Core Insights - The foreign exchange market in China is expected to maintain stable and sustainable growth for foreign investment in RMB assets, with confidence in the ability to ensure a robust market operation [1][5] Group 1: Foreign Exchange Market Performance - In the first half of 2025, the foreign exchange market showed resilience, with record high cross-border income and expenditure from non-bank sectors [1] - There is no significant unilateral expectation for the appreciation or depreciation of the RMB, indicating rational and orderly market trading [2] Group 2: Investment Trends - From January to May 2025, net inflows of direct investment in equity from foreign sources reached $31.1 billion, a year-on-year increase of 16% [3] - Foreign investment in RMB-denominated bonds has increased, with foreign holdings exceeding $600 billion, and net foreign purchases of domestic stocks and funds amounted to $10.1 billion in the first half of 2025 [4] Group 3: Policy Initiatives - The State Administration of Foreign Exchange plans to promote innovative policies across more free trade zones to enhance cross-border trade and investment [6] - Policies include optimizing international trade settlement and expanding the scope of trade revenue and expenditure netting [6]

Core Viewpoint - The State Administration of Foreign Exchange (SAFE) plans to promote a series of innovative pilot policies to more free trade zones across the country, aiming to enhance cross-border trade and investment facilitation [1] Group 1: Cross-Border Trade Policies - SAFE will expand the pilot policies for cross-border trade facilitation, which includes five specific measures: optimizing new international trade settlement by banks, expanding the net settlement scope of trade revenue and expenditure, and facilitating foreign exchange fund payments for current account transactions [1] Group 2: Cross-Border Investment and Financing - The initiative will also advance high-level openness in cross-border investment and financing, featuring five policies: pilot foreign exchange management for Qualified Foreign Limited Partners (QFLP), allowing banks to directly handle foreign debt registration, and enabling shared foreign debt quotas for financing leasing parent and subsidiary companies [1]