SAFE Releases Preliminary Data of China's Balance of Payments Statement for the Second Quarter

SAFE has recently released preliminary data of <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />China's Balance of Payments statement for the second quarter and the first half of 2010.<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />

The international current account and the capital and financial account posted a "twin surplus" in the second quarter of 2010. And international reserves assets maintained a growing momentum. In the second quarter of 2010, China's surplus under the current account totaled USD70.5 billion, an increase of 30% year on year. Specifically, according to the statistical coverage of the balance of payments, the surpluses under the trade in goods, services, income and current transfers reached USD59.5 billion, USD6.1 billion, USD7.2 billion and USD9.9 billion respectively. The surplus under capital and financial account amounted to USD11.5 billion (net errors and omission are included). Among which, the net inflows of direct investments reached to USD21 billion. The international reserves assets increased USD82.1 billion, a decrease of 17%. Specifically, foreign exchange reserves increased USD81.1 billion (excluded the influence of foreign exchange rate, price and non-transaction values). The reserve position at IMF rose by USD 900 million.

China’s surplus under the international current account amounted to USD124.2 billion, a drop of 8% year on year, while the current account accounts for 4.9% of GDP, a decrease of 1.3% year on year. China's surplus under the capital and financial account totaled USD 53.9 billion (net errors and omission are included). The international reserves increased USD178 billion, an increase of 8% year on year.