Core Insights - The State Administration of Foreign Exchange of China reported the international balance of payments for Q2 and the first half of 2025, indicating a current account surplus and a capital and financial account deficit [1] Group 1: Current Account - In Q2 2025, China's current account surplus was 925.2 billion yuan, equivalent to 128.7 billion USD, with a goods trade surplus of 219.1 billion USD and a services trade deficit of 47.1 billion USD [1] - For the first half of 2025, the current account surplus reached 2,112.6 billion yuan, or 294.1 billion USD, driven by a goods trade surplus of 456.7 billion USD and a services trade deficit of 106.4 billion USD [1] Group 2: Capital and Financial Account - In Q2 2025, the capital and financial account recorded a deficit of 984.2 billion yuan, or 137.0 billion USD, with a capital account deficit of 0.1 billion USD and a financial account deficit of 136.9 billion USD [1] - For the first half of 2025, the capital and financial account showed a deficit of 1,993.6 billion yuan, equivalent to 2,776.0 billion USD, with a capital account deficit of 0.1 billion USD and a financial account deficit of 2,775.0 billion USD [1] Group 3: SDR Valuation - In Q2 2025, the current account surplus was 94.9 billion SDR, while the capital and financial account deficit was 100.8 billion SDR [1] - For the first half of 2025, the current account surplus amounted to 220.9 billion SDR, with a capital and financial account deficit of 207.6 billion SDR [1]

Core Viewpoint - The preliminary data for the first half of 2025 indicates a significant current account surplus for China, driven by a strong goods trade surplus, while the capital and financial account shows a notable deficit [2][3]. Group 1: Current Account Overview - In the first half of 2025, China's current account surplus reached $300.6 billion, with a goods trade surplus of $456.6 billion and a services trade deficit of $1.059 billion [2]. - For the second quarter of 2025, the current account surplus was $135.1 billion, with a goods trade surplus of $219.1 billion and a services trade deficit of $465 million [2]. Group 2: Capital and Financial Account - The capital and financial account, including net errors and omissions, recorded a deficit of $275.8 billion in the first half of 2025 and a deficit of $135.1 billion in the second quarter [2]. Group 3: Trade and Service Dynamics - The total goods import and export under the international balance of payments increased by 2.4% year-on-year in the first half of 2025 [3]. - Service trade revenues grew by 13% year-on-year, with cross-border travel income surging by 42%, while service trade expenditures increased by 2%, leading to a 14% reduction in the service trade deficit [3]. Group 4: Future Outlook - The ongoing optimization of China's economic structure and the steady progress in financial market opening are expected to support the maintenance of a basic balance in international payments [4].