Fund Relations

(As of June 29^th, 2017)

Membership Status: Joined 12/27/45; Article VIII (December 1, 1996)

General Resources Account:

		SDR Million	% Quota
Quota		30, 482.90	100.00
Fund holdings of currency		25784.15	84.59
Reserve position in Fund		4698.79	15.41
Lending to the Fund
	New Arrangements to Borrow	2,372.16

View Table

		SDR Million	% Quota
Quota		30, 482.90	100.00
Fund holdings of currency		25784.15	84.59
Reserve position in Fund		4698.79	15.41
Lending to the Fund
	New Arrangements to Borrow	2,372.16

SDR Department:

	SDR Million	% Allocation
Net cumulative allocation	6,989.67	100.00
Holdings	7194.36	102.93

View Table

	SDR Million	% Allocation
Net cumulative allocation	6,989.67	100.00
Holdings	7194.36	102.93

Outstanding Purchases and Loans: None

Financial Arrangements:

Type	Approval Date	Expiration Date	Amount Approved (SDR million)	Amount Drawn (SDR million)
Stand-by	11/12/86	11/11/87	597.73	597.73
Stand-by	03/02/81	12/31/81	450.00	450.00

View Table

Type	Approval Date	Expiration Date	Amount Approved (SDR million)	Amount Drawn (SDR million)
Stand-by	11/12/86	11/11/87	597.73	597.73
Stand-by	03/02/81	12/31/81	450.00	450.00

Projected Payments to Fund (SDR million; based on existing use of resources and present holdings of SDRs):

	Forthcoming
	2016	2017	2018	2019	2020
Principal		0.00	0.00	0.00	0.00
Charges/interest		0.21	0.21	0.21	0.21
Total		0.21	0.21	0.21	0.21

View Table

	Forthcoming
	2016	2017	2018	2019	2020
Principal		0.00	0.00	0.00	0.00
Charges/interest		0.21	0.21	0.21	0.21
Total		0.21	0.21	0.21	0.21

World Bank-IMF Collaboration

(Draft as of June 21, 2017)

1. The IMF China Resident Representatives held discussions with the World Bank team in June 2017 to exchange views on key areas of reform to ensure sustainable medium-term growth in China, minimize risks, and improve the inclusiveness of growth. The teams discussed their agendas for 2017-2018. The last such meeting was held during June 2017 in Beijing.

2. The teams agreed the focus of reform in China should be on shifting growth to a more balanced and sustainable path, along the line of the 13^th Five-Year Plan and Third-plenum Reform Blueprint. Reforms should aim at preventing further buildup of risks stemming from rapid credit growth, complex intra-financial sector claims, and quasi-fiscal spending, and move the economy to a more inclusive, environment-friendly, and sustainable growth path. Giving the market a more decisive role, eliminating distortions, and modernizing policy frameworks will result in a more efficient use of resources, faster productivity growth, and rising living standards across the income spectrum.

3. Based on this assessment, teams identified the following reform areas as macro-critical:

• Financial sector reforms. Further progress in financial sector reform is central to containing risks and boosting growth by facilitating better allocation of resources. Widespread implicit guarantees distort the pricing of risk, resulting in misallocation of credit and inefficient investment. Intra-financial sector credits have become large and complex, posing risks to financial stability. Key measures in this area include hardening budget constraint, enhanced debt restructuring to facility the resolution of underperforming loans, as well as stepped-up supervision and regulation of the financial system. In particular, recent supervisory tightening on shadow banking sector should continue cautiously to phase out regulatory arbitrage opportunities. Given the rising vulnerabilities, there is also a need to upgrade the regulatory structure to ensure adequate supervisory cooperation and coordination.

• Fiscal reforms. Off-budget spending, in infrastructure but also in other areas, undertaken by local government-owned entities have led to a significant buildup of debt. The new budget law aims to bring these projects on-budget and strengthen control over public financial management, but implementation would be key. The central government needs to provide consistent signals on the importance of budget reform implementation, which should moderate growth in public investment financed at the local level. Improving the fiscal framework is a priority for the medium term, including strengthening budget processes, data transparency, local government finances, and medium-term budget planning. Tax reforms should continue to modernize the current tax system and make it more progressive (e.g., relying more on direct taxes). Aligning central and local government finances—matching local government revenues to spending responsibilities—will be key.

• Reform of the social security system. Further strengthening the pension and health insurance systems—including by improving adequacy and expanding coverage—would have macro-benefits such as reducing precautionary household savings, but would need to be done with a careful eye to fiscal sustainability. It is crucial to improve benefit portability within and across provinces and economic sectors. Reforms should be done in a way that ensures the sustainability of the social security system, including through parametric changes (such as increasing retirement age, indexation, and so on) and structural reforms to the pension system (such as introducing the NDC approach, deepening the alignment of civil service and PSU pension schemes with the urban worker scheme, upgrading the pooling level, developing the medium and long term financing strategy, including for financing legacy costs outside the pension system), and strengthening the budget processes and administration for social security funds. .

• SOE reform. Reforms include advancing on debt restructuring given the central role of SOEs in corporate debt vulnerabilities and in overcapacity sectors. Hardening budget constraints would help properly price finance and other factor inputs, which could be facilitated by adequate dividend payments to the budget and phasing out the social functions of SOEs. Opening up the service sector to full and fair competition activities currently reserved to SOEs will also be critical for generating the productivity gains necessary to fuel growth.

• Governance and regulatory reforms. This includes additional measures to align the coordination and incentives of governing and regulatory bodies toward empowering markets to support sustainable growth, including entry/exit of firms, competition policy, resolution of insolvencies, intellectual property rights (IPR), and adjustments in public sector cadre evaluation systems.

• Green growth. Air pollution, water quality and supply, soil contamination, and issues such as desertification, and degradation of grasslands, and dependence on coal and energy intensive economic options have social, health, and economic effects. Underpricing of energy and inadequate consequences for pollution has worsened these effects while contributing to China’s dependence on industry. Raising these factor costs to capture the cost of externalities, such as introducing a carbon tax and investing in green development including in renewable energy will make growth more sustainable and inclusive. This will also require mobilization of private capital and utilize the capital markets to support green investments.

• Infrastructure. Investment in infrastructure has been a key driver of the Chinese economy, particularly during the slowdown around the Global Financial Crisis. However, the rapid pace of investment has in some cases left communities behind, and in other cases has led to excessive investment in projects with relatively low social or financial returns. Filling in the gaps of investment in social projects will make growth more inclusive while improving the overall social and financial efficiency of infrastructure investment. Measures to improve the process of approving new infrastructure projects will ensure that investments are focused in areas of the highest social return.

4. The teams agreed to the following division of labor.

• Financial sector reforms. The Bank and the Fund is jointly conducting the 2017 FSAP; assess financial sector risks and provide recommendations on the needed reforms. The Fund will also continue to provide technical assistance to the Chinese authorities as needed.

• Fiscal reforms. The Bank will continue to work with the Ministry of Finance (MOF) to help in implementing key reforms in public finance in the context of an ongoing fiscal technical assistance investment project. The Fund will continue its technical cooperation on the fiscal framework and budgetary preparation, including strengthening the medium-term macro and fiscal framework, enhancing local government borrowing monitoring, and modernizing accounting and treasury management. The Fund will also continue to discuss the fiscal space in China and policy choices on the broader economy as well as implications for global spillovers.

• Social Security System. The Bank will continue to work with the Chinese authorities on reforms to improve the equity, sustainability, and portability of the social security system. This includes helping provincial governments in developing more integrated social security information systems. The Bank will also work with MOF to provide technical support on the overall reform and the pooling and financing strategies, and optimize fiscal risk management associated with social security liabilities through policy dialogue and engagement. The Fund will look at issues related to the how different social insurance schemes (including pensions and health care) fit into the medium-term fiscal and macroeconomic policy framework. The Fund will also review the balance between benefits and financing from different revenue sources, including social contributions and other revenue. Both the Bank and the Fund will continue to encourage the authorities to undertake regular and robust actuarial modeling of social insurance liabilities.

• Green growth. The Bank’s focus on climate change and renewable energy as well as pollution reduction and prevention in China will continue to emphasize cutting-edge green technologies, scale-up of energy conservation and investments in energy efficiency, green transport and green building policies (for heat and energy efficiency). Engagements with a climate change focus will extend to expansion of distribution of electricity from natural gas generation, analysis of carbon capture and storage potential, and development of green finance, including carbon markets. The Fund will continue to discuss options to capture the cost of externalities through the use of fiscal policy such as better calibration of excise and introducing a carbon tax. It is ready to provide assistance on shifting the pricing and taxation of energy, and discussing the growth and fiscal implications of such a shift.

• New Drivers of Growth. The Bank is cooperating with Development Research Center (DRC) of the State Council on a flagship report that focuses on identifying and nurturing new sources of growth to sustain China’s development into high income status. The focus is on policies and reforms to accelerate productivity growth by removing distortions, accelerating diffusion, and fostering discovery and innovation (the three ‘D’s). Separate thematic reports are being prepared in relevant areas, which will feed into a single integrated document.

5. Teams have the following requests for information from their counterparts:

• The Fund team requests to be kept informed of progress in the above macroeconomic structural reform areas, as milestones are reached and at least on a semiannual basis.

• The Bank team requests to be kept informed of the Fund’s assessments of macroeconomic policies and prospects in the context of the Article IV consultation and staff visits, and at least semiannually.

The following table lists the teams’ separate and joint work programs for June 2017 to June 2018.

China: Bank and Fund Planned Activities in Macro-Critical Structural Reform Areas

China: Bank and Fund Planned Activities in Macro-Critical Structural Reform Areas

	Products	Expected Delivery Date
Bank Work Program	• Building a Modern Fiscal System Technical Assistance Project to support implementation of central government’s public finance reforms.	• Ongoing
	• China Economic Reform Implementation Project (umbrella TA project, including various subprojects with MOF, PBC, and provincial finance bureaus).	• Ongoing
	• New Drivers of Growth Report	• Ongoing
	• China Economic Update	• Ongoing
	• “Just-in-time” Policy Notes for MOF	• Delivered on demand
	• Subnational Intergovernmental Fiscal Relationship	• Ongoing
	• Municipal Financing and Local Debt Management
	• Inclusive Finance	• Ongoing
	• Financial Consumer Protection and Consumer Literacy	• Ongoing
	• Deepening health reform in China-building high quality and value-based service delivery	• Ongoing
	• Strengthening China’s social protection and labor systems	• Ongoing
	• Analytical work and projects on pollution control and innovative green financing in several provinces	• Ongoing
	• Projects and work on food safety	• Ongoing
Fund Work Program	• 2017 Article IV Consultation	• May / June
	• January Staff Visit	2017
	• Cooperation Program for Fiscal Reforms (FAD)	• Jan 2018
	• Cooperation Program for Financial Reforms (MCM)	• Ongoing • Ongoing
Joint Work Program	• Financial Sector Assessment Program	• Nov 2017

View Table

China: Bank and Fund Planned Activities in Macro-Critical Structural Reform Areas

	Products	Expected Delivery Date
Bank Work Program	• Building a Modern Fiscal System Technical Assistance Project to support implementation of central government’s public finance reforms.	• Ongoing
	• China Economic Reform Implementation Project (umbrella TA project, including various subprojects with MOF, PBC, and provincial finance bureaus).	• Ongoing
	• New Drivers of Growth Report	• Ongoing
	• China Economic Update	• Ongoing
	• “Just-in-time” Policy Notes for MOF	• Delivered on demand
	• Subnational Intergovernmental Fiscal Relationship	• Ongoing
	• Municipal Financing and Local Debt Management
	• Inclusive Finance	• Ongoing
	• Financial Consumer Protection and Consumer Literacy	• Ongoing
	• Deepening health reform in China-building high quality and value-based service delivery	• Ongoing
	• Strengthening China’s social protection and labor systems	• Ongoing
	• Analytical work and projects on pollution control and innovative green financing in several provinces	• Ongoing
	• Projects and work on food safety	• Ongoing
Fund Work Program	• 2017 Article IV Consultation	• May / June
	• January Staff Visit	2017
	• Cooperation Program for Fiscal Reforms (FAD)	• Jan 2018
	• Cooperation Program for Financial Reforms (MCM)	• Ongoing • Ongoing
Joint Work Program	• Financial Sector Assessment Program	• Nov 2017

Relations with the Asian Development Bank¹

1. The Asian Development Bank’s (AsDB) partnership with the People’s Republic of China (PRC) has grown in many ways since the PRC became a member of AsDB in March 1986. The PRC is AsDB’s second largest shareholder among regional members and the third largest overall, as well as an important middle-income country client. By the end of 2016, the PRC’s cumulative borrowing from AsDB reached $32 billion with 238 loans for public sector projects. Of the total public sector loans, 52.6 percent was allocated to the transport and ICT sector, followed by energy (15.1 percent), water and other municipal infrastructure services (12.8 percent), agriculture and natural resources (12.8 percent), industry and trade (2.4 percent), finance (1.8 percent), multisector (1.6 percent), education (0.9 percent) and health (0.2 percent). Over the past 28 years, AsDB has helped finance private sector projects in the PRC totaling $3.3 billion. This comprised direct Loan of $2.8 billion; (ii) equity investments of $404 million, and a partial credit guarantee facility of $107 million. AsDB also funds technical assistance for the PRC. By the end of 2016, AsDB had provided a total of $483.6 million for 831 technical assistance projects, consisting of $152.9 million for preparing projects and $330.7 million for policy advice and capacity development.

2. Overall, the PRC has demonstrated strong capabilities in implementing projects. The good performance shows the strong sense of project ownership among agencies involved in the design, implementation, and management of projects, as well as the rigorous screening process for development projects, particularly those proposed for external financing. Loan disbursement and contract award performance is good.

3. The PRC has demonstrated its strong partnership with AsDB by contributing to the Asian Development Fund, establishing the $20 million PRC Poverty Reduction and Regional Cooperation Fund (the PRC Fund), and replenishing first another $20 million and then another $50 million to the PRC Fund. The PRC Fund—the first fund established in AsDB by a developing member country—providing technical assistance projects to support subregional cooperation initiatives, particularly Central Asia Regional Economic Cooperation (CAREC) and Greater Mekong Subregion (GMS) programs.

4. The Asian Development Bank’s Country Partnership Strategy (CPS) 2016–2020 was endorsed by AsDB Board of Directors in February 2016. The CPS 2016–2020 is aligned with the priorities of the PRC’s 13th Five-Year Plan 2016–2020, the Midterm Review of AsDB’s long-term Strategy 2020, and AsDB’s approach to supporting upper middle-income countries. The CPS will support the government’s reform agenda by focusing on the following strategic priorities: managing climate change and the environment, promoting regional cooperation and integration, supporting inclusive economic growth focusing on the remaining poor, fostering knowledge cooperation, and supporting institutional and governance reform. AsDB’s sovereign and nonsovereign operations will support activities within these strategic priorities.

5. Projected public sector lending in 2016–2018 will total about $4.56 billion, of which 30 percent will support agriculture, natural resources, and rural development; 6 percent will support education; 8 percent will support energy; 5 percent will support health; 29 percent will support transport and 22 percent will support water and other urban infrastructure and services sectors. Over 90 percent of the projects are located in the western, central and north-eastern regions in line with the CPS’s priorities of promoting inclusive growth and environmentally sustainable growth.

6. AsDB’s technical assistance will complement the lending program to improve the sector policy environment, support governance and capacity development, and strengthen the knowledge base and innovative features of lending operations.

Statistical Issues

(As of June 26th, 2017)

I. Assessment of Data Adequacy for Surveillance
General: While data are broadly adequate for surveillance, they are only barely so. Efforts at strengthening the statistical system and enhancing data transparency led to China’s subscription to the SDDS in October 2015. Nevertheless, China’s statistics continue to have gaps that hamper surveillance. The areas of concern relate mainly to national accounts data and government finance statistics.
National Accounts: The National Bureau of Statistics (NBS) compiles and disseminates annual GDP by activity and by expenditure in current prices, by activity at constant prices (2010), and quarterly estimates of GDP by activity. The NBS is in a transition period from 1993 SNA to 2008 SNA. The 2008 SNA is applied to some industries, such as to the calculation of financial intermediation services indirectly measured and to the capitalizing of research and development. The techniques for deriving volume measures of GDP are not sound and need to be improved. Annual GDP by expenditure is compiled at constant prices but is not published. Expenditure components of GDP are not available on a quarterly basis. The NBS has made a number of improvements to the range and quality of national accounts data, the most important being improving the exhaustiveness of the GDP estimates by activity. Further improvements are intended for both the annual and quarterly accounts; however, no target dates have been set. As in other countries, rapid economic change, including the expansion of the private sector, presents new problems for data collection and compilation. The ability to change the data collection systems is restricted by the decentralized nature of the statistical system. Monthly industrial production, retail sales, and fixed investment indices are disseminated as ratios with respect to the corresponding month of the previous year, but no chain-linked indices are produced. Data revisions tend to be made without publishing the entire revised series.
Price Statistics: The CPI covers approximately 500 areas throughout the country, including around 200 counties and around 300 cities. The current CPI is a chained Laspeyres price index, which is compiled and disseminated since 2001. Weights are derived from urban and rural households’ surveys every five years. Current weights are for 2008-2010. The weights from the base period are price-updated every month. PPI survey covers 40 percent of the total industry turnover including 60,000 enterprises in 31 provinces and over 430 cities. Prices cover 1702 product groups (basic sub-categories). The current base year is 2010. The PPI definitions are consistent with international standards defined in the PPI manual (2010). The PPI is not seasonally adjusted.
Government Finance Statistics: Serious data shortcomings continue to hamper fiscal analysis. Data on the social security and extra budgetary funds are only provided annually and with a long lag. Expenditure classification remains in need of improvement, mainly because data by economic type are not published. The authorities have indicated an intention to begin collecting these data and to develop accrual based measures of fiscal performance over the medium term while also strengthening the compilation of cash based GFS. China has made a commitment under the G20 Data Gaps Initiative to develop quarterly general government data, although no specific timeframe has been communicated.
Monetary and Financial Statistics:
In recent years, improvements have been made in monetary and financial statistics. However, the monetary and banking surveys lack sufficient detail with regard to bank claims on the government, hampering the estimation of the fiscal deficit from the financing side. The reported net foreign assets position of PBC does not include exchange rate valuation effects and interest earnings on foreign reserves. The PBC has also ceased to report separate data on central government deposits in its balance sheet since April 2005 because the MOF no longer distinguishes between central and other government deposit accounts. This change has led to breaks in data series of monetary base and monetary aggregates. The monetary and financial statistics missions in March 2015 made several recommendations for improvements in monetary data compilation with a view to accelerating PBC’s implementation of the standardized report forms (SRFs). The PBC is currently technically capable of compiling and reporting monetary statistics in the IMF-recommended format of SRFs at least for the central bank and other depository corporations. Nonetheless, reporting of SRFs has not yet begun pending internal review and approval processes.
Financial sector surveillance: China reports financial soundness indicators (FSIs) to the Fund for dissemination on the IMF’s website. In addition to the 12 core FSIs, the authorities included in early 2015 two encouraged FSIs for deposit takers in their regular reporting to the Fund. The periodicity of data was also improved in May 2015 from annual to semi-annual frequency.
External sector statistics: The historic data series (balance of payments starting with data for 2005 and international investment position (IIP) starting with data for 2004) are compiled and adjusted (in U.S. dollars) largely in accordance with the sixth edition of the Balance of Payments Manual (BPM6) and are disseminated in the IFS., The authorities continue their efforts to improve the coverage of balance of payments (BOP) and IIP statistics, and progress is being made in developing these statistics. Since the International Transactions Reporting System is the major data source for BOP statistics, in order to ensure its smooth operation, regular training programs for staff in the provincial offices of SAFE have been recommended. China made considerable efforts for improving the coverage of external sector statistics, including by (i) commencing participation in the Coordinated Direct Investment Survey (CDIS) in 2011, although only inward direct investment positions are currently recorded; (ii) initiating reporting data for the Coordinated Portfolio Investment Survey (CPIS) at the end of 2015; (iii) reporting data to the Currency Composition of Foreign Exchange Reserves (COFER) since 2015; and (iv) compiling and disseminating the International Reserves and Foreign Currency Liquidity Template starting September 2015. Despite an ostensibly modest level of external vulnerability, there remains a need to strengthen external debt monitoring and compilation. In 2010, China started submitting total and public external debt data for the Quarterly External Debt Statistics (QEDS) database, a notable step forward.
II. Data Standards and Quality
China began subscription to the Special Data Dissemination Standard in October 2015.	No data ROSC has been conducted.

View Table

I. Assessment of Data Adequacy for Surveillance
General: While data are broadly adequate for surveillance, they are only barely so. Efforts at strengthening the statistical system and enhancing data transparency led to China’s subscription to the SDDS in October 2015. Nevertheless, China’s statistics continue to have gaps that hamper surveillance. The areas of concern relate mainly to national accounts data and government finance statistics.
National Accounts: The National Bureau of Statistics (NBS) compiles and disseminates annual GDP by activity and by expenditure in current prices, by activity at constant prices (2010), and quarterly estimates of GDP by activity. The NBS is in a transition period from 1993 SNA to 2008 SNA. The 2008 SNA is applied to some industries, such as to the calculation of financial intermediation services indirectly measured and to the capitalizing of research and development. The techniques for deriving volume measures of GDP are not sound and need to be improved. Annual GDP by expenditure is compiled at constant prices but is not published. Expenditure components of GDP are not available on a quarterly basis. The NBS has made a number of improvements to the range and quality of national accounts data, the most important being improving the exhaustiveness of the GDP estimates by activity. Further improvements are intended for both the annual and quarterly accounts; however, no target dates have been set. As in other countries, rapid economic change, including the expansion of the private sector, presents new problems for data collection and compilation. The ability to change the data collection systems is restricted by the decentralized nature of the statistical system. Monthly industrial production, retail sales, and fixed investment indices are disseminated as ratios with respect to the corresponding month of the previous year, but no chain-linked indices are produced. Data revisions tend to be made without publishing the entire revised series.
Price Statistics: The CPI covers approximately 500 areas throughout the country, including around 200 counties and around 300 cities. The current CPI is a chained Laspeyres price index, which is compiled and disseminated since 2001. Weights are derived from urban and rural households’ surveys every five years. Current weights are for 2008-2010. The weights from the base period are price-updated every month. PPI survey covers 40 percent of the total industry turnover including 60,000 enterprises in 31 provinces and over 430 cities. Prices cover 1702 product groups (basic sub-categories). The current base year is 2010. The PPI definitions are consistent with international standards defined in the PPI manual (2010). The PPI is not seasonally adjusted.
Government Finance Statistics: Serious data shortcomings continue to hamper fiscal analysis. Data on the social security and extra budgetary funds are only provided annually and with a long lag. Expenditure classification remains in need of improvement, mainly because data by economic type are not published. The authorities have indicated an intention to begin collecting these data and to develop accrual based measures of fiscal performance over the medium term while also strengthening the compilation of cash based GFS. China has made a commitment under the G20 Data Gaps Initiative to develop quarterly general government data, although no specific timeframe has been communicated.
Monetary and Financial Statistics:
In recent years, improvements have been made in monetary and financial statistics. However, the monetary and banking surveys lack sufficient detail with regard to bank claims on the government, hampering the estimation of the fiscal deficit from the financing side. The reported net foreign assets position of PBC does not include exchange rate valuation effects and interest earnings on foreign reserves. The PBC has also ceased to report separate data on central government deposits in its balance sheet since April 2005 because the MOF no longer distinguishes between central and other government deposit accounts. This change has led to breaks in data series of monetary base and monetary aggregates. The monetary and financial statistics missions in March 2015 made several recommendations for improvements in monetary data compilation with a view to accelerating PBC’s implementation of the standardized report forms (SRFs). The PBC is currently technically capable of compiling and reporting monetary statistics in the IMF-recommended format of SRFs at least for the central bank and other depository corporations. Nonetheless, reporting of SRFs has not yet begun pending internal review and approval processes.
Financial sector surveillance: China reports financial soundness indicators (FSIs) to the Fund for dissemination on the IMF’s website. In addition to the 12 core FSIs, the authorities included in early 2015 two encouraged FSIs for deposit takers in their regular reporting to the Fund. The periodicity of data was also improved in May 2015 from annual to semi-annual frequency.
External sector statistics: The historic data series (balance of payments starting with data for 2005 and international investment position (IIP) starting with data for 2004) are compiled and adjusted (in U.S. dollars) largely in accordance with the sixth edition of the Balance of Payments Manual (BPM6) and are disseminated in the IFS., The authorities continue their efforts to improve the coverage of balance of payments (BOP) and IIP statistics, and progress is being made in developing these statistics. Since the International Transactions Reporting System is the major data source for BOP statistics, in order to ensure its smooth operation, regular training programs for staff in the provincial offices of SAFE have been recommended. China made considerable efforts for improving the coverage of external sector statistics, including by (i) commencing participation in the Coordinated Direct Investment Survey (CDIS) in 2011, although only inward direct investment positions are currently recorded; (ii) initiating reporting data for the Coordinated Portfolio Investment Survey (CPIS) at the end of 2015; (iii) reporting data to the Currency Composition of Foreign Exchange Reserves (COFER) since 2015; and (iv) compiling and disseminating the International Reserves and Foreign Currency Liquidity Template starting September 2015. Despite an ostensibly modest level of external vulnerability, there remains a need to strengthen external debt monitoring and compilation. In 2010, China started submitting total and public external debt data for the Quarterly External Debt Statistics (QEDS) database, a notable step forward.
II. Data Standards and Quality
China began subscription to the Special Data Dissemination Standard in October 2015.	No data ROSC has been conducted.

China: Table of Common Indicators Required for Surveillance

(As of June 26, 2017)

¹ Any reserve assets that are pledged of otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

² Both market based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

³ Only 12-month growth rates are reported (price indices are not available).

⁴ Data on financing (foreign, domestic bank and domestic nonbank financing) is not available.

⁵ The general government consists of the central (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

⁶ Including currency and maturity composition.

⁷ Goods trade data are provided monthly. Services trade data are released with the current account statistics.

⁸ For real GDP, level data are available only on an annual basis (growth rates are available on a quarterly, cumulative basis).

⁹ Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).

¹⁰ Interest rates change only infrequently; these changes are publicly announced.

China: Table of Common Indicators Required for Surveillance

(As of June 26, 2017)

	Date of Latest Observation	Date Received	Frequency of Data9	Frequency of Reporting9	Frequency of Publication9
Exchange rates	02/17	03/17	D	M9	D
International reserve assets and reserve liabilities of the monetary authorities1	05/17	06/17	M	M	M
Reserve/base money	05/17	06/17	Q, M	Q, M	Q, M
Broad money	05/17	06/17	M	M	M
Central bank balance sheet	05/17	06/17	M	M	M
Consolidated balance sheet of the banking system	05/17	06/17	M	M	M
Interest rates2	02/17	03/17	10	10	10
Consumer price index3	05/17	06/17	M	M	M
Revenue, expenditure, balance and composition of financing4—general government5	2013	03/14	A	A	A
Revenue, expenditure, balance and composition of financing4—central government	04/14	05/14	M	M	M
Stocks of central government and central government-guaranteed debt6	Q4/13	03/14	Q	Q	Q
External current account balance	Q4/16	05/17	Q	A, Q	A, Q
Exports and imports of goods and services7	02/17	01/17	M	M	M
GDP/GNP8	Q4/16	01/17	A, Q (cumulative)	A, Q (cumulative)	A, Q (cumulative)
Gross external debt	Q4/13	03/14	A, Q	A, Q	A, Q
International investment position	Q4/16	05/17	A, Q	A, Q	A, Q

¹ Any reserve assets that are pledged of otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

² Both market based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

³ Only 12-month growth rates are reported (price indices are not available).

⁴ Data on financing (foreign, domestic bank and domestic nonbank financing) is not available.

⁵ The general government consists of the central (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

⁶ Including currency and maturity composition.

⁷ Goods trade data are provided monthly. Services trade data are released with the current account statistics.

⁸ For real GDP, level data are available only on an annual basis (growth rates are available on a quarterly, cumulative basis).

⁹ Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).

¹⁰ Interest rates change only infrequently; these changes are publicly announced.

View Table

China: Table of Common Indicators Required for Surveillance

(As of June 26, 2017)

	Date of Latest Observation	Date Received	Frequency of Data9	Frequency of Reporting9	Frequency of Publication9
Exchange rates	02/17	03/17	D	M9	D
International reserve assets and reserve liabilities of the monetary authorities1	05/17	06/17	M	M	M
Reserve/base money	05/17	06/17	Q, M	Q, M	Q, M
Broad money	05/17	06/17	M	M	M
Central bank balance sheet	05/17	06/17	M	M	M
Consolidated balance sheet of the banking system	05/17	06/17	M	M	M
Interest rates2	02/17	03/17	10	10	10
Consumer price index3	05/17	06/17	M	M	M
Revenue, expenditure, balance and composition of financing4—general government5	2013	03/14	A	A	A
Revenue, expenditure, balance and composition of financing4—central government	04/14	05/14	M	M	M
Stocks of central government and central government-guaranteed debt6	Q4/13	03/14	Q	Q	Q
External current account balance	Q4/16	05/17	Q	A, Q	A, Q
Exports and imports of goods and services7	02/17	01/17	M	M	M
GDP/GNP8	Q4/16	01/17	A, Q (cumulative)	A, Q (cumulative)	A, Q (cumulative)
Gross external debt	Q4/13	03/14	A, Q	A, Q	A, Q
International investment position	Q4/16	05/17	A, Q	A, Q	A, Q

¹ Any reserve assets that are pledged of otherwise encumbered should be specified separately. Also, data should comprise short-term liabilities linked to a foreign currency but settled by other means as well as the notional values of financial derivatives to pay and to receive foreign currency, including those linked to a foreign currency but settled by other means.

² Both market based and officially determined, including discount rates, money market rates, rates on treasury bills, notes and bonds.

³ Only 12-month growth rates are reported (price indices are not available).

⁴ Data on financing (foreign, domestic bank and domestic nonbank financing) is not available.

⁵ The general government consists of the central (budgetary funds, extra budgetary funds, and social security funds) and state and local governments.

⁶ Including currency and maturity composition.

⁷ Goods trade data are provided monthly. Services trade data are released with the current account statistics.

⁸ For real GDP, level data are available only on an annual basis (growth rates are available on a quarterly, cumulative basis).

⁹ Daily (D), Weekly (W), Monthly (M), Quarterly (Q), Annually (A); Irregular (I); Not Available (NA).

¹⁰ Interest rates change only infrequently; these changes are publicly announced.

Capacity Development and Technical Assistance

China: Summary of Capacity Development and Technical Assistance, 2011–17 ^1/

^1/The new Institute for Capacity Development (ICD) was formed from the merger of the former IMF Institute (INS) and Office of Technical Assistance Management (OTM) on May 1, 2012.

China: Summary of Capacity Development and Technical Assistance, 2011–17 ^1/

Department	Purpose	Date
Tax System Reform
FAD	Mission on Tax Gap Analysis	September 2011
FAD	Micro-Simulation Models	December 2013
FAD	Analysis of the Macroeconomic Impact of Tax Policy	March 2015
FAD	Reforming the Personal Income Tax	October 2015
FAD	The Future Design of Value-added Tax	September 2016
Tax Administration Reform
FAD	Tax Policy And Administration	September 2011
FAD	Tax Administration (Peripatetic Expert Visit 4 Of 5)	October 2011
FAD	Tax Administration (Peripatetic Expert Visit 5 Of 5)	October 2011
FAD	Large Taxpayer Compliance	October 2011
FAD	Workshop on Practical Tax Analysis For Tax Officials	December 2012
FAD	Large Taxpayer Administration	January 2013
FAD	Tax Administration Follow-Up	April 2014
FAD	Tax Collection Law Revision	May 2014
FAD	Tax Collection Law Revision	July 2015
LEG	Mission on Reforming Tax Collection Law	July 2015
FAD	Reforming the Personal Income Tax	October 2015
FAD	Improving Tax Compliance on ODI by Chinese Enterprises	October 2016
Public Financial Management
FAD	High-level Dialogue on PFM Institutions	June 2011
FAD	Medium-Term Expenditure Framework Seminar	November 2011
FAD	Medium-Term Revenue Administration Program And Policies Discussion	June 2012
FAD	High-Level Dialogue on PFM Institutions	November 2012
FAD	Mission on Introducing Advanced Treasury Reforms	February 2013
FAD	High-level Seminar on Fiscal Reforms	January 2014
FAD	Mission on Modernization of Government Accounting	April 2014
FAD	Mission on Medium Term Expenditure Frameworks	July 2014
FAD	Expert visit on Treasury management (accounting)	September 2014
FAD	Expert visit on Chart of Accounts Improvements	March 2015
FAD	Expert visit on Treasury Management (cash management)	March 2015
FAD	Mission on Strengthening Local Government Borrowing Reform	April 2015
FAD	Mission on Accounting Modernization	November 2015
FAD	Workshop on Medium-Term Expenditure Frameworks	April 2016
FAD	Seminar and Case Study on Local Government Borrowing and Bond Market Development	April 2016
FAD	Expert visit on Treasury – Central Bank Coordination	June 2016
FAD	Workshop on Medium-term Expenditure Frameworks	April 2017
Statistics
STA	Workshop On Special Data Dissemination Standard	April 2011
STA	Government Finance Statistics	May 2011
STA	Data Work: SRFS Data Development for OFCs/ FSI Data Reporting	April 2012
STA	Quarterly National Accounts	November 2013
STA	Total Social Financing(TSF) Indicators/Monetary and Financial Statistics	March 2014
STA	SDDS Assessment	August 2014
STA	Data Work: Monetary Data Reported in SRF	September 2014
STA	SDDS Assessment	December 2014
STA	TSF/Monetary Data Reported in SRFs	March 2015
STA	Multi-sector Mission: SDDS Metadata Development and Topical TA	June 2015
Monetary Policy, Bank Supervision, and AML/CFT
LEG	AML/CFT Legislative Drafting	March 2011
LEG	Bank Resolution	May 2012
Training
LEG	AML/CFT Legislative Drafting Mission	March 2011
INS	Course on Macroeconomic Management and Financial Sector Issues	March 2011
INS	Course on Macroeconomic Forecasting	April 2011
INS	Government Finance Statistics Course at CTP	May 2011
STA	Course on Government Finance Statistics	May 2011
STA	Course on Government Finance Statistics	June 2011
INS	BOP and IIP Course at CTP	June 2011
STA	Course on Balance of Payments Statistics	October 2011
INS	Monetary and Financial Statistics Course at CTP	November 2011
STA	Participate in OECD-NBS Workshop on National Accounts	March 2012
INS	FSI Course at CTP	September 2012
MCM	Medium Term Debt Management Workshop	November 2012
INS	BOP/IIP Course at CTP	April 2013
MCM	Workshop on Capital Account Convertibility and Exchange Rate Policy	June 2013
STA	SDDS Seminar	July 2013
INS	Introductory Course on Monetary and Financial Statistics in CTP	September 2013
STA	Quarterly National Accounts Seminar organized by NBS	November 2013
ICD	Macroeconomic Management & Financial Sector Issues	January 2014
MCM	Financial Statistics	March 2014
MCM	Workshop on Financial Regulation and Supervision	March 2014
ICD	Macroeconomic Management & Financial Sector Issues	March 2014
ICD	Macroeconomic Diagnostics	September 2014
INS	Financial Soundness Indications in CTP	September 2014
STA	Seminar at Fund HQ for SAFE Officials on Experiences and Challenges in the Implementation of BPM6	September 2014
ICD	Macroeconomic Forecasting	October 2014
STA	OECD/NBS Workshop on Sectoral Accounts (with STA participation)	December 2014
ICD	Macroeconomic Management and Financial Sector Issues	March 2015
MCM/STA	Total Social Financing Indicator	March 2015
STA	Meeting: ECB Meeting with Delegation from China on Debt Securities & Data Issues	April 2015
STA	Meeting: BIS Meeting with Delegation from China on Debt Securities & Data Issues	April 2015
MCM	SDR Review/Operational Issues	June 2015
ICD	Macroeconomic Forecasting	June/July 2015
INS	Advanced Course on Monetary and Financial Statistics in CTP	August 2015
STA	SAFE-Course on Compilation of Balance of Payments Statistics	September 2015
ICD	Macroeconomic Diagnostics	September 2015
STA	Balance of Payments Statistics	September 2015
ICD/FAD	Fiscal Analysis and Forecasting	November 2015
FAD/ICD	Course on Fiscal Analysis and Forecasting	December 2015
STA	Debt Securities Statistics	March 2016
STA	OECD/NBS China Workshop on National Accounts (with STA participation)	March 2016
MCM	Sub-national Debt Market Development	April 2016
MCM	Workshop on Securities Supervision	April 2016
STA	Seminar on Cross-border Position Statistics and Challenges in the Implementation of New Data Initiatives	June 2016
ICD	Macroeconomic Forecasting	June/July 2016
ICD	Macroeconomic Forecasting – Advanced	July 2016
ICD	Financial Sector Surveillance	June/July 2016
MCM	Workshop on Enforcement and Market Surveillance	September 2016
ICD	Dynamic Stochastic General Equilibrium Modeling	November 2016
ICD	Dynamic Stochastic General Equilibrium Modeling - China	November 2016
ICD	Financial Sector Surveillance	June 2017
ICD	Macroeconomic Forecasting –advanced course	June 2017
ICD	Monetary and Fiscal Policy Analysis with DSGE Models (scheduled)	August - September 2017
ICD	Dynamic Stochastic General Equilibrium Modeling – China (scheduled)	September 2017

^1/The new Institute for Capacity Development (ICD) was formed from the merger of the former IMF Institute (INS) and Office of Technical Assistance Management (OTM) on May 1, 2012.

View Table

China: Summary of Capacity Development and Technical Assistance, 2011–17 ^1/

Department	Purpose	Date
Tax System Reform
FAD	Mission on Tax Gap Analysis	September 2011
FAD	Micro-Simulation Models	December 2013
FAD	Analysis of the Macroeconomic Impact of Tax Policy	March 2015
FAD	Reforming the Personal Income Tax	October 2015
FAD	The Future Design of Value-added Tax	September 2016
Tax Administration Reform
FAD	Tax Policy And Administration	September 2011
FAD	Tax Administration (Peripatetic Expert Visit 4 Of 5)	October 2011
FAD	Tax Administration (Peripatetic Expert Visit 5 Of 5)	October 2011
FAD	Large Taxpayer Compliance	October 2011
FAD	Workshop on Practical Tax Analysis For Tax Officials	December 2012
FAD	Large Taxpayer Administration	January 2013
FAD	Tax Administration Follow-Up	April 2014
FAD	Tax Collection Law Revision	May 2014
FAD	Tax Collection Law Revision	July 2015
LEG	Mission on Reforming Tax Collection Law	July 2015
FAD	Reforming the Personal Income Tax	October 2015
FAD	Improving Tax Compliance on ODI by Chinese Enterprises	October 2016
Public Financial Management
FAD	High-level Dialogue on PFM Institutions	June 2011
FAD	Medium-Term Expenditure Framework Seminar	November 2011
FAD	Medium-Term Revenue Administration Program And Policies Discussion	June 2012
FAD	High-Level Dialogue on PFM Institutions	November 2012
FAD	Mission on Introducing Advanced Treasury Reforms	February 2013
FAD	High-level Seminar on Fiscal Reforms	January 2014
FAD	Mission on Modernization of Government Accounting	April 2014
FAD	Mission on Medium Term Expenditure Frameworks	July 2014
FAD	Expert visit on Treasury management (accounting)	September 2014
FAD	Expert visit on Chart of Accounts Improvements	March 2015
FAD	Expert visit on Treasury Management (cash management)	March 2015
FAD	Mission on Strengthening Local Government Borrowing Reform	April 2015
FAD	Mission on Accounting Modernization	November 2015
FAD	Workshop on Medium-Term Expenditure Frameworks	April 2016
FAD	Seminar and Case Study on Local Government Borrowing and Bond Market Development	April 2016
FAD	Expert visit on Treasury – Central Bank Coordination	June 2016
FAD	Workshop on Medium-term Expenditure Frameworks	April 2017
Statistics
STA	Workshop On Special Data Dissemination Standard	April 2011
STA	Government Finance Statistics	May 2011
STA	Data Work: SRFS Data Development for OFCs/ FSI Data Reporting	April 2012
STA	Quarterly National Accounts	November 2013
STA	Total Social Financing(TSF) Indicators/Monetary and Financial Statistics	March 2014
STA	SDDS Assessment	August 2014
STA	Data Work: Monetary Data Reported in SRF	September 2014
STA	SDDS Assessment	December 2014
STA	TSF/Monetary Data Reported in SRFs	March 2015
STA	Multi-sector Mission: SDDS Metadata Development and Topical TA	June 2015
Monetary Policy, Bank Supervision, and AML/CFT
LEG	AML/CFT Legislative Drafting	March 2011
LEG	Bank Resolution	May 2012
Training
LEG	AML/CFT Legislative Drafting Mission	March 2011
INS	Course on Macroeconomic Management and Financial Sector Issues	March 2011
INS	Course on Macroeconomic Forecasting	April 2011
INS	Government Finance Statistics Course at CTP	May 2011
STA	Course on Government Finance Statistics	May 2011
STA	Course on Government Finance Statistics	June 2011
INS	BOP and IIP Course at CTP	June 2011
STA	Course on Balance of Payments Statistics	October 2011
INS	Monetary and Financial Statistics Course at CTP	November 2011
STA	Participate in OECD-NBS Workshop on National Accounts	March 2012
INS	FSI Course at CTP	September 2012
MCM	Medium Term Debt Management Workshop	November 2012
INS	BOP/IIP Course at CTP	April 2013
MCM	Workshop on Capital Account Convertibility and Exchange Rate Policy	June 2013
STA	SDDS Seminar	July 2013
INS	Introductory Course on Monetary and Financial Statistics in CTP	September 2013
STA	Quarterly National Accounts Seminar organized by NBS	November 2013
ICD	Macroeconomic Management & Financial Sector Issues	January 2014
MCM	Financial Statistics	March 2014
MCM	Workshop on Financial Regulation and Supervision	March 2014
ICD	Macroeconomic Management & Financial Sector Issues	March 2014
ICD	Macroeconomic Diagnostics	September 2014
INS	Financial Soundness Indications in CTP	September 2014
STA	Seminar at Fund HQ for SAFE Officials on Experiences and Challenges in the Implementation of BPM6	September 2014
ICD	Macroeconomic Forecasting	October 2014
STA	OECD/NBS Workshop on Sectoral Accounts (with STA participation)	December 2014
ICD	Macroeconomic Management and Financial Sector Issues	March 2015
MCM/STA	Total Social Financing Indicator	March 2015
STA	Meeting: ECB Meeting with Delegation from China on Debt Securities & Data Issues	April 2015
STA	Meeting: BIS Meeting with Delegation from China on Debt Securities & Data Issues	April 2015
MCM	SDR Review/Operational Issues	June 2015
ICD	Macroeconomic Forecasting	June/July 2015
INS	Advanced Course on Monetary and Financial Statistics in CTP	August 2015
STA	SAFE-Course on Compilation of Balance of Payments Statistics	September 2015
ICD	Macroeconomic Diagnostics	September 2015
STA	Balance of Payments Statistics	September 2015
ICD/FAD	Fiscal Analysis and Forecasting	November 2015
FAD/ICD	Course on Fiscal Analysis and Forecasting	December 2015
STA	Debt Securities Statistics	March 2016
STA	OECD/NBS China Workshop on National Accounts (with STA participation)	March 2016
MCM	Sub-national Debt Market Development	April 2016
MCM	Workshop on Securities Supervision	April 2016
STA	Seminar on Cross-border Position Statistics and Challenges in the Implementation of New Data Initiatives	June 2016
ICD	Macroeconomic Forecasting	June/July 2016
ICD	Macroeconomic Forecasting – Advanced	July 2016
ICD	Financial Sector Surveillance	June/July 2016
MCM	Workshop on Enforcement and Market Surveillance	September 2016
ICD	Dynamic Stochastic General Equilibrium Modeling	November 2016
ICD	Dynamic Stochastic General Equilibrium Modeling - China	November 2016
ICD	Financial Sector Surveillance	June 2017
ICD	Macroeconomic Forecasting –advanced course	June 2017
ICD	Monetary and Fiscal Policy Analysis with DSGE Models (scheduled)	August - September 2017
ICD	Dynamic Stochastic General Equilibrium Modeling – China (scheduled)	September 2017

^1/The new Institute for Capacity Development (ICD) was formed from the merger of the former IMF Institute (INS) and Office of Technical Assistance Management (OTM) on May 1, 2012.