Core Viewpoint - The speech by the Deputy Governor of the People's Bank of China emphasizes the commitment to deepen reforms in the foreign exchange sector while ensuring systemic risk prevention, aiming to create a more convenient, open, secure, and intelligent foreign exchange management system [1] Group 1: Foreign Exchange Reform - Continuous deepening of foreign exchange reform and opening up is highlighted, with a focus on maintaining systemic risk prevention [1] - The establishment of a foreign exchange policy system that rewards integrity with convenience is being pursued [1] Group 2: Banking and Trade Facilitation - The reform of bank foreign exchange operations and the enhancement of trade and investment facilitation are prioritized, with the number of enterprises able to conduct business with instructions increasing more than fivefold since the end of 2020 [1] - Nine new policy measures will be introduced to enhance trade facilitation, including expanding the scope of high-level cross-border trade openness and optimizing foreign exchange fund settlement for new trade entities [1]

Core Viewpoint - The People's Bank of China and the State Administration of Foreign Exchange announced a comprehensive package of foreign exchange policies aimed at supporting foreign trade enterprises and facilitating cross-border investment and financing, reflecting a commitment to deepen reforms and serve the real economy [1][7]. Foreign Trade Support - A series of facilitation policies will be implemented to deepen trade foreign exchange business management reform, including optimizing foreign exchange fund settlement for foreign trade comprehensive service enterprises and supporting the centralized management of overseas funds for compliant engineering contracting enterprises [7]. - The new policies will also encourage banks to include more new trade entities in the trade facilitation policy [7]. Cross-Border Investment Facilitation - The package includes measures to support research institutions in attracting foreign investment, expand cross-border financing for technology enterprises, and reduce the negative list for capital project income usage [7]. - The promotion of a cross-border integrated fund pool policy for multinational companies will facilitate the collection and use of funds within the group [7]. QDII Investment Quotas - As of May 31, 2025, the cumulative approved quota for Qualified Domestic Institutional Investors (QDII) reached $167.79 billion, with 189 institutions approved, including banks, securities firms, insurance companies, and trust companies [8]. - A new batch of QDII investment quotas will be issued to meet the reasonable demand for overseas investment by domestic entities [7][8]. Market Resilience - Despite global economic uncertainties, China's foreign exchange market has maintained overall stability, with the RMB appreciating by 1.6% against the USD this year and foreign investment in domestic bonds reaching a net increase of $10.9 billion in April [2][3]. - The foreign exchange market's resilience is attributed to a more mature and rational participation from entities, with the proportion of enterprises using foreign exchange hedging increasing significantly [4]. Regulatory Framework - The foreign exchange management reform emphasizes four key aspects: "more convenient, more open, more secure, and smarter" [4][5]. - The focus on enhancing the foreign exchange policy system will provide stronger support for high-quality economic development [5][6].