The State Administration of Foreign Exchange (SAFE) has recently released the initial data in the Balance of Payments for the third quarter and the first three quarters of 2019. Wang Chunying, SAFE press spokesperson and chief economist, answered related questions from the press.

Q: Could you brief us on the features of China's balance of payments for the first three quarters of 2019?

A: The initial data in the Balance of Payments shows that China's current account registered a surplus and cross-border capital flows stayed stable in the first three quarters of 2019, suggesting China's balance of payments was in a basic equilibrium.

First, the current account was in surplus, with a rising surplus under trade in goods and a narrowing deficit under the trade in services. In the first three quarters of 2019, the current account recorded a surplus of USD 143.2 billion, versus a deficit of USD 5.5 billion the same period a year earlier. Specifically, in the Balance of Payments, trade in goods registered a surplus of USD 343.5 billion, up by 34% year-on-year, but trade in services recorded a deficit of USD 201.7 billion, down by 12% year-on-year. Under trade in services, the deficits of travel, transportation and use of IP rights decreased by 8%, 15% and 10% year-on-year, respectively.

Second, FDI remained high. In the first three quarters, direct investment registered a net inflow of USD 27.7 billion. ODI recorded a net outflow of USD 69.3 billion, and FDI, a net inflow of 97 billion, which was high.

Third, portfolio investment reached a surplus and two-way capital flows were striking. Initial statistics show that China posted a surplus of USD 40 billion under portfolio investment in the first three quarters. Specifically, China's outward portfolio investment exceeded USD 60 billion, and foreign portfolio investment in China surpassed USD 100 billion.

Fourth, reserve assets stayed generally stable. In the first three quarters, China's reserve assets contracted by USD 13 billion due to transactions in the Balance of Payments. Impacted by non-transaction factors including foreign exchange rate and pricing, the balance of China's reserve assets hit USD 3.2045 trillion by the end of September, up by USD 36.5 billion from the end of 2018.

Overall, as China's economic fundamentals remain sound over the long term and all-round opening up is pushed ahead, China's balance of payments is expected to stay generally stable and remain in a basic equilibrium throughout the year.