AI Data Insight
China's financial account recorded a net inflow of 271.715 billion RMB in the fourth quarter of 2025, strongly reversing the severe net outflow of up to 3 trillion RMB in 2024 and ending five consecutive years of capital flight. This major reversal primarily benefited from aggressive foreign net buying of Chinese securities assets such as stocks and bonds, which not only met market expectations but also indicated that the financial account is gradually dominating the cross-border capital landscape. Looking ahead, short-term capital returns will help support the RMB exchange rate, but in the medium to long term, precautions must still be taken against the risk of capital withdrawal brought about by escalating trade wars.