China's foreign exchange market demonstrated resilience amid global economic shifts, according to data released at a press conference by the State Administration of Foreign Exchange (SAFE) on Tuesday. Deputy head Li Bin outlined key trends in cross-border capital flows during the first half of 2025, emphasizing stable development under prudent macroeconomic policies.
Economic Resilience in Focus
SAFE reported a 7.8% year-on-year increase in foreign exchange settlements by banks, reaching $2.1 trillion. Merchandise trade remained the primary driver, accounting for 64% of transactions. Li attributed this growth to improved trade structures and increased foreign investment in advanced manufacturing sectors.
Balanced Capital Flows
Cross-border receipts and payments maintained equilibrium at $4.3 trillion, with direct investment inflows rising 12% compared to 2024. Li highlighted strengthened risk prevention measures and optimized foreign exchange services for enterprises as key factors supporting market confidence.
Global Implications
The data suggests China's deepening integration with Asian supply chains, particularly in green energy and digital infrastructure sectors. Analysts anticipate these trends will influence regional currency stability and investment patterns through 2025.
