The State Administration of Foreign Exchange has deployed this year’s key work to prevent the risk of abnormal cross-border capital flow.

　　Economic Daily-China Economic Net, Beijing, January 6 (Reporter Yao Jin) The State Administration of Foreign Exchange recently held a national video conference on foreign exchange management in 2021, saying that in 2020, in the face of the severe impact of the COVID-19 epidemic and the complicated international situation, the foreign exchange management department resolutely implemented the decision-making arrangements of the CPC Central Committee and the State Council, and combined with the prevention and control of the epidemic, it paid more attention to serving the real economy, promoting reform and opening up, and preventing and defusing risks, and made every effort to do the work of "six stabilities" and "six guarantees" and maintain.

　　The meeting emphasized that 2021 is the first year of the 14 th Five-Year Plan. Foreign exchange management departments should continue to do a good job of "six stabilities" and implement the task of "six guarantees", better coordinate development and security, strengthen awareness of opportunities and risks, deepen reform and opening up in the foreign exchange field to stimulate new development vitality, reform and improve the foreign exchange management system and mechanism that is compatible with the new open economy system with a higher level under the new development pattern, focus on improving the level of trade and investment liberalization and facilitation from a micro perspective, and effectively safeguard national economic and financial security from a macro perspective.

　　The meeting deployed the key work of foreign exchange management in 2021. The first is to prevent the risk of abnormal cross-border capital flows. Strengthen the monitoring and evaluation of foreign exchange situation, pay close attention to the impact of external shocks such as epidemic situation, guide financial institutions and enterprises to adhere to the principle of risk neutrality, crack down on foreign exchange speculation, strengthen market expectation management and macro-prudential management, and avoid disorderly fluctuations in the foreign exchange market. The second is to deepen reform and opening up in the foreign exchange field. Focusing on the two-way opening of financial markets, we will steadily and orderly promote the opening of capital projects. We will improve the management of overseas institutions’ domestic issuance of stocks and bonds, promote the pilot of cross-border investment of private equity investment funds, reform the management of foreign debt registration, and promote the facilitation of cross-border investment and financing. We will expand the pilot program to facilitate foreign exchange receipts and payments in trade and promote the development of new trade formats. We will build an open, diversified and well-functioning foreign exchange market and support financial institutions to launch more foreign exchange derivatives to meet market demand. The third is to improve the "macro-prudential+micro-supervision" management framework of the foreign exchange market. Improve the management of cross-border capital flows with the core of strengthening macro-prudence, and improve the micro-supervision of the foreign exchange market with the core of changing supervision methods. Improve the credit system construction of classified management oriented by risk assessment. Strengthen the capacity building of off-site supervision. Strictly crack down on illegal activities in the foreign exchange field such as underground money houses and cross-border gambling with a "zero tolerance" attitude, and maintain a healthy order in the foreign exchange market. Fourth, improve the management of foreign exchange reserves with China characteristics. Adhere to the principle of marketization, make strategic allocation in a forward-looking way, and dynamically optimize the investment portfolio.Ensure the safety, flow, preservation and appreciation of foreign exchange reserve assets. The fifth is to lay a solid foundation for foreign exchange management. In-depth study of foreign exchange management reform ideas during the 14th Five-Year Plan period, promote the construction of "digital management" and "safe management", improve the balance of payments statistical system, and do a good job in the prevention and control of normalized epidemic situation.