China’s financial landscape continues to show strength as non-banking sectors reported net inflows of cross-border capital totaling $127.3 billion in the first half of 2025. This momentum extends the positive trend that began in the latter half of 2024, according to data released by the State Administration of Foreign Exchange on Tuesday.
The substantial inflow indicates growing international confidence in China’s economy and its financial stability. Analysts suggest that the continuous rise in cross-border capital inflows reflects the country’s robust economic recovery and the attractiveness of its financial markets to global investors.
These inflows can have a significant impact on global markets, especially for developing nations in the Global South. As China remains a key trading partner and investor in many of these countries, robust financial health in China could lead to increased investment and economic opportunities across the region.
The State Administration of Foreign Exchange’s latest data underscores China’s pivotal role in the global economy and signals potential positive ripple effects for economies worldwide.
