FDI surge in housing industry 151% increase in foreign debt

Liulanchang the renminbi's median against the U.S. dollar fell to 6.6775 per cent from 6.6732 on October 12, after a new record of foreign exchange.　　On the day of the first half of 2010 China's balance of payments report, the State administration of foreign exchange said that the RMB exchange rate is not equal to the appreciation of the renminbi, the market subject should overcome unilateral expectations and adapt to the development trend of the two-way floating of RMB The appreciation of the renminbi is expected to boost Cross-border capital inflows.　　According to the report released 12th, the capital and finance project surplus in the first half of the year was 90 billion U.S. dollars, an increase of 48%, a financial surplus of 87.5 billion U.S. dollars, including a direct investment surplus of $37 billion trillion, portfolio investment and other investment under the net inflow of 50.5 billion U.S. dollars. "The overall situation of the net inflow of Cross-border funds will not change as a result of the appreciation of the renminbi and the positive and poor market conditions in foreign currencies."　　"In the long run, China's" hot money "inflow has long-term, complex and objectivity, should use the exchange rate, interest rate and other price mechanism to guide the rational, especially to prevent the" hot money "great quantities destructive role.　　The Foreign Management Bureau suggested that the market subject should overcome unilateral expectation, adapt to the development trend of RMB exchange rate two-way fluctuation, and set up correct exchange rate risk consciousness. Before the mid-term elections next month, the US Treasury will unveil its semi-annual exchange rate report in Friday, so the US government is bound to decide on whether to formally declare China a currency manipulator for the first time. "These factors will continue to face upward pressure on the renminbi."　　Said a foreign bank trader.　　The foreign currency of corporate indebtedness intensifies the trend of net inflow of cross-border funds under the expectation of RMB appreciation.　　In the first half of the year, the net inflow of securities investment and other investment into $50.5 billion, despite a net outflow of 7.3 billion US dollars, was offset by 57.8 billion of dollars in net inflows of other investments, according to the agency's data. "Other investments" are mainly trade credits and loans, especially short-term trade credits. As at the end of June 2010, our external debt balance was $513.8 billion (excluding foreign liabilities from Hong Kong, Macao and Taiwan), with the registered external debt remaining at USD 307.2 billion, the trade credit balance being 206.6 billion US dollars, and the short-term external debt remaining at $343.8 billion, accounting for 67% of the external debt balance,　　Short-term foreign debt accounted for the fifth consecutive quarterly rise. In the short-term external debt balance, trade credit, trade-related credit accounted for 60% and 19% respectively, the total accounted for 79%.　　"This is mainly related to the rapid development of foreign trade in recent years," said the agency, "Trade credit and trade-related credit have real import and export trading background and will not increase external debt risk". But it also noted that the renminbi interest rate was higher than the international dollar interest rate, and the renminbi has gradually regained its appreciation expectations against the dollar since the second half of 2009. Induced by the double income of spreads and sinks, the scale of Cross-border dollar arbitrage of domestic market is expanding, which intensifies the fluctuation of China's foreign exchange balance, mainly manifested as domestic foreign exchange loan and Cross-border foreign exchange financing.。 Under the impetus of enterprise "foreign debt", the balance of foreign exchange loans of China's financial institutions increased by 135.8 billion and 32.3 billion respectively in the first half of 2009 and 2010.　　Safe pointed out that the bank to meet domestic foreign exchange loan demand, the international balance of payments data shows that in 2009 and the first half of 2010, the net return of foreign assets of China's banks were 66.3 billion and 21.2 billion U.S. dollars respectively. "With the expansion of foreign exchange loans, the bank's own foreign exchange liquidity tightened, foreign exchange loan interest rates have increased, enterprises began to use Cross-border foreign exchange financing to obtain foreign exchange resources." "In foreign trade, domestic banks accept the RMB full pledge of domestic enterprises or deduct the credit limit of domestic enterprises," said the agency. By the letter of credit, acceptance, guarantee, etc. from overseas branches, overseas banks, the bank's offshore department to obtain discount, payment, credit and other foreign exchange financing facilities for domestic enterprises to delay the import of remittance,　　Early export proceeds to provide financial services.　　FDI net inflow of 56.4 billion U.S. dollars in addition to securities investment and external debt, Cross-border funds can also through direct investment "concerned, sneak." "In the first half of this year, domestic real estate enterprises under macro-control financing difficulties, began to obtain loans through overseas affiliated companies from abroad, and then the funds to foreign investment in the territory, which is the first half of the real estate industry, the main reason for the large increase in foreign direct investment."　　"said the foreign administration. Data show that in the first half of 2010 foreign direct investment in China inflow of 66.9 billion U.S. dollars, an increase of 39% from a year earlier, withdrawal liquidation, such as outflow of 10.5 billion U.S. dollars, fell 45%;　　China's direct investment in the industry mainly concentrated in the manufacturing, real estate, leasing and business services, wholesale and retail industry, including the real estate industry accounted for 21%, year-on-year growth of up to 151%.　　In anticipation of continued trade and direct investment surpluses and continued net inflows of funds, according to the foreign administration, the balance of payments will remain large in the second half of the year, but because of the unstable factors at home and abroad, it may increase the fluctuation of the balance of payments operation through foreign trade, foreign capital and financial conduction channels. At the same time, the second half of the foreign Exchange Bureau will promote more reforms, including the import and export write-off reform as the focus of continuing to promote trade facilitation, timing start the export Exchange verification reform, in some areas of the pilot export revenue storage overseas management, continue to maintain the "hot money" flow of the high-pressure attack situation, To encourage enterprises with strength to carry out cross-border operations for enterprises to "go out" to provide more policy support and so on.