Summary of Key Points Core Viewpoint The offshore (CNH) and onshore (CNY) RMB exchange rates appreciated in January, with a decrease in the average price difference between the two. The CFETS RMB exchange rate index and other related indices showed a decline compared to the previous month. Additionally, the issuance of offshore RMB bonds decreased significantly. Group 1: Offshore RMB Exchange Rates - In January, the CNH/USD exchange rate appreciated by 0.24% to 6.9589, while the CNY/USD exchange rate appreciated by 0.58% to 6.9486 [3] - The average daily price difference (absolute value) between CNY and CNH was 56 basis points (BP), a decrease of 3 BP from the previous month [3] - The CFETS RMB exchange rate index decreased by 1.02%, while the indices for the BIS and SDR currency baskets fell by 0.58% and 0.2%, respectively [3] Group 2: Offshore RMB Deposits - As of December 2025, offshore RMB deposits in Hong Kong decreased by 4.2% to 960.53 billion yuan, while Taiwan's deposits fell by 0.5% to 115.36 billion yuan [2] - Cross-border trade settlement in Hong Kong increased by 14.0% to 11,774.12 billion yuan [2] - Macau's RMB deposits increased by 0.03% to 526.96 million Macanese patacas (approximately 459.55 billion yuan), but in RMB terms, it decreased by 1.2% [2] Group 3: Offshore RMB Bond Market - In January, 104 offshore RMB bonds were issued, an increase of 3 bonds from the previous month, but the total issuance amount decreased by 75.2% to 75.214 billion yuan [5] Group 4: Offshore RMB Money Market - As of the end of January, the CNH HIBOR rates for overnight, 7-day, 3-month, and 1-year periods were 1.7285%, 1.6394%, 1.8279%, and 1.9045%, respectively, with varying changes from the previous month [6] - The average interest rate spread between offshore and onshore borrowing rates increased for overnight, 7-day, and 3-month periods [6] Group 5: Foreign Institutions in Domestic Interbank Market - As of the end of January, the total number of foreign institutions participating in the domestic interbank foreign exchange market remained at 244 [7] - The total number of foreign institutions and their products in the domestic currency market reached 5,837, with slight changes in specific categories [7] Group 6: Trading Volume of Foreign Institutions - In January, the total trading volume of foreign institutions in the domestic interbank foreign exchange market was 29,702.80 billion yuan, an increase of 26.5% [8] - The trading volume in the domestic interbank bond market reached 13,655.71 billion yuan, with a 27.1% increase [8]

Core Insights - The offshore (CNH) and onshore (CNY) RMB exchange rates appreciated in October, with the average daily price difference (absolute value of CNY-CNH) decreasing by 16 basis points to 51 basis points [1][3] - The CFETS RMB exchange rate index, referencing the BIS currency basket and SDR currency basket, increased by 0.87%, 1.19%, and 1.13% respectively compared to the end of the previous month [1][3] Offshore RMB Deposits - As of September 2025, offshore RMB deposits in Hong Kong increased by 3.5% to 1,001.77 billion yuan, while Taiwan's deposits decreased by 0.6% to 119.91 billion yuan [2] Offshore RMB Foreign Exchange Market - On October 31, the CNH/USD exchange rate closed at 7.1224, appreciating by 0.09%, while the CNY/USD exchange rate closed at 7.1135, appreciating by 0.07% [3] - The average daily price difference (absolute value of CNY-CNH) was 51 basis points, a decrease of 16 basis points from the previous month [3] Offshore RMB Bond Market - In October, 77 offshore RMB bonds were issued, a decrease of 44 bonds from the previous month, with a total issuance amount of 73.43 billion yuan, down 74.8% [5] Offshore RMB Money Market - By the end of October, the CNH HIBOR rates for overnight, 7-day, 3-month, and 1-year were 1.2421%, 1.4988%, 1.7085%, and 1.9183% respectively, with decreases of 57 basis points, 12 basis points, and 5 basis points [6] - The average interest rate spread (HIBOR-SHIBOR) for various tenors increased for overnight and 7-day periods, while remaining stable for 1-year [6] Dynamics of Foreign Institutions in Domestic Interbank Market - As of the end of October, the total number of foreign institutions participating in the domestic interbank foreign exchange market reached 239, an increase of 2 from the previous month [7] Trading Volume in Domestic Interbank Market - In October, the total trading volume of foreign institutions in the domestic interbank foreign exchange market was 27,746.55 billion yuan, a decrease of 16.1% [8] - The trading volume in the domestic interbank bond market totaled 9,411.06 billion yuan, a decrease of 2.5% [8]