China's foreign exchange regulator has reiterated its commitment to maintaining stability in the country's foreign exchange market through proactive macroeconomic policies. The regulator emphasized the resilience of the foreign exchange market and its improved capacity to counter volatility, aiming to keep the yuan exchange rate stable at a reasonable and balanced level. Officials have expressed confidence in their ability to sustain stable market operations and to defend against external shocks and risks. Recent data indicates that equity-based foreign direct investment into China increased by 16% year-over-year from January to May 2025. The regulator also noted that the market currently shows no clear expectation for either appreciation or depreciation of the renminbi. Looking ahead, the regulator expects the foreign exchange market to remain steady in the second half of 2025.