Core Viewpoint - The press conference highlighted the stable inflow of foreign capital into China's financial markets, with a significant increase in foreign investment in both bonds and stocks, indicating a positive outlook for the allocation of RMB assets by foreign investors [1][3][4]. Group 1: Foreign Investment Trends - As of 2025, foreign investment in RMB-denominated bonds has reached over $600 billion, marking a historically high level [3]. - In the first half of the year, foreign investors net purchased $10.1 billion in domestic stocks and funds, reversing a two-year trend of net selling [3]. - The net increase in foreign stock holdings surged to $18.8 billion in May and June, reflecting a growing willingness among global investors to allocate capital to China's stock market [3]. Group 2: Economic and Policy Environment - The stable macroeconomic environment in China, with a GDP growth of 5.3% year-on-year, supports foreign investment [5][6]. - The contribution of domestic demand to economic growth has increased, with final consumption and capital formation accounting for 77% of growth in the second quarter, up 17 percentage points [5]. - China's commitment to high-level opening-up and the continuous improvement of the financial market's connectivity have created a favorable policy environment for foreign investment [4][6]. Group 3: Currency and Market Stability - The proportion of RMB cross-border receipts in goods trade reached approximately 30% in the first half of the year, a historical high [6]. - The resilience of the foreign exchange market is bolstered by a stable economic foundation and improved mechanisms for market-oriented exchange rate formation [6]. - The increasing awareness of exchange rate risk among enterprises and the growth of RMB cross-border transactions contribute to a more rational trading environment [6].