Core Viewpoint - The conference on "High-Quality Completion of the 14th Five-Year Plan" highlighted significant achievements in China's financial sector, including deepened financial reforms, stable capital market development, and steady progress in high-level foreign exchange openness [1]. Financial Sector Achievements - Comprehensive deepening of financial system reforms has been achieved, marking solid steps towards building a financial powerhouse [1]. - The capital market has shown a healthy and stable development trend, which continues to strengthen [1]. Risk Prevention and Management - Important progress has been made in preventing and resolving financial risks, with tailored reform plans for key regions [3]. - Over 3,600 illegal shareholders have been cleared, and unlawful financial groups have been dealt with according to the law [3]. Support for the Real Economy - Financial support for the real economy has been increased, with over 1.6 trillion yuan allocated for key projects such as affordable housing [3]. - By the end of June, the number of financing platforms decreased by over 60%, and financial debt scale dropped by over 5% compared to the beginning of 2023 [6]. Capital Market Developments - By the end of August, various long-term funds held approximately 21.4 trillion yuan in A-share circulation, a 32% increase from the end of the 13th Five-Year Plan [9]. - The introduction of measures such as the "Science and Technology Innovation Board" and strict regulations to eliminate underperforming companies has been implemented [9]. Foreign Exchange Market Progress - In 2024, China's cross-border receipts and payments are projected to reach 14 trillion USD, a 64% increase from 2020 [11]. - The participation of 703 banks and 115 non-bank institutions in the interbank foreign exchange market has been noted, including 296 foreign institutions [11]. Regulatory Enhancements - A total of 171 regulatory measures have been issued over the past five years, with enhanced supervision of 41 key institutions [21]. - The establishment of consumer protection platforms has been initiated to facilitate financial services [22]. Infrastructure and Technology Financing - The balance of infrastructure loans reached 54.5 trillion yuan, a 62% increase compared to the 13th Five-Year Plan [15]. - Loans to high-tech enterprises have reached nearly 19 trillion yuan, with an annual growth rate exceeding 20% [15].

Group 1 - The People's Bank of China reported that multiple financial indicators rank among the top globally, with total banking assets nearing 470 trillion yuan, the largest in the world [2][3] - The banking and insurance sectors provided an additional 170 trillion yuan in funding to the real economy during the "14th Five-Year Plan" period [2][3] - The average annual growth rates for loans to technology-based SMEs, inclusive small micro loans, and green loans exceeded 20% [2][3] Group 2 - Loans for scientific research technology, medium to long-term loans for manufacturing, and infrastructure loans grew at average rates of 27.2%, 21.7%, and 10.1% respectively [3] - Insurance funds invested over 5.4 trillion yuan in stocks and equity funds, representing an 85% increase from the end of the "13th Five-Year Plan" [3] - The real estate financing coordination mechanism's "white list" project loans exceeded 7 trillion yuan, supporting the construction and delivery of nearly 20 million housing units [3] Group 3 - The foreign exchange market has shown stability, with the holdings of foreign institutions and individuals in domestic stocks, bonds, and deposits exceeding 10 trillion yuan [3] - The proportion of the renminbi in cross-border trade increased from 16% to nearly 30%, indicating enhanced resilience in the foreign exchange market [3] - The market-oriented formation mechanism of the renminbi exchange rate is continuously improving, with more effective macro-prudential management in the foreign exchange market [3]

Core Insights - The People's Bank of China and the State Administration of Foreign Exchange reported that China's cross-border capital flows have remained generally balanced despite high volatility in international markets, with the RMB exchange rate showing stability among major currencies [1][2] Group 1: Market Performance - In 2024, China's cross-border receipts and payments are projected to reach $14 trillion, a 64% increase from 2020, with an average annual growth rate during the 14th Five-Year Plan period being 8 percentage points higher than the previous period [1] - In the first eight months of this year, cross-border receipts and payments increased by 10% year-on-year, indicating sustained activity in cross-border trade and investment [1] - The ratio of enterprises using foreign exchange hedging has risen from 17% in 2020 to approximately 30%, while the RMB's share in cross-border trade has increased from 16% to nearly 30% [1] Group 2: Foreign Exchange Reserves and Stability - China's international balance of payments has remained fundamentally balanced during the 14th Five-Year Plan, with the current account surplus to GDP ratio staying within a reasonable range [2] - Foreign exchange reserves have consistently remained above $3 trillion, stabilizing above $3.2 trillion in recent years, serving as a crucial stabilizer for the national economy and finance [2] Group 3: Policy and Reform Initiatives - The State Administration of Foreign Exchange has implemented reforms to enhance the efficiency of trade foreign exchange receipts and payments, processing nearly $4.6 trillion in related business since the beginning of the 14th Five-Year Plan [2] - To improve cross-border investment and financing convenience, approximately $300 billion in related business has been processed during the same period [2] - The foreign exchange business reform has included over 23,000 quality clients from small and medium-sized enterprises, private enterprises, and foreign-funded enterprises, with cumulative business transactions exceeding $500 billion [2]

Core Insights - The foreign exchange market in China has shown stability and resilience since the 14th Five-Year Plan, with significant growth in cross-border receipts and foreign exchange market trading volume projected for 2024 [1][2] Group 1: Cross-Border Receipts and Foreign Exchange Market - In 2024, China's cross-border receipts are expected to reach $14 trillion, a 64% increase from 2020, with an average annual growth rate 8 percentage points higher than during the 13th Five-Year Plan [1] - The foreign exchange market trading volume is projected to be $41 trillion in 2024, reflecting a 37% increase from 2020, with both spot and derivative trading growing simultaneously [1] Group 2: Market Participation and Infrastructure - As of June 2023, 703 banks and 115 non-bank institutions, including 296 foreign institutions, are participating in the interbank foreign exchange market, covering major currencies to meet diverse trading needs [2] - Continuous improvements in trading, clearing, and payment mechanisms have effectively reduced transaction costs and settlement risks, better serving the real economy [2] Group 3: Market Stability and Future Outlook - The RMB exchange rate has shown increased flexibility, with its share in cross-border trade rising from 16% to nearly 30%, enhancing the resilience of the foreign exchange market [2] - The macro-prudential management system of the foreign exchange market is gradually improving, providing a robust framework to manage external risks and challenges [2]

Core Insights - The press conference highlighted the achievements of China's financial sector during the "14th Five-Year Plan" period, emphasizing the effective coordination of development and security in the foreign exchange sector [1][3]. Group 1: Foreign Exchange Market Developments - The international balance of payments has remained stable, with a current account surplus to GDP ratio maintained within a reasonable range, reflecting resilience in foreign trade and investment [3]. - By the end of July, foreign institutions and individuals held over 10 trillion yuan in domestic stocks, bonds, and deposits, indicating active cross-border investment [3]. - The foreign exchange service environment has improved significantly, with the number of enterprises able to conduct business with just instructions increasing more than fivefold since the end of 2020 [3]. Group 2: Foreign Exchange Reserves and Market Stability - Foreign exchange reserves have remained stable above 3 trillion USD, exceeding 3.2 trillion USD for the past two years, serving as a crucial stabilizer for the national economy [4]. - The cross-border payment and receipt scale is projected to reach 14 trillion USD in 2024, a 64% increase from 2020, with an average annual growth rate 8 percentage points higher than the previous five-year period [4][5]. - The trading volume in the foreign exchange market is expected to reach 41 trillion USD in 2024, a 37% increase from 2020, indicating a well-developed market capable of accommodating various transactions [5]. Group 3: Currency and Risk Management - The flexibility of the RMB exchange rate has increased, with the hedging ratio for enterprises rising from 17% in 2020 to around 30%, and the RMB's share in cross-border trade increasing from 16% to nearly 30% [5]. - The macro-prudential management framework for the foreign exchange market is being continuously improved, enhancing the ability to respond to external risks [5]. - Future stability of the RMB will largely depend on the performance of the USD and domestic macroeconomic policies, with ongoing growth policies expected to be a key factor in stabilizing the exchange rate [6].

Core Insights - The vitality and resilience of China's foreign exchange market have been enhanced during the "14th Five-Year Plan" period despite a more complex external environment and increased volatility in international financial markets [2][5]. Group 1: Foreign Exchange Market Stability - China's foreign exchange reserves have remained stable above $3 trillion, consistently exceeding $3.2 trillion in the past two years, serving as a crucial stabilizer for the national economy [3]. - The foreign exchange market has shown rational and orderly trading, with the flexibility of the RMB exchange rate increasing, functioning as an automatic stabilizer for the macro economy and international balance of payments [5]. Group 2: Market Resilience and Regulatory Actions - The ratio of enterprises using foreign exchange hedging has increased from 17% in 2020 to approximately 30%, while the RMB's share in cross-border trade has risen from 16% to nearly 30%, indicating enhanced market resilience [5]. - Over 6,100 foreign exchange-related cases have been resolved, effectively combating illegal activities such as underground money houses, contributing to a more robust and stable foreign exchange market [6]. Group 3: Cross-Border Investment and Banking Capabilities - As of July, foreign institutions and individuals held over 10 trillion yuan in domestic stocks, bonds, and deposits, reflecting active cross-border investment and financing [7]. - The capabilities of banks in foreign exchange operations have improved, with over 23,000 quality clients, including SMEs, private enterprises, and foreign-funded companies, participating in foreign exchange business totaling over $500 billion [9].

Core Insights - The "14th Five-Year Plan" emphasizes the deepening of financial system reforms and the construction of a financial powerhouse, with a focus on stable development in capital markets and high-level openness in the foreign exchange sector [1] Financial System Reform - A scientific and robust monetary policy framework is being established, alongside a macro-prudential policy framework and mechanisms for systemic financial risk prevention and resolution [2] - Significant progress has been made in risk prevention and resolution, with over 3,600 illegal shareholders being cleared out and more than 200 companies smoothly delisted during the "14th Five-Year" period [4][8] Support for the Real Economy - Financial support for the real economy has been strengthened, with a reduction in the number of financing platforms by over 60% and a decrease in financial debt scale by over 5% compared to the beginning of 2023 [6] - Infrastructure loan balances reached 54.5 trillion yuan, a 62% increase from the end of the "13th Five-Year Plan" [14] Capital Market Development - By the end of August 2023, various long-term funds held approximately 21.4 trillion yuan in A-share market value, a 32% increase from the end of the "13th Five-Year Plan" [8] - The introduction of policies such as "Science and Technology Innovation Board" and "M&A regulations" aims to enhance marketization and internationalization [8] Foreign Exchange Market - The foreign exchange market has shown stable operation, with cross-border receipts and payments expected to reach 14 trillion USD in 2024, a 64% increase from 2020 [10] - The proportion of the renminbi in cross-border trade has risen from 16% to nearly 30% [10] Financial Regulation - The bond default rate in the exchange market remains low at around 1%, and about 7,000 zombie institutions have been rectified [12] - A comprehensive regulatory system is being established to prevent fraud and improve rules related to share reduction and quantitative trading [12] High-Level Financial Openness - By the end of July, foreign institutions and individuals held over 10 trillion yuan in domestic stocks, bonds, and deposits [20] - The renminbi has become the largest settlement currency for China's external receipts and payments, ranking among the top three trade financing and payment currencies globally [20]

Core Insights - The press conference highlighted the achievements of China's financial industry during the "14th Five-Year Plan" period, emphasizing the resilience and vitality of the foreign exchange market despite a complex external environment [1][3]. Group 1: Foreign Economic Development - The foreign-related economy has shown steady development, with cross-border receipts and payments reflecting strong vitality. In 2024, China's cross-border receipts and payments are projected to reach $14 trillion, a 64% increase from 2020, with an average annual growth rate during the "14th Five-Year Plan" period 8 percentage points higher than the "13th Five-Year Plan" [3]. - In the first eight months of this year, cross-border receipts and payments increased by 10%, indicating sustained activity in cross-border trade and investment [3]. Group 2: Foreign Exchange Market Functionality - The foreign exchange market has become more complete, with a trading volume expected to reach $41 trillion in 2024, a 37% increase from 2020. Both spot and derivative trading have seen simultaneous growth, providing a robust capacity for various transactions [3]. - As of June this year, 703 banks and 115 non-bank institutions are participating in the interbank foreign exchange market, including 296 foreign institutions, covering major currencies to better meet the trading needs of diverse participants [3]. - Improvements in trading, clearing, and payment mechanisms have effectively reduced transaction costs and settlement risks, better serving the real economy [3]. Group 3: Market Stability and Resilience - The foreign exchange market has exhibited rational and orderly trading, with the RMB exchange rate showing increased flexibility and serving as an automatic stabilizer for the macro economy and international balance of payments. The ratio of corporate foreign exchange hedging has risen from 17% in 2020 to around 30% [4]. - The share of RMB in cross-border trade has increased from 16% to nearly 30%, further enhancing the resilience of the foreign exchange market [4]. - A macro-prudential management system for the foreign exchange market is gradually being established, with a richer toolbox for counter-cyclical regulation, contributing to overall balance in cross-border capital flows [4]. Group 4: Future Outlook - Looking ahead, China's economic fundamentals are expected to remain strong, with high-level opening-up progressing steadily, which will stabilize the autonomous balance of international payments [5]. - The market-oriented formation mechanism of the RMB exchange rate is continuously improving, and the effectiveness of macro-prudential management in the foreign exchange market is increasing, providing stronger confidence to address external risks and challenges [5].

Group 1 - The core viewpoint is that during the "14th Five-Year Plan" period, China's foreign exchange sector has effectively balanced development and security, steadily advancing high-level openness, which supports the construction of a new development pattern [2] - The international balance of payments has become more stable, with a diversified and resilient foreign trade structure, maintaining a reasonable ratio of current account surplus to GDP [2] - By the end of July, foreign institutions and individuals held over 10 trillion yuan in domestic stocks, bonds, and deposits, indicating active cross-border investment [2] Group 2 - The quality and efficiency of foreign exchange services for the real economy have significantly improved, with a fivefold increase in the number of enterprises that can handle business with just an instruction since the end of 2020 [3] - Administrative licensing for trade foreign exchange receipts has been reduced by over 70%, and a unified policy framework for fund pools has benefited over 1,000 multinational groups and 19,000 domestic and foreign member enterprises [3] - The cross-border investment system has been established, focusing on institutional investors and direct market access for foreign investors [3] Group 3 - Regulatory and risk prevention capabilities have continuously strengthened in an open environment, with over 6,100 foreign exchange cases cracked since the beginning of the "14th Five-Year Plan," effectively combating illegal activities [4] - The foreign exchange market has shown improved functionality, stability, and resilience [4] - Foreign exchange reserves have remained stable above 3 trillion USD, exceeding 3.2 trillion USD in the past two years, serving as an important stabilizer for the national economy [4]

Core Viewpoint - The press conference highlighted the achievements of China's financial industry during the "14th Five-Year Plan" period, emphasizing the stability of international payments and the enhancement of foreign exchange services for the real economy [3][4]. Group 1: International Payments and Foreign Exchange Services - The international balance of payments has become more stable, with the current account surplus to GDP ratio maintained within a reasonable range [3]. - By the end of July, foreign institutions and individuals held over 10 trillion yuan in domestic stocks, bonds, and deposits, indicating active cross-border investment [3]. - The foreign exchange service environment has improved significantly, with banks adopting facilitative measures based on corporate credit status, leading to a substantial reduction in processing times [3]. Group 2: Regulatory and Risk Management Enhancements - The regulatory capacity and risk prevention abilities have been continuously strengthened in an open environment, with a dual management framework of "macro-prudential + micro-regulation" established [3]. - Over 6,100 foreign exchange cases have been cracked since the beginning of the "14th Five-Year Plan," effectively combating illegal activities such as underground banking [3]. Group 3: Foreign Exchange Reserves - China's foreign exchange reserves have remained stable above 3 trillion USD, consistently exceeding 3.2 trillion USD in recent years [4]. - The management of foreign exchange reserves has been focused on ensuring asset safety, liquidity, and value preservation, serving as a crucial stabilizer for the national economy [4].