Wang Chunying, spokesman and chief economist of the Foreign Exchange Administration, said that Chinas current account surplus was 1.6% of GDP in the first half of this year; preliminary estimates showed that non-reserve financial accounts continued net inflows, with both direct investment and securities investment showing surpluses.
Specifically, in the first half of the year, Chinas balance of payments trade surplus in goods was 222.8 billion US dollars; its service trade deficit was 129.3 billion US dollars, narrowing by 12% compared with the previous year, with the travel and transport deficits falling by 8% and 14% respectively; its first income surplus was 7.1 billion US dollars, which was 30.3 billion US dollars in the same period last year; and its second income surplus was 5.4 billion US dollars, which was 12% lower than the previous year. The deficit was $6.5 billion over the same period.
Over the same period, the FDI surplus was $33.6 billion. Among them, FDI of US$46.7 billion remained stable on the whole, while FDI of US$80.3 billion in China remained at a relatively high level.
Wang Chunying pointed out that in securities investment, foreign investors increased their holdings of Chinas securities by more than 50 billion US dollars, Chinas foreign securities investment increased by more than 30 billion US dollars, and both stocks and bonds in two-way investment increased. This shows that the two-way opening of Chinas capital market further promoted capital market transactions and cross-border capital flows, and better satisfied them. The demand of domestic and foreign investors for cross-border asset allocation is also discussed.
Source: Responsible Editor of CNN: Liu Song_NBJ9949