71585 3.income169364714330 2074.current transfer15204200434839 CURRENT ACCOUNT134460643377508917
14Balance of Payments:The Capital and Financial Account•The Capital and financial Account:–Records international transactions in the financial sector.–Includes capital transfers and acquisition/disposal of non-produce, non-financial assets.–Includes portfolio and foreign direct investment.–Includes changes in banks’ and brokers’ cash deposits that arise from international transactions.–Includes changes in official reserve assets.
15The Capital and Financial Account•The main accounts are:–Domestic residents-Owned Assets Abroad: Increase or decrease in national ownership of foreign financial assets.–Foreign-Owned Assets in the reporting economy: Increase or decrease in foreign ownership of domestic assets.–Reserve Assets: Primarily the assets of central banks.
16Portfolio ,Foreign Direct Investment and Other Investment•Portfolio Investment: Individual or business purchase of stocks, bond, or other financial assets or deposits. (An income strategy)•Foreign Direct Investment (FDI): Purchase of financial assets that results in a 10 percent or greater ownership share. (A financial control strategy)•Other Investment: A residual group used to measure changes in assets and liabilities other then portfolio and direct investment and authorities’ reserve.
17Private (Net) Capital Account•The Capital and Financial Account tabulates the flows of financial assets between domestic residents and foreign residents and governments.•In practice, the Capital and Financial Account includes Private Capital flows Only.•The private capital account tabulates flows among private domestic residents and foreign private residents.
18Summarized Capital and Financial Account in China (first half of 2009, in million dollars)balancecredit debit1.Capital account134811481002.Financial account59646340858281212 2.1 Direct investment1556149223336612.2 Portfolio investment201844654222357 2.3 Other investment23900249093225193
19FDI inflow in China
20Try to fill in the blank
21Capital and Financial AccountCapital Account, Net-3,079Financial AccountUS-OwnedAssetsAbroad-283,414USOfficial ReserveAssets-1,523USGovernment Assets537USPrivateAssets-285,474Foreign-OwnedAssets829,173ForeignOfficial Assets248,573OtherForeignAssets580,600NetFinancial AccountFlows545,759
22Balance of Payments: the Official Settlements Balance •the Official Settlements Balance measures the transactions of financial assets and deposits by official governments agencies.
23Balance of Payments: Standard Components1. Current Account1.1 Goods and Services1.2 Income1.3 Current Transfers2. Capital and Financial Account2.1 Capital account2.2 Financial account2.2.1 Direct investment2.2.2 Portfolio investment2.2.3 Other investment2.2.4 Reserve assets
24Balance of Payments: Practical Componentscredit (+) debit (-) 1. Current Account1.1 Goods and Services1.2 Income1.3 Current Transfers2. Capital and Financial Account2.1 Capital account
You've reached the end of your free preview.
Want to read all 74 pages?