22 October 2025 | 10:36PM HKT Economics Research China: SAFE data suggest FX inflows in September Bottom line: Our preferred FX flow measure shows net FX inflows of US$27bn in September 2025, vs. US$34bn outflows in August, mainly driven by higher FX inflows related to goods trade. The current account channel showed US$64bn FX inflows in September, while the portfolio investment channel saw US$8bn FX outflows. Foreign investors slowed their sales of RMB bonds from August to September. Official FX reserves i ...

Group 1 - China has announced a visa-free policy for several South American countries, including Brazil, Argentina, Chile, Peru, and Uruguay, which is seen as a move to boost economic ties and attract foreign currency [1] - The visa-free policy is part of a broader trend of China gradually expanding its list of countries with visa exemptions, indicating a shift towards greater openness, but it is also driven by economic considerations due to reduced international flight levels and foreign exchange inflows [1] - The policy aims to encourage tourism and spending from South American visitors, who have decent purchasing power, thereby contributing to China's economic recovery post-pandemic [1] Group 2 - The visa-free policy is unidirectional, meaning it facilitates travel for South Americans to China while Chinese citizens still need visas to visit these countries, reflecting a disparity in economic strength [3] - The policy also serves a diplomatic purpose, strengthening China's relationships with these South American nations and projecting an image of confidence and openness on the global stage [3] - The impact on the tourism industry is significant, as it is expected to boost revenue and employment in related sectors, although the effectiveness of the policy will depend on subsequent supporting measures and implementation [5]