Source title: SAFE: China‘s assets are more attractive to foreign capital, and the scale of foreign debt is generally stable and has a solid foundation
A few days ago, the foreign debt data released by the State Administration of Foreign Exchange at the end of June 2022 showed that the overall scale of my country’s external debt in the second quarter of 2022 declined. As of the end of June 2022, my country’s full-scale (including domestic and foreign currency) foreign debt balance was US$2,636 billion, a decrease of US$74.2 billion or 3% from the end of March 2022. The exchange rate conversion factor contributed about 90% to the decline in the balance of external debt. .
In this regard, Wang Chunying, deputy director and spokesperson of the State Administration of Foreign Exchange, said that the foreign debt structure remained basically stable. In terms of the currency structure of foreign debts, as of the end of June 2022, foreign debts in local currency accounted for 44%; in terms of the maturity structure of external debts, medium and long-term foreign debts accounted for 46%. Compared with the end of March 2022, the proportion of local currency and medium and long-term external debt both decreased by 1 percentage point.
Talking about the current form of my country’s external debt, Wang Chunying said that the foundation for the long-term stability of my country’s external debt is still solid. As mentioned earlier, the decline in foreign debt in the second quarter was mainly due to exchange rate translation. Overall, my country has effectively coordinated epidemic prevention and control and economic and social development. The economy has strong resilience, ample potential, wide room for maneuver, and long-term positive fundamentals have not changed. Chinese assets, including RMB bonds, are still relatively attractive to foreign investment. , the basis for maintaining overall stability in the scale of external debt remains solid.
“It is expected that short-term domestic and foreign debt will still fluctuate within a narrow range, and external debt risks are generally controllable.” Wang Chunying believes that the current external environment is more complex and severe, the downward pressure on the global economy is increasing, and the turbulence in the international financial market has intensified. It is expected that the scale of my country’s foreign debt will remain in the short term. A trend of narrow fluctuations. At present, the main indicators of my country’s external debt continue to be within the internationally recognized safety line, and external debt risks are generally controllable.