Core Insights - The overall international balance of payments in China has remained stable, with a reasonable current account surplus and active cross-border investment and financing [1][2][3] Group 1: International Balance of Payments - The maintenance of a balanced international payment is crucial for macroeconomic stability, especially in the context of complex external environments [2] - Since the beginning of the 14th Five-Year Plan, China's international balance of payments has remained fundamentally balanced, with foreign financial assets and liabilities steadily increasing [2][4] - As of now, China's foreign exchange reserves are maintained at over $3.2 trillion [2] Group 2: Cross-Border Trade and Investment - Cross-border trade has shown strong resilience, with the current account surplus remaining within a reasonable range [3] - From 2021 to 2024, the average annual scale of goods trade imports and exports is close to $6 trillion, representing a nearly 43% increase compared to the previous five years [3] - Foreign direct investment in China has netted over $740 billion from 2021 to mid-2025, while domestic entities' outbound investments have also increased [4] Group 3: Foreign Exchange Market Development - The resilience of the foreign exchange market has improved, enhancing the ability to withstand external shocks [5] - The proportion of enterprises using foreign exchange hedging has increased from 17% in 2020 to around 30% [5] - The trading volume of China's foreign exchange market reached $41 trillion in 2024, a 37.4% increase from 2020 [6][7] Group 4: Statistical Improvements - The transparency of international balance of payments statistics has been steadily improved, with expanded data dimensions and historical data availability [8][9] - A new statistical framework has been established to enhance the quality and comprehensiveness of data collection and reporting [9][10] - China has actively participated in the formulation of global statistical rules, contributing to international financial governance [10]

Core Insights - The State Administration of Foreign Exchange of China reported the international balance of payments for Q2 and the first half of 2025, indicating a current account surplus and a capital and financial account deficit [1] Group 1: Current Account - In Q2 2025, China's current account surplus was 925.2 billion yuan, equivalent to 128.7 billion USD, with a goods trade surplus of 219.1 billion USD and a services trade deficit of 47.1 billion USD [1] - For the first half of 2025, the current account surplus reached 2,112.6 billion yuan, or 294.1 billion USD, driven by a goods trade surplus of 456.7 billion USD and a services trade deficit of 106.4 billion USD [1] Group 2: Capital and Financial Account - In Q2 2025, the capital and financial account recorded a deficit of 984.2 billion yuan, or 137.0 billion USD, with a capital account deficit of 0.1 billion USD and a financial account deficit of 136.9 billion USD [1] - For the first half of 2025, the capital and financial account showed a deficit of 1,993.6 billion yuan, equivalent to 2,776.0 billion USD, with a capital account deficit of 0.1 billion USD and a financial account deficit of 2,775.0 billion USD [1] Group 3: SDR Valuation - In Q2 2025, the current account surplus was 94.9 billion SDR, while the capital and financial account deficit was 100.8 billion SDR [1] - For the first half of 2025, the current account surplus amounted to 220.9 billion SDR, with a capital and financial account deficit of 207.6 billion SDR [1]

Core Insights - The report indicates that China's current account surplus reached $294.1 billion in the first half of 2025, remaining within a reasonable equilibrium range [1] - The total import and export volume of goods increased by 2% year-on-year, while service trade grew by 6%, with a 13% reduction in the service trade deficit [1] - Foreign investment returns improved, with China's outbound investment income and foreign investment income in China increasing by 13% and 7% year-on-year, respectively [1] Economic Performance - The report highlights a balanced pattern between the current account surplus and the non-reserve financial account deficit, indicating a stable international balance of payments [1][2] - By the end of June 2025, China's foreign financial assets and liabilities exceeded $11 trillion and $7.2 trillion, respectively, with a net foreign asset of $3.8 trillion, marking a 16% increase from the end of 2024 [1] Cross-Border Trade and Investment Facilitation - In the first half of 2025, over $700 billion in cross-border trade facilitation services were processed, reflecting an 11% year-on-year increase [3] - The report outlines measures to enhance cross-border investment and financing, including the cancellation of domestic reinvestment registration for foreign-invested enterprises and facilitating cross-border financing for technology enterprises [4] Regional Development Support - The report emphasizes support for the construction of the Shanghai International Financial Center and the implementation of a series of foreign exchange facilitation policies in free trade zones [5] Tourism and Travel Growth - The inbound tourism market has accelerated, with inbound tourist numbers and travel income both increasing significantly; inbound travel income reached $24.3 billion, a 42% year-on-year increase [8] - The report notes that the relaxation of visa policies and the optimization of tax refund policies have contributed to the growth in inbound tourism [10][11]

Core Insights - The report indicates that China's current account surplus reached $294.1 billion in the first half of 2025, remaining within a reasonable equilibrium range [1] - The total import and export volume of goods increased by 2% year-on-year, while service trade grew by 6%, with a 13% reduction in the service trade deficit [1] - Foreign investment returns improved, with China's outbound investment income and foreign investment income in China increasing by 13% and 7% year-on-year, respectively [1] Economic Performance - The report highlights a balanced pattern between the current account surplus and the non-reserve financial account deficit, indicating a stable international balance of payments [1][2] - By the end of June 2025, China's foreign financial assets and liabilities exceeded $11 trillion and $7.2 trillion, respectively, with a net foreign asset of $3.8 trillion, marking a 16% increase from the end of 2024 [1] Cross-Border Trade and Investment Facilitation - In the first half of 2025, over $700 billion in cross-border trade facilitation services were processed, reflecting an 11% year-on-year increase [3] - The report outlines measures to enhance cross-border investment and financing, including the cancellation of domestic reinvestment registration for foreign-invested enterprises and the expansion of pilot areas for integrated currency pools [4] Regional Development Support - The report emphasizes support for the construction of the Shanghai International Financial Center and the implementation of a series of foreign exchange facilitation policies in free trade zones [5] Tourism and Travel Growth - The inbound tourism market has accelerated, with inbound travel income reaching $24.3 billion in the first half of 2025, a 42% year-on-year increase [8] - The report notes that the number of inbound tourists from Hong Kong, Singapore, Taiwan, South Korea, and Malaysia accounted for 40% of total tourism income, with significant growth from the U.S., Japan, Australia, and the UK [8][9] Policy Enhancements for Tourism - The report highlights the optimization of the departure tax refund policy, which has been expanded nationwide, and the increase in the number of tax refund stores, enhancing the shopping experience for foreign visitors [10] - Various measures have been implemented to improve payment services for foreign tourists, including the ability to bind foreign bank cards to domestic payment apps and the expansion of currency exchange services at major airports and hotels [10] Future Outlook - The report anticipates that with the support of favorable policies, the travel market's consumption potential will be further released, and cross-border tourism income is expected to maintain a steady growth trend [11]

Core Insights - The People's Bank of China and the State Administration of Foreign Exchange have emphasized the effective coordination of development and security in the foreign exchange sector since the start of the 14th Five-Year Plan, contributing significantly to the new development pattern [1][2] Group 1: International Balance of Payments - The international balance of payments has shown greater stability, with the current account surplus to GDP ratio remaining within a reasonable range [1] - Cross-border investment and financing have been active, with foreign institutions and individuals holding over 10 trillion yuan in domestic stocks, bonds, and deposits as of the end of July [1] Group 2: Foreign Exchange Reserves - Foreign exchange reserves have remained stable above 3 trillion USD since the beginning of the 14th Five-Year Plan, consistently exceeding 3.2 trillion USD in recent years [1] - The management of foreign exchange reserves has been focused on ensuring asset safety, liquidity, and value preservation, acting as a stabilizer for the national economy [1] Group 3: Cross-Border Financing Facilitation - The level of cross-border investment and financing facilitation has improved, with nearly 300 billion USD in related business processed since the start of the 14th Five-Year Plan [2] - New policies have been introduced to enhance cross-border financing for high-tech and specialized small and medium-sized enterprises, with over 16,000 companies assisted and more than 2.4 trillion USD in payments processed [2] Group 4: Future Outlook - Looking ahead to the 15th Five-Year Plan, the foreign exchange administration aims to establish a more convenient, open, secure, and intelligent foreign exchange management system to contribute to China's modernization [2]

Core Insights - The People's Bank of China and the State Administration of Foreign Exchange have emphasized the effective coordination of development and security in the foreign exchange sector since the start of the 14th Five-Year Plan, contributing significantly to the new development pattern [1][2] Group 1: International Balance of Payments - China's international balance of payments has shown greater stability, with a diversified and resilient foreign trade landscape despite external pressures [1] - The current account surplus remains within a reasonable range relative to GDP, indicating a balanced international payment situation [1] Group 2: Foreign Exchange Reserves - Foreign exchange reserves have consistently remained above $3 trillion, with recent figures exceeding $3.2 trillion, highlighting the stability and management of these reserves [1] - The reserves serve as a crucial stabilizer and ballast for the national economy and finance [1] Group 3: Cross-Border Investment and Financing - The level of convenience for cross-border investment and financing has improved, with nearly $300 billion in related transactions processed since the beginning of the 14th Five-Year Plan [2] - A total of 16,000 enterprises have been assisted in cross-border financing, with over $2.4 trillion in payments and more than $430 billion in financing obtained, primarily benefiting small and medium-sized enterprises [2] Group 4: Future Outlook - Looking ahead to the 15th Five-Year Plan, the foreign exchange authority aims to establish a more convenient, open, secure, and intelligent foreign exchange management system to contribute to China's modernization [2]

Core Viewpoint - The State Administration of Foreign Exchange (SAFE) emphasizes maintaining the stability of the RMB exchange rate at a reasonable and balanced level, alongside ensuring basic equilibrium in international payments [1] Group 1: Regulatory Framework - SAFE aims to faithfully fulfill its foreign exchange regulatory responsibilities as assigned by the Central Committee of the Communist Party [1] - The agency plans to establish a more convenient, open, secure, and intelligent foreign exchange management system [1] - There is a focus on deep reforms and high-level opening in the foreign exchange sector to enhance the facilitation of cross-border trade and investment [1] Group 2: Market Development - SAFE intends to build an open, diverse, functional, and competitive foreign exchange market to actively support regional strategic implementation [1] - The agency will improve the monitoring and early warning system for cross-border capital flows [1] Group 3: Financial Stability - SAFE aims to promote high-quality development in foreign exchange reserve management, positioning reserves as a stabilizer and ballast [1] - There is a commitment to constructing a regulatory system for foreign exchange that is complete and effective, enhancing regulatory collaboration, and cracking down on illegal activities in the foreign exchange sector [1] - The agency will strengthen the rule of law in the foreign exchange domain [1]

Core Insights - Hong Kong recorded an international balance of payments surplus of HKD 105.5 billion in Q2 2025, equivalent to 13.4% of its GDP, a significant recovery from a deficit of HKD 85.4 billion in Q1 2025, which was 10.7% of GDP [1][4] Current Account - The current account surplus for Q2 2025 was HKD 92.6 billion, representing 11.8% of GDP, reflecting higher savings than investments, which helped accumulate foreign financial assets [2] - Compared to Q2 2024, where the surplus was HKD 98.5 billion (13.0% of GDP), the decrease was mainly due to an increase in the goods trade deficit from HKD 14.1 billion to HKD 38.0 billion [2] - The services trade surplus slightly increased from HKD 27.5 billion to HKD 30.0 billion, while the net inflow from primary income rose from HKD 90.2 billion to HKD 107.0 billion [2] Financial Account - In Q2 2025, non-reserve financial assets recorded an overall increase of HKD 21.1 billion, equivalent to 2.7% of GDP, a decline from the HKD 245.8 billion increase in Q1 2025 (30.7% of GDP) [3] - The overall increase in Q2 was primarily driven by net increases in securities investments, while other investments, direct investments, and financial derivatives saw net decreases [3] International Investment Position - As of the end of Q2 2025, Hong Kong's total foreign financial assets and liabilities were at high levels, amounting to HKD 5,724.43 billion (17.7 times GDP) and HKD 3,887.97 billion (12.0 times GDP), respectively [5] - The net value of foreign financial assets reached HKD 1,836.47 billion (5.7 times GDP), up from HKD 1,692.29 billion (5.3 times GDP) in Q1 2025, indicating a strong buffer against external shocks [5] External Debt - At the end of Q2 2025, Hong Kong's total external debt was HKD 1,546.36 billion (4.8 times GDP), an increase from HKD 1,494.88 billion (4.7 times GDP) in Q1 2025, driven by increases across all sectors, particularly in the banking sector [6] - The banking sector accounted for 53.1% of total external debt, with other sectors contributing 29.1% and direct investment debt liabilities making up 16.6% [6]

Core Insights - The State Administration of Foreign Exchange of China released preliminary data on the international balance of payments for the second quarter and the first half of 2025, indicating a significant surplus in the current account [1] Group 1: Current Account - In Q2 2025, China's current account surplus was $135.1 billion, driven by a goods trade surplus of $219.1 billion, a services trade deficit of $46.5 billion, a primary income deficit of $41.4 billion, and a secondary income surplus of $4 billion [1] - For the first half of 2025, the current account surplus reached $300.6 billion, with a goods trade surplus of $456.6 billion, a services trade deficit of $105.9 billion, a primary income deficit of $56.9 billion, and a secondary income surplus of $6.7 billion [1] Group 2: Capital and Financial Account - The capital and financial account, including net errors and omissions for the quarter, recorded a deficit of $135.1 billion in Q2 2025 [1] - For the first half of 2025, the capital and financial account showed a deficit of $275.8 billion, including net errors and omissions for the second quarter [1]

Core Insights - The State Administration of Foreign Exchange (SAFE) released preliminary data on China's balance of payments for Q2 and the first half of 2025, indicating a significant current account surplus [1][2]. Group 1: Current Account Overview - In Q2 2025, China's current account surplus was 971.5 billion yuan, with a goods trade surplus of 1,575.1 billion yuan and a services trade deficit of 334.5 billion yuan [1]. - For the first half of 2025, the current account surplus reached 2,158.9 billion yuan, driven by a goods trade surplus of 3,279.8 billion yuan [1][2]. - In USD terms, the current account surplus for Q2 2025 was $135.1 billion, while for the first half, it was $300.6 billion [2]. Group 2: Capital and Financial Account - The capital and financial account recorded a deficit of 971.5 billion yuan in Q2 2025, with net inflows from foreign direct investment [1]. - For the first half of 2025, the capital and financial account showed a larger deficit of 1,981.0 billion yuan [1][2]. - In USD, the capital and financial account deficit for Q2 was $135.1 billion, and for the first half, it was $275.8 billion [2]. Group 3: SDR Valuation - In terms of Special Drawing Rights (SDR), the current account surplus for Q2 2025 was 996 million SDR, with a goods trade surplus of 1,615 million SDR [2]. - The first half of 2025 saw a current account surplus of 2,257 million SDR, with a goods trade surplus of 3,425 million SDR [2]. - The capital and financial account deficit in SDR terms for Q2 was 996 million SDR, and for the first half, it was 2,065 million SDR [2].