In 2017,China's foreign exchange authorities will make policy adjustments in response to the major changes in the global economy and on world financial markets. They will make renewed efforts to cope with capital outflows. China Forex interviewed senior officials at five operational departments under the State Administration of Foreign Exchange to discuss their policy objectives and the measures that could be taken to attain these goals this year. The following discussions in a question and answer form are with the heads of SAFE's Balance of Payments Department,the Current Account Department,the Capital Account Department,the Supervision and Inspection Department and the SAFE Investment Center.

China Forex: Over the past year we saw substantial swings on world financial markets and changes in capital flows. What do you expect to see in terms of cross-border capital movements in the near future?

Wang Chunying,director of SAFE's Balance of Payments Department: China's foreign exchange payments in general will trend towards greater balance. Undeniably,the global economy will likely continue to remain sluggish. The overall economic recovery remains weak and there is a slowdown in trade and investment. Oil prices continue to fall and there is limited room for further fiscal stimulus. At the same time,interest rate hike by the Federal Reserve may impact on the global market from time to time. This is the objective environment that countries around the world must contend with. However,there still are fundamental factors that support the stable movement of the cross-border capital flow. These include China's comparatively high rate of economic growth in world wide,its relatively sound financial position,a continuing current account surplus and the world's largest supply of foreign exchange reserves. Other positive factors have begun to appear as well. Market players continue to adapt to the improved rules and transparency for the renminbi exchange rate mechanism and sentiment has become more stable. Pressure from China's corporate debt repayments has been significantly reduced. In the second quarter of last year,China's foreign borrowings moved higher,suggesting more confidence in the domestic currency. There has been a further opening of the domestic bond market and the addition of the renminbi to the International Monetary Fund's special drawing rights has gradually helped balance capital inflows and outflows.

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