Investment Rating - The report indicates a stable outlook for China's foreign exchange management and international balance of payments, suggesting a positive investment environment for 2024 [6][7]. Core Insights - In 2023, China's economy showed signs of recovery with a GDP growth of 5.2%, supported by improvements in supply and demand, and effective measures for livelihood protection [26]. - The current account surplus was recorded at USD 253 billion, representing 1.4% of GDP, indicating a balanced international payment situation [6][38]. - Foreign exchange reserves increased to USD 3.238 trillion by the end of 2023, up by USD 110.3 billion from the previous year, reflecting a stable reserve management strategy [6][7]. Summary by Sections Macroeconomic Overview - The GDP for 2023 reached CNY 126.1 trillion, with a growth rate of 5.2% compared to the previous year [26]. - Industrial production increased by 4.2%, while fixed asset investment grew by 3.0% [27]. - The consumer price index (CPI) rose by 0.2%, indicating stable prices overall [28]. International Economic Situation - The global economy showed a mixed recovery, with the IMF projecting a growth rate of 3.1% for 2023, down 0.4 percentage points from 2022 [33]. - The US economy grew by 2.5%, while the Eurozone faced stagnation with a growth of only 0.5% [34]. Foreign Exchange Management - The report highlights the implementation of policies to facilitate cross-border trade and investment, enhancing the efficiency of foreign exchange services [6][7]. - The foreign exchange market in China is characterized by a stable RMB exchange rate, with the RMB's cross-border payment ratio increasing [6][7]. International Balance of Payments - The report notes a current account surplus of USD 253 billion, with a significant trade surplus in goods amounting to USD 593.9 billion [38]. - The financial account recorded a deficit of USD 209.9 billion, indicating ongoing capital outflows [38]. Foreign Exchange Reserves - By the end of 2023, China's foreign exchange reserves stood at USD 3.238 trillion, reflecting a stable management approach [6][7].

International Balance of Payments - China's current account surplus in the first half of 2024 was $93.7 billion, accounting for 1.1% of GDP, maintaining a reasonable and balanced range[1] - The goods trade surplus remained stable at $288.4 billion, with exports and imports growing by 3% and 4% respectively[10] - The service trade deficit expanded to $123 billion, driven by the recovery of cross-border travel and study activities[10] Capital and Financial Account - Non-reserve financial account recorded a deficit of $127.2 billion, forming a "one surplus, one deficit" balance with the current account[1] - Inbound investments reached $91.7 billion, with foreign equity direct investment and securities investment inflows hitting historical highs[1] - Outbound investments totaled $218.9 billion, with direct investment and securities investment showing steady growth[1] Foreign Exchange and Reserves - China's foreign exchange reserves remained stable, with a slight decrease of $4.5 billion due to transactions[12] - The RMB exchange rate remained stable at a reasonable and balanced level, with market expectations and transactions being rational and orderly[1] Global Economic Context - Global economic growth in 2024 is projected at 3.2%, slightly lower than the historical average of 3.8% from 2000 to 2019[5] - Inflation pressures eased globally, with the US CPI rising by 3% in June 2024, down from 3.3% in December 2023[6] Domestic Economic Performance - China's GDP grew by 5% year-on-year in the first half of 2024, outpacing global growth rates[8] - Retail sales of consumer goods increased by 3.7%, with service consumption growing by 7.5%[8]