0 Comment(s)
Print
E-mail China.org.cn, February 28, 2025
Shou Xiaoli:
Thank you, Mr. Xuan, for your introduction. Next, Mr. Li will also present an introduction.
Li Bin:
Friends from the media, good afternoon. Thank you for your long-term interest in and support for the work concerning foreign exchange management. Just now, Mr. Xuan provided a comprehensive and systematic introduction of the monetary policy and other financial support for high-quality economic development. Next, I will provide a supplementary introduction on the support for economic development of the foreign exchange sector.
Over the past year, SAFE has implemented the decisions and deployments of the Central Committee of the Communist Party of China (CPC), adhered to the approach of addressing external challenges through reform and opening up, and continued to advance high-level opening up in the foreign exchange sector and the reform to facilitate cross-border trade, investment and financing. We have canceled administrative licensing for the registration of foreign trade enterprises. Since the reform, banks can generally complete registration procedures within 15 minutes, with more than 100,000 enterprises having so far benefited from this policy. We have actively supported the development of new forms of trade, facilitating foreign exchange transactions for cross-border e-commerce totaling approximately $26 billion throughout the year. We have continued to promote the facilitation of cross-border financing, with policies benefiting 1.3 million innovative technology enterprises. We have further advanced the construction of the cross-border financial services platform, which has so far helped over 100,000 enterprises obtain financing totaling more than $380 billion, and facilitated foreign exchange payments of nearly $2 trillion for enterprises. We have optimized the fund management regulations for qualified foreign institutional investors (QFIIs) investing in domestic securities and futures, and supported domestic institutions in conducting cross-border securities investments in an orderly manner. We have further optimized the pilot policies for integrated foreign and domestic currency cash pooling for multinational companies, facilitating the collection and use of funds by multinational companies. Currently, more than 18,000 member enterprises of multinational companies have benefited from the cash-pooling service. At the same time, we have also focused on improving regulatory capabilities under open conditions, resolutely preventing and mitigating risks from external shocks, strictly cracking down on illegal foreign exchange activities, and maintaining the healthy development of the foreign exchange market.
Overall, the foreign exchange management work in 2024 achieved good results. Cross-border trade and investment was more active. In 2024, the total foreign-related receipts and payments of enterprises, individuals and other non-banking sectors amounted to $14.3 trillion, an increase of 14.6% compared to 2023, reaching a record high. The transaction volume in the domestic RMB foreign exchange market exceeded $41 trillion, an increase of 14.8% compared to 2023. The balance of international payments remained basically balanced. In the first three quarters of 2024, the current account surplus was $241.3 billion, with a ratio to China's GDP of 1.8%, which is within the internationally recognized equilibrium range. Preliminary estimates indicate that the current account will continue to maintain a reasonable surplus in the fourth quarter. China's outbound investment has grown rapidly. By the end of September 2024, foreign assets exceeded $10 trillion for the first time. Capital inflows from direct investment and securities investment in China have maintained a net inflow. The balance of foreign exchange reserves remained stable above $3.2 trillion, and the RMB exchange rate remained generally stable at a reasonable and balanced level.
In the coming period, the momentum of China's economic recovery and improvement will be further consolidated, the equilibrium in the balance of payments will not change, the resilience of the foreign exchange market will continue to strengthen, and the RMB exchange rate has the right conditions to remain generally stable. SAFE will thoroughly study and implement the guiding principles of the Central Economic Work Conference, better coordinate development and security, implement more proactive and effective foreign exchange management policies, and contribute to supporting high-quality economic development and high-level opening up. That's all for my introduction. Thank you.
Go to Forum >>0 Comment(s)