China will take a variety of measures in 2006 to promote the
balance of international payments, said sources with the State
Administration of Foreign Exchange (SAFE) Thursday.
At the working conference on foreign exchange management held in
Nanchang, capital of Jiangxi Province, SAFE Director Hu Xiaolian
said that achieving a balance of international payments is of great
significance to the healthy development of the Chinese economy.
However, problems such as bigger foreign trade surplus and an
imbalance of international payments still exist in China's rapidly
growing economy, he said.
According to the conference, to promote the balance of
international payments, the SAFE will improve the management of
foreign exchange in current accounts and facilitate trade and
investment in 2006.
The SAFE will make further progress in the foreign exchange
market and improve the managed, floating exchange rate regime.
In this way, the SAFE will improve financial services for small
deals of foreign exchange, encourage financial institutions to make
innovations in commodities and services and enhance monitoring and
management on market risks, said the conference.
In 2006, the SAFE will expand channels for capital to flow in
and out and advance capital account convertibility step by
step.
It will abolish quotas for foreign exchange overseas investment
and provide more favorable policies to enterprises going abroad to
make investments. It will expand channels for overseas financial
investment step by step and improve the Qualified Foreign
Institutional Investor (QFII) system.
The SAFE will make more efforts to standardize capital inflows
to safeguard the economic and financial security of the country and
improve the management of foreign exchange reserves, said the
conference.
It will explore more effective ways of using capital reserves by
improving money and capital structures and expanding investment
fields for foreign exchange reserves.
The SAFE will enhance its supervision of foreign exchange fund
inflows and outflows and crack down on illegal foreign exchange
deals, said the conference.
(Xinhua News Agency January 6, 2006)