China Forex: What are the key objectives of the Current Account Department in 2016?

Du Peng: In 2016,our department will be taking its guidance from the spirit of the Fifth Plenary Session of the 18th Central Committee of the Chinese Communist Party and the conclusions of the Central Economic Work Conference. We will push ahead with the transformation of foreign exchange administration under the current account by optimizing supervision and inspection,improving our post-transaction supervisory system,and giving full play to inspections. We will pay close attention to changes in foreign exchange conditions,enhance risk detection and early-warning capabilities and step up collaboration with external departments in order to provide more effective supervision. In so doing we will boost trade facilitation,support selected emerging businesses and serve the real economy. We will also enhance the guidance and supervision of commercial banks and other financial institutions.

China Forex: In 2015 there was a trend of net cross-border outflows of capital. What measures might be taken in response to this situation in 2016?

Du Peng: Last year,our department made strenuous efforts to cope with a severe situation in foreign exchange receipts and payments and foreign exchange settlements. Under the SAFE guideline of "controlling outflows" we implemented a coordinated strategy of special inspections of enterprises suspected of reporting false trades,forging documents and buying or selling customs declarations. Our efforts made a big impact in stemming the outflow of profits from the services trade and greatly deterred irregular and illegal cross-border flows of capital.