China's foreign exchange market demonstrated resilience in January 2026, with official data revealing net cross-border capital inflows despite global economic uncertainties. The State Administration of Foreign Exchange reported $286.3 billion in foreign exchange settlements and $206.5 billion in sales last month.
While the surplus decreased by 20% compared to December 2025, administration spokesperson Li Bin attributed this moderation to predictable seasonal patterns rather than structural concerns. "Our analysis shows market expectations remain stable, with more balanced cross-border capital flows," Li stated during Friday's briefing.
Non-banking sectors recorded $781.6 billion in cross-border receipts against $699.5 billion in payments, maintaining relative equilibrium. The data reveals shifting patterns across key economic channels:
Goods trade net inflows decreased 27% month-on-month
Services trade net outflows rose 23%
Securities investment flows remained stable
Financial analysts highlight the sustained stability in securities investments as particularly significant, suggesting continued foreign confidence in China's capital markets. The moderate fluctuations in goods and services trade align with typical post-holiday economic adjustments observed in previous years.
