The State Administration of Foreign Exchange (SAFE) recently released the data on foreign exchange settlement and sales by banks and international receipts and payments via banks for April 2021. Wang Chunying, SAFE Deputy Administrator and Press Spokesperson, answered media questions on relevant issues.

Q: Could you brief us on the situation of China’s foreign exchange receipts and payments in April 2021?

A: China saw a steady performance of its foreign exchange market in April. Major indicators showed that foreign exchange settlement and sales by banks were roughly the same, with a surplus of US$2.2 billion; while the import and export of goods maintained a certain surplus, the non-banking sector’s foreign-related receipts and payments registered a continuation of net inflow, with a surplus of US$16 billion. By the end of April, foreign exchange reserves stood at US$3.1982 trillion, up by 0.89% on a month-to-month basis, mainly due to the appreciation of non-US dollar currencies and rising asset prices.

Two-way cross-border capital investments were rational and orderly. In terms of inflow channels, the receipt of foreign direct investment maintained steady growth, and the net increase in foreign holdings of domestic stocks and bonds was US$19.5 billion, a year-on-year increase of 3%. In terms of outflow channels, the net outflow scale of China’s outward foreign direct investment was basically the same as that of the same period last year. The net purchase of Hong Kong stocks by domestic entities under the “Hong Kong Stock Connect” amounted to US$5.7 billion with an orderly manner.

At present, it is observed that uncertainties still exist in the development of the global epidemic and the recovery of the world economy is uneven. However, China’s economic performance has maintained a steady recovery, and new momentums of growth have continued to gain strength, which will provide a solid foundation for the balanced flow of cross-border capital and the basic balance of international payments.