Core Insights - China's cross-border travel revenue increased by 42% year-on-year in the first half of the year [1] - The service trade revenue grew by 13% year-on-year, with cross-border travel being a significant contributor [1] - The service trade deficit decreased by 14% year-on-year, indicating a narrowing gap between service trade income and expenditure [1] Economic Performance - The foreign exchange market in China showed strong resilience and vitality, performing better than market expectations [1] - The current account has been stable, with an increase in the international competitiveness of productive service trades such as computer information services and business services [1] - The overall balance of international payments is expected to remain stable due to ongoing economic structural optimization and financial market opening [1]

Core Insights - In June, China's international balance of payments for goods and services trade reached a scale of 42,214 billion yuan, reflecting a year-on-year growth of 6% [1] Trade Data Summary - Goods trade exports amounted to 21,185 billion yuan, while imports were 15,112 billion yuan, resulting in a surplus of 6,073 billion yuan [1] - Service trade exports totaled 2,437 billion yuan, with imports at 3,480 billion yuan, leading to a deficit of 1,043 billion yuan [1] Service Trade Breakdown - Major components of service trade included: - Transportation services with an import-export scale of 1,639 billion yuan - Travel services with an import-export scale of 1,603 billion yuan - Other commercial services with an import-export scale of 967 billion yuan - Telecommunications, computer, and information services with an import-export scale of 659 billion yuan [1] Dollar Value Summary - In dollar terms, China's goods and services trade exports in June 2025 were valued at 3,292 million USD, imports at 2,591 million USD, resulting in a surplus of 701 million USD [1]

Core Viewpoint - The State Administration of Foreign Exchange of China reported the international balance of payments for goods and services trade in June 2025, indicating a growth in trade volume and a surplus in goods trade [1] Trade Data Summary - In June 2025, the total import and export scale of China's goods and services trade reached 42,214 billion yuan, reflecting a year-on-year increase of 6% [1] - Goods trade exports amounted to 21,185 billion yuan, while imports were 15,112 billion yuan, resulting in a surplus of 6,073 billion yuan [1] - Services trade saw exports of 2,437 billion yuan and imports of 3,480 billion yuan, leading to a deficit of 1,043 billion yuan [1] Service Trade Breakdown - The main components of services trade included: - Transportation services with an import and export scale of 1,639 billion yuan - Travel services with an import and export scale of 1,603 billion yuan - Other commercial services with an import and export scale of 967 billion yuan - Telecommunications, computer, and information services with an import and export scale of 659 billion yuan [1] Dollar Value Summary - In dollar terms, the goods and services trade exports in June 2025 were valued at 32.92 billion USD, while imports were valued at 25.91 billion USD, resulting in a surplus of 7.01 billion USD [1]

Group 1 - The core viewpoint of the articles highlights the resilience and stability of China's foreign exchange market in the first half of 2025, supported by proactive macroeconomic policies aimed at expanding domestic demand and addressing external challenges [1][3]. - In the first half of 2025, the total cross-border income and expenditure of non-bank sectors reached $7.6 trillion, a year-on-year increase of 10.4%, marking a historical high for the same period [1]. - The net inflow of cross-border funds for non-bank sectors was $127.3 billion, continuing the trend of net inflows since the second half of the previous year, with a 46% quarter-on-quarter increase in the second quarter [1][3]. Group 2 - The foreign exchange market showed a basic balance, with a bank settlement and sale deficit of $25.3 billion in the first half of 2025, but with a notable monthly variation leading to a surplus in May and June [2]. - The total trading volume in the domestic RMB foreign exchange market reached $21 trillion, a year-on-year increase of 10.2%, with spot and derivative transactions accounting for 35% and 65% respectively [2]. - As of the end of June 2025, China's foreign exchange reserves stood at $3.3174 trillion, an increase of $115.1 billion from the end of 2024, reflecting stability amid global financial asset price increases [2]. Group 3 - The RMB exchange rate remained stable, appreciating by 1.9% against the USD in the first half of 2025, fluctuating between 7.15 and 7.35, which helped stabilize the macroeconomy and international payments [3]. - Direct investment into China showed positive trends, with net inflows of equity-based direct investment reaching $31.1 billion, a 16% year-on-year increase, and net inflows of securities investment reversing the previous year's outflow [3]. - The State Administration of Foreign Exchange plans to continue promoting a more convenient, open, secure, and intelligent foreign exchange management system to support high-quality economic development and high-level openness [3].

Economic Overview - In the first half of 2025, non-bank sector cross-border income and expenditure reached a record high of $7.6 trillion, marking a year-on-year increase of 10.4% [3][11] - The net inflow of cross-border funds was $127.3 billion, continuing the trend of net inflows since the second half of 2024 [3] - The total trading volume in the domestic foreign exchange market was $21 trillion, reflecting a year-on-year growth of 10.2% [3] Employment and Social Security - A total of 6.95 million new urban jobs were created in the first half of 2025, achieving 58% of the annual target [6][8] - The cumulative balance of three social insurance funds reached ¥9.83 trillion, with social security card coverage at 98.9% of the population [10] Retail and Wholesale Sector - The value added of the wholesale and retail industry was ¥6.8 trillion in the first half of 2025, with a year-on-year growth of 5.9%, accounting for 10.3% of GDP [5] Aviation Industry - The civil aviation sector achieved a total transport turnover of 783.5 billion ton-kilometers and a passenger transport volume of 370 million in the first half of 2025, with respective year-on-year growth rates of 11.4% and 6% [12][14] - The average daily aircraft utilization rate improved to 9 hours, and the on-time flight rate reached 91.7% [14] Financial Sector - New RMB loans totaled ¥12.92 trillion in the first half of 2025, indicating strong credit support for the real economy [21][23] - The balance of inclusive small and micro loans reached ¥35.57 trillion, with a year-on-year growth of 12.3% [27] Foreign Investment - Direct investment net inflow into China from January to May 2025 was $31.1 billion, a year-on-year increase of 16% [35] - Securities investment net inflow was approximately $33 billion, reversing the net outflow trend from the second half of 2024 [35] Telecommunications Sector - The total revenue from telecommunications services reached ¥905.5 billion in the first half of 2025, with a year-on-year growth of 1% [37] - The number of 5G base stations reached 4.549 million, accounting for 35.7% of all mobile base stations [39] Transportation Infrastructure - The completion rate of the main framework of the national comprehensive transportation network exceeded 90% [40][42] - An average of 1.8 billion people traveled across regions daily, highlighting the efficiency of the transportation network [42]

Core Viewpoint - The article discusses the resilience of China's foreign exchange market in the face of complex external environments, highlighting the stable operation and strong fundamentals of the market despite increased risks and challenges [1][2]. Group 1: Foreign Exchange Market Performance - In the first half of the year, China's foreign exchange market demonstrated strong resilience, with a net inflow of cross-border funds amounting to $127.3 billion, continuing the trend from the second half of the previous year, and a 46% increase in net inflow in the second quarter [2]. - The foreign exchange market showed several positive trends, including a steady increase in foreign-related income and expenditure, a balanced supply and demand, and stable foreign exchange reserves [2]. - The RMB appreciated by 1.9% against the USD in the first half of the year, maintaining a stable range of 7.15 to 7.35, which helped stabilize market expectations [2][3]. Group 2: International Balance of Payments - China's current account surplus has been steadily increasing, indicating a balanced international payment situation, with a corresponding financial account deficit that is roughly equivalent to the current account surplus [3]. - From January to May, direct investment inflows into China reached $31.1 billion, a 16% year-on-year increase, while securities investment inflows amounted to approximately $33 billion, reversing the previous year's outflow trend [3]. Group 3: Policy and Regulatory Environment - The foreign exchange management authorities have been optimizing policy supply and deepening reforms to enhance the convenience of cross-border trade and investment, while also cracking down on illegal activities [4]. - Over 400 cases of foreign exchange violations were addressed in the first half of the year, demonstrating the effectiveness of regulatory measures [4]. Group 4: Foreign Investment in RMB Assets - Foreign investment in RMB assets has remained stable, with foreign holdings of domestic RMB bonds exceeding $600 billion, marking a historically high level [6]. - In the first half of the year, foreign investors net purchased $10.1 billion in domestic stocks and funds, reversing the net selling trend of the past two years [6]. - The attractiveness of RMB assets is expected to continue growing, supported by a stable macroeconomic environment and positive investment sentiment from international financial institutions [6][7].

Core Insights - The State Administration of Foreign Exchange reported that in the first half of 2025, the total cross-border income and expenditure of non-bank sectors reached $7.6 trillion, marking a year-on-year increase of 10.4%, the highest for the same period in history [1][3] Group 1: Cross-Border Transactions - The cross-border income and expenditure of enterprises and individuals amounted to $7.6 trillion, with a 10.4% year-on-year growth, and the proportion of RMB in cross-border transactions reached 53% [3] - The total settlement and sale of foreign exchange by banks was $2.3 trillion, reflecting a 3% year-on-year increase, the second highest for the same period historically [3] - There was a net inflow of cross-border funds amounting to $127.3 billion, continuing the net inflow trend since the second half of last year, with a 46% quarter-on-quarter growth in Q2 [3] Group 2: Foreign Exchange Market Dynamics - The foreign exchange market showed basic balance, with a settlement deficit of $25.3 billion in the first half, but monthly trends indicated fluctuations from deficit to surplus [3] - The foreign exchange income settlement rate was stable at 60%, while the foreign exchange expenditure settlement rate decreased by 3 percentage points to 65% [3] - The total trading volume in the domestic RMB foreign exchange market reached $21 trillion, a 10.2% year-on-year increase, with spot and derivative transactions accounting for 35% and 65% respectively [4] Group 3: Foreign Exchange Reserves and Currency Stability - As of the end of June, China's foreign exchange reserves stood at $3.3174 trillion, an increase of $115.1 billion from the end of 2024 [4] - The RMB exchange rate remained stable, appreciating by 1.9% against the USD, fluctuating between 7.15 and 7.35 [5] - The current account surplus has been steadily increasing, with direct investment inflows into China reaching $31.1 billion, a 16% year-on-year increase [5]

Core Viewpoint - The article discusses the resilience of the Chinese yuan (RMB) against the backdrop of a complex international environment, highlighting the positive trends in China's economy and the implementation of proactive macroeconomic policies to maintain stability in the RMB exchange rate [1][5]. Group 1: RMB Exchange Rate Trends - In the first half of 2025, the RMB appreciated nearly 2% against the USD compared to the end of the previous year, while the USD index fell over 10%, marking its worst performance since 1973 [2]. - The RMB exchange rate showed strong resilience, with a 0.65% appreciation in the first quarter, supported by effective policy measures and a stable domestic economy [2][4]. - The second quarter saw the RMB experience fluctuations due to US-China trade tensions, with the exchange rate initially depreciating before recovering to below 7.2 [3][4]. Group 2: Economic Indicators - In the first five months of the year, fixed asset investment grew by 3.7%, retail sales increased by 5%, and exports rose by 7.2%, indicating a positive economic performance that supports the RMB [5]. - The international balance of payments remained stable, with a surplus of $101.9 billion in foreign exchange payments, reflecting foreign investors' confidence in RMB assets [9]. Group 3: Future Outlook - The RMB is expected to experience fluctuations in the second half of the year, influenced by ongoing US-China trade negotiations and the potential for US economic weakening [5][6]. - The US economic slowdown and the Federal Reserve's potential interest rate cuts are anticipated to exert downward pressure on the USD, contributing to a dual-directional fluctuation of the RMB [7][8]. - Geopolitical risks and uncertainties in international trade negotiations may lead to temporary shocks in the RMB exchange rate, necessitating close monitoring of the situation [9].

Core Viewpoint - The People's Bank of China (PBOC) conducted a 7-day reverse repurchase operation of 525.9 billion yuan at an interest rate of 1.40%, maintaining the previous rate, resulting in a net injection of 364.7 billion yuan into the market after 161.2 billion yuan of reverse repos matured on the same day [1] Group 1: Monetary Policy Operations - The PBOC executed a total of 20,275 billion yuan in reverse repos and 3,000 billion yuan in Medium-term Lending Facility (MLF) operations during the week, achieving a net injection of 13,672 billion yuan due to 9,603 billion yuan of reverse repos maturing [1] - The Shanghai Interbank Offered Rate (Shibor) showed narrow fluctuations, with the 7-day Shibor slightly declining [1] Group 2: Interbank Repo Market - In the interbank pledged repo market, overnight rates slightly decreased while 7-day and 14-day rates increased. Specifically, the weighted average rate for DR001 fell by 0.2 basis points to 1.3683%, while DR007 and DR014 rose by 1.2 and 1.1 basis points, respectively [4] - The overall funding environment on June 27 was balanced, with significant credit tiering differences observed. The rates for various transactions showed a mix of slight increases and decreases throughout the day [8] Group 3: Interbank Certificates of Deposit - On June 27, 75 interbank certificates of deposit were issued, with a total issuance amount of 135 billion yuan. The trading sentiment for primary certificates was subdued, particularly for 3-month and 6-month maturities [9] - The overall yield for secondary certificates showed a downward trend compared to the previous day's close, with specific yields for different maturities reflecting slight declines [9]

Core Viewpoint - The future of China's foreign exchange market is expected to maintain stable operations, with the RMB exchange rate remaining stable at a reasonable and balanced level [1] Group 1: Economic Policies and Market Stability - The People's Bank of China is implementing more proactive macroeconomic policies to support economic recovery [1] - There will be an increase in policies aimed at stabilizing foreign trade and foreign investment, along with a gradual expansion of financial market openness [1] - The international balance of payments is projected to remain fundamentally balanced [1] Group 2: Market Participants and Resilience - Market participants are becoming more mature and rational, with the proportion of enterprises using foreign exchange hedging increasing [1] - The share of RMB cross-border receipts under goods trade has risen to approximately 30% [1] - The resilience of the foreign exchange market is expected to continue strengthening [1]