China's foreign exchange market kicked off 2026 with stable operations and net capital inflows, according to official data released this week. The State Administration of Foreign Exchange reported $286.3 billion in total settlements and $206.5 billion in sales last month, maintaining confidence in the world's second-largest economy.
Breaking Down the Numbers
While January's surplus dropped 20% compared to December 2025, administration spokesperson Li Bin attributed this to seasonal factors rather than structural issues. Cross-border transactions involving non-banking sectors reached $781.6 billion in receipts and $699.5 billion in payments, showing continued economic activity.
Sector-Specific Trends
Trade in goods saw a 27% monthly decrease in net capital inflows, while services trade experienced a 23% rise in net outflows. However, securities investment flows remained stable – a key indicator for global investors tracking China's financial markets 📊.
"China's forex market continues to show active trading and stable expectations," Li emphasized, highlighting that cross-border capital flows are becoming "more balanced" overall.
