Core Points - The State Administration of Foreign Exchange (SAFE) of China held a video conference to discuss foreign exchange management work for the second half of 2025, emphasizing the need to promote cross-border investment and financing facilitation [1] - A series of measures were proposed, including the cancellation of registration for reinvestment by foreign-invested enterprises and facilitating cross-border financing for technology enterprises [1] - The meeting highlighted the importance of supporting stable foreign trade development and implementing a package of policies for trade foreign exchange management [1] Group 1 - The meeting outlined key foreign exchange management tasks, such as deepening reform and opening up in the foreign exchange sector, preventing external shock risks, and enhancing regulatory capabilities under open conditions [1] - It was mentioned that there will be support for regional open development, particularly in free trade pilot zones and areas like Hainan Free Trade Port and the Guangdong-Hong Kong-Macao Greater Bay Area [1] - The conference also stressed the need for enhanced monitoring and analysis of foreign exchange conditions, macro-prudential management of cross-border capital flows, and timely counter-cyclical adjustments to maintain market stability [1] Group 2 - The meeting called for the improvement of the management of foreign exchange reserves to ensure asset safety, liquidity, and value preservation [2] - There is a focus on enriching the application scenarios of cross-border financial service platforms [2]

Core Viewpoint - The future of China's foreign exchange market is expected to maintain stable operations, supported by a recovering economy, stable international balance of payments, and enhanced market resilience [2][3]. Group 1: Economic Performance and Foreign Exchange Stability - China's economy is projected to continue its recovery, contributing to the stability of the foreign exchange market [2]. - The RMB has appreciated by 1.6% against the USD this year, with overall stability against a basket of currencies [3][8]. - The country's foreign trade shows strong resilience, with the current account surplus remaining at a reasonable level [3][8]. Group 2: Foreign Investment Trends - There has been a significant increase in foreign investment, with net foreign holdings of domestic bonds at a high level and recent upticks in domestic stock purchases [3][8]. Group 3: Policy Innovations and Reforms - The government plans to enhance foreign exchange management reforms, improving the convenience of cross-border trade and investment [4][5]. - A robust evaluation mechanism for foreign exchange policies will be established to align with national development strategies and local realities [4]. - The optimization of the Qualified Foreign Institutional Investor (QFII) system aims to facilitate foreign financial institutions' investments in China [5]. Group 4: Safety and Security in Foreign Exchange Management - A more open, secure, and affordable foreign exchange management system will be developed, focusing on macro-prudential and micro-regulatory measures to maintain market stability [6]. - The government emphasizes the importance of risk management and regulatory capabilities to support high-quality development [6]. Group 5: Green Finance Initiatives - The introduction of pilot policies for green foreign debt aims to encourage qualified enterprises to utilize foreign debt for green projects [7].