The Annual Conference of Financial Street Forum 2022 is held in Beijing from Nov. 21 to 23. [Photo provided to China.org.cn]
China's foreign exchange market has become more resilient, providing a solid foundation for cross-border capital flows, said Lu Lei, deputy head of the State Administration of Foreign Exchange (SAFE) on Tuesday at the Annual Conference of Financial Street Forum 2022.
According to the official, the level of China's foreign economic activities has remained high since the beginning of this year. In the first three quarters, the balance of payments maintained a basic equilibrium, and the current account surplus stood at a record $310.4 billion, up 56% year on year. In addition, the country posted a net inflow of direct investment, while cross-border capital flows were steady and orderly.
As for China's cross-border capital flow management, Lu said that the foreign exchange authorities had improved the integrated management framework of "macro-prudential policy and micro supervision" to safeguard the forex market's steady operation and national economic and financial security.
Despite the current fluctuations in global financial markets, China's balance of payments structure remains sound, and RMB financial assets have maintained strong global appeal, Lu said, adding that there is still great potential for international investors to increase their holdings of RMB-denominated assets.