SAFE to Launch a Batch of Incremental FX Measures as Zhu Hexin Unveils New Policy Package at Financial Street Forum

On October 19, at the 2026 Financial Street Forum annual meeting, Zhu Hexin, Deputy Governor of the People's Bank of China and Administrator of the State Administration of Foreign Exchange (SAFE), delivered a keynote address on deepening opening-up in the foreign exchange sector to better serve the new development paradigm.

At the forum, Zhu announced that, on top of improving the quality and efficiency of existing policies and in response to new circumstances, new requirements and the new practical needs of companies identified during field research, SAFE plans to roll out a batch of incremental measures to support companies in better participating in international cooperation and competition and in making better use of both domestic and international markets and resources.

Several earlier "policy packages" to stabilize foreign trade have produced notable results. As of the end of September this year, they had benefited more than 150,000 business entities and covered business worth over US$3 trillion.

A new package of incremental policies

In recent years, SAFE has successively introduced multiple policy packages covering support for stable foreign trade development, cross-border investment and financing, and the building of pilot free trade zones. At this year's Financial Street Forum, Zhu brought another series of foreign exchange policy benefits.

Zhu said the first measure is a package to facilitate current account transactions, better meeting the diverse settlement needs of foreign trade companies, supporting new forms and models of trade, and promoting quality and efficiency improvements in foreign trade.

The second is a package to optimize foreign exchange administration under the capital account, better meeting companies' cross-border investment, financing and fund allocation needs, serving both "bringing in" and "going global," and expanding room for two-way investment cooperation.

The third is to promote the opening-up and development of the foreign exchange market, expand the pilot program for securities firms' foreign exchange settlement and sales business, and support financial institutions in providing sound exchange rate risk management services to companies, especially small and medium-sized enterprises. This will enhance cross-border service capabilities, better support the coordinated development of onshore and offshore financial markets, and help advance RMB internationalization.

"The deeper the opening-up, the more attention must be paid to security," Zhu stressed. SAFE will continue to strengthen monitoring, early warning and macroprudential management of cross-border capital flows, crack down hard on illegal cross-border financial activities, and safeguard the stable and healthy operation of the foreign exchange market. It will also ensure the safety, liquidity and value preservation of foreign exchange reserve assets.

China's door is opening ever wider, and the structure of its external economy has undergone profound changes. One prominent feature is that market entities are increasingly becoming an important force connecting domestic and international economic circulation.

In terms of flows, China's balance of payments is gradually forming a pattern of autonomous equilibrium. Funds generated by the current account surplus are increasingly used for outbound investment and asset allocation by enterprises, banks and other entities.

In terms of stock, the share of external assets held by enterprises, banks and other entities in China's total external financial assets rose from about 30% at the end of 2010 to nearly 70% at the end of 2025.

Zhu believes these changes reflect the deepening of China's socialist market economy reform and the continuous improvement of institutional mechanisms for high-level opening-up, with the market playing a growing role in cross-border resource allocation. They also show that Chinese enterprises are steadily strengthening their ability to participate in international cooperation and competition and to allocate resources globally.

Zhu said that in recent years foreign exchange administration has further incorporated "corporate autonomy in cross-border operations" and "open ecosystem building" into the same governance framework, adhering to the principles of energizing market entities, optimizing the ecosystem, expanding opening-up and improving governance to better serve the new development paradigm. On the one hand, entities are energized so that companies can use foreign exchange more autonomously and conveniently; on the other, the ecosystem is improved to create better conditions for companies' cross-border operations.

Data show that as of the end of June this year, more than 50,000 creditworthy companies nationwide were able to conduct foreign exchange business without review, up about 30% from the end of 2025. In the first half of the year, such business exceeded US$580 billion, doubling year on year, and average processing time was cut by more than half.

30th anniversary of current account convertibility

Since reform and opening-up, the foreign exchange management system has undergone profound changes — from easing foreign exchange shortages and promoting market-based allocation of foreign exchange resources, to expanding the autonomy of various entities in using foreign exchange and improving governance capacity under open conditions.

"The gradual deepening of foreign exchange management reform has provided solid support for connecting China with the world and promoting international economic circulation," Zhu said.

This year marks the 30th anniversary of China's achievement of current account convertibility. In 1996, China accepted Article VIII of the International Monetary Fund's Articles of Agreement, making an international commitment not to restrict current international payments and transfers related to trade in goods and services and investment income.

Over the past 30 years, despite a volatile international landscape, China's opening-up commitments in the foreign exchange area have remained unchanged.

Data show that China's current account receipts and payments grew from more than US$300 billion in 1996 to over US$8 trillion in 2025. China has become a major trading partner of more than 160 countries and regions and is accelerating its transition from a major trading nation to a strong trading nation.

In Zhu's view, this landmark reform laid an important institutional foundation for China's deep participation in the global division of labor and its integration into economic globalization. "We will keep our commitment to current account convertibility unchanged, advance capital account opening in an orderly manner, and continuously improve the facilitation of cross-border trade and investment, helping to expand the space for China's open economy," he said.

Zhu said that over the past 30 years China has grown stronger through integration into the world, connecting global supply and demand with its vast market and complete industrial system, and contributing to world economic growth through its own opening-up and development.

(Source: Yicai)