The Chinese yuan has emerged as the fourth most active currency for global payments, the country's central bank said on Tuesday.
Thanks to various measures taken by the central bank to facilitate cross-border use of Chinese yuan, cross-border yuan payments totaled about 64 trillion yuan (about 8.73 trillion U.S. dollars) in 2024, an increase of 23 percent year on year, Xuan Changneng, deputy governor of the People's Bank of China, told a press conference.
Various indicators of the international use of Chinese yuan have steadily improved, with the ability of cross-border yuan business to serve the real economy continuously enhanced, showed data from the central bank.
Over 80 overseas central banks and monetary authorities have included Chinese yuan in their foreign exchange reserves.
The balance of Hong Kong's offshore Chinese yuan deposits exceeded one trillion yuan, while the offshore Chinese yuan loan balance approached 700 billion yuan, both at historically high levels.
The PBOC will continue strengthening Chinese yuan's coordination with foreign currencies and facilitating yuan-based cross-border financing to create a favorable environment for domestic and foreign entities to hold and use the Chinese currency.
"We will support Shanghai in its efforts to build a global Chinese yuan financial asset allocation center and risk management center, and support yuan-based trade, financing, overseas loans, and the issuance of Chinese yuan bonds. We will improve the supply mechanism of offshore Chinese yuan liquidity, support the sound development of the offshore Chinese yuan market, and consolidate and enhance Hong Kong's status as an international financial center and offshore Chinese yuan business hub. We will improve the infrastructure facilities for cross-border use of Chinese yuan, rationally set up new Chinese yuan clearing banks, and continuously enhance the functions and services of the Chinese yuan cross-border payment system," Xuan said.
China's yuan rises to fourth most active currency in global transactions
Cultural products and electronics top the list of popular items on e-commerce platforms during a month-long online shopping event for festive goods leading up to the Spring Festival.
The event, initiated by the Ministry of Commerce and organized under the guidance of several government departments and the China Consumers Association, will run from Jan 7 to Feb 5.
According to the ministry, this event marks the first nationwide online sales promotion following the inscription of the "Spring Festival, social practices of the Chinese people in celebration of traditional new year" on the UNESCO Representative List of the Intangible Cultural Heritage of Humanity in December 2024.
The event aims to meet people's consumption needs during the festive season, promote traditional Chinese culture and boost e-commerce sales.
On Taobao and Tmall, platforms under China's e-commerce giant Alibaba, searches for products featuring distinctive elements of traditional Chinese culture have surged in popularity as the festival approaches.
"Apart from food, there's a heavy focus on tradition and culture this year," said Lao Guoling, director of the e-commerce research institute at the Shanghai University of Finance and Economics.
He also noted that young people are bringing a more fashionable touch to the traditional festive atmosphere.
"The younger generation emphasizes emotional value, opting for new interpretations of traditions. For example, young people might buy festive toys, such as a LEGO kumquat tree, instead of an actual one," Lao said.
Electrical products are also gaining popularity among consumers' purchases for the Spring Festival.
According to a survey conducted by the research institute of Chinese e-commerce giant JD.com, while food and beverages continue to be the top choices for out-of-town workers to bring home, nearly half of them are also opting for appliances such as televisions and washing machines.
Lao stated that government subsidies are playing a crucial role in driving consumption of electrical products.
"This year's subsidized items include smartphones, tablets, and smartwatches. This can encourage people to upgrade their own devices or buy these smaller products as gifts," she said.
Cultural items, electronics lead online shopping event for Spring Festival