Safe: net inflow of direct investment in the first three quarters reached US $27.7 billion

category:Finance
 Safe: net inflow of direct investment in the first three quarters reached US $27.7 billion


In terms of the first three quarters as a whole, Wang Chunying, spokesman and chief economist of the State Administration of foreign exchange, said that in the first three quarters of 2019, Chinas current account showed a surplus, cross-border capital flows were stable, and Chinas balance of payments remained basically balanced.

From the data, in the first three quarters of this year, Chinas current account surplus was 982.2 billion yuan. Among them, the trade surplus of goods is RMB 2358.3 billion, the trade deficit of services is RMB 1382.7 billion, the first income deficit is RMB 45.6 billion, the second income surplus is RMB 52.2 billion, and the direct investment surplus in the capital and financial accounts is RMB 185.6 billion.

In the first three quarters of 2019, Chinas current account surplus is $1432 billion. Among them, the trade surplus of goods is US $343.5 billion, the trade deficit of services is US $2017 billion, the first income deficit is US $6.3 billion, and the second income surplus is US $7.6 billion. In the capital and financial accounts, the direct investment surplus was $27.7 billion.

Wang Chunying pointed out that Chinas balance of payments in the first three quarters showed four characteristics: first, the current account showed a surplus, in which the goods trade surplus increased and the service trade deficit narrowed. In the first three quarters of 2019, the current account surplus was $1432 billion, compared with a deficit of $5.5 billion in the same period last year. Among them, the surplus of goods trade in the balance of payments is US $343.5 billion, up 34% year on year; the deficit of service trade is US $2017 billion, down 12% year on year. Under service trade, the deficit of travel, transportation and intellectual property use fees decreased by 8%, 15% and 10% respectively year on year.

Second, direct investment in China remained at a high scale. In the first three quarters of 2019, the net inflow of direct investment reached US $27.7 billion. Among them, the net outflow of foreign direct investment was 69.3 billion US dollars, and the net inflow of foreign direct investment to China was 97 billion US dollars, still maintaining a relatively high scale.

Third, securities investment shows a surplus and two-way capital flow is active. According to preliminary statistics, in the first three quarters of 2019, Chinas securities investment surplus is about 40 billion US dollars. Among them, China has invested more than 60 billion US dollars in foreign securities and more than 100 billion US dollars in securities.

Fourth, the reserve assets are basically stable. In the first three quarters of 2019, reserve assets decreased by $13 billion due to balance of payments transactions. Considering the influence of non trading factors such as exchange rate and price, by the end of September 2019, the balance of Chinas reserve assets was 3204.5 billion US dollars, an increase of 36.5 billion US dollars compared with the end of 2018.

Wang Chunying said that under the background of the long-term improvement of Chinas economic fundamentals and the continuous promotion of all-round opening up, it is expected that the balance of payments for the whole year will continue to present a pattern of overall stability and basic balance.

Source: responsible editor of Securities Daily: Yang qian_nf4425