The Chinese State Administration of Foreign Exchange has released the Assets and Liabilities and Trading Statistics System for Foreign Financing (the "System") which shall take effect as of 1 September 2014.

The System adopts the latest international statistics standards and makes major improvements in aspects of declaration entity, content and frequency, including:

1. corporate entities which are subject to declaration obligations under the System shall cover the domestic banking industry, securities industry, insurance industry and other institutions with a so-called legal person status that are engaged in financial intermediary business, domestic branch offices of overseas financial institutions that are responsible for the respective institution’s declarations under the System and other designated institutions;
2. the content of the declarations to be made under the System is expanded from previously only stocks of assets and liabilities in foreign financing to full details on the stock and flow of assets and liabilities in foreign financing as well as other relevant international balance of payments;
3. the frequency with which declarations need to be submitted throughout the year has been increased from quarterly to monthly.

Dr Jia Ding, LL.M and Antao Zhao, LL.M. (China Desk)