State Administration of Foreign Exchange: Overall improvement in cross-border capital flows through major channels in August.

A responsible person from the State Administration of Foreign Exchange answered questions from reporters on the foreign exchange situation in August 2024. Among them, it was mentioned that the overall cross-border capital flow is improving. The development trend of China's foreign trade continues to improve, with a net inflow of cross-border funds under the goods trade category increasing by 11% in August; overseas institutions continue to increase their holdings of domestic bonds, and the willingness of foreign capital to allocate RMB assets remains stable. In addition, dividends and payouts from foreign-invested enterprises fell seasonally, and cross-border financing of affiliated enterprises tended to stabilize. The original text is as follows: A responsible person from the State Administration of Foreign Exchange answered questions from reporters on the foreign exchange situation in August 2024 Recently, the State Administration of Foreign Exchange released data on bank foreign exchange and bank customer foreign exchange payments and receipts for August 2024. A responsible person from the State Administration of Foreign Exchange answered questions from reporters on the foreign exchange situation in August 2024. Question: What changes have occurred in China's foreign exchange situation in August 2024? Cross-border fund flows in China are becoming more stable, with a basic balance between domestic and foreign exchange supply and demand. In August, non-bank sectors such as enterprises and individuals had a surplus of 15.3 billion U.S. dollars in cross-border payments and receipts; at the same time, the pace of domestic entities buying foreign exchange has slowed down, and the demand for foreign exchange settlement has remained stable, with the balance of bank foreign exchange sales and purchases tending towards equilibrium. With the continuous improvement of the internal and external environment, the foreign exchange market expectations have become more stable recently, and market transactions remain rational and orderly. The overall cross-border capital flow through major channels is improving. The trend of China's foreign trade development continues to improve, with a net inflow of cross-border funds under the goods trade category increasing by 11% in August; overseas institutions continue to increase their holdings of domestic bonds, and the willingness of foreign capital to allocate RMB assets remains stable. In addition, dividends and payouts from foreign-invested enterprises fell seasonally, and the cross-border financing of affiliated enterprises tended to stabilize. In the future, China's foreign exchange market will continue to maintain a stable operation. Internally, positive factors and favorable conditions in China's economic operation continue to accumulate, and the trend of economic recovery and improvement will continue to consolidate and strengthen. At the same time, the development and reform of China's foreign exchange market are continuing to progress, with the inherent resilience of the market increasing, which will continue to play a positive role in stabilizing market expectations and transactions. Externally, as major economies such as Europe and the United States enter a period of monetary easing, the international financial market environment is expected to further improve. This article is selected from the official website of the State Administration of Foreign Exchange. Editor: Liu Jiayin.