Zhejiang Shifang Pipe Industry Co.,Ltd

Zhejiang Shifang Pipe Industry Co.Ltd is one of the most professional manufacturer and exporter of roof drainage system..

Home > News > Content
In The First Three Quarters, The Supply And Demand Of Foreign Exchange Basically Balanced And China's Cross-border Capital Flows Were Generally Stable.
- Oct 26, 2018 -

"In the first three quarters of this year, cross border capital flows in China are generally stable, and foreign exchange supply and demand are basically balanced." Wang Chunying, spokesman of the State Administration of Foreign Exchange, said at a news conference on October 25 that the complexity of the external environment has increased significantly since this year, but China's balance of payments has remained self-balanced and the foreign exchange market has been running smoothly on the whole.

Since this year, Global trade frictions have intensified, international financial markets have become more volatile, and cross-border capital flows have attracted much attention. In the first three quarters, Wang Chunying said that China's cross-border capital flows are generally stable, and the supply and demand of foreign exchange are basically balanced.

According to the data released by the Foreign Exchange Bureau, the deficit of foreign exchange settlement and sale by banks and foreign receipts and payments on behalf of clients in the first three quarters was significantly narrower than that in the same period of last year. Among them, the deficit in bank settlement and sales decreased by 75%, and the foreign exchange receipts and payments of banks on behalf of clients decreased by 49%.

Foreign exchange capital flows show two-way fluctuations. According to the data of foreign exchange settlement and sale, the average monthly deficit in the first quarter was 6.1 billion US dollars, the average monthly surplus in the second quarter was 10.7 billion US dollars, and the average monthly deficit in the third quarter was 13.9 billion US dollars. The average monthly deficit is 12 billion 600 million dollars. Preliminary statistics show that in the early and middle October, the bank settlement and sale of foreign exchange and bank receipts and payments of foreign exchange on behalf of foreign guests showed a small surplus.

Under the background of Sino US economic and trade frictions, all parties concerned will have an impact on cross-border capital flows in China. In this regard, Wang Chunying said that the impact of Sino-US economic and trade frictions on China's cross-border capital flows is generally controllable. This conclusion comes from "6 stability".

China's foreign trade growth is still stable. According to customs statistics, China's total import and export volume increased by 9.9% in the first three quarters, including 6.5% in export and 14.1% in import.

China's utilization of foreign investment remains stable. According to a recent UNCTAD report, the total global FDI in the first half of 2018 dropped 41% year on year, but the scale of attracting FDI in China rose by 6% against the trend, becoming the largest FDI inflow country in the world.

The cross-border financing of enterprises is still stable. Since the second quarter of 2016, the process of deleveraging of China's foreign debt has ended, and the scale of foreign debt has increased from decline to rise. Since this year, the growth rate has stabilized after reaching the pre-deleveraging level. At the end of June, the balance of full-bore foreign debt has increased by 1.5% compared with the end of March. Moreover, the structural optimization is mainly due to the increase in the holding of domestic RMB bonds by non-resident institutions abroad.

Corporate external investment remains stable. In the first 9 months, the Ministry of Commerce statistics of non financial foreign direct investment amounted to US $82 billion, an increase of 5.1% over the same period last year.

Personal remittance is still stable. In the first three quarters, the scale of individual foreign exchange purchases by Chinese residents dropped by 7% compared with the same period last year. In the third quarter, the scale of individual foreign exchange purchases by Chinese residents dropped by 5% compared with the same period last year and by 20% in September. Residents'individual foreign exchange deposits remained basically stable, rising slightly by $2.6 billion in the first half of the year and falling by $4.7 billion in the third quarter.

The performance of the RMB exchange rate in emerging market currencies remains stable. In the first three quarters, the currencies of many emerging economies fell sharply, and the Emerging Market Monetary Index (EMCI) fell by more than 10%. The cumulative 5.0% depreciation of the RMB against the dollar and a slight 2.6% drop in the CFETS basket index made the RMB a relatively stable currency.

"Overall, the complexity of the external environment has risen significantly since this year, including the trend of the US dollar exchange rate, emerging market risks and Sino-US economic and trade frictions, but China's balance of payments remains self-balanced, and the foreign exchange market is generally stable." Wang Chunying said that although the external environment will be more complex and uncertainties will continue to exist for some time to come, the inherent advantages of China's economic fundamentals are still relatively obvious, and new favorable factors have been formed in the aspects of opening up and market mechanism, which will be conducive to the smooth operation of cross-border capital flows in the future. Still full.