Core Viewpoint - The foreign exchange market in China has shown strong resilience and vitality in the first half of the year, with significant growth in cross-border income and expenditure, exceeding market expectations [1][2]. Group 1: Foreign Exchange Market Performance - In the first half of the year, the total cross-border income and expenditure of non-bank sectors reached $7.6 trillion, a year-on-year increase of 10.4%, marking a historical high for the same period [1]. - The net inflow of cross-border funds for non-bank sectors was $127.3 billion, continuing the trend of net inflows observed since the second half of last year [1]. - The foreign exchange market maintained a basic balance in supply and demand, with a bank settlement and sale deficit of $25.3 billion, transitioning from a deficit in January to a surplus in May and June [1]. Group 2: Policy and Reform Initiatives - The State Administration of Foreign Exchange (SAFE) has made progress in facilitating cross-border trade and investment, with over $700 billion in related businesses processed in the first half of the year, a year-on-year increase of 11% [2]. - Six new banks have initiated foreign exchange business reforms, bringing the total to 22 banks, which have identified over 20,000 first-class clients, an increase of 23% from the end of last year [2]. - The foreign exchange management policies have been expanded to include small and medium-sized enterprises, enhancing the convenience of cross-border trade [2][3]. Group 3: Foreign Investment Trends - Foreign investment in RMB-denominated assets has remained stable, with foreign holdings of domestic RMB bonds exceeding $600 billion, at a historically high level [2]. - In the first half of the year, foreign investors net increased their holdings of domestic stocks and funds by $10.1 billion [2]. - The market value of domestic bonds and stocks held by foreign investors accounts for approximately 3%-4%, with expectations for gradual increases in foreign allocations to RMB assets supported by multiple positive factors [2]. Group 4: Future Outlook - The foreign exchange market is expected to maintain stable operations, supported by high-quality economic development, steady progress in opening up, and increasing resilience in the foreign exchange market [3]. - The RMB exchange rate is likely to remain stable at a reasonable and balanced level under favorable conditions [3].

Core Viewpoint - The recent meeting organized by the Bank of China in Zibo aims to enhance foreign exchange financial services and support foreign trade enterprises in adapting to new international trade conditions, thereby improving their ability to utilize facilitation policies and manage trade risks [1][2]. Group 1: Meeting Overview - The meeting titled "Intelligent Empowerment, Benefiting Enterprises and People" was attended by over 70 foreign trade enterprises [1]. - Key speakers included representatives from the State Administration of Foreign Exchange Zibo Branch, China Export & Credit Insurance Corporation Shandong Branch, and the Bank of China Shandong Branch, who discussed foreign exchange facilitation policies, international trade risk prevention, and recent financial market exchange rate trends [1]. Group 2: Policy Implementation and Support - The Zibo Branch of the State Administration of Foreign Exchange has been actively promoting the facilitation of cross-border trade and investment, launching the "Lu Trade Exchange Service Team" to enhance policy communication and service delivery to enterprises [2]. - The Bank of China Zibo Branch has played a significant role in creating a favorable foreign exchange management environment, helping enterprises convert policy benefits into development momentum and enhancing their satisfaction with policies [2]. Group 3: Enterprise Feedback - Attendees expressed that the event provided a deeper understanding of current trade facilitation policies and financial products, establishing a communication platform between banks and enterprises, which is beneficial for leveraging facilitation policies for high-quality development [2].