SAFE: Goods Trade Keeps Posting Large Net Inflows in September as Cross-Border Receipts and Payments Stay Active

Renmin Caixun, October 20 — The State Administration of Foreign Exchange (SAFE) recently published data on banks' settlement and sales of foreign exchange and on banks' foreign-related receipts and payments on behalf of clients for September 2026. Li Bin, Deputy Administrator and spokesperson of SAFE, answered reporters' questions on the foreign exchange market situation in September 2026.

Q: External market conditions have changed considerably since September. How is China's foreign exchange market operating?

A: Since September, the central banks of Europe, the United States and Japan have raised interest rates in succession, and foreign exchange and bond markets in some economies have seen sharp swings, with international financial markets continuing to adjust amid volatility. China's foreign exchange market has been generally stable.

On the whole, foreign-related transactions remain active: in September, China's cross-border receipts and payments and its foreign exchange settlement and sales rose 9% and 17% respectively from a month earlier. Market expectations are broadly stable, with both the settlement ratio and the sales ratio of enterprises and other entities edging higher month on month. Cross-border capital flows remained in net inflow, with non-bank sectors — enterprises and individuals — recording a net inflow of US$40.7 billion in September, down 35% from August.

By channel, goods trade continued to record relatively large net inflows. The services trade deficit was relatively stable: Chinese residents showed a strong willingness to travel abroad and foreign nationals to travel to China, keeping both travel receipts and travel payments at high levels. Outbound direct investment by enterprises increased, with financing provided by domestic entities to overseas affiliates rising quickly — a development related to changes in domestic and external interest rates that also, to some extent, reflects the strengthened role of the RMB as a financing currency.

(Source: Securities Times)