The State Administration of Foreign Exchange (SAFE) has recently released the data on external debt as at the end of March 2017. An official from the SAFE answered media questions on the recent situations of China's external debt.

Q: Could you brief us on China's external debt for the first quarter of 2017?

A: China witnessed stable growth in external debt for the first quarter of 2017. As at the end of March, China's full-scale outstanding external debt (including foreign currencies) amounted to USD 1.4378 trillion, up by USD 17.2 billion or 1.2% from the end of 2016, representing 4th consecutive month of growth in total external debt.

Q: What would you say about the external debt situation in China?

A: As the deleveraging of external debt came to a halt, China has registered 4th consecutive month of steady recovery of China's total external debt since the second quarter of 2016. Many factors have impacted the changes of external debt, such as economic fundamentals, cross-border financing policy and domestic and foreign financing environment. At the beginning of 2017, the People's Bank of China (PBC), together with the SAFE, published the Circular of Macro-prudential Management of Full-scale Cross-border Financing, further refining the macro-prudential management policy for cross-border financing, and expanding the room for funding abroad by banks and enterprises, which will be favorable for facilitating normal flows of external debt in compliance with regulations and serving the development of the real economy.

As the domestic macro economy and cross-border capital flows recover with a good momentum for growth, and external debt reform and facilitation measures are implemented, it is anticipated that China's external debt will continue growing. Next, the PBC and the SAFE will endeavor to improve the system for external debt and capital flow management under the framework of macro-prudential management. While promoting cross-border financing and investment facilitation, they will enhance ongoing and ex-post monitoring and analysis to guard against external debt risks and safeguard the country's economic and financial security.