Collect
Check out my collection
0
Useful +1
State Administration of Foreign Exchange
broadcast
Upload video
State bureau administered by the People's Bank of China
The State Administration of Foreign Exchange (SAFE) of the People's Republic of China is a state office administered by the People's Bank of China
[1]
Established in March 1979, the General Bureau is located in Beijing.
[14]
The State Administration of Foreign Exchange (SAFE) is a state bureau at the vice-ministerial level, with 7 functional departments and party committees: General Department, Balance of Payments Department, Current Project Management Department, Capital Project Management Department, Management and Inspection Department, Reserve Management Department, Personnel Department (Internal Audit Department). It has set up four public institutions: the Central Foreign Exchange Business Center, the Information center, the agency service center, and the China Foreign Exchange Magazine.
- Chinese name
- State Administration of Foreign Exchange
- Foreign name
- State Administration of Foreign Exchange
- Establishment time
- March 1979
- Office address
- 30 Financial Street, Xicheng District, Beijing [15]
- nature
- State Bureau administered by ministries and commissions under The State Council
- Chief of a bureau
- Zhu Hexin
In 1978, the reform and opening up initiated the reform of the foreign exchange management system. The reform of the foreign exchange management system has always focused on the strategic plans of the Party Central Committee and The State Council, continued to advance along the direction of the socialist market economic system, and in accordance with the requirements of enabling the market to play a decisive role in resource allocation and better play the role of the government. A foreign exchange management system adapted to the requirements of the socialist market economy with Chinese characteristics has been gradually established. Since 1978, the reform of the foreign exchange management system has roughly experienced four stages of development.
In the first stage (1978-1993), the reform of the foreign exchange management system started. This stage is characterized by strengthening the foreign exchange autonomy of enterprises and implementing the dual-track exchange rate system. In 1978, the Third Plenary Session of the 11th CPC Central Committee officially announced the beginning of China's reform and opening up. In 1979, in order to cooperate with the reform of the foreign trade system and encourage enterprises to earn foreign exchange from exports, China began to implement the foreign exchange retention system. On the basis of centralized foreign exchange management and unified balance by the state, export enterprises were granted quotas to purchase foreign exchange according to a certain proportion. Enterprises are allowed to transfer excess foreign exchange through the foreign exchange adjustment market, thus gradually forming a dual exchange rate system with the coexistence of the official exchange rate and the foreign exchange adjustment market exchange rate. At this stage, the foreign exchange management system was in the process of changing from the planned system to market regulation, and the planned allocation of foreign exchange resources was still in the dominant position, but the emergence and continuous development of the market mechanism played a positive role in promoting the attraction of foreign investment, encouraging export to earn foreign exchange, and supporting domestic economic construction.
In the second stage (1994-2000), the institutional framework of foreign exchange management under the socialist market economy was initially determined. At the beginning of 1994, the state carried out a major reform of the foreign exchange management system, abolishing the system of retention of foreign exchange, introducing the system of settlement and sale of foreign exchange by banks, implementing a single, managed floating exchange rate system based on market supply and demand, and establishing a unified and standardized foreign exchange market. Since then, the foreign exchange management system has been further improved, and in 1996, all restrictions on regular international payments and transfers have been removed, and the RMB has become convertible under current account. In 1997, the Asian financial crisis broke out, which had a serious impact on China's economic development and financial stability. In order to prevent the crisis from spreading further, China made a commitment not to depreciate the RMB, and focused on strengthening the management and crackdown on illegal capital flows such as foreign exchange evasion and fraud, and successfully fended off the impact of the Asian financial crisis. On the whole, at this stage, China initially established a foreign exchange management system framework suitable for national conditions and compatible with the socialist market economy system, and the decisive position of the market allocation of foreign exchange resources was initially laid.
In the third stage (2001-2012), the foreign exchange management system based on market regulation was further improved. Since China's accession to the World Trade Organization at the end of 2001, China has accelerated its integration into the global economy, and its international balance of payments has maintained a large and sustained surplus for a long period of time. The management of foreign exchange has put forward the management goal of international balance of payments and the supervision concept of "balanced management", including the exploration of major reforms such as RMB capital account convertibility. In 2002, the Qualified Foreign Institutional Investor System (QFII) was established, and significant progress was made in opening up cross-border securities investment. In 2003, the Central Huijin Company was established to inject capital into state-owned commercial banks and explore diversified use of foreign exchange reserves. Starting from the reform of the RMB exchange rate formation mechanism in July 2005, we will continue to rationalize the relationship between supply and demand in the foreign exchange market. We have implemented a series of reform measures, such as abolishing the management of the foreign exchange account quota under current account, implementing the management of the foreign exchange settlement and sale quota of US $50,000 for individuals, and launching the Qualified Domestic Institutional Investor system (QDII) and the RMB Qualified Foreign Institutional Investor System (RQFII). In 2008, the Regulations of the People's Republic of China on Foreign Exchange Control were revised in light of the fruitful results achieved in the previous reform of the foreign exchange management system, and the legal construction of foreign exchange control entered a new stage. In 2009, it put forward the "five changes" in the concept and method of foreign exchange management, and comprehensively promoted the streamlining of administration and decentralization. In 2012, China implemented the reform of the foreign exchange management system for trade in goods, abolished the item-by-item verification of foreign exchange receipts and expenditures in trade in goods, and greatly improved trade facilitation.
In the fourth stage (2013 to the present), we have made historic achievements in the reform and opening up of the foreign exchange field while maintaining the stability of the foreign exchange market, especially successfully coping with the high-intensity shock of the foreign exchange market from the end of 2015 to the beginning of 2017. In 2013, the foreign exchange management system for trade in services was reformed, and pre-approval for trade in services was completely abolished, and all business was handled directly by banks. We expanded two-way opening-up of the financial market, and introduced new mechanisms for cross-border securities investment, such as the Shanghai-Hong Kong Stock Connect (2014), mutual recognition of funds between the Mainland and Hong Kong (2015), the Shenzhen-Hong Kong Stock Connect (2016), and the Bond Connect (2017). The Silk Road Fund, the China-Latin America Production Capacity Cooperation Fund and the China-Africa Production Capacity Cooperation Fund have been set up successively, actively building a funding platform for the Belt and Road Initiative. In 2015, the foreign exchange settlement policy with the intention of capital was extended to the whole country, and foreign direct investment foreign exchange management was greatly simplified to achieve basic convertibility of foreign direct investment. In 2016-2017, we will improve the macro-prudential management of cross-border financing, promote the two-way opening of the inter-bank bond market, and establish a sound open and competitive domestic foreign exchange market. In 2018, the QDII quota was further increased, the QFII capital remittance ratio limit and the QFII and RQFII lock-up period requirements were abolished, and the pilot projects of qualified Domestic Limited partner (QDLP) and Qualified Domestic Investment Enterprise (QDIE) were expanded. From the end of 2015 to the beginning of 2017, China's foreign exchange market experienced two high-intensity shocks. Under the strong leadership of the Party Central Committee and The State Council, the foreign exchange administration authorities took comprehensive measures to address both symptoms and root causes, established and improved macro-prudential management of cross-border capital flows, and constantly improved micro-supervision of the foreign exchange market. China's increasingly open foreign exchange management system withstood the test of cross-border capital outflow shocks. We effectively safeguarded national economic and financial security.
The 19th CPC National Congress called for promoting the formation of a new pattern of all-round opening up, and listed preventing and defusing major risks as the first of the three key battles in the decisive period of building a moderately prosperous society in all respects. In the face of the two-way volatility of cross-border capital flows and the new normal of foreign exchange management under the new pattern of comprehensive opening up, on the basis of summarizing the experience of coping with high-intensity shocks in the foreign exchange market, the foreign exchange management department accelerated the construction of a two-part management framework of cross-border capital flows of "macro-prudential + micro-supervision". Macro-prudential measures will regulate pro-cyclical fluctuations in the foreign exchange market in a market-based manner, prevent cross-market, cross-institutional, cross-currency and cross-border contagion of international economic and financial risks, and maintain the basic stability of the foreign exchange market. Micro-supervision maintains the order of the foreign exchange market in accordance with laws and regulations, emphasizes anti-money laundering, anti-terrorist financing and anti-tax evasion, and maintains the stability, consistency and predictability of policies and law enforcement standards across cycles.
[2]
(1) To study and put forward policy suggestions on reforming the foreign exchange management system, preventing risks in the balance of payments and promoting the balance of payments; To study policies and measures to gradually promote the convertibility of RMB under the capital account and cultivate and develop the foreign exchange market, and provide the People's Bank of China with suggestions and basis for formulating RMB exchange rate policies.
(2) Participate in the drafting of relevant laws, regulations and departmental rules on foreign exchange management, and issue normative documents related to the performance of duties.
(3) To be responsible for the statistics and monitoring of the balance of payments, external claims and debts, release relevant information according to regulations, and undertake the relevant work of monitoring cross-border capital flows.
(4) To be responsible for the supervision and administration of the national foreign exchange market; To be responsible for the supervision and administration of foreign exchange settlement and sale; Cultivate and develop the foreign exchange market.
(5) To supervise and inspect the authenticity and legality of current account foreign exchange receipts and expenditures according to law; To be responsible for the implementation of capital account foreign exchange management according to law, and continuously improve the management according to the process of RMB capital account convertibility; Regulate the management of foreign exchange accounts at home and abroad.
(6) To carry out foreign exchange supervision and inspection according to law, and to punish violations of foreign exchange control.
(7) To be responsible for the operation and management of the State's foreign exchange reserves, gold reserves and other foreign exchange assets.
(8) Formulate development plans and standards and norms for foreign exchange management informatization and organize their implementation, and share regulatory information with relevant administrative departments according to law.
(9) Participating in relevant international financial activities.
(10) To undertake other matters assigned by The State Council and the People's Bank of China.
[3]
The State Administration of Foreign Exchange (SAFE) is a state bureau at the vice-ministerial level, with eight functional departments (offices) and Party committees, including the General Department (Policy and Regulations Department), the International Balance of Payments Department, the Current Project Management Department, the Capital Project Management Department, the Management and Inspection Department, the Reserve Management Department, the Personnel Department (Internal Audit Department), and the Science and Technology Department. There are four public institutions: the Central foreign exchange Business Center, the foreign exchange business data monitoring center, the agency service center and the foreign exchange Research Center.
General Department (Policy and Regulation Department). To be responsible for the daily operation of messages, meetings, secrets, archives and other organs, as well as security and confidentiality, emergency management, news release and other work; To be responsible for the administration of finance, assets and foreign affairs; To study major issues related to foreign exchange management and make policy recommendations; To participate in the drafting of relevant laws and regulations and departmental rules; To undertake the legality review of normative documents and the drafting of important comprehensive documents; To undertake relevant administrative response, administrative reconsideration and hearing work.
Balance of Payments Division. To be responsible for the design and implementation of statistical systems for international payments, foreign exchange payments and foreign exchange settlement and sales, and the preparation of statements; To undertake the monitoring, analysis and early warning of cross-border capital flows; To be responsible for the supervision and administration of the bank's foreign exchange receipts and payments and the bank's own foreign exchange settlement and sales; To undertake the supervision and administration of the national foreign exchange market; To monitor the exchange rate of RMB and provide suggestions and basis for formulating RMB exchange rate policy to the People's Bank of China.
Current Project Management Division. To undertake the verification of the authenticity of foreign exchange receipts and payments under the current account and the supervision and administration of foreign exchange accounts at home and abroad; To undertake insurance financial institutions related foreign exchange business market access and foreign exchange receipts and payments and exchange management; To formulate regulations for the administration of entry and exit limits for carrying and declaring foreign currency notes.
Capital Project Management Division. To undertake the supervision and administration of capital account transactions, foreign exchange receipts and payments and exchange, use of funds and foreign exchange accounts at home and abroad; To be responsible for direct investment registration, exchange management and relevant statistical monitoring according to law; To undertake the management of short-term foreign debts, contingent liabilities and external claims; To undertake the registration, administration and statistical monitoring of all foreign debts; To undertake foreign exchange market access and foreign exchange receipts and payments and exchange management for non-bank financial institutions other than insurance institutions; Registration and exchange management of foreign exchange receipts and expenditures related to cross-border securities investment or derivatives transactions shall be carried out in accordance with the law.
Management Inspection Department. To organize and carry out foreign exchange inspection according to law, and investigate and punish violations of foreign exchange control; Participate in cracking down on underground banks, and assist public security and judicial organs in investigating suspected foreign exchange violations such as illegal foreign exchange trading, foreign exchange evasion and foreign exchange fraud; To undertake the inspection of foreign exchange receipts and expenditures and foreign exchange business activities of institutions and individuals.
Reserve Management Division. To study and put forward management strategies, principles and policy suggestions for the state's foreign exchange reserves and gold reserves, and organize the formulation and implementation of overall management plans; To supervise and inspect the operation of the entrusted reserve assets; To undertake the relevant coordination and cooperation with international institutions, participate in relevant international financial activities, and undertake the relevant work of exchanges and cooperation with Hong Kong, Macao and Taiwan; To study and formulate principles for entrusted management of other foreign exchange assets.
Division of Personnel (Internal Audit Division). To be responsible for the personnel affairs of the State Administration of Foreign Exchange and the institutions directly under it according to their administrative authority; To undertake the administration of retirees of the State Administration of Foreign Exchange; To undertake the internal audit of the State Administration of Foreign Exchange as authorized.
Department of Science and Technology. To draw up technological development plans for foreign exchange control, and undertake scientific and technological development of the national foreign exchange control system; To study and formulate standards and norms for the informatization of foreign exchange management and organize their implementation, and share supervisory information with relevant administrative departments according to law; To be responsible for information security of the State Administration of Foreign Exchange.
Party committee. Under the leadership of the Party Group of the State Administration of Foreign Exchange, in accordance with the work requirements of the Party Committee of the People's Bank of China, responsible for the State Administration of Foreign Exchange organs and institutions directly under the party building, discipline inspection, inspection, trade unions, Communist youth League, women, united front, designated assistance and other work.
Central Foreign exchange Business Center. In accordance with the Law of the People's Republic of China on the People's Bank of China and the Regulations of the People's Republic of China on Foreign Exchange Control, to be responsible for the management of the State's foreign exchange reserves and gold reserves in accordance with the State's foreign exchange reserves management strategy and principles; To serve the development of the national real economy and expand the diversified use of foreign exchange reserves; Entrusted to operate and manage other assets upon approval.
Foreign exchange business data monitoring center. Responsible for the construction of network and application system, organize the construction, application and promotion, operation and maintenance and emergency support of foreign exchange management information system and technical engineering; Responsible for project initiation and electronic construction funds use; Responsible for foreign exchange management e-government construction; Responsible for the collection, management and monitoring of foreign exchange business data; Responsible for guiding branch network and information system construction; Responsible for the technical management and operation and maintenance of the backup center (in the same city or in different places); To undertake foreign exchange management network security guarantee work; To be responsible for the specific implementation of the national foreign exchange management system science and technology development plan and information standards and norms; Responsible for implementing regulatory information sharing with relevant departments.
Agency Service Center. To formulate work plans and systems for the administration of bureau affairs, be responsible for the administration of bureau affairs, and provide logistical support services for bureau affairs.
Foreign Exchange Research Center. Responsible for conducting systematic and in-depth theoretical and policy research on economic and financial issues related to foreign exchange management practices and system reform, providing policy suggestions for formulating foreign exchange management policies, promoting foreign exchange management reform, and preventing and controlling foreign exchange market risks; To carry out foreign exchange management policy interpretation, policy publicity and foreign academic exchanges and cooperation; Edited and published "State Administration of Foreign Exchange Annual Report" and "China Foreign Exchange" magazine.
[4]
home
Safe has set up branch offices (foreign exchange administration departments) in provinces, autonomous regions, municipalities directly under the Central Government and some sub-provincial cities, central branch offices in some localities (cities) and branch offices in some counties (cities). The branches of the State Administration of Foreign Exchange are co-located with the local branches of the People's Bank of China.
The system structure of SAFE is as follows:
[5]
|
sub-station
|
Central branch office
|
Branch office
|
|---|---|---|
|
1
|
0
|
|
|
12
|
2
|
|
|
0
|
0
|
|
|
12
|
41
|
|
|
15
|
92
|
|
|
12
|
18
|
|
|
19
|
65
|
|
|
20
|
16
|
|
|
9
|
2
|
|
|
1
|
0
|
|
|
8
|
2
|
|
|
10
|
75
|
|
|
10
|
1
|
|
|
11
|
7
|
|
|
8
|
2
|
|
|
12
|
14
|
|
|
9
|
39
|
|
|
7
|
45
|
|
|
16
|
6
|
|
|
17
|
16
|
|
|
10
|
12
|
|
|
13
|
3
|
|
|
13
|
7
|
|
|
2
|
11
|
|
|
8
|
0
|
|
|
15
|
20
|
|
|
5
|
0
|
|
|
13
|
1
|
|
|
4
|
1
|
|
|
2
|
1
|
|
|
14
|
4
|
|
|
0
|
0
|
|
|
1
|
3
|
|
|
0
|
5
|
|
|
0
|
0
|
|
|
0
|
6
|
|
|
total
|
309
|
517
|
abroad
An arm of China's central bank has taken a minority stake in Mediobanca, Italy's leading investment bank, underlining the country's willingness to make a long-term bet on the eurozone's troubled periphery. Italy's stock market regulator disclosed in a briefing yesterday that the People's Bank of China had bought a 2.001 per cent stake in the Italian bank this month.
The move is the latest foray into the eurozone's third-largest economy by the State Administration of Foreign Exchange, the investment arm of China's central bank. Safe manages China's $4tn in foreign exchange reserves.
Safe is estimated to have spent more than €2.5bn buying stakes of about 2 per cent in each of Italy's five biggest companies, These include Fiat Chrysler Automobiles, Telecom Italia, Prysmian and state-controlled energy groups Eni and Enel.
The move is a sign that the semi-autonomous investment arm of the People's Bank of China has abandoned its traditionally conservative strategy as yields on fixed income assets have fallen in recent years.
Italy has become one of the main focuses of Chinese investment in Europe in recent years, with an estimated €5bn invested in what has been described as the start of a second Marshall Plan for Europe's troubled periphery.
The Italian government has been an enthusiastic supporter of Chinese investment in the eurozone's troubled third-largest economy and there has been little political opposition to the influx of Chinese money. The two countries signed business deals worth 8 billion euros.
Safe's move to become a shareholder in Mediobanca comes as Italy's largest investment bank is in the midst of a strategic move to internationalise its business and sell a €1.6bn stake that has placed it at the heart of Italian corporate power for half a century.
Alberto Nagel, Mediobanca's chief executive, laid out a far-reaching plan a year ago to sell down its stakes in Generali, Telecom Italia and RCS Mediagroup, Instead, it focused on Europe-wide expansion, investment banking and the bank's retail banking operations.
Mr Nagle also hired Barclays' Stefano Marsaglia as co-head of its investment bank last year, with the aim of transforming Mediobanca's London office into a European hub for all industry and capital markets teams. Mediobanca's shares rose 4.1 per cent to €6.61, giving the bank a market capitalisation of €5.7bn.
[6]
Member of the Party Committee and Deputy Governor of the People's Bank of China, Secretary of the Party Group and Bureau of the State Administration of Foreign Exchange
Length:
Zhu Hexin
18 [19]
[21]
Deputy Director of the State Administration of Foreign Exchange, Members of the Leading Party Group:
Zheng Wei
(F)
[8-9]
[20]
Deputy Director of the State Administration of Foreign Exchange, Members of the Leading Party Group:
Wang Chunying
(F)
[11] 10 -
[13]
Deputy Director of the State Administration of Foreign Exchange, Members of the Leading Party Group:
Li Hongyan
(F)
[7]
[17]
Deputy Director of the State Administration of Foreign Exchange, member of the Leading Party Group
:
Xu Zhibin
[21]
In November 2020, the Decision of the China Association of Internal Audit on Recognizing the National Advanced Group and Advanced Workers in Internal Audit from 2017 to 2019 commended the Internal Audit Division of the Internal Audit Department of the State Administration of Foreign Exchange as the "National Advanced Group in Internal Audit from 2017 to 2019".
[12]
30 Financial Street, Xicheng District, Beijing
[16]
State Administration of Foreign Exchange
