Core Insights - The foreign exchange market in China has maintained stability despite increased volatility in the international currency market, with a notable rebound and subsequent decline in the US dollar index [1][2] Group 1: Exchange Settlement and Sales - In July, banks settled foreign exchange transactions amounting to 233.6 billion USD and sold 210.8 billion USD, resulting in a surplus of 22.8 billion USD [1] - For the first seven months of the year, cumulative bank settlements reached 1.3768 trillion USD, while cumulative sales totaled 1.3793 trillion USD, indicating a continued surplus trend [1] - The exchange rates for enterprises and individuals showed a slight increase in settlement rates and stable sales rates, reflecting stable market expectations and active trading [1] Group 2: Cross-Border Capital Flows - Cross-border income and expenditure for non-bank sectors remained at historically high levels, with a near balance in receipts and payments [1] - Net inflows from goods trade increased by 33% month-on-month, maintaining a high level of activity [1] - Outflows from service trade and investment income rose by 34% and 7% respectively, attributed to seasonal factors such as summer travel and corporate dividend distributions [1]

Core Viewpoint - The People's Bank of China and the State Administration of Foreign Exchange express confidence in maintaining a stable foreign exchange market and the basic stability of the RMB exchange rate amid external changes [1][2]. Group 1: Supportive Policies for Foreign Trade - The government will implement multiple supportive policies to aid the development of foreign trade enterprises, encouraging banks to include more new trade entities in facilitation policies [1]. - Policies will be optimized for foreign trade service enterprises regarding foreign exchange fund settlement and management of overseas funds for contracting enterprises [1]. Group 2: Cross-Border Investment and Financing Facilitation - The government plans to promote cross-border investment and financing facilitation nationwide, including attracting foreign investment for research institutions and expanding financing convenience for technology enterprises [2]. - A pilot program for green foreign debt will be initiated to encourage eligible enterprises to borrow foreign debt for green projects [2]. - The management of funds for domestic enterprises listed overseas will be improved, and a new batch of Qualified Domestic Institutional Investor (QDII) investment quotas will be issued to meet reasonable overseas investment demands [2]. Group 3: Innovation Policies in Free Trade Zones - A comprehensive set of foreign exchange innovation policies will be implemented in free trade pilot zones, including optimizing international trade settlement and expanding the Qualified Foreign Limited Partner (QFLP) pilot [2]. - The State Administration of Foreign Exchange has released a draft notice proposing nine specific policies related to cross-border investment and financing foreign exchange management reform [2].