On August 1, the SAFE held a seminar on foreign exchange administration work for the second half of 2026 via video. Guided by Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era, the seminar conveyed, studied and implemented the guiding principles of the CPC Central Committee Politburo meeting, implemented the requirements set out at the Financial Sector Party-Building Work Conference, reviewed foreign exchange administration work since the beginning of 2026, analyzed the current financial and foreign exchange situation, and arranged the key tasks for the following stage. Zhu Hexin, Secretary of the CPC SAFE Leadership Group and Administrator of the SAFE, delivered a work report. Members of the CPC SAFE Leadership Group and Deputy Administrators of the SAFE attended the seminar.

The seminar pointed out that since 2026, the foreign exchange administration department has conscientiously implemented the guiding principles of the Central Economic Work Conference as well as the annual sessions of the National People’s Congress and the National Committee of the Chinese People’s Political Consultative Conference, adhered to the main line of work of preventing risks, strengthening supervision and promoting high-quality development, taken proactive action and adopted comprehensive measures, and made positive progress in all aspects. Firstly, we comprehensively strengthened Party building across the foreign exchange administration system. We earnestly studied and implemented Xi Jinping Thought on Party Building and the guiding principles of General Secretary Xi Jinping’s important speeches, carried out an education campaign on fostering and practicing a correct understanding of governance performance, and further advanced full and strict governance over the Party. Secondly, we continued to improve the quality and effectiveness of foreign exchange services for the real economy. We actively supported the innovative development of foreign trade, promoted the expansion and quality improvement of the pilot programs for high-level opening-up in cross-border trade, and expanded the foreign exchange settlement service scenarios for entities such as cross-border e-commerce businesses. We deepened the reform of cross-border investment and financing facilitation, improved the administration of overseas lending by domestic enterprises, expanded the scope of entities eligible for cross-border financing facilitation policies, and allocated a new investment quota of USD 5.3 billion to Qualified Domestic Institutional Investors (QDII). We advanced the reform of banks' foreign exchange operation in an orderly manner, with the reform now basically covering the major banks that handle cross-border business. We improved the service for corporate foreign exchange risk management, and the corporate foreign exchange hedging ratio rose to 35.3% in the first half of this year. We actively supported the development of key regions, and supported Shanghai's international financial center construction. We carried out the assessments of foreign exchange administration policies and the foreign exchange ecosystem, dynamically optimized and adjusted policies. Thirdly, we maintained the stable and orderly operation of the foreign exchange market. China’s foreign exchange market demonstrated strong vitality and resilience under complex situations. The RMB exchange rate moved in both directions while appreciating moderately amid stability, and cross-border funds maintained net inflows. Fourthly, we continuously consolidated the stringent regulatory environment in the foreign exchange sector. We deepened construction of the rule of law in foreign exchange regulation, reinforced the regulation of the foreign exchange market, and effectively cracked down on illegal cross-border financial activities such as underground banking. Fifthly, we effectively safeguarded the safety, liquidity, profitability of foreign exchange reserve assets, with foreign exchange reserves standing above USD 3.3 trillion.

The seminar stressed that the foreign exchange administration department should conscientiously study and comprehend‌ General Secretary Xi Jinping’s important speeches delivered at the CPC Central Committee Politburo meeting, ‌effectively align thoughts and actions‌ with the CPC Central Committee's scientific assessment of economic and financial conditions as well as its decisions ‌and arrangements, unswervingly implement the decisions and arrangements of the CPC Central Committee and the State Council, uphold "service mindset, open mindset, and security mindset", promote in-depth reform and high-level opening-up in the foreign exchange sector, effectively meet the foreign exchange needs of all types of entities, improve the governance capacity and standards in the foreign exchange sector, and strive to ‌establish a foreign exchange administration institutional mechanism that is "more convenient, more open, more secure, and more intelligent", so as to provide strong support for advancing high-quality economic development and securing a good start to the 15th Five-Year Plan period.

The seminar arranged the key tasks for the second half of 2026. First, to solidly promote Party building. We shall take the study and implementation of Xi Jinping Thought on Party Building as an important political task at present and in the coming period, continuously strengthen the Party's political building, continue to arm ourselves with the Party's innovation theories, improve and perfect the Party building mechanism, deepen the rectification of issues identified by central inspections, consolidate and expand the achievements of the education campaign on fostering and practicing a correct understanding of governance performance, build a high-caliber and professional cardre of officials who are loyal, honest and responsible, unremittingly advance full and strict governance over the Party, and resolutely uphold the "Two Upholds" (upholding General Secretary Xi Jinping's core position on the CPC Central Committee and in the Party as a whole, and upholding the Central Committee’s authority and its centralized, unified leadership)‌. Second, to steadily expand institutional opening-up in the foreign exchange sector. We shall promote trade facilitation reform, introduce a package of measures to optimize foreign exchange administration under the current account, fully roll out the policy facilitating foreign exchange receipts and payments under the high-level opening-up of cross-border trade, support the development of new forms of trade such as cross-border e-commerce, optimize the foreign exchange fund settlement for trade in services, and do a good job in supporting the development of intermediate goods trade. We shall push forward the high-level opening-up of the capital account in an orderly manner, launch a package of facilitation policies for cross-border investment and financing, promote the nationwide implementation of the centralized operation on cross-border funds of multinational corporations in RMB and foreign currencies, issue regulations on foreign exchange administration of domestic foreign exchange loans, and prudently expand financial market connectivity. We shall advance the "five major areas of finance", and optimize foreign exchange services for sci-tech enterprises as well as small and medium-sized enterprises. We shall continue to advance the reform of banks' foreign exchange operation, guide banks in accelerating its nationwide expansion and adopting a unified approach to RMB and foreign currency business, and roll out nationwide the integration of the reform with the policy for the high-level opening-up of cross-border trade. We shall deepen the development of the foreign exchange market, promote multi-party cooperation to reduce the exchange rate hedging costs of micro, small and medium-sized enterprises, and improve the foreign exchange market infrastructure services. We shall actively support regional opening-up and development, support the development of Shanghai as an international financial center, improve the plan for implementing the strategy of upgrading pilot free trade zones through foreign exchange administration, and support foreign exchange administration innovation in the Hainan Free Trade Port and other areas. We shall continue to carry out the assessment of foreign exchange administration policies and foreign exchange ecosystem. Third, to ‌build robust defenses against external shocks. We shall strengthen the monitoring of cross-border capital flows, continuously improve macroprudential management and the management of expectations, and adopt comprehensive measures to maintain foreign exchange market stability. ‌Fourth, to strengthen and improve regulation in the foreign exchange sector. We shall advance the revision of the Regulations on Foreign Exchange Administration. We shall enhance the capabilities and standards of foreign exchange regulation, use new technologies such as artificial intelligence and big data to improve foreign exchange regulation, strengthen the regulation of trading conduct in the foreign exchange market, and maintain strong pressure on illegal cross-border financial activities. Fifth, to strengthen foreign exchange reserve operational and management capabilities and enhance the professionalism of foreign exchange reserve operations and management. Sixth, to comprehensively improve the level of foreign exchange administration. We shall refine the statistical system for the balance of payments, advance "digital foreign exchange administration" and "secure foreign exchange administration", and accelerate the exploration and implementation of application scenarios for "smart foreign exchange administration". 

The relevant responsible comrades of all departments and subordinate units of the SAFE, as well as the responsible comrades of the discipline inspection and supervision group stationed in the SAFE, attended the seminar on site. The relevant comrades from the Office of the Central Commission for Financial and Economic Affairs, the Office of the Central Financial Commission, the General Office of the State Council, and the National Audit Office were invited to attend the seminar. The relevant comrades of the SAFE provincial branches attended the seminar at local venues.