China’s external financial assets exceeded $11 trillion for the first time as of the end of June, driven by a persistent current account surplus and a revival in foreign investment inflows.
The figure marked an 8% increase from the end of 2024, while net external assets grew 16% to $3.8 trillion, ranking third globally, according to a State Administration of Foreign Exchange (SAFE) report published Tuesday.
In the first six months of this year, China posted a current account surplus of $294.1 billion, while its capital and financial account recorded a deficit of $277.6 billion — both already more than half of their respective full-year totals for 2024.
These figures highlight China’s expanding role as a global creditor, as funnels its excess domestic savings into overseas investments. SAFE emphasized that the widening capital and financial account deficit naturally corresponds with the current account surplus and should not be interpreted simply as capital flight or increased pressure from fund outflows.
Reserve assets, at $3.6 trillion, remained the largest component of China’s external assets, accounting for 33% of the total and ranking first in the world. Outbound direct investment was the second-largest component, at $3.4 trillion, followed by portfolio investment of $1.7 trillion.
On China’s liabilities, inbound foreign direct investment (FDI) remained the primary component, totaling $3.7 trillion and accounting for 51% of all external liabilities. Inbound portfolio investment reached $2.2 trillion, its share rising 1.8 percentage points from the end of 2024 to 30%.
During the first half of 2025, the non-reserve financial account ran a deficit of $318.2 billion. However, net inflows of various types of inbound investment reached $67.7 billion, a significant improvement from the second half of 2024. Net inflows from equity-related FDI rose 45% to $39.3 billion from a historic low in the same period a year earlier.
Inbound portfolio investment was dominated by equities, with a net inflow of $37.3 billion. Of this, $28.2 billion went into stocks, a reversal from a net outflow of $2.9 billion in the first half of 2024. Net inflows into debt securities were $9.1 billion, down 87% year-on-year but in stark contrast with the $25.3 billion net outflow in the second half of 2024.
