SAFE data shows balanced cross-border capital flows in China

Chinese yuan (renmibi).

According to data from the State Administration of Foreign Exchange (SAFE), China’s cross-border capital flows became more balanced in October 2023. The net inflows under trade in goods increased by 52% from September, which continued to play an important role in stabilizing cross-border capital flows.

Wang Chunying, deputy director and spokesperson of the SAFE, stated that China’s foreign trade showed strong resilience last month, and the net inflows under trade in goods maintained a high level. Foreign investment in the domestic bond market continued to rise in October, following a net increase in September.

“The continuous recovery of the domestic economy has further enhanced the confidence of foreign investors in renminbi assets,” Wang said. With the continuous improvement of the internal and external environment, China’s foreign exchange market and cross-border capital flows are expected to remain stable in the future, Wang added.

The SAFE’s data suggests that China’s cross-border capital flows remained within a reasonable range in October 2022. Projects such as trade in goods and foreign direct investment continued to play a fundamental role in stabilizing capital inflows. Cross-border funds related to the current account showed a certain scale of net inflow, a year-on-year increase of 43%. Among them, the net inflow of cross-border funds under trade in goods was US$32.9 billion, a year-on-year increase of 19%; foreign direct investment capital maintained a net inflow, and foreign investment in the domestic bond market continued to recover, reflecting the resilience of China’s foreign-related economic development.

Guan Tao, global chief economist of Bank of China Securities, said that cross-border capital flows under securities investment continued to recover. In October, against the backdrop of intensified volatility in overseas financial markets, RMB bonds became more attractive to foreign capital, and the net sales of foreign institutions under Bond Connect narrowed month-on-month. He believes that in the future, with the further implementation of domestic growth stabilization policies and economic growth momentum, it is expected that cross-border capital flows will continue to improve.


This publication is part of China Insights by Media Scope Group, a source of reliable information on China, its economy, society and culture. Explore more insights or get in touch with our experts to get more detailed information.

Looking for one-stop shop to enter, operate and succeed in China? Learn about our China Connect solution.

This work by Anne Määris is licensed under Creative Commons Attribution-ShareAlike 4.0 International.