Core Viewpoint - The State Administration of Foreign Exchange (SAFE) has released a draft notification aimed at facilitating foreign exchange fund settlement to support stable foreign trade development, with feedback due by October 5, 2025 [1] Group 1: Policies for Expanding and Improving Facilitation - Five policies focus on expanding and improving existing facilitation measures, including the expansion of cross-border trade high-level open pilot areas to more regions that meet national strategic development directions [2] - The types of net settlement for cross-border trade high-level open pilot areas will be broadened to include net settlement of funds related to transportation costs associated with goods trade [2] - Simplification of procedures for multinational companies regarding the centralized collection and payment of current account funds will be implemented to enhance settlement efficiency for quality multinational companies [2] - Foreign exchange use for salaries of foreign-related employees will be made easier, allowing direct bank transactions within a specified limit without prior approval [2] - Banks are encouraged to include more cross-border e-commerce platforms and foreign trade service enterprises, as well as their small and micro e-commerce clients, in the facilitation policies for trade foreign exchange receipts and payments [2] Group 2: Optimization and Improvement of Trade Foreign Exchange Management - Four policies focus on optimizing and improving trade foreign exchange management, including the enhancement of foreign exchange fund settlement for foreign trade service enterprises, allowing banks to process transactions based on electronic information such as orders and logistics [3] - The scope of service trade advance payment will be relaxed, enabling banks to facilitate payments for transportation and storage fees related to trade, provided there is a trade relationship between domestic and foreign entities [3] - Support for overseas fund centralized management for contracting engineering companies will be provided, allowing for cross-national and cross-regional fund allocation for trustworthy contracting firms [3] - A mechanism for handling special foreign exchange business under current accounts will be improved to enhance banks' autonomy and service levels in managing complex transactions, ensuring legitimate foreign exchange rights [3]

Core Viewpoint - The State Administration of Foreign Exchange (SAFE) has drafted a notice to facilitate cross-border trade settlement and enhance foreign exchange support for stable foreign trade development, inviting public feedback on the proposal [1] Group 1: Policy Support - The notice supports regions with genuine needs and compliant business entities that align with national strategic development directions to implement high-level open pilot programs for cross-border trade after completing relevant reporting procedures [1] - The notice encourages compliant banks to include trustworthy cross-border e-commerce platforms and foreign trade service enterprises, along with their recommended clients, in trade facilitation policies or high-level open pilot programs [1] Group 2: Operational Guidelines - Banks can process cross-border e-commerce receipts and payments for foreign trade service enterprises and their entrusted clients based on electronic transaction information provided by these enterprises [1] - The notice allows for the offsetting of related costs such as warehousing, logistics, and taxes incurred abroad against export proceeds, while adhering to foreign-related income and expenditure management information regulations for actual payment data and restoration data reporting [1]

Core Points - The State Administration of Foreign Exchange (SAFE) has issued a notice to further facilitate foreign exchange fund settlement to support stable foreign trade [1] - The notice includes measures to expand the scope of high-level open pilot areas for cross-border trade [1] - It aims to optimize foreign exchange fund settlement for foreign trade comprehensive service enterprises [7] Group 1: Expansion of Pilot Areas - The notice supports regions with genuine needs and compliant operating entities to implement high-level open pilot projects for cross-border trade after fulfilling relevant reporting procedures [1] Group 2: Net Settlement Business Types - The pilot areas will allow qualified banks to handle net settlement for various types of transactions, including general trade between domestic and foreign affiliated enterprises, and related costs such as transportation and storage fees [2] Group 3: Simplification for Multinational Corporations - Qualified banks can simplify procedures for multinational corporations regarding centralized fund management and net settlement, provided they meet specific criteria [3] Group 4: Employee Salary Exchange Facilitation - Banks are allowed to directly handle foreign exchange for foreign employees' salaries based on provided documentation, exempting them from submitting additional documents within a specified limit [5] Group 5: Inclusion of New Trade Entities - The notice encourages banks to include compliant cross-border e-commerce platforms and foreign trade service enterprises in the facilitation policies [6] Group 6: Optimization for Foreign Trade Service Enterprises - Banks can process cross-border e-commerce settlements and related expenses based on electronic transaction information provided by foreign trade service enterprises [7] Group 7: Service Trade Expense Management - Banks can directly handle service-related expense advances for trade after verifying the authenticity and reasonableness of the transactions [8] Group 8: Overseas Fund Management for Engineering Enterprises - Engineering companies operating in multiple countries can establish centralized management accounts for overseas funds after registering with the local foreign exchange bureau [9][10] Group 9: Special Foreign Exchange Business Mechanism - Banks are required to establish a mechanism for handling special foreign exchange business and report to the local foreign exchange bureau for transactions with legitimate backgrounds [11]

Core Viewpoint - The State Administration of Foreign Exchange has decided to launch a pilot program for green foreign debt in 16 provinces and cities, encouraging non-financial enterprises to use cross-border financing for green or low-carbon transformation projects [1] Group 1: Pilot Program Details - The pilot program will be implemented in 16 provinces and cities, including Shanghai, Beijing, Tianjin, Hebei, Jiangsu, Zhejiang, Anhui, Fujian, Shandong, Hubei, Guangdong, Sichuan, Ningbo, Xiamen, Qingdao, and Shenzhen [1] - The policy specifically targets domestic non-financial enterprises that borrow both domestic and foreign currency from non-residents, with funds earmarked for projects that meet the criteria set by the People's Bank of China and other relevant departments [1] Group 2: Benefits of the Pilot Program - The pilot policy allows these projects to occupy a smaller portion of the enterprise's overall cross-border financing risk-weighted balance, thereby increasing the upper limit of cross-border financing scale for companies investing in green development or low-carbon transformation projects [1] - The registration of related foreign debts will be handled directly by banks, enhancing the convenience of processing green foreign debt business and facilitating the attraction of global financial resources to China's green and low-carbon development sectors [1]

Core Viewpoint - The State Administration of Foreign Exchange (SAFE) has initiated a pilot program for green foreign debt in 16 provinces and cities, encouraging non-financial enterprises to utilize cross-border financing for green or low-carbon transformation projects [2]. Group 1: Pilot Program Details - The pilot program is aimed at domestic non-financial enterprises borrowing from non-residents in both domestic and foreign currencies, specifically for projects that meet the criteria set by the People's Bank of China and other relevant departments [2]. - The policy allows these projects to occupy less of the enterprise's overall cross-border financing risk-weighted balance, thereby increasing the upper limit for cross-border financing scale for companies investing in green development or low-carbon transformation projects [2]. Group 2: Implementation and Future Plans - The registration of related foreign debts will be handled directly by banks, enhancing the convenience of processing green foreign debt transactions [2]. - SAFE plans to better coordinate openness and security, continuously improve the facilitation of cross-border financing, and support the high-quality development of the real economy [2].

Core Viewpoint - The implementation of the high-version fund pool pilot program in Chongqing marks a significant advancement in cross-border financial management for multinational corporations, enhancing their operational efficiency and financial flexibility [1][2]. Group 1: High-Version Fund Pool Pilot Program - The high-version fund pool pilot program allows multinational companies to manage their cross-border funds more effectively, providing five key enhancements to existing policies [2]. - Companies can autonomously determine the concentration ratio of foreign debt and overseas loans based on macro-prudential principles, granting them greater financial management autonomy [2]. - The program simplifies the cross-border payment process by allowing companies to handle foreign and domestic currency transactions through a domestic master account [2]. - It facilitates cross-border transactions in RMB, thereby reducing exchange rate risks for companies [2]. - Banks can directly handle capital project changes not involving foreign debt or overseas loan quotas, streamlining administrative processes for companies [2]. - The program enhances the convenience of cross-border fund operations, allowing direct payments and transfers from the master account to member enterprises [2]. Group 2: Support and Implementation - The Chongqing Foreign Exchange Bureau is actively promoting the policy through collaboration with banks, ensuring they understand the policy's implications and operational details [2]. - Personalized solutions are provided to address specific issues faced by the multinational group in areas such as account management and cross-border payments [2]. - Future efforts will focus on deepening reforms in the foreign exchange sector, creating a policy demonstration effect to benefit more enterprises in Chongqing [3].

Core Insights - The State Administration of Foreign Exchange (SAFE) released preliminary data on China's balance of payments for Q2 and the first half of 2025, indicating a significant current account surplus [1][2]. Group 1: Current Account Overview - In Q2 2025, China's current account surplus was 971.5 billion yuan, with a goods trade surplus of 1,575.1 billion yuan and a services trade deficit of 334.5 billion yuan [1]. - For the first half of 2025, the current account surplus reached 2,158.9 billion yuan, driven by a goods trade surplus of 3,279.8 billion yuan [1][2]. - In USD terms, the current account surplus for Q2 2025 was $135.1 billion, while for the first half, it was $300.6 billion [2]. Group 2: Capital and Financial Account - The capital and financial account recorded a deficit of 971.5 billion yuan in Q2 2025, with net inflows from foreign direct investment [1]. - For the first half of 2025, the capital and financial account showed a larger deficit of 1,981.0 billion yuan [1][2]. - In USD, the capital and financial account deficit for Q2 was $135.1 billion, and for the first half, it was $275.8 billion [2]. Group 3: SDR Valuation - In terms of Special Drawing Rights (SDR), the current account surplus for Q2 2025 was 996 million SDR, with a goods trade surplus of 1,615 million SDR [2]. - The first half of 2025 saw a current account surplus of 2,257 million SDR, with a goods trade surplus of 3,425 million SDR [2]. - The capital and financial account deficit in SDR terms for Q2 was 996 million SDR, and for the first half, it was 2,065 million SDR [2].

Core Viewpoint - The State Administration of Foreign Exchange (SAFE) has drafted a notice to deepen the reform of foreign exchange management for cross-border investment and financing, aiming to optimize the business environment and support high-quality economic development. The notice includes nine specific policies across three main areas: enhancing cross-border investment and financing management, and optimizing capital project income payment facilitation [1]. Group 1: Cross-Border Investment Policies - The notice cancels the basic information registration for foreign direct investment (FDI) pre-investment expenses, allowing foreign investors to directly open accounts at banks without prior registration [2]. - Foreign investors can now directly transfer funds for project evaluation and due diligence without needing to complete pre-investment expense registration, thus reducing their operational costs and improving capital efficiency [2]. Group 2: Domestic Reinvestment Policies - The notice eliminates the registration requirement for foreign investment enterprises' domestic reinvestment, allowing funds to be directly transferred to relevant accounts [3]. - It also permits the reinvestment of foreign exchange profits generated domestically by foreign enterprises, providing a clear policy basis for related business operations [3]. Group 3: Financing for High-Tech Enterprises - The notice raises the foreign debt facilitation limit for high-tech, specialized, and innovative small and medium-sized enterprises to the equivalent of $1 million, with certain qualified enterprises able to access up to $2 million [4][5]. - The simplification of signing and registration requirements for cross-border financing will reduce financial costs and improve financing efficiency for enterprises [6]. Group 4: Real Estate Sector Adjustments - The notice reduces the negative list for capital project income usage, allowing foreign exchange income to be used for purchasing non-self-occupied residential properties, which was previously restricted [7]. - For foreign individuals, the notice facilitates the currency exchange process for purchasing property in China, allowing them to complete transactions without prior registration documentation [8].

Core Viewpoint - The National Foreign Exchange Administration's Liaoning Branch emphasizes the integration of educational initiatives and inspection rectification to enhance party discipline and improve operational efficiency Group 1: Educational Initiatives - The Liaoning Branch focuses on deepening understanding of the principles of party conduct, conducting centralized discussions on Xi Jinping's important statements regarding party style construction [2] - The branch organizes special party classes to reinforce political guidance and promote a culture of integrity among party members [2] - Warning education is highlighted through the analysis of typical cases, aiming to strengthen the ideological defenses of party members [2] Group 2: Problem Identification and Rectification - The branch conducts self-inspections against lists of violations of the Central Eight Regulations and hidden issues, establishing a problem list with specific rectification measures [3] - It emphasizes reducing burdens on grassroots levels by revising assessment methods and indicators to streamline processes [3] - The branch actively engages with key enterprises to provide targeted foreign exchange policy support and financial services [3] Group 3: Development and Economic Support - The Liaoning Branch aims to support the real economy by promoting cross-border trade and investment facilitation, contributing to high-quality development of the province's foreign-related economy [4] - It collaborates with provincial commerce departments to implement financial subsidy policies for exchange rate hedging, enhancing operational efficiency for cross-border e-commerce [4] - The branch leverages "Internet+" to optimize the cross-border investment and financing environment, ensuring a streamlined process from registration to foreign exchange [4]

Group 1 - The State Administration of Foreign Exchange (SAFE) in Shaanxi Province has successfully turned the cross-border income and expenditure growth rate from negative to positive, with a total cross-border income and expenditure amounting to nearly $26 billion in the first half of the year, representing a year-on-year increase of 1.19% and a recovery of 4.05 percentage points compared to the same period last year [1] - The net inflow of cross-border income and expenditure reached $1.269 billion, showing a nearly 40% year-on-year growth [1] - In terms of goods trade, the cross-border income and expenditure scale reached $18.088 billion, with a year-on-year increase of 0.71%, and a trade surplus of $3.975 billion, which is a significant increase of 46.01% [1] Group 2 - The service trade in Shaanxi Province has shown a robust growth trend, with a cross-border income and expenditure scale of $3.471 billion in the first half of the year, reflecting a year-on-year increase of 15.81% [2] - The cross-border income from service trade was $1.549 billion, up 12.66% year-on-year, driven mainly by a significant increase in business service income [2] - The outflow of foreign direct investment capital from Shaanxi Province reached $284 million, marking a year-on-year growth of 24.56% [2]