mr. Huang as an administrative penalty. 2017-04-24/en/2017/0424/1260.html
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The State Administration of Foreign Exchange (SAFE) has recently disseminated the data on banks' foreign exchange sales and settlement and their foreign-related receipts and payments for customers for February 2017. The press spokesperson of the SAFE answered media questions on the recent cross-border capital flows. Q: China registered remarkably lower pressure from cross-border capital flows in January 2017. What about the performance in February? A: The supply and demand of foreign exchange reached a basic equilibrium in February. First, the deficit in banks' foreign exchange sales and settlement continued to contract. In February, banks recorded a deficit of USD 10.1 billion in their foreign exchange sales and settlement, down by 47% month on month and 70% year on year. In particular, a deficit of USD 10.1 billion was registered in foreign exchange sales and settlement by non-banking sectors such as enterprises and individuals, down by 36% month on month and 71% year on year, while banks registered a deficit of USD 20 million in foreign exchange sales and settlement for themselves. Second, forward settlement and sales of foreign exchange by banks turned from a deficit into a surplus. In February, the number of contracts signed between banks and clients for forward settlement of foreign exchange rose by 58% month on month, while the number of contracts signed between banks and clients for forward sales of foreign exchange went down by 52%, resulting in a surplus of USD 4.7 billion, versus a deficit of USD 8 billion for the previous month. Considering the balances of spot and forward foreign exchange settlement and sales, China's foreign exchange presented a basic equilibrium in the supply and demand of foreign exchange in February. Third, the foreign-related receipts and payments of the non-banking sectors turned from 19 months' deficit into a surplus. In February, a surplus of USD 1.9 billion was registered in foreign-related receipts and payments by the non-banking sectors, compared with a deficit of USD 9.7 billion for January. To be specific, a surplus of USD 7.4 billion was registered in foreign exchange receipts and payments, 3.3 times that of the previous month, and a deficit of USD 5.5 billion was recorded in the RMB receipts and payments, representing a decrease of 52%. Cross-border capital flows through major channels turned around for the better. First, net inflows were registered in cross-border capital under trade in goods. Due to the Chinese spring festival, China posted a small deficit in the import and export under trade in goods in February, but as collection from export has been on the rise in the year to date, the cross-border receipts and payments and foreign exchange sales and settlement under trade in goods were both in surplus. Second, enterprises' foreign exchange financing continued to recover. In February, the balance of import financing such as refinancing and forward L/C went up by USD 9.3 billion month on month, representing the 12th consecutive monthly increase. The enterprises' purchases of foreign exchange to service domestic foreign exchange loans had hit rock bottom since March 2010 and was 35% lower month on month. The balance of domestic foreign exchange loans rose by USD 5.3 billion in February, a margin higher than that of January. Third, domestic market players were more rational in purchasing foreign exchange. In February, the ratio of foreign exchange purchases by bank clients to foreign-related foreign exchange payments was 66%, down by 5 percentage points from January. To be specific, foreign exchange purchases under enterprises' ODI and ROI fell, foreign exchange purchases under individuals' travel and study abroad continued dropping, and the balance of individual foreign exchange deposits turned from increase to decrease. China's economic fundamentals that support the equilibrium of cross-border capital flows have been more stable. Since the beginning of this year, China's economic performance has got off to a good start, further strengthening the confidence of the market. For example, in February, PMI rose on a month-on-month basis and remained within the expansion range for the 7th consecutive month. Imports climbed significantly on a month-on-month basis, indicating the dynamics of the domestic economy. Going forward, alongside the deepening of the supply-side structural reform, the domestic industrial structure will continue being upgraded, and China will witness better and more efficient economic growth. As new progress will be achieved in the liberalization of the financial markets, China's cross-border capital inflows and outflows will become more balanced, indicating strengthening capability of withstanding and adapting to the adjustments of the external environment. 2017-04-19/en/2017/0419/1254.html
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The State Administration of Foreign Exchange (SAFE) has recently released the data on full-scale external debt in both domestic and foreign currencies for yearend 2016, and an official of the SAFE answered press questions on the recent external debt situation and the reform of external debt management. Q: Could you brief us on China's overall scale of external debt as at the end of 2016? A: Overall, China's outstanding full-sale external debt had been rising stably and the risks were within control as at the end of 2016. By the end of 2016, the balance was USD 1.4207 trillion, up by USD 37.7 billion or 2.7% year on year. The overall size of external debt had been going up steadily for three consecutive quarters. By preliminary calculations, as at the end of 2016, the debt ratio (outstanding external debt/GDP) was 13%, the foreign debt ratio (outstanding external debt/export income of trade in goods and services) was 65%, the solvency ratio (sum of payments of principal and interest of mid and long-term external debt and payments of interest of short-term external debt/export income of trade in goods and services) was 6% and the ratio of short-term external debt to foreign exchange reserves was 29%. Since these risk indicators associated with external debt are within the safe range internationally recognized, China's external debt risk is within control. Q: What would you say about the changes in the size of external debt? A: China's efforts to deleverage its external debt have come to an end, with risks gradually unleashed. By the end of 2016, China posted USD 1.4207 trillion in outstanding full-scale external debt, which was down by USD 359.3 billion from the historical high for 2014. To be specific, from the yearend 2014 to the first quarter of 2016, Chinese enterprises were committed to deleveraging of their external debt. They accelerated servicing of relevant debt, reducing debt of USD 397 billion throughout 2015 and USD 51.5 billion in the first quarter of 2016. This was favorable for mitigating accumulated risks arising from external debt, and reducing the risks associated with operations with high levers and currency mismatches. Since the second quarter of 2016, as external debt deleveraging came to an end, and the policies that would facilitate cross-border financing by Chinese enterprises such as macro-prudential management of full-scale cross-border financing were implemented, Chinese enterprises have begun to use external debt again. In the second, third and fourth quarters of 2016, the use of external debt recovered by USD 24.8 billion, 42.7 billion, and 21.7 billion respectively. Q: What's your view of the size and situation of China's external debt for 2017? A: Driven by policies and measures such as China's economic restructuring, production capacity adjustment and industrial upgrading, China's economy will continue to grow at a medium and high speed. Given that a modest amount of borrowing is necessary for an enterprise' day-to-day operations, Chinese enterprises will independently decide the time to borrow external debt and the size and currency structure of the external debt based on the changes in economic conditions both at home and abroad. In all, China's external debt will rebound stably in the year. 2017-04-24/en/2017/0424/1258.html
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Q: According to the latest data on foreign exchange reserves released by the People's Bank of China, China's foreign exchange reserves as at the end of March increased by USD 4 billion month on month. Could you tell us why such a change occurred to foreign exchange reserves? A: As of March 31, 2017, China posted USD 3.0091 trillion in foreign exchange reserves, up by a slight USD 4 billion or 0.1% month on month and rising for the second consecutive month. In March, the global financial market stayed stable, while China's cross-border capital flows continued to present a healthy development landscape of combination of inflows and outflows, and two-way fluctuations towards an equilibrium. The exchange rates of non-USD currencies against the USD appreciated slightly in the month, and asset prices changed a little, while the currencies and assets invested with foreign exchange reserves went through alternate rises and falls and were fragmented, and foreign exchange reserves remained stable. In the first quarter of 2017, China's foreign exchange reserves dropped by USD 1.4 billion, much lower than those of the previous two quarters, which shows that China's economic performance is being stabilized, the pressure from cross-border capital outflows is somewhat relieved, and the changes to foreign exchange reserves are also being stabilized. China's economic fundamentals are sound for the moment, featuring great potential and strong resilience. Going forward, China's economy will continue to grow stably and rapidly, the surplus under the current account will remain within a reasonable range, cross-border capital flows will evolve towards an equilibrium, the reform of the market-oriented RMB exchange rate formation mechanism will be steadily pressed ahead with, and foreign exchange reserves may be stabilized further. 2017-04-24/en/2017/0424/1261.html
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The General Administration of Customs (GAC), the State Administration of Taxation (SAT) and the State Administration of Foreign Exchange (SAFE) have recently signed the Framework Agreement on Cooperation Mechanism for Joint Regulation Based on Information Sharing (the Framework Agreement) in Beijing. On the same day, the GAC signed with SAT and SAFE the MOU on Advancing Joint Regulation Based on Information Sharing between the General Administration of Customs and the State Administration of Taxation, and the MOU on Advancing Joint Regulation Based on Information Sharing between the General Administration of Customs and the State Administration of Foreign Exchange respectively, as the implementation mechanisms of the Framework Agreement. According to the Framework Agreement, the three parties agree that they will accelerate the cross-department mutual information exchange, mutual regulation recognition, and mutual help in law enforcement, in a bid to improve ongoing and ex-post regulation, enhance management efficiency, and reduce management costs while guarding against and cracking down on smuggling, defrauding of export tax refunds, tax frauds and evasion, so as to ensure the national Customs, taxation and foreign exchange policies are effectively carried out. The three parties have defined their areas of cooperation and roles and responsibilities by signing the MOUs on advancing joint regulation based on information sharing. By stepping up information sharing, the three parties will be committed to improving the ongoing and ex-post regulatory system, pressing ahead with comprehensive law enforcement and enhancing management efficiency. They will push forward with comprehensive cooperation through inspection and feedback, and joint regulation among their branches and sub-branches to jointly implement incentives and punishments. Enhancing information sharing and performing joint regulation among the three authorities are the significant measures to implement theReformPlan of Implementing "Three Mutuals" to Advance Customs Clearance,which was issued by the State Council, and the bases and levers for joint governance among them and therefore have great implications for better guarding against and cracking down on smuggling, defrauding of export tax refunds, tax frauds and evasion. Going forward, the customs, taxation and foreign exchange authorities will continue to strengthen cooperation, and further improve the regulation of law enforcement within their respective jurisdiction to create management synergies, so that they can better serve the building of the social credit system and the healthy and sustainable economic development in China. 2017-04-21/en/2017/0421/1257.html
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On April 18, Pan Gongsheng, administrator of the State Administration of Foreign Exchange (SAFE) met with a delegation headed by Lee Theng Kiat, CEO of Singapore-based Temasek International in Beijing. The two sides had friendly dialogue and exchanged ideas on the investment strategy of Temasek in China, China's economic development and the opportunities to invest in the countries along the Belt and Road. 2017-04-19/en/2017/0419/1255.html
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On March 16, 2017, Pan Gongsheng, deputy governor of the People's Bank of China and administrator of the State Administration of Foreign Exchange (SAFE), met Martin Wolf, chief economics commentator at the Financial Times, the UK. Mr. Wolf held a lecture at the SAFE on the evolution of globalization and its impact on China. 2017-03-17/en/2017/0317/1253.html
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The branches and foreign exchange administrative departments of the State Administration of Foreign Exchange (SAFE) of all provinces, autonomous regions, and municipalities directly under the Central Government; the branches of the SAFE in Shenzhen, Dalian, Qingdao, Xiamen, and Ningbo; national Chinese-funded banks; and China UnionPay Co., Ltd.; To intensify regulation against money laundering, terrorist financing and tax evasion during cross-border use of bank cards, the State Administration of Foreign Exchange (SAFE) would hereby clarify relevant issues on large-sum overseas cash withdrawals, in accordance with the Regulations of the People's Republic of China on Foreign Exchange Administration (Regulations): I. In overseas cash withdrawals by individuals with domestic bank cards, the sum of withdrawals using the bank cards under the name of the individual (including supplementary cards) shall not exceed the equivalent of RMB 100,000 in every civil year. In case of overseas cash withdrawals in excess of the annual quota, the individuals will not be allowed to withdraw cash overseas with the domestic bank cards in the current and second years. Individuals are prohibited from borrowing others' bank cards or lending their bank cards to evade or help evade the management of overseas cash withdrawals. II. The SAFE will send on a daily basis the list of individuals suspended from withdrawing cash overseas with domestic bank cards, from the foreign exchange administration system for overseas transactions with bank cards, to the financial institutions that issue the bank cards. The card-issuing financial institutions shall suspend the individuals on the list from withdrawing cash overseas with the bank cards they issue no later than 5pm of the day Beijing time. The card-issuing financial institutions shall ensure the setup of their business systems to strictly implement the provision above. In the event of system rebuilding, the financial institution shall ensure the system will be completed no later than April 1, 2018. III. Any individual on the list may inquire of the branch or sub-branch of the SAFE about the details of their cash withdrawals overseas by presenting their valid ID cards. Any individual who entrusts an agent with the enquiry shall provide the valid ID cards of their own and the agent, as well as the certificate of authorization they issue. IV. For overseas cash withdrawals by individuals with their domestic bank cards, the ceiling for every foreign currency card per day is to be adjusted from the equivalent of USD 1,000 to the equivalent of RMB 10,000, which will be ensured by the card-issuing financial institutions through their business systems. The RMB card will continue to be subject to the ceiling of the equivalent of RMB 10,000 per card per day, which will be ensured by the domestic RMB card clearing organizations through their business systems. V. The card-issuing financial institutions shall enhance customer management, increase policy promotions, notify cardholders who have withdrawn cash overseas to pay attention to policy changes, guide individuals to reduce their extensive use of cash overseas and properly keep the information on individuals who are suspended from withdrawing cash overseas with their domestic bank cards. VI. Any card-issuing financial institution, domestic RMB card clearing organization or individual who violates the provisions of this Circular shall be punished in accordance with the Regulations. VII. This Circular shall take effect as of January 1, 2018. Paragraph 7 of Article 3 of the Circular of the State Administration of Foreign Exchange on Regulating Administration of Foreign Currency Bank Cards (Huifa No. 53 [2010]), and the Circular of the State Administration of Foreign Exchange on Further Intensifying Administration of Overseas Cash Withdrawals with China UnionPay RMB Cards (Huifa No. 40 [2015]) will be nullified on April 1, 2018. Upon receipt of this Circular, the branches and foreign exchange administrative departments of the SAFE shall immediately forward it to the central sub-branches, urban commercial banks, rural commercial banks, wholly foreign-owned banks, Chinese-foreign equity joint banks, branches of foreign banks, rural cooperative financial institutions, and county banks within your respective jurisdictions. State Administration of Foreign Exchange December 29, 2017 2017-12-30/en/2017/1230/1397.html
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Brief Table of External Debt, End-2002 （ in thousands of US dollars） Type of Debtor/Debt Loans from Foreign Governments Loans from International Financial Institutions Loans from Foreign Banks and Other Financial Institutions Buyer's Credit Loans from Foreign Exporters, Enterprises and Individuals Bonds Issuing Abroad Deferred Payments Private Deposits from Overseas International Financial Leasing Liabilities to be Paid with Foreign Exchange in Compensation Trade Trade Credits Others Total Ministries of the State Council (Government Agencies) 1780347.5 2705078.4 44454.53 522361 5052241.43 Chinese-funded Banks 637876.47 573623.76 1080735.61 11878.25 309309.45 243818.97 49566.65 117 33 2906959.16 Chinese-funded Non-banking Financial Institutions 21474.46 181707.64 5854.44 216125.2 286.94 629.07 12245.84 438323.59 Foreign-funded Enterprises 2143.17 65108.71 649984.68 142417.29 2319016.41 31641.15 41610.31 37624.15 37.12 26180.15 3315763.14 Chinese-funded Enterprises 491.76 52121.47 8741.29 24164.54 15705.64 882016.58 9200.28 10127.5 1002569.06 Foreign-funded Banks 1339478.19 17415.48 87983.96 3355.52 1448233.15 Foreign-funded Non-banking Financial Institutions 49525.32 2460 1384.36 2461.56 297.66 249.16 56378.06 Others 132.18 611.73 253 996.91 Trade Credits 2632300 2632300 Total 2442333.36 2770187.11 2891027.77 1240208.63 2355670.93 1079436.8 319934.76 140299.11 920684.46 9237.4 2632300 52444.2 16853764.5 FILE: Brief Table of External Debt, End-2002 2011-09-20/en/2011/0920/1407.html
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Brief Table of External Debt, End-1999 （ in thousands of US dollars） Type of Debtor/Debt Loans from Foreign Governments Loans from International Financial Institutions Loans from Foreign Banks and Other Financial Institutions Buyer's Credit Loans from Foreign Exporters, Enterprises and Individuals Loans from Foreign Banks in China Bonds Issuing Abroad Deferred Payments Private Deposits from Overseas International Financial Leasing Liabilities to be Paid with Foreign Exchange in Compensation Trade Others Total Ministries of the State Council (Government Agencies) 17203515.1 24451866.7 458897 5131050 51899.1 47297227.9 Chinese-funded Banks 9307798.1 8214359.5 12167315.8 597880.7 98130.5 3336129.7 648977.3 58410.7 1170 34430172.3 Chinese-funded Non-banking Financial Institutions 3074504.9 59113.2 570.2 756799.8 2565940 7491.7 10093.4 6471513.2 Leasing Company 1041104.6 24600 21176.3 407501.3 41048 77176.9 1612607.1 Foreign-funded Enterprises 37877.2 686871.3 10127662.1 1469727.7 19341324.6 13630369.7 969523 770578.1 260773.1 1887.3 47296594.1 Chinese-funded Enterprises 10326 1434315.5 88550.6 278904.8 325211.6 536348 11927406.3 111852.7 14712915.5 Others 1949 3183.2 3525 8657.2 Total 26559516.4 25138738 24352792.6 13809307.3 20243039.8 15218012.9 11999642.7 2048850.5 65902.4 12280144.7 113740 151829687.3 FILE: Brief Table of External Debt, End-1999 2011-09-20/en/2011/0920/1410.html