Home>News Center>China
       
 

Foreign debt rises due to policy changes
By Zhang Dingmin (China Daily)
Updated: 2004-09-30 00:55

China's foreign debt rose abruptly in the first half of this year due to macroeconomic factors like the unabated expectations for a renminbi revaluation and policy adjustments, the nation's foreign exchange authorities said Wednesday.

But the sudden increase in outstanding foreign liabilities did not signal heightened foreign debt risk for China, and external borrowing by foreign banks operating here will likely decline for the remainder of the year, said the State Administration of Foreign Exchange (SAFE).

China's outstanding foreign debt totalled US$220.1 billion at the end of June, up 14.12 per cent from the end of last year. Short-term debts stood at US$98.9 billion, a 28 per cent jump from six months earlier.

New borrowing, excluding trade credits, surged by 97.8 per cent on a year-on-year basis to US$83.4 billion during the first six months of the year, SAFE said.

And the net inflow of foreign liabilities -- new borrowing minus repayments and interest -- registered US$22.7 billion for the period, six times of what was recorded one year earlier.

"Generally speaking, the continued increase in China's foreign debt was influenced by such factors as the rapid growth in the domestic economy and foreign trade," SAFE said in a statement.

The rapid growth of the Chinese economy, registering a strong 9.7 per cent for the first half of this year, required greater funding, while the State's ongoing macro management, aimed at bringing down monetary and investment growth, caused a funding shortage and forced businesses to borrow from overseas, it said.

The interest rate differentials between China and international markets, as well as the persistent expectations for an appreciation of the renminbi exchange rate, were an "unnegligible" factor behind the rapid rise in foreign debts, the administration said.

But the recent interest rate increases in the United States narrowed interest rate differentials, and may hopefully put a damper on China's foreign debt growth, it said.

What can be a more important reason, the administration said, was policy adjustments on foreign banks' foreign debt regulations and forex sales rules, which had a "significant" impact on the foreign debt picture in the second quarter.

The Chinese authorities issued new rules governing foreign banks' foreign borrowings in May, requiring them to bring their outstanding loans from outside China to below authorized ceilings by the end of this year, and keep their short-term liabilities below the amount outstanding at the end of June before the end of the year.

That, coupled with a tightening in rules on forex sales to Chinese banks, caused foreign banks to increase borrowing in June to push up the outstanding amount at the end of the month and gain more elbow room for the remainder of the year.

"Therefore, the abrupt increase in the outstanding foreign debt at the end of June was largely associated with adjustments in foreign debt policies, and did not suggest a sudden rise in China's overall foreign debt risk," SAFE said.

Foreign financial institutions operating in China accounted for 21 per cent of the nation's total foreign debts outstanding at the end of June.

The administration also said it was closely watching the effect of the new foreign debt regulations, pledging it would try to avoid disrupting normal operations of foreign banks when containing the nation's foreign borrowings.



 
  Today's Top News     Top China News
 

Powered by China, world economy to grow 5%

 

   
 

Hu vows to modernize Chinese army

 

   
 

Taipei's provocative actions condemned

 

   
 

Nation on alert against outbreak of bird flu

 

   
 

Elimination of quota on textiles welcomed

 

   
 

China expects influx of foreign students

 

   
  China's 'No. 1' hitman sentenced to death
   
  Hu vows to modernize Chinese army
   
  Beijing tackles enclaves of poverty
   
  Foreign debt rises due to policy changes
   
  Taipei's provocative actions condemned
   
  National campaign focuses on alcohol market
   
 
  Go to Another Section  
 
 
  Story Tools  
   
  News Talk  
  It is time to prepare for Beijing - 2008  
Advertisement
         
主站蜘蛛池模板: 波多野结衣导航| 伊人色综合视频一区二区三区| 一本一本久久a久久精品综合| 日韩免费无砖专区2020狼| 亚洲日韩中文字幕一区| 玩山村女娃的小屁股| 午夜老司机在线观看免费| 蜜桃成熟时无删减手机在线观看| 国产成人精品日本亚洲专区6 | 蜜臀av无码人妻精品| 国产成人高清视频免费播放| 最新国产你懂的在线网址| 国内精品久久久久影院蜜芽| h在线观看网站| 小蝌蚪视频在线免费观看| 中文字幕亚洲欧美日韩不卡| 日本亚州视频在线八a| 九九精品99久久久香蕉| 欧美与黑人午夜性猛交久久久| 亚洲日韩在线视频| 欧美色图你懂的| 亚洲精品短视频| 特区爱奴在线观看| 伊人久久大香线蕉免费视频| 粉色视频午夜网站入口| 午夜视频免费国产在线| 美女被艹免费视频| 国产一区二区三区在线观看免费| 青青国产线免观看手机版精品| 国产恋夜精品全部护士| 精品91自产拍在线| 国产无套露脸大学生视频| 免费在线视频a| 国产欧美日韩精品a在线观看| 你懂的在线视频网站| 国产精品剧情原创麻豆国产| 1卡二卡三卡四卡在线播放| 国产精选午睡沙发系列999| 777奇米视频| 国产精品毛片一区二区| **字幕特级毛片|