Core Insights - The Chinese yuan has shown resilience and even appreciation against the backdrop of U.S. restrictions, signaling a shift in international market dynamics [1][3] - The rise in yuan's value is attributed to both domestic economic stability and external factors, including a dovish shift in U.S. Federal Reserve policy [5][7] Domestic Factors - China's economy has remained stable, with advancements in technology, green energy, and new consumption driving growth [5] - The recovery of the capital market has led to a return of foreign investment, enhancing the attractiveness of yuan-denominated assets [5][15] External Factors - The U.S. Federal Reserve's recent dovish signals have weakened the dollar, benefiting non-U.S. currencies, including the yuan [5][15] - The yuan's appreciation is not merely a reaction to a weaker dollar but reflects its inherent strength and market confidence [7] CIPS System Expansion - The CIPS (Cross-border Interbank Payment System) has expanded its global reach to 189 countries, significantly exceeding initial expectations [9][11] - The efficiency of CIPS has improved transaction times dramatically, enhancing its appeal for international payments [11][13] Internationalization of the Yuan - The internationalization of the yuan is supported by a robust financial infrastructure and increasing foreign participation in Chinese markets [13][19] - The yuan is becoming a viable alternative to the dollar, with a growing recognition of its stability and reliability in international transactions [17][19] Future Outlook - Predictions indicate that the yuan could appreciate by at least 3% over the next year, reflecting positive market sentiment [15] - The ongoing development of payment systems and capital markets is expected to further solidify the yuan's position in the global financial landscape [19]

Core Viewpoint - The People's Bank of China emphasizes the importance of financial technology in empowering economic development and enhancing cross-border payment services, particularly through the exploration of digital currency solutions [2][4]. Financial Technology Empowering Economic Development - Financial technology, driven by scientific advancements, is a crucial force for transformation in financial development and governance systems under the digital economy context [5]. - The People's Bank of China is focusing on the application of next-generation artificial intelligence in finance, leveraging advancements in large models to enhance financial services and operational efficiency [6]. - The bank is activating the potential of data elements in the financial sector by conducting pilot projects for data utilization and implementing guidelines for cross-border data flow [6][7]. Efficient and Convenient Cross-Border Payment Services - The People's Bank of China is enhancing cross-border payment cooperation with Hong Kong, responding to the growing demand for real-time, convenient, and low-cost payment services [9]. - The Cross-border Interbank Payment System (CIPS) has expanded its operations in Hong Kong, facilitating safe and efficient cross-border settlement services for international trade and investment [9]. - The bank has successfully launched a cross-border payment system that allows for quick and seamless transactions between mainland China and Hong Kong, receiving positive public feedback [9][10]. Exploring New Solutions for Cross-Border Payments with Digital Currency - China is a pioneer in the research and application of central bank digital currencies (CBDCs), with established principles for infrastructure development [11]. - The People's Bank of China is collaborating with various monetary authorities to explore a multilateral CBDC bridge for cross-border payments, aiming for real-time transactions across different currencies [11]. - The digital RMB cross-border payment platform is being utilized to support bilateral cooperation, enhancing the digital experience for cross-border trade and investment [11][12]. Future Prospects and Cooperation - The People's Bank of China aims to strengthen practical cooperation in financial technology with Hong Kong, promoting innovative applications that benefit the public [12]. - The bank is committed to sharing China's financial technology experiences globally and learning from international best practices to contribute to global financial technology development [12].

Core Viewpoint - The internationalization of the Renminbi (RMB) is progressing steadily, and its global influence is underestimated when solely relying on SWIFT payment rankings [3][6][10]. Group 1: RMB's Global Payment Position - The SWIFT ranking places RMB fifth in global payments, leading to skepticism about its international influence [3]. - SWIFT's statistics include all payments processed through its system, which may not accurately reflect RMB's usage since many domestic transactions do not go through SWIFT [6]. - The establishment of CIPS (Cross-Border Interbank Payment System) allows for significant RMB transactions that are not captured in SWIFT's data, indicating a more substantial global presence than suggested by rankings [6][12]. Group 2: RMB in Trade and Investment - Many countries along the Belt and Road Initiative are increasingly using RMB for direct trade settlements, reducing reliance on USD and EUR [8]. - As of mid-2025, foreign holdings of RMB assets exceeded 10 trillion, demonstrating strong international demand for RMB-denominated bonds and stocks [8][10]. - RMB's share in global trade financing reached over 7% by September 2025, second only to USD, highlighting its growing acceptance in international trade [12]. Group 3: RMB's Role in Global Financial Stability - Since 2016, RMB has been included in the IMF's SDR basket, signifying its status alongside major currencies like USD and EUR [10]. - In times of global financial instability, RMB has emerged as a safe-haven asset, with many central banks entering into currency swap agreements with China [10][14]. - The trend of "de-dollarization" globally is creating opportunities for RMB to gain further traction as an alternative currency [14]. Group 4: Future Outlook for RMB Internationalization - The internationalization of RMB is a gradual process, with its global payment share increasing from less than 1% in 2011 to a more significant figure today [12][14]. - The development of CIPS enhances the speed and security of RMB transactions, attracting more countries to adopt RMB for settlements [14]. - The future of RMB internationalization is promising, contingent on China's economic stability and ongoing financial reforms [14][16].

Core Viewpoint - The People's Bank of China (PBOC) is enhancing the cross-border payment system for the renminbi (RMB), aiming to improve payment convenience for foreign personnel in China and support the construction of a financial powerhouse, contributing to China's modernization [1][5]. Group 1: Cross-Border Payment System Development - The RMB cross-border payment system (CIPS) has become increasingly significant, with over 1,700 domestic and foreign participants connected by September 2025, reaching more than 5,000 legal banking institutions across 189 countries and regions [1][3]. - In 2024, CIPS is expected to handle RMB 175 trillion in cross-border transactions, marking a 43% year-on-year increase, with an average annual growth rate of 40.3% since the 14th Five-Year Plan [1][3]. - The PBOC is committed to building a multi-channel, widely covered, secure, and efficient RMB cross-border payment clearing network [3][5]. Group 2: Payment Infrastructure and Interconnectivity - The PBOC has successfully connected the fast payment systems of mainland China and Hong Kong, enhancing cross-border remittance efficiency and reducing costs for residents and businesses [4]. - A unified cross-border QR code payment gateway has been established, promoting international cooperation among payment institutions and facilitating mobile payment options for Chinese residents in over 70 countries [4]. - The development of a digital RMB cross-border payment platform is underway, with collaborations with central banks from Hong Kong, Thailand, and the UAE [3][4]. Group 3: RMB's International Standing - The RMB has become the largest settlement currency for China's external payments, the second-largest trade financing currency globally, and the third-largest payment currency, with a weight of 12.28% in the IMF's Special Drawing Rights (SDR) basket [10][11]. - In the first half of 2025, RMB cross-border payment amounts reached RMB 35 trillion, a 14% increase year-on-year, with a record high in both transaction amounts and proportions [10][11]. - The offshore RMB market is developing healthily, with over RMB 10 trillion in RMB financial assets held by foreign entities, and more than 80 countries have included RMB in their foreign exchange reserves [10][11]. Group 4: Bilateral Currency Swap Agreements - The PBOC has renewed bilateral currency swap agreements with multiple countries, including Iceland, the European Central Bank, and others, to enhance financial cooperation and facilitate trade [7][8]. - The bilateral currency swap agreements aim to provide liquidity and stabilize financial markets, with various agreements having different scales and effective periods [7][8].

Core Insights - The article discusses the ongoing transformation of the global financial order, highlighted by the significant rise in gold prices from $1,800 to over $3,800, signaling a shift away from the dollar-centric financial system [1][6]. Group 1: China's Role in Gold Custody - China is emerging as a custodian for foreign sovereign gold, with several Southeast Asian countries opting to store their gold in China, challenging the traditional dollar-centered financial system and establishing new trust relationships [2]. - This strategy of gold custody is seen as a response to the diminishing influence of the U.S. dollar and aims to create a new settlement system, reminiscent of the impact of Alipay on consumer payment habits [2]. Group 2: CIPS and the Shift from SWIFT - The rise of the Cross-Border Interbank Payment System (CIPS) is a strategic move to bypass U.S. dollar dominance, as evidenced by a decrease in the use of the SWIFT system for RMB transactions [3]. - Despite a drop in payment amounts, the RMB has become the third-largest financing and payment currency globally, indicating a shift towards more independent transaction systems [3]. Group 3: Dual Strategy for Financial Stability - China is implementing a dual strategy to promote the internationalization of the RMB, combining gold custody to build a credit system based on tangible assets and the CIPS system to facilitate RMB transactions [4]. - This approach is considered more robust than the Bretton Woods system, as it ensures control over gold reserves and a self-sufficient payment system [4]. Group 4: Future of the Global Currency System - The dominance of the U.S. dollar is expected to decline, leading to a more diversified international currency system where currencies like the RMB, Euro, Yen, and Indian Rupee will play significant roles [5]. - The evolving currency landscape is likened to the competitive smartphone market, where multiple brands coexist, providing consumers with more choices and fostering a healthier market [5]. Group 5: Implications for Ordinary Investors - Ordinary investors are advised to diversify their asset allocations beyond the dollar, considering RMB, gold, and other quality assets as viable options [8]. - The ongoing monetary transformation may present unexpected opportunities, similar to the wealth creation seen after the collapse of the Bretton Woods system in 1971 [8].

黄金，这个被遗忘了几十年的"老古董"，突然又火了。 从俄乌冲突时的1800美元，一路狂飙到现在的3800美元——翻了一倍多。别以为这只是普通的价格波 动，说白了，这是全球金融秩序正在重新洗牌的信号弹。 更劲爆的是，9月23日，彭博社爆出一个大料：中国正在悄悄成为"外国主权黄金的保管员"。已经有东 南亚国家把自家的黄金运到中国存着了。这事儿听起来简单，背后的水可深着呢。 还记得布雷顿森林体系吗？当年美国就是靠着"35美元兑换1盎司黄金"这个承诺，让美元成了全球货币 老大。虽然后来美国耍赖不认账了，但又用军事实力强行把美元和石油捆绑，搞出了个石油美元体系。 可现在呢？美国在中东的影响力一天不如一天，石油美元这张牌快打不动了。 而中国这招"代管黄金"，简直是在美元霸权的伤口上撒盐——你不是不让各国用黄金结算吗？那我就帮 大家存黄金，慢慢建立一个新的结算体系。 这就像当年支付宝刚出来时，大家还在用现金和银行卡，突然有人说："来，把钱存我这儿，以后买东 西扫码就行。"看似简单的一个动作，却彻底改变了支付格局。 更有意思的是，9月18日SWIFT发布的数据显示：人民币8月份的支付金额减少了5.13%，在全球支付货 币中只 ...

Summary of Cross-Border Payment Industry Conference Call Industry Overview - The cross-border payment market consists of B2C and B2B segments, with B2C primarily serving Chinese merchants on e-commerce platforms like Amazon and Shopee, and B2B targeting small and medium-sized foreign trade enterprises [1][2] - Major players in the B2C segment include LianLian Digital, PingPong Payments, and others, with a combined transaction volume nearing $150 billion [1][2] - XTransfer leads the B2B segment with an annual transaction volume of $30-40 billion, while other companies also report significant volumes [1][2] Market Growth and Opportunities - The cross-border payment market in China is projected to exceed 7.5 trillion RMB in transaction volume (TPV) by 2024, with an expected annual growth rate of over 25% from 2022 to 2027 [2] - The global B2B e-commerce trade is expected to grow at a CAGR of over 15%, while B2C is projected to grow at over 10% from 2022 to 2026 [4] - China's export volume is anticipated to approach 47 trillion RMB by 2027, with a growth rate exceeding 10% [4] Business Models and Fee Structures - B2C companies link payment services directly to e-commerce platforms, while B2B companies open virtual accounts for SMEs in foreign banks, earning revenue from exchange rate spreads [3] - The average fee rate in the industry is around 0.3%, which has stabilized after a decline from approximately 0.4% two to three years ago [3] Unique Value Proposition of Cross-Border Payment Providers - Cross-border payment service providers offer efficient, secure, and low-cost solutions for SMEs, addressing their challenges in obtaining bank support [5] - Traditional banks impose high costs and lengthy processes, making cross-border payment providers a more viable option for small enterprises [5] Current Trends and Future Directions - The market is rapidly evolving, with increasing demand from SMEs and cross-border e-commerce [6] - Cross-border payment providers are expected to expand their market size and opportunities as more SMEs enter international markets [6] Development of RMB Cross-Border Payment Systems - China is actively developing RMB-centric cross-border payment systems like CIPS to reduce reliance on the SWIFT system, enhancing efficiency and lowering costs [7] - Initiatives like the "Cross-Border Wealth Management Connect" in Hong Kong facilitate real-time cross-border remittances, indicating a significant opportunity for RMB internationalization [7] Impact of Stablecoins on Cross-Border Payments - Stablecoins are set to revolutionize traditional cross-border payment models by enabling real-time settlements and significantly reducing costs [8] - Payment service providers must adapt to this new environment while continuing to offer essential services [8] Adjustments Needed by Payment Service Providers - Providers need to upgrade their technology to support new RMB settlement methods and stablecoin transactions, ensuring compliance and security [9] - They must continue to offer efficient, low-cost services to meet diverse client needs [9] Merchant Preferences in Payment Solutions - Merchants prioritize the convenience and integration of payment solutions over the specifics of the settlement process [10] - The potential reduction in fees due to stablecoin adoption could provide significant cost savings for merchants [10] Leading Companies in Cross-Border Payment - Notable companies in the cross-border payment sector include LianLian Digital, Newland, and Lakala, each with distinct business strategies and market positions [12][14][17] - LianLian Digital has obtained 65 global payment licenses, with a transaction volume of 3.3 trillion RMB, while Lakala's Skyee brand serves over 120,000 clients with a transaction volume of 49.2 billion RMB [14][17] Conclusion - The cross-border payment industry is poised for significant growth driven by e-commerce expansion, technological advancements, and evolving consumer preferences, presenting ample opportunities for established and emerging players alike [1][4][6]

Core Viewpoint - The A-share market experienced fluctuations with the Shanghai Composite Index reaching a new high of 3512.67 points on July 9, 2023, primarily supported by large-cap stocks such as CATL, Hengrui Medicine, and China Oil Capital, despite most stocks declining [1][2]. Group 1: Market Performance - On July 9, the A-share market had a trading volume of 1.53 trillion yuan, an increase of 528 billion yuan from the previous trading day, with the Shanghai Stock Exchange contributing 595.96 billion yuan and the Shenzhen Stock Exchange 909.22 billion yuan [2]. - The Shanghai Composite Index closed at 3493.05 points, while the ChiNext Index closed at 2184.67 points, with 1856 stocks rising and 3327 stocks falling [1][2]. Group 2: Sector Performance - The banking and technology sectors saw significant contributions to the index, with major banks like Agricultural Bank of China and Industrial and Commercial Bank of China reaching historical highs [2][4]. - The media sector led the gains, with stocks like Zhongwen Online rising over 10%, while the human-robot sector experienced volatility, with some stocks hitting the daily limit [3][4]. Group 3: Historical Highs - A total of 33 stocks reached historical highs on July 9, with 5 from the banking sector and 10 from the technology sector, indicating a structural trend in the A-share market [4]. - Notable performers included Beijing Bank and Agricultural Bank of China, with Beijing Bank showing a cumulative increase of over 20% this year [4]. Group 4: Analyst Insights - Analysts suggest that the current market environment is characterized by a strong liquidity support, but caution that volatility may increase in the future due to various influencing factors [1][7]. - Recommendations include focusing on high-growth technology sectors and undervalued companies with high dividends, as the market is at a critical juncture [7].

Group 1 - The dominance of the US dollar is beginning to weaken, with an increase in the internationalization of the Chinese yuan, particularly in energy and commodity transactions [5][6][7] - The rise of the CIPS (Cross-Border Interbank Payment System) serves as a substantial alternative to SWIFT, allowing for faster and cheaper transactions while bypassing US financial monitoring [5][6] Group 2 - The US's technological blockade against China has inadvertently stimulated domestic innovation, leading to breakthroughs in various sectors such as 5G, operating systems, and aerospace [8][10][12] - The pressure from the US has acted as an accelerator for China's self-reliance in technology, transforming challenges into opportunities for advancement [9][12][13] Group 3 - The military advantage of the US is no longer a unilateral dominance, as China's advancements in missile technology and naval capabilities challenge US military presence globally [14][15] - The inability of the US to maintain its global military commitments is evident, with allies questioning US security assurances [14][15] Group 4 - The narrative control that the US has historically maintained is eroding, as global perceptions shift towards recognizing China's economic growth and infrastructure development [16][17][18] - The rise of alternative voices in regions like Latin America, Africa, and Central Asia indicates a diversification of perspectives away from US-centric narratives [17][18] Group 5 - The decline of US hegemony is attributed to its own internal decay rather than direct confrontation, with China leveraging its strengths to navigate this asymmetrical competition [20][21][22] - China's approach focuses on self-improvement and resilience, positioning itself as a counterbalance to the outdated global order without seeking to dominate [23][24]

Core Insights - The share of Renminbi (RMB) in global payment markets has significantly dropped to 2.89%, falling below the 3% mark and ranking sixth globally, overtaken by the Canadian dollar [1][2] - The decline in RMB's payment share is attributed to various factors, including market fluctuations and the diversification of RMB settlement channels, rather than solely the impact of trade tensions [2][7] Payment Share Overview - As of May 2024, the US dollar remains dominant with a 48.46% share, followed by the euro at 23.5%, which has increased by 1.4 percentage points [1] - The British pound holds a 7.1% share, while the Japanese yen and Canadian dollar account for 3.7% and 3.11% respectively, showing little change from previous months [1] RMB Payment Trends - RMB payment share fluctuated throughout 2024, peaking at 4.74% in July before declining to 2.9% in October, indicating normal monthly volatility rather than a definitive setback in internationalization [2][7] - The RMB's previous rise to the fourth largest payment currency was short-lived, with its share dropping significantly in recent months [2] CIPS and Internationalization Efforts - The China International Payment System (CIPS) is increasingly facilitating RMB settlements, with 180 direct participants and over 1,500 indirect participants across more than 180 countries [5] - CIPS processed 175 trillion RMB in cross-border payments in 2024, marking a 43% year-on-year increase, and has expanded its reach by adding new overseas financial institutions [5] Future Outlook - Despite the challenges faced by RMB internationalization, including significant gaps compared to the US dollar and euro, the potential for growth remains strong [7] - The rise of CIPS and the expansion of RMB swap agreements are seen as key drivers for the future of RMB internationalization [7]