SAFE lays out work in 2020: supports new business formats, and promotes the construction of cross-border financial blockchain service platforms

Source: State Administration of Foreign Exchange

A few days ago, the National Working Conference on Foreign Exchange Management was held in Beijing. The meeting thoroughly studied and implemented the spirit of the 19th National Congress of the CPC and the 2nd, 3rd, 4th Plenary Sessions of the 19th CPC Central Committee and the Central Economic Work Conference, summarized foreign exchange management work in 2019, analyzed the current foreign exchange market situation, and studied and deployed foreign exchange management tasks in 2020. Pan Gongsheng, Secretary of the Party Committee and Director of the State Administration of Foreign Exchange, made a work report.

According to the meeting, in 2019, in the face of the complex situation of rising risks and challenges at home and abroad, the foreign exchange management department is guided by Xi Jinping's thoughts of socialism with Chinese characteristics in the new era. Under the specific guidance of the Party Committee of the People's Bank of China, we will deepen reform and opening up in the foreign exchange field, serve the development of the real economy, prevent cross-border capital flow risks, maintain a basic balance of international payments, and maintain national economic and financial security.

The first is to strengthen the party building in an all-round way with the guidance of political construction. We will resolutely implement the important instructions of General Secretary Jinping and the decision-making and deployment of the Party Central Committee and the State Council. We will steadily carry out the theme education of "do not forget the original intention and keep the mission in mind", and adhere to the discipline to build a high-quality professional cadre team.

The second is to deepen reform and opening up in the foreign exchange field, further promote the reform of "decentralization and management services", and serve the high-quality development of the real economy. Twelve measures to promote cross-border trade and investment facilitation were introduced and approved by the State Council Standing Committee. Support the development of new trade formats and trade and investment activities along the “Belt and Road”. We will steadily promote the opening of capital projects, remove restrictions on investment quotas for qualified foreign investors, facilitate foreign institutional investors to invest in the interbank bond market, and conduct pilot projects for securities company foreign exchange settlement and sales. Launched a cross-border financial blockchain service platform.

The third is to effectively prevent cross-border capital flow risks and effectively maintain the stability of the foreign exchange market. Flexible use of macro-prudential management policies, counter-cyclical policies, market-oriented regulation of cross-border capital flows, and severe crackdowns on illegal activities in the foreign exchange field such as underground money banks. The fourth is to improve the operation and management of foreign exchange reserves, and the scale of reserves has increased steadily. Under the complicated situation, the safety, liquidity and appreciation of foreign exchange reserve assets have been effectively guaranteed.

The meeting emphasized that 2020 is the year when a well-off society will be fully established and the “Thirteenth Five-Year Plan” will be completed. Guided by Xi Jinping's thoughts on socialism with Chinese characteristics in the new era, foreign exchange administrations should thoroughly implement the spirit of the 19th CPC National Congress and the 2nd, 3rd, and 4th Plenary Sessions of the 19th CPC Central Committee, conscientiously implement the deployment of the Central Economic Work Conference, and strengthen the "Four Consciousness ", Firmly" four self-confidences "," two maintenances ", closely related to the goal of building a well-off society in an all-round way, in accordance with the" four adherences "and" six stability "requirements, continue to improve the state governance system governance capabilities modernization requirements The adaptive foreign exchange management system and mechanism effectively transforms the party's system of economic leadership into governance effectiveness, and strives for the successful completion of a well-off society and the 13th Five-Year Plan.

The meeting deployed key foreign exchange management work in 2020.

The first is to further intensify the party's strict governance and implement party leadership in all aspects of foreign exchange management. Put the strengthening of the party's political construction in the first place, strengthen the theory of innovation, conscientiously implement the decision-making and deployment of the Party Central Committee and the State Council, consolidate the results of deepening thematic education, build a team of high-quality professional cadres who are loyal and clean, and effectively implement the "two responsibilities" To build a model organ that reassures the Party Central Committee and satisfies the people.

The second is to adapt to the modernization of governance capabilities of the national governance system, and constantly improve the two macro-prudential + micro-regulatory management frameworks of the foreign exchange market to maintain a basic balance of international payments. Macro prudential management aims to maintain the basic stability of the foreign exchange market and prevent systemic financial risks. Micro-regulation is based on the authenticity audit, behavior supervision and micro-prudential supervision of various entities in the foreign exchange market and their trading behaviors to maintain the order of the foreign exchange market.

The third is to deepen reform and opening up in the foreign exchange field and serve a new pattern of comprehensive opening up. Earnestly implement the 12 facilitation measures reviewed and approved by the Standing Committee of the State Council. Steady and orderly promote the opening of capital projects, support the interconnection and two-way opening of financial markets, and promote the liberalization and facilitation of trade and investment and high-quality development. Support new business formats and promote the construction of cross-border financial blockchain service platforms. We will deepen the reform of "decentralization and management services" and support the pilot reform of foreign exchange management reforms in the Pilot Free Trade Zone, Hainan Free Trade Port, and the Guangdong-Hong Kong-Macao Greater Bay Area. Build an open and competitive foreign exchange market.

The fourth is to prevent external shock risks and maintain national economic and financial security. Deeply analyze the impact of external shocks on China's trade and investment, balance of payments structure, and cross-border capital flows, and enrich the policy toolbox. Guide enterprises to establish the concept of "financial neutrality". Improve foreign exchange wholesale market laws and regulations, and establish and improve the off-site supervision and on-site inspection working mechanism of the foreign exchange wholesale market. Strictly crack down on violations of laws and regulations in the foreign exchange field, maintain consistency, stability and predictability of enforcement standards across cycles, and maintain order in the foreign exchange market. Promote the construction of "digital external management" and "safety external management". Fifth, improve the operation and management of foreign exchange reserves with Chinese characteristics, and improve the modernization of operation and management. We will steadily and prudently promote diversified use, serve the joint construction of the “Belt and Road” high-quality development, and ensure the safety, flow, and preservation and appreciation of foreign exchange reserve assets.

Members of the foreign exchange bureau's party group, chief accountant and chief economist attended the meeting. The main responsible comrades of the various foreign exchange management branches (foreign exchange management departments), bureaus, departments, and units attended the meeting. (Finish)