The development process of Chinese adjustment market can be divided into three stages: 1. The generation stage of foreign exchange adjustment market (1980-1985).
After the approval of the state, foreign exchange adjustment was allowed through the Bank of China and its branches after October 1980, which marked that the rudiment of China’s foreign exchange adjustment market had been produced, and then foreign exchange adjustment business was set up successively in major cities.
2. Initial formation stage The initial formation stage of the foreign exchange adjustment market (1986-1987).
In this stage, the foreign exchange adjustment market was further improved from the following aspects: the quota of foreign exchange, the registration and transaction of adjustment were clearly stipulated by the foreign exchange administration departments to handle and approve;
The Provisions of The State Council on Encouraging Foreign Investment were promulgated in October 1986, allowing foreign-invested enterprises in special economic zones and major coastal cities to buy and sell foreign exchange through the foreign exchange administration departments.
The price of foreign exchange adjustment was raised, and the maximum price of spot exchange adjustment was set at RMB4.20. The prices of foreign exchange adjustment in special economic zones, Hainan administrative regions and foreign-invested enterprises were gradually lifted to be negotiated freely by the buyers and sellers.
Following Shenzhen and other special economic zones, provinces, autonomous regions, municipalities directly under the central government and cities with separate plans have set up foreign exchange adjustment centers or offices.
3. Rapid development Stage The rapid development stage of foreign exchange adjustment market (started in 1988).
In order to meet the needs of further opening up to the outside world and accelerating the development of the cause of foreign trade, The State Council decided to carry out the overall foreign trade contract operation responsibility system in early 1988, and required the State Administration of Foreign Exchange to further implement the work of foreign exchange adjustment and meet the needs of the foreign trade system reform.
