Group 1: Currency Trends - In August, the USD index fell from above 100 to 97.8, a cumulative decline of 2.2% due to weaker employment data and increased expectations for Fed rate cuts[3] - The RMB exchange rate strengthened for the fourth consecutive month, with the midpoint rate appreciating by an average of 8 basis points from August 1 to 20, and accelerating to an average of 51 basis points in late August[4] - By the end of August, the RMB midpoint, onshore, and offshore exchange rates reached 7.1030, 7.1330, and 7.1221 respectively, appreciating by 0.7%, 0.8%, and 1.2% compared to the end of the previous month[4] Group 2: Market Dynamics - In August, banks reported a surplus in foreign exchange transactions, narrowing to $16.8 billion, the lowest in four months, indicating a decrease in the willingness to settle foreign exchange[22] - The net inflow of cross-border funds was reflected in a shift from a deficit of $7.7 billion to a surplus of $3.2 billion in bank foreign exchange payments[14] - Foreign investment in Chinese stocks reached a net inflow of $10.8 billion, the highest since February, while overall foreign investment in emerging markets was approximately $45 billion[17] Group 3: Economic Indicators - The nominal effective exchange rate index and the real effective exchange rate index of the RMB increased by 0.5% and 0.3% respectively, indicating a slight reduction in the impact of RMB fluctuations on export competitiveness[5] - Direct investment foreign exchange payments showed a deficit increase of $4.5 billion to $7.5 billion, with foreign income dropping to $50.2 billion, the lowest in five years[18] - The trade surplus in goods payments decreased by $16.5 billion to $72.9 billion, reflecting slower collection rates from export enterprises[18]

Core Insights - In August, the expectation of a Federal Reserve interest rate cut strengthened, leading to a depreciation of the US dollar and an increase in the appreciation momentum of the Chinese yuan, while market expectations remained stable [3][4]. Currency Market Analysis - The US dollar index fell from above 100 to 97.8, a decrease of 2.2%, due to weaker-than-expected employment data and concerns over the independence of the Federal Reserve [3]. - The Chinese yuan's central parity rate appreciated for the fourth consecutive month, with an average daily appreciation of 8 basis points from August 1 to 20, and accelerated to an average daily appreciation of 51 basis points in late August [4]. - By the end of August, the central parity, onshore, and offshore exchange rates of the yuan reached 7.1030, 7.1330, and 7.1221 respectively, appreciating by 0.7%, 0.8%, and 1.2% compared to the end of the previous month [4]. Cross-Border Capital Flows - In August, cross-border capital turned into a net inflow, with banks' foreign currency payments shifting from a deficit of $7.7 billion to a surplus of $3.2 billion [13]. - Foreign currency payments contributed significantly to this surplus, with a month-on-month increase of $17.6 billion to $53.2 billion, marking a new high since October 2024 [13]. - Foreign investment interest in Chinese stocks increased, with a net inflow of $10.8 billion in August, the highest since February of the same year [14]. Foreign Exchange Supply and Demand - The bank's foreign exchange settlement and sales surplus narrowed to $16.8 billion, the lowest in four months, indicating a decrease in the willingness to settle foreign exchange [20]. - The ratio of foreign currency receipts to payments fell to 52.6%, the lowest in five months, while the ratio of payments to purchases rose to 62.0%, the highest in nearly seven months [21]. Trade and Investment - The goods trade surplus decreased by $16.5 billion to $72.9 billion, reflecting a slowdown in export revenue collection [18]. - Direct investment foreign exchange payments showed a deficit increase of $4.5 billion to $7.5 billion, with foreign income dropping to $50.2 billion, the lowest for the same period in five years [15].

Core Insights - The State Administration of Foreign Exchange reported that in August 2025, banks settled 15,103 billion RMB and sold 14,058 billion RMB [1] - From January to August 2025, banks cumulatively settled 113,938 billion RMB and sold 113,078 billion RMB [1] - In USD terms, banks settled 2,118 billion USD and sold 1,971 billion USD in August 2025 [1] - Cumulatively from January to August 2025, banks settled 15,886 billion USD and sold 15,765 billion USD [1] Foreign Exchange Income and Payments - In August 2025, banks recorded foreign-related income of 45,515 billion RMB and foreign payments of 45,284 billion RMB [1] - Cumulatively from January to August 2025, banks had foreign-related income of 372,219 billion RMB and foreign payments of 363,400 billion RMB [1] - In USD terms, banks recorded foreign-related income of 6,383 billion USD and foreign payments of 6,350 billion USD in August 2025 [1] - Cumulatively from January to August 2025, banks had foreign-related income of 51,893 billion USD and foreign payments of 50,665 billion USD [1]

Group 1 - The core viewpoint of the article highlights the stable operation of China's foreign exchange market in August 2025, with active trading and a basic balance in supply and demand [4] - In August 2025, banks settled 15,103 billion RMB and sold 14,058 billion RMB, while the cumulative settlement from January to August reached 113,938 billion RMB and cumulative sales were 113,078 billion RMB [1][2] - The non-bank sector's cross-border receipts and payments reached 1.3 trillion USD in August, reflecting an 8% year-on-year growth, indicating steady development in cross-border trade and investment activities [4] Group 2 - In August, banks recorded a net inflow of cross-border funds amounting to 3.2 billion USD, with a surplus of 14.6 billion USD in bank settlement and sales [4] - The net inflow from goods trade remained stable, while foreign investment in domestic stocks and bonds showed a net inflow, and service trade and investment income saw a decrease from seasonal highs [4]

Core Insights - The foreign exchange market in China showed stable operation in August, with active trading and balanced supply and demand [2] Group 1: Bank Settlement Data - In August, banks settled foreign exchange transactions amounting to 15,103 billion RMB and sold 14,058 billion RMB [1] - From January to August, cumulative bank settlements reached 113,938 billion RMB, while cumulative sales were 113,078 billion RMB [1] - In USD terms, banks settled 2,118 billion USD and sold 1,971 billion USD in August [1] - Cumulatively, from January to August, bank settlements totaled 15,886 billion USD, and sales amounted to 15,765 billion USD [1] Group 2: Cross-Border Payments - In August, banks recorded foreign income of 45,515 billion RMB and foreign payments of 45,284 billion RMB [1] - Cumulatively, from January to August, foreign income reached 372,219 billion RMB, while foreign payments totaled 363,400 billion RMB [1] - In USD terms, foreign income in August was 6,383 billion USD, and foreign payments were 6,350 billion USD [1] - Cumulatively, from January to August, foreign income amounted to 51,893 billion USD, and payments were 50,665 billion USD [1] Group 3: Market Activity and Trends - Non-bank sectors, including enterprises and individuals, engaged in cross-border receipts and payments totaling 1.3 trillion USD in August, reflecting an 8% year-on-year increase [2] - Both current and capital account cross-border receipts and payments saw growth, indicating steady development in trade and investment [2] - The net inflow of cross-border funds was 32 billion USD in August, with a bank settlement surplus of 14.6 billion USD [2] - Overall, the foreign exchange market is characterized by active trading and stable market expectations [2]

Group 1 - The foreign exchange market in China is operating smoothly, with active trading observed in August 2025 [1] - In August 2025, non-bank sectors, including enterprises and individuals, conducted cross-border receipts and payments totaling $1.3 trillion, marking an 8% year-on-year increase [1] - The overall balance of supply and demand in the foreign exchange market is maintained, with a net inflow of $3.2 billion and a surplus of $14.6 billion in bank settlement and sale of foreign exchange [1] Group 2 - In August 2025, banks recorded foreign-related income of 45,515 billion RMB and foreign payments of 45,284 billion RMB [2] - Cumulative foreign-related income for the first eight months of 2025 reached 372,219 billion RMB, while cumulative foreign payments totaled 363,400 billion RMB [2] - In dollar terms, banks' foreign-related income in August 2025 was $6,383 billion, with payments amounting to $6,350 billion [2]

Core Viewpoint - The foreign exchange market in China is currently stable, with a net inflow of cross-border funds amounting to 3.2 billion USD and a surplus of 14.6 billion USD in bank settlement and sales of foreign exchange in August 2025, indicating a balanced supply and demand in the market [1] Summary by Sections Foreign Exchange Market Overview - In August, the foreign exchange market maintained overall balance, with a net inflow of cross-border funds of 3.2 billion USD and a bank settlement surplus of 14.6 billion USD, reflecting stable market expectations [1] - The bank's foreign exchange settlement reached 211.8 billion USD, while sales amounted to 197.1 billion USD, continuing the surplus trend [1] Cross-Border Fund Flows - The scale of bank customer foreign exchange receipts and payments reached 1.3 trillion USD in August, a year-on-year increase of 8%, indicating sustained high levels of activity [1] - Both current and capital account cross-border receipts and payments saw growth, with stable development in cross-border trade and investment financing [1] Specific Transactions - In August, bank customer foreign exchange income was 638.3 billion USD, while payments were 635 billion USD, resulting in a slight surplus and a balanced overall account [1] - The net inflow from goods trade remained stable, while foreign investment in domestic stocks and bonds showed a net buying trend [1]

Core Insights - The foreign exchange market in China remained stable in August 2025, with active trading and balanced supply and demand [1][2] Group 1: Market Activity - In August 2025, non-bank sectors, including enterprises and individuals, conducted cross-border receipts and payments totaling $1.3 trillion, reflecting an 8% year-on-year increase [1] - Both current account and capital account cross-border receipts and payments saw growth, indicating steady development in cross-border trade and investment [1] Group 2: Supply and Demand Balance - In August 2025, there was a net inflow of $3.2 billion in cross-border funds, with a surplus of $14.6 billion in bank foreign exchange settlement and sales [1] - The net inflow from goods trade remained stable, while foreign investment in domestic stocks and bonds showed a net buying trend [1] Group 3: Bank Transactions - In August 2025, banks settled foreign exchange receipts amounting to 15,103 billion RMB and foreign exchange sales of 14,058 billion RMB [1] - From January to August 2025, cumulative bank foreign exchange receipts reached 113,938 billion RMB, while cumulative sales were 113,078 billion RMB [1] Group 4: Customer Transactions - In August 2025, banks recorded foreign-related income of 45,515 billion RMB and foreign payments of 45,284 billion RMB [2] - For the period from January to August 2025, cumulative foreign-related income was 372,219 billion RMB, with cumulative payments at 363,400 billion RMB [2]

Core Insights - In August 2025, banks in China reported a settlement of 15,103 billion RMB and a sale of 14,058 billion RMB [1] - From January to August 2025, the cumulative settlement reached 113,938 billion RMB, while cumulative sales totaled 113,078 billion RMB [1] - In USD terms, banks settled 2,118 billion USD and sold 1,971 billion USD in August 2025 [1] - The cumulative settlement in USD from January to August 2025 was 15,886 billion USD, with cumulative sales at 15,765 billion USD [1] Foreign Exchange Income and Payments - In August 2025, banks recorded foreign income of 45,515 billion RMB and foreign payments of 45,284 billion RMB [1] - For the period from January to August 2025, the cumulative foreign income was 372,219 billion RMB, while cumulative foreign payments were 363,400 billion RMB [1] - In USD, foreign income in August 2025 was 6,383 billion USD, with foreign payments at 6,350 billion USD [1] - The cumulative foreign income in USD from January to August 2025 was 51,893 billion USD, and cumulative payments were 50,665 billion USD [1]

Core Insights - In August 2025, banks in China reported a settlement of 15,103 billion RMB and a sale of 14,058 billion RMB [1] - From January to August 2025, the cumulative settlement reached 113,938 billion RMB, while cumulative sales totaled 113,078 billion RMB [1] - In USD terms, banks settled 2,118 billion USD and sold 1,971 billion USD in August 2025 [1] - The cumulative settlement in USD from January to August 2025 was 15,886 billion USD, with cumulative sales at 15,765 billion USD [1] Foreign Exchange Income and Payments - In August 2025, banks recorded foreign-related income of 45,515 billion RMB and foreign payments of 45,284 billion RMB [1] - For the period from January to August 2025, the cumulative foreign-related income was 372,219 billion RMB, while cumulative foreign payments were 363,400 billion RMB [1] - In USD terms, foreign-related income in August 2025 was 6,383 billion USD, with foreign payments at 6,350 billion USD [1] - The cumulative foreign-related income in USD from January to August 2025 was 51,893 billion USD, and cumulative payments were 50,665 billion USD [1]