On Aug. 1, China’s State Administration of Foreign Exchange (SAFE) held a video
conference to set FX-management priorities for H2 2026. SAFE said it will
steadily expand institutional opening in the FX sector, press ahead with
trade-facilitation reform and roll out a package of measures to optimize
current-account FX management, including nationwide promotion of high-level
cross-border trade receipts and payments facilitation. It will support
cross-border e-commerce and new trade formats, streamline FX settlement for
services trade, and support intermediate-goods trade. SAFE will orderly advance
high-level capital-account opening via a package of cross-border investment and
financing facilitation policies, nationwide rollout of multinational companies’
domestic-foreign currency cross-border cash-pooling, and issuance of regulations
on domestic foreign-currency loans, while prudently expanding financial-market
connectivity. To bolster resilience against external shocks, SAFE will
strengthen cross-border capital-flow monitoring, refine macroprudential and
expectation management, and take comprehensive measures to maintain FX-market
stability.
