Core Insights - The offshore (CNH) and onshore (CNY) RMB exchange rates appreciated in October, with the average daily price difference (absolute value of CNY-CNH) decreasing by 16 basis points to 51 basis points [1][3] - The CFETS RMB exchange rate index, referencing the BIS currency basket and SDR currency basket, increased by 0.87%, 1.19%, and 1.13% respectively compared to the end of the previous month [1][3] Offshore RMB Deposits - As of September 2025, offshore RMB deposits in Hong Kong increased by 3.5% to 1,001.77 billion yuan, while Taiwan's deposits decreased by 0.6% to 119.91 billion yuan [2] Offshore RMB Foreign Exchange Market - On October 31, the CNH/USD exchange rate closed at 7.1224, appreciating by 0.09%, while the CNY/USD exchange rate closed at 7.1135, appreciating by 0.07% [3] - The average daily price difference (absolute value of CNY-CNH) was 51 basis points, a decrease of 16 basis points from the previous month [3] Offshore RMB Bond Market - In October, 77 offshore RMB bonds were issued, a decrease of 44 bonds from the previous month, with a total issuance amount of 73.43 billion yuan, down 74.8% [5] Offshore RMB Money Market - By the end of October, the CNH HIBOR rates for overnight, 7-day, 3-month, and 1-year were 1.2421%, 1.4988%, 1.7085%, and 1.9183% respectively, with decreases of 57 basis points, 12 basis points, and 5 basis points [6] - The average interest rate spread (HIBOR-SHIBOR) for various tenors increased for overnight and 7-day periods, while remaining stable for 1-year [6] Dynamics of Foreign Institutions in Domestic Interbank Market - As of the end of October, the total number of foreign institutions participating in the domestic interbank foreign exchange market reached 239, an increase of 2 from the previous month [7] Trading Volume in Domestic Interbank Market - In October, the total trading volume of foreign institutions in the domestic interbank foreign exchange market was 27,746.55 billion yuan, a decrease of 16.1% [8] - The trading volume in the domestic interbank bond market totaled 9,411.06 billion yuan, a decrease of 2.5% [8]

Core Insights - The offshore (CNH) and onshore (CNY) RMB appreciated against the USD in August, with the average daily price difference increasing by 18 basis points (BP) to 80 BP compared to the previous month [1][3] - The CFETS RMB exchange rate index and indices referencing the BIS and SDR currency baskets decreased by 0.20%, 0.13%, and 0.28% respectively from the end of the previous month [1][3] Offshore RMB Foreign Exchange Market - On August 29, the CNH/USD exchange rate closed at 7.1221, appreciating by 1.23% from the end of the previous month, while the CNY/USD exchange rate closed at 7.1330, appreciating by 0.84% [3] - The average daily swap point difference between CNH and CNY increased by 24 BP to 89 BP [4] Offshore RMB Bond Market - In August, 110 offshore RMB bonds were issued, with a total issuance amount of 1640.87 billion, representing an increase of 178.2% from the previous month [5] Offshore RMB Money Market - As of the end of August, the CNH HIBOR rates for overnight, 7-day, 3-month, and 1-year periods rose by 51 BP, 29 BP, 2 BP, and 10 BP respectively compared to the end of the previous month [6] - The average interest rate spread between offshore and onshore borrowing rates remained stable for overnight and 7-day periods, while the 3-month and 1-year periods saw an increase of 1 BP [6] Dynamics of Foreign Institutions in Domestic Interbank Market - As of the end of August, the total number of foreign institutions participating in the domestic interbank foreign exchange market reached 236, an increase of 3 from the previous month [7] - The number of foreign institutions and their products in the domestic interbank currency market increased by 15 to a total of 5755 [7] Trading Volume in Domestic Interbank Market - In August, the total trading volume of foreign institutions in the domestic interbank foreign exchange market was 37336.51 billion, a decrease of 6.9% [8] - The trading volume in the domestic interbank bond market for foreign institutions totaled 11573.91 billion, a decrease of 21.2% [8]