SAFE Establishes New Sovereign Fund SAFE Co-Financing


China’s State Administration of Foreign Exchange (SAFE) announces the establishment of SAFE Co-Financing today by a release published on its official website in Chinese. The original Chinese release is listed at the bottom.

China’s State Administration of Foreign Exchange answers a question from journalists about the work on innovative foreign exchange utilization.

Q: There is news about SAFE actively exploring new ways to innovatively utilize China’s foreign exchange reserves, and potentially set up a special office to lead this effort. How has this work progressed?

A: In recent years, China’s economy has grown rapidly and steadily. The country’s economic power increased and the strength of enterprises improved. At the same time, the global economy is increasingly inter-connected. To ensure the long-term prosperity of our economy, it requires a transition of our economic development model, which includes the acceleration of the "Going Out" strategy, increasing the level of opening up and better utilization of both domestic and international markets and resources.

The People’s Bank of China and the State Administration of Foreign Exchange pay great attention to the positive role that foreign exchange markets play in support of economic growth. In recent years, our work has focused on the management of monetary policy and foreign exchange markets. But at the same time, we also focused on the innovative management of foreign exchange reserves to support the strategies of "Going Out" and financial institutions’ serving the real economy. We established the office of SAFE Co-Financing inside the SAFE administration to be responsible for the tasks of innovative management of foreign exchange reserves. Innovative management of foreign exchange reserves is part of the foreign exchange reserves management. Its operations are based on market principles and situations, in accordance of industry norms and regulations. It respects the market’s choices and will, and maintains fair and open competition of the market.

Since the beginning of establishment of the Office of SAFE Co-Financing, it has provided a beneficial financing environment for our financial institutions and foreign exchange market participants. It has helped outbound trade and investment and stimulated our economic growth. It expanded the scope of foreign exchange reserves’ investment horizon, and improved diversification. We have always placed risk management as our top priority and have realized the maintenance and appreciation of our foreign exchange reserves.

问:有消息称,外汇局在创新外汇储备运用方面积极探索,并有一个办公室专门负责这项工作。请问这项工作目前进展如何?

答:近年来,我国经济平稳较快发展,国民经济实力显著增强,企业实力稳步提高,经济运行整体向好。与此同时,全球经济一体化程度不断加深,经济往来和联系不断加强。经济社会的长远发展要求加快转变经济发展方式,加快实施“走出去”战略,提高对外开放水平,更好地利用国内国外两个市场、两种资源。

人民银行、外汇局高度重视发挥外汇市场支持国家经济社会发展的积极作用。近年来,在做好货币政策调控和外汇管理工作的同时,不断创新外汇储备运用,支持金融机构服务实体经济发展和“走出去”战略,并在外汇储备经营管理机构内,成立了外汇储备委托贷款办公室(SAFE Co-Financing),负责创新外汇储备运用这项工作。创新运用业务是外汇储备经营管理的组成部分,相关操作均按市场化原则和条件开展,各项安排符合一般行业惯例和规则,尊重市场选择和意愿,维护并促进市场公平竞争。

开展委托贷款工作以来,通过调节外汇市场资金供求,为我国金融机构及外汇市场参与主体扩大对外经贸往来提供了良好的基础条件和融资环境,较好地促进了国家经济社会发展,扩大了外汇储备投资范围与领域,进一步促进了多元化经营管理;同时,始终把防范风险放在首位,实现了外汇储备保值增值。

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