The national foreign exchange administration work conference was held in Beijing recently. Under the guidance of Xin Jinping thought on socialism with Chinese characteristics for a new era, by following the spirit of the 19th CPC National Congress, the Second and Third Plenums of the 19th CPC Central Committee and the Central Economic Work Conference, the conference reviewed the four-decade journey of reform and opening-up in foreign exchange administration area, summarized foreign exchange administration in 2018, analyzed current foreign exchange situation in an in-depth manner, and discussed and made plans for foreign exchange administration tasks for the next phase. Pan Gongsheng, Secretary of the Party Leadership Group and Administrator of the State Administration of Foreign Exchange (SAFE) delivered a work report.
The conference holds that, in 2018, under the strong leadership of the CPC Central Committee led by Comrade Xi Jinping and guidance of the CPC Committee of the People's Bank of China, foreign exchange authorities resolutely implemented the decisions and deployment of the CPC Central Committee and the State Council, strictly and comprehensively exercise self-discipline, unswervingly promoted the overall work guideline of making progress while maintaining stability, proactively adapted to the profound changes in external environment, deepened foreign exchange administration reform, advanced the dual-directional opening-up of the financial market, so as to serve the overall new pattern of opening-up, effectively guard against cross-border capital flow risks, safeguard security, liquidity as well as value preservation and appreciation of foreign exchange reserves and maintain national economic and financial security. The first is thoroughly promoting strict Party's self-discipline under the guidance of the Party's political construction. We made it a top political priority to study and implement Xi Jinping thought on socialism with Chinese characteristics for a new era and the spirit of the 19th CPC National Congress, and fully carried out the decisions and deployment of the CPC Central Committee and the State Council. We thoroughly implemented the spirit of the eight-point guidelines set out by the CPC Central Committee and worked to strengthen construction of party conduct and government integrity. The second is persisting in serving the real economy and thoroughly advancing the reform of "delegation, regulation and service". Efforts have been made to deepen opening-up and development of capital market and foreign exchange market, refine the qualified institutional investor system, vigorously support the "Belt and Road" construction as well as opening-up and innovative development of Free Trade Zones to improve the liberalization and facilitation of trade and investment. The third is getting off to a good start in the tough battle of guarding against and alleviating major financial risks, improving the two-pronged "macro-prudential + micro-regulatory" administrative framework for cross-border capital flow. Vigorous efforts were made to severely crack down upon foreign exchange irregularities such as underground banks and illegal online foreign currency speculation, so as to maintain a good order in the foreign exchange market. The fourth is improving operation and management of foreign exchange reserves, constantly strengthening investment capability building, and deepening diversified utilization to serve the national strategy and safeguard national economic and financial security.
As pointed out on the conference, the SAFE was established with the approval of the State Council on March 13, 1979 as needed by the reform and opening-up. Over the past 40 years since the reform and opening-up and the founding of the SAFE, under the strong leadership of the CPC Central Committee and the State Council, foreign exchange authorities have been constantly reinforcing the decisive role of market in foreign exchange resource allocation, actively transforming the concepts and approaches of foreign exchange administration, deepening reform and opening-up in foreign exchange field, improving capabilities for serving the real economy, and have withstood a series of intensive external shocks at both regional and global level, and maintained national economic and financial security. Foreign exchange authorities are required to earnestly summarize successful experience over the past four decades of reform and opening-up in foreign exchange field, and vigorously serve the new comprehensive opening-up pattern which covers all dimensions, multiple levels and wider fields.
The conference emphasized that the year 2019 marks the 70th anniversary of the founding of the People's Republic of China, and it's a crucial year for building a well-off society in an all-around way. Foreign exchange authorities shall rally more closely around the CPC Central Committee with Comrade Xi Jinping at the core under the guidance of Xi Jinping thought on socialism with Chinese characteristics for a new era, follow the spirit of the 19th CPC National Congress and the Second and Third Plenums of the 19th CPC Central Committee and the Central Economic Work Conference in an all-around manner, firmly establish the "four consciousness", strengthen "four self-confidences", and resolutely perform "two maintenances", so as to unify thoughts and actions by focusing on the CPC Central Committee¡¯s significant judgments as well as decisions and arrangements about current situations both at home and abroad, adhere to the overall work direction of seeking progress while maintaining stability, persist in deepening market-oriented reform with focus on supply-side structural reform, expand high-level opening-up, deepen the reform of "delegation, regulation and service", well implement the requirements of "six stabilities", thoroughly advance reform and opening-up in the foreign exchange field, continue to fight the three major battles, earnestly serve the sustained and sound development of the real economy, and celebrate the 70th anniversary of the founding of the People's Republic of China with outstanding achievements.
The conference laid out foreign exchange administration priorities of 2019. First, comprehensively strengthening Party discipline and deepening its development. We will persist in prioritizing the Party's political construction, study and implement Xin Jinping thought on socialism with Chinese characteristics for a new era and the spirit of the 19th CPC National Congress in an in-depth manner, fully follow the centralized and unified leadership of the CPC Central Committee in financial and foreign exchange work, further intensify supervision and enforcement, resolutely implement the spirit of the eight-point guidelines issued by the CPC leadership, relentlessly rectify undesirable work styles such as formalism, bureaucracy, hedonism and extravagance, and build a professional and high-quality foreign exchange administration team with loyalty, integrity and sense of responsibility. Second, promoting reform and opening-up in foreign exchange field. The foreign exchange authorities will steadily promote the opening-up of capital account in an orderly manner, further refine qualified foreign institutional investor system, and study the foreign exchange administration framework for foreign-funded enterprises under the national treatment and negative list management system before access is granted. Efforts will be made to expand bi-directional opening-up of foreign exchange market, further enrich instruments of transactions, increase trading entities, and build an open and competitive foreign exchange market. Third, deepening the foreign exchange administration reform of "delegation, regulation and service". The SAFE will optimize foreign exchange administration services, promote liberalization and facilitation of trade and investment at a higher level, further support free trade zones, Guangdong-Hong Kong-Macao Greater Bay Area and Hainan to deepen reforms in an all-around manner, and foster a convenient and highly efficient, stable and transparent business environment with fair competition. Fourth, improving the two-pronged "macro-prudential + micro-regulatory" management framework for cross-border capital flow. The SAFE will regulate fluctuations in the foreign exchange market in a market-based and countercyclical manner, maintain stability, consistency and predictability of micro-regulation of foreign exchange across cycles, crack down upon illegal and irregular activities in foreign exchange, promote "digital foreign exchange administration" and "secure foreign exchange administration" construction, and safeguard optimum order in foreign exchange market. Fifth, improving the operation and management of foreign exchange reserves. The SAFE will further promote operation capability construction, vigorously serve the "Belt and Road" Initiative and national strategy, and safeguard security, liquidity as well as value preservation and appreciation of foreign exchange reserves.
The Party Leadership Group members, the Chief Accountant and Chief Economist of the SAFE attended this conference. The main responsible comrades of branches and foreign exchange administrative departments of the SAFE as well as administrative organs of the SAFE attended this conference.