State Administration of Foreign Exchange: my country's direct investment has achieved basic convertibility.
The State Council Information Office will hold a press conference on the theme of "Starting the 15th Five-Year Plan" on Thursday, September 10, 2026.
According to Xinhua News Agency, Li Bin, deputy director and spokesperson of the State Administration of Foreign Exchange, introduced at a press conference that my country's direct investment has achieved basic convertibility, and cross-border securities investment has formed a cross-border investment system mainly based on institutional investor system, interconnection mechanism, and direct market access for overseas investors. Cross-border financing is subject to full-caliber macro-prudential management.
Li Bin stated that during the 15th Five-Year Plan period, the general trend of multipolarity and economic globalization will not change. However, protectionism, geopolitical conflicts, and fluctuations in international financial markets will also pose challenges to economic operations. Considering both the internal and external environments, China's balance of payments is expected to show a trend of increased scale, optimized structure, and overall balance during the 15th Five-Year Plan period.
The key points summarized by Wall Street Insights are as follows:
We will comprehensively and deeply advance foreign exchange management reform, and continuously build a more convenient, open, secure, and intelligent foreign exchange management system and mechanism. Among these, greater convenience means enabling compliant and trustworthy business entities to conduct foreign exchange business more efficiently and conveniently. We will vigorously promote the reform of banks' foreign exchange business operations and continuously improve the foreign exchange facilitation policy system of "the more trustworthy, the more convenient" and "compliance first."
This will promote more effective risk prevention and control and supervision of cross-border capital flows, continuously improve the "macro-prudential + micro-regulatory" dual management of the foreign exchange market, continuously improve the macro-prudential management of cross-border capital flows, and effectively prevent systemic risks that may be caused by large inflows and outflows of cross-border funds.
The following is a transcript of the press conference:
Li Bin, spokesperson and deputy director of the State Administration of Foreign Exchange:
Thank you, host. Good afternoon, friends from the media! Thank you for your continued concern and support for foreign exchange management. Now, I will briefly introduce the main ideas and considerations for implementing the requirements of the "15th Five-Year Plan" and doing a good job in foreign exchange management.
Looking back at the 14th Five-Year Plan period, under the strong leadership of the CPC Central Committee, foreign exchange management adhered to the principle of balancing development and security. Significant progress was made in foreign exchange sector reforms, the quality and efficiency of serving the real economy were significantly improved, and the capacity for foreign exchange supervision and risk prevention was continuously strengthened. my country effectively responded to external risks and challenges, and its balance of payments remained basically balanced. In 2025, the scale of cross-border payments and foreign exchange market transactions reached US$15.6 trillion and US$42.6 trillion respectively, representing increases of 80% and 42% compared to 2020. The resilience and vitality of the foreign exchange market continued to strengthen, and China's foreign exchange reserves remained the world's largest.
Looking ahead to the 15th Five-Year Plan period, we will firmly promote high-quality development and high-level opening-up, adhere to a service-oriented, open, and security-oriented approach, comprehensively and deeply advance foreign exchange management reform, improve the level of foreign exchange services, and continuously build a foreign exchange management system and mechanism that is "more convenient, more open, more secure, and more intelligent," so as to promote the construction of a financial powerhouse and high-level opening-up to a new level.
The core of making things more convenient is to enable compliant and trustworthy business entities to conduct foreign exchange transactions more efficiently and conveniently. We will vigorously promote reforms in the banking sector's foreign exchange operations, continuously improve the foreign exchange facilitation policy system of "the more trustworthy, the more convenient; compliance first," and allow more creditworthy enterprises to conduct foreign exchange transactions without document review, directly processing transactions based on instructions. Simultaneously, building upon the improvement and expansion of existing facilitation policies, we will study and implement more precise support policies focusing on the "five major areas" of finance, new trade formats, and multinational corporations. We will also further strengthen the coordination of domestic and foreign currency policies, allowing various entities to conduct the same type of cross-border RMB and foreign exchange transactions using a single set of rules.
Greater openness, at its core, means expanding the scope and raising the level of openness in the foreign exchange sector. Direct investment, securities investment, and cross-border financing are the main components of the capital account. During the 15th Five-Year Plan period, we will continue to steadily advance foreign exchange management reforms in these areas, enhancing the stability and predictability of the system. We will continue to strongly support the construction of international financial centers and the opening-up and development of key regions. We will focus on improving the level of openness in the capital account, further enhancing the synergy and compatibility between capital account openness and my country's foreign-related economic development and the internationalization of the RMB.
Greater security hinges on making the prevention and control of risks in cross-border capital flows more robust and effective. We will adhere to the principle of both "allowing free flow" and "managing well," continuously improving the dual management framework of "macro-prudential + micro-regulation" in the foreign exchange market. We will continuously improve macro-prudential management of cross-border capital flows, effectively preventing systemic risks that may arise from large inflows and outflows of cross-border funds, and better maintaining the sound operation of the foreign exchange market; we will strengthen the supervision of the authenticity and compliance of foreign exchange business, and severely crack down on illegal and irregular activities such as fraudulent transactions and underground banks. We will continue to manage foreign exchange reserves with Chinese characteristics, effectively safeguarding the safety, liquidity, and value preservation and appreciation of foreign exchange reserve assets.
To achieve greater intelligence, the core is to improve the governance system in the foreign exchange sector, making decision-making more scientific and implementation more effective. We will continue to improve the more systematic and comprehensive legal system for foreign exchange management and promote the revision of the foreign exchange management regulations. We will further strengthen policy transmission and follow-up evaluation, and improve the three assessment systems: foreign exchange policy assessment, foreign exchange ecosystem assessment, and assessment of banks' compliance and prudent operation in foreign exchange business, to achieve dynamic optimization of foreign exchange policies from supply, assessment to improvement. We will focus on building a modern international balance of payments statistics system. We will focus on improving the digitalization level of foreign exchange management, using technology to better prevent risks while making foreign exchange services more efficient and convenient.
During the 15th Five-Year Plan period, the State Administration of Foreign Exchange will adhere to the principle of coordinating high-level opening-up and high-level security, and combining systematic planning with orderly implementation. We will concentrate our efforts and work diligently to contribute foreign exchange resources to building a strong financial nation and promoting high-level opening-up. That's all for now, thank you.
The following is a Q&A session:
The Paper reporter:
In recent years, the international economic and trade environment has become more complex, with a significant increase in uncertainty. I would like to ask how to view my country's balance of payments situation during the 15th Five-Year Plan period? What development trend will it present? Thank you.
Li Bin:
This question concerns the balance of payments, so I'll answer it. Economic and financial development and structural evolution will be reflected in changes in the balance of payments. During the 15th Five-Year Plan period, the general trend of multipolarity and economic globalization will not change. Technological innovation will continue to profoundly influence global trade and economic activities. At the same time, protectionism, geopolitical conflicts, and fluctuations in international financial markets will also pose challenges to economic operations. China is accelerating the construction of a new development pattern, adhering to expanding domestic demand, deepening high-level opening-up, and continuously promoting the development of new-quality productive forces. Considering both the internal and external environments, during the 15th Five-Year Plan period, my country's balance of payments is expected to show a trend of increased scale, optimized structure, and overall balance. my country's economic and trade ties with the world will become closer, and it will integrate into the global economy with a more open attitude.
Looking at the current account, which mainly reflects cross-border trade receipts and payments, during the 14th Five-Year Plan period, my country's current account balance is expected to grow at an average annual rate of 7.8%, with a 16% year-on-year increase in the first half of 2026. During the 15th Five-Year Plan period, the transformation and upgrading of the manufacturing industry and the development of emerging industries will support the steady growth of my country's foreign trade, and the commodity structure will be further optimized. At the same time, the development of my country's service trade is also gradually accelerating. In 2025, service trade imports and exports will account for 13.5% of total goods and services imports and exports, an increase of 2.2 percentage points compared to 2020, and the trade structure is gradually shifting towards the coordinated development of goods and services.
From the perspective of financial accounts reflecting cross-border investment and financing, during the 14th Five-Year Plan period, my country's average annual outbound investment exceeded US$500 billion, and by the end of 2025, the stock of outbound assets approached US$12 trillion, an increase of 33% compared to the end of 2020. The holders of outbound assets have become more diversified, with the proportion of outbound assets held by enterprises and banks rising from 62.2% at the end of 2020 to 68.7% at the end of the first quarter of this year. Inbound investment in China has generally shown a net inflow, and by the end of 2025, the stock of various types of inbound investment in China will approach US$8 trillion, with a more optimized structure. Foreign investment in high-tech manufacturing and high-tech services has accelerated; overseas investors have increased their holdings of RMB assets, and securities investment has increased its share in all types of inbound investment in China to 30%. During the 15th Five-Year Plan period, my country's cross-border investment and financing is expected to remain active, the opening of the financial market will proceed in an orderly manner, and the scale of outbound assets and liabilities is expected to further increase, with the structure continuing to optimize.
From the perspective of the overall balance of payments, current account surpluses and deficits among countries worldwide are a mirror image. In recent years, the global current account deficit has continued to widen and its distribution across countries has become highly concentrated, while the distribution of current account surpluses has been constantly adjusting in line with changes in industrial division of labor, and is expected to continue its diversified distribution trend in the future. Funds flowing into my country through its current account surplus are utilized globally through overseas industrial and financial investments, contributing to the overall balance of payments and promoting the development of industries and financial markets in partner countries. During the 15th Five-Year Plan period, my country's foreign trade exports and imports will develop more in a coordinated manner, and outward investment and inward investment will further expand, with the balance of payments expected to remain basically balanced.
Looking ahead, we will better coordinate development and security. On the one hand, we will continue to promote the facilitation of cross-border trade and investment, enhance the driving force for foreign-related economic development, and promote the steady increase and continuous optimization of the balance of payments. On the other hand, we will continuously improve macro-prudential management, strengthen the monitoring and early warning of cross-border capital flows, continuously enhance the vitality and resilience of the foreign exchange market, prudently respond to external shock risks, and maintain and promote the balance of payments. Thank you!
Financial Times reporter:
This year marks the 30th anniversary of the convertibility of the RMB under the current account in my country. The 15th Five-Year Plan proposes to enhance the level of openness in the capital account. What are the State Administration of Foreign Exchange's considerations for further deepening reforms to facilitate cross-border trade and investment? Thank you.
Li Bin:
Thank you for your question. In December 1996, China officially announced the convertibility of the RMB under the current account, a significant step in its opening up to the outside world. Over the past 30 years, we have diligently carried out various tasks related to current account convertibility, continuously optimized genuine and compliant supervision, and consistently improved the convenience of current account foreign exchange transactions, effectively serving the development of the real economy and opening up to the outside world. In 2007, the limit on current account foreign exchange accounts was abolished, allowing enterprises to retain foreign exchange at their discretion. In the same year, a convenient annual foreign exchange settlement system of US$50,000 for individuals was established, effectively meeting residents' daily foreign exchange needs. From 2012 to 2013, the requirement for transaction-by-transaction verification in goods trade was eliminated, and the review of foreign exchange transactions for goods and services trade was largely handled by banks, significantly improving the convenience of business transactions. In recent years, dozens of facilitation measures have been introduced to serve the innovative development of my country's trade. Over the past 30 years, the scale of my country's current account transactions has expanded from US$300 billion to over US$8 trillion, sharing opportunities and developing together with countries around the world, making a significant contribution to building an open world economy.
Next, we will adhere to the principle of benefiting enterprises and the people, better serve the development of the real economy and high-level opening-up, and further improve the level of cross-border trade facilitation. We will take foreign exchange business reform as a starting point to promote the shift of facilitation policies from focusing on business management to focusing more on the convenience of entities, and grant higher comprehensive convenience to honest and compliant entities. By the end of July this year, more than 50,000 high-quality enterprises nationwide had benefited from the cross-border trade foreign exchange business facilitation policies. We will continue to vigorously support the development of new trade formats such as cross-border e-commerce. Based on the payment characteristics of cross-border e-commerce, which are "small in amount, high in frequency, and fragmented," we will support banks in providing convenient fund settlement services for cross-border e-commerce based on electronic transaction information such as online orders and logistics. From January to July this year, more than 730 million cross-border e-commerce foreign exchange transactions were automatically and in batches nationwide based on electronic transaction information, serving more than 1.9 million small and micro-sized merchants. We will also provide more precise policy support for key areas and industries, actively respond to the new demands of high-quality Belt and Road Initiative, and support enterprises "going global" to flexibly conduct trade settlement.
While continuously promoting the facilitation of cross-border trade, my country's capital account convertibility is also gradually improving. Looking at several key components of the capital account, direct investment is now basically convertible, and cross-border securities investment has formed a cross-border investment system mainly based on institutional investor mechanisms, interconnectivity mechanisms, and direct market access for overseas investors. At the same time, comprehensive macro-prudential management is implemented for cross-border financing.
Next, we will coordinate development and security, and improve the level of openness of the capital account. We will coordinate the opening of the capital account with the internationalization of the RMB, and promote the deepening of the capital account from channel-based opening to institutional opening, from business facilitation to entity facilitation, from foreign exchange management to coordination between domestic and foreign currencies, and from exchange procedures to full-chain management and services.
In the area of direct investment, the registration process for foreign direct investment will be simplified, the negative list for fund usage will be shortened, more foreign-invested enterprises will be attracted to invest and operate in China, the convenience of cross-border investment fund exchange will be improved, and the coordinated development of "bringing in" and "going out" will be promoted. In the next stage, the State Administration of Foreign Exchange will introduce new measures to facilitate cross-border investment in accordance with the demands of enterprises.
In the area of cross-border financing, we will steadily improve the autonomy and convenience of cross-border financing, and build a macro-prudential management framework for cross-border debt that is simple in rules, convenient in operation, effective in supervision, and controllable in risk. Focusing on the "five major tasks" of finance, we will continue to expand policies to facilitate cross-border financing for technology companies and broaden the scope of pilot policies for facilitating foreign exchange for green foreign debt. The People's Bank of China and the State Administration of Foreign Exchange will also promote the iterative upgrading of policies on integrated RMB and foreign currency capital pools for multinational corporations.
In the cross-border securities sector, we will further enhance the openness of the securities issuance market, promote the alignment of securities trading market rules with international standards, advance the integration of open channels, optimize systems and unify rules, and improve the level of two-way opening of the financial market.
That's all for my answer, thank you!
This article is sourced from China.com.
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