In a press briefing on September 15, Li Bin, deputy head and spokesperson of the State Administration of Foreign Exchange, addressed questions regarding the foreign exchange market situation in August.

Li noted that despite continued turbulence in international financial markets and increased volatility in bond and currency markets across some economies, China's foreign exchange market has demonstrated steady performance.

One key highlight is the sustained growth in cross-border transaction volumes, with net capital inflows maintained. In August, cross-border payments and receipts by non-banking sectors, including enterprises and individuals, totaled $1.5 trillion, built on the rapid expansion seen throughout the year. Net capital inflows reached $62.4 billion, representing a slight month-on-month increase of 4%.

From the perspective of key channels, net capital inflows under merchandise trade remained substantial. Meanwhile, the summer study-abroad and travel season drove a 6% month-on-month rise in the service trade deficit. Foreign-invested enterprises' dividend distributions narrowed by 23% from the previous month, stepping down from their seasonal peak. Cross-border two-way direct investment remained broadly stable.

Another key point is the steady growth in foreign exchange market trading activity, coupled with broadly stable market expectations. In August, trading volume in both onshore and offshore foreign exchange markets stood at $3.9 trillion, maintaining a considerable scale. The banking sector recorded a surplus of $48.5 billion in foreign exchange settlement and sales, primarily driven by net capital inflows. The settlement rate for enterprises' foreign exchange earnings was 61.5% for the month, which was 2.7 percentage points lower than the average of the first seven months of this year, reflecting relatively stable corporate preferences for settlement and holding of foreign currency, with overall market expectations remaining steady.