1. Chinese financial system
The present financial system in China is, under the leadership of the People's Bank of China and with exclusively State-owned commercial banks as the main body, a financial institution system allowing simultaneous co-existence, diversion of labor and coordination of the State policy-related banks, other commercial banks and various financial institutions
1) People's Bank of China
The People's Bank of China is China's central bank, which is responsible for establishing and implementing national financial policies, and regulating currency circulation and credit activities. It represents the country to the foreign countries and supervises and administers the entire financial activities at home.
2) Commercial banks
Chinese commercial bank system is composed of three parts, namely exclusively State-owned commercial banks, other shareholding commercial banks and foreign-funded commercial banks, among which the exclusively State-owned banks constitute the main body of Chinese commercial bank system.
3) Policy-related banks
Since 1994, China has constructed three policy-related banks directly under the State Council, namely the State Development Bank, Agriculture Development Bank of China and the Export-Import Bank of China.
4) Non-bank financial organizations
Chinese non-bank financial organizations mainly include Trust & Investment Corporation, Securities Company, Insurance Company, Finance Company, Leasing Company and Credit Union.
2. Chinese foreign exchange control system
Chinese foreign exchange control system, basically belonging to partial foreign exchange control, implements convertibility on current accounts, certain control on capital items, and supervision and management on foreign exchange business of financial organizations.。
1) The convertibility of Renminbi under current accounts
1.To implement banking settlement of exchange system on foreign exchange revenue of current accounts.
2.To lift limitations on the foreign exchange payment of current account
3.To carry out the system of cancel after verification on the exchange of import and export acceptance and payment.
4.To check the authenticity of trade through customs declaration net checking system on import and export.
2) Foreign exchange control under capital items
The basic principle for managing foreign exchange receipts and disbursements of Chinese capital items is to boost the exchange of Renminbi under capital items by perfecting foreign exchange control and creating conditions to while abandoning the limitations on the convertibility of current accounts.
3) The formation mechanism of improved Renminbi exchange rate
After the integration of the exchange rate with international level on January 1st, 1994, China begins to implement the single and managed floating exchange rate system based on the market supply and demand.
4) The macro-management system of perfected international balance of payment
The new "Declaration Ways for International Balance of Payments Statistics" was carried out in 1996. On the basis of indirect declaration on the international balance of payments through financial organizations in 1996, four declarations were put forward in 1997, including direct investment, securities investment, foreign balance sheet-income of financial organizations and exchange
5) Enhancement of the supervision and management on the foreign exchange business of financial organizations
During dealing with the business of exchange, settlement and sales, the bank must strictly check related receipts according to regulations to avoid interfusion of the foreign exchange receipts and disbursements under capital items into the exchange, settlement and sales under current account, and to prevent the lawless persons from kiting transaction foreign exchange through the channel of exchange, settlement and sale.
