China's foreign exchange market showed strong resilience with a generally balanced cross-border capital flow in the first quarter of 2024, according to the State Administration of Foreign Exchange (SAFE) on Thursday.
SAFE's latest data showed that in the first three months, the surplus of foreign-related receipts and payments handled by banks for customers was 3.1 billion U.S. dollars, while the deficit of foreign exchange settlement and foreign currency sales by banks reached 24.8 billion U.S. dollars.
In the first quarter, the balance of receipts and payments made by banks on behalf of clients was generally in surplus. In particular, there was net inflow of cross-border funds in January and February, and there was net outflow in March, as a result of impacts of seasonal factors.
In the three-month period, the balance of foreign exchange settlement by banks on behalf of clients went down by by three percent, with the foreign currency sales stayed flat compared to the same period of last year.
Also in the first quarter, the balance of derivative products of foreign exchange used by enterprises to manage exchange rate risks reached 395.8 billion U.S. dollars, up 23 percent year on year.
"For now, enterprises can have access to Chinese yuan funds more easily and in more diversified ways. The trading volume of foreign exchange derivatives has been growing. The awareness of market operators about risk neutrality has kept enhancing. The size of foreign exchange reserves has remained generally stable," said Wang Chunying, deputy director and spokesperson of State Administration of Foreign Exchange (SAFE).
China’s cross-border capital flow remains balanced in January-March: authorities
During the busy trade activities at the 2024 Canton Fair, some Chinese small and medium-sized clothing businesses engaged in foreign trade are actively seeking opportunities to attract more overseas customers outside the fair venue.
The third phase of the 135th China Import and Export Fair, widely known as the Canton Fair, opened on Wednesday in China's foreign trade hub Guangzhou. Despite not being able to secure booths at the official exhibition area, some small and medium-sized clothing businesses are actively promoting their products in high-traffic areas like subway stations, bus stops, and hotel lobbies where overseas businessmen are seen frequently, seeking to expand their international customer base.
Fang Jianbin, a clothing vendor at the city's Liuhua clothing wholesale market, chose to introduce his business to overseas buyers who just attended the Canton Fair at a subway entrance close to the event venue.
"This is a hub station, and it's very close to the venue of Canton Fair. A lot of foreign traders are seen here during this period, and many of them are customers in the clothing foreign trade," said Fang.
Fang started his business not long ago, and this year he is an "off-site participant" in the Canton Fair outside the official venue for the second time. To Fang, the biannual Canton Fair has the potential to impact his business for the next six months or more.
"Our primary focus lies in clothing foreign trade, specifically trendy women's wear with rapid updates every year. So here today, I hope to find my potential customers," said Fang.
In south China's Guangdong, a province known for foreign trade, the Canton Fair is a big chance for many local small and medium-sized businesses to find new buyers from abroad.
"When I started doing foreign trade, the Canton Fair was already there. You can connect with customers right at your doorstep, which is better than anything else. As long as there are customers, there's a market," said Jiang Yongtao, a vendor at the Liuhua clothing wholesale market.
In addition to finding prospective customers at subway entrances, staff from the clothing wholesale market also give out bottles of drinking water and business promotional brochures to passersby at taxi pick-up points near the Canton Fair venue.
"We hope such activities can also attract more customers and help businesses in our market gain more orders," said Jiang Baochang, head of the clothing market.
Chinese clothing SMEs seek foreign trade opportunities during Canton Fair
