China foreign exchange regulator expects continued improvement in investment inflows

State Administration of Foreign Exchange spokesperson Zhao Yuchao said on Friday that foreign investment into China recorded a net increase of about $160 billion in the first five months of 2026, with the positive trend expected to continue.

On Friday, the State Administration of Foreign Exchange held a press conference. Spokesperson Zhao Yuchao reported that foreign investment into China across all categories recorded a net increase of about $160 billion in the first five months of 2026, covering foreign direct investment, portfolio investment, as well as overseas deposits and loans, significantly outperforming the same period last year.

Within the direct investment category, equity investments by foreign businesses in China registered a net increase of more than $50 billion during the January-May period. Zhao noted that China's industrial optimization and technological innovation will keep generating new investment opportunities.

He added that China is steadily expanding institutional opening-up, improving the service guarantee system for foreign investment, and optimizing cross-border connectivity mechanisms in the financial sector. The stability of the renminbi exchange rate will provide global investors with more options for portfolio diversification.

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Photorealistic image of Shanghai skyline symbolizing China's 4.7% GDP growth with economic elements and growth chart overlay
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China reports 4.7 percent GDP growth in first half

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China's economy grew 4.7 percent year on year in the first half of 2026, according to official data released on Wednesday.

Official data showed China's fixed-asset investment dropped 1.6 percent year on year in the first four months of 2026, the National Bureau of Statistics reported.

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Zhu Hexin announced new measures at the 2026 Lujiazui Forum to advance capital account opening-up and support cross-border flows.

Hong Kong’s finance chief says bilateral trade with Gulf states surged 35 per cent in the first five months of 2026. Capital flows from Gulf sovereign wealth funds into Asia reached about 40 per cent of their global allocations last year.

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Moody’s Ratings affirmed China’s A1 sovereign credit rating on Monday and upgraded the outlook to stable. The Ministry of Finance welcomed the decision, stating it recognizes China’s macroeconomic resilience and fiscal strength amid external shocks. Economists attribute this to technological innovation and robust policy support.

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