http://s6/mw690/62608692gx6BmEn0ZSZb5&690China to relax foreign exchange controls over service trade【存档纪念】" TITLE="20130726 China to relax foreign exchange controls over service trade【存档纪念】" />

Good Evening, you're now watching CBN Money Watch, an English daily financial news program, brought to you from our Shanghai studio. I am Gloria Ai. We are here to give you the latest updates on China's financial news and economic policies.

China has unveiled moves to boost growth, including promoting trade and reducing taxes on small firms, as a slowdown in the world's number two economy shows no sign of abating. China will expedite foreign exchange transactions in the services trade by streamlining administrative procedures from September 1st, the State Administration of Foreign Exchange (SAFE) announced on Wednesday. The simplified procedures are expected to benefit about 88 percent of China's services-trade-related foreign exchange transactions. Let us take a closer look.

T1:

Under the new rules, a forex payment or settlement transaction in the services trade that is equivalent to 50,000 US dollars or less can proceed without having to verify its transaction documents. Other measures unveiled on Wednesday allow services-trade forex transactions to be handled directly at financial institutions, and permit companies in the services trade to deposit their foreign currency earnings overseas.

SOT1:

Shen Danyang，spokesman, China Ministry of Commerce

I think these stimulus policies

will have a positive effect

on promoting stable growth

of foreign trade this year

It will benefit not only exports

but also imports domestic growth

and restructuring of the economy

T2:

After Chinese premier Li Keqiang helped calm markets this week by clarifying that 7.5% is the growth floor for 2013. China’s State Council attempts to support economic growth not only in trade, but also in railway construction as well as micro businesses. It announced a string of new policies to boost confidence.

Meanwhile People's Bank of China Chairman Zhou Xiaochuan emphasized the importance to support micro-businesses in an article on People's Daily published today. He voiced his support toward the new incentive package, which includes cutting VAT and value-added tax for micro and small enterprises.