A Record Half for the Yuan's Global Reach
Shanghai's cross-border yuan-denominated business volume reached 20.38 trillion yuan in the first half of 2026, up 26% year-on-year — 11 percentage points faster than the same period last year — the People's Bank of China Shanghai Head Office announced on July 29. The metropolis retained its position as China's top city for cross-border RMB settlement.
What's Driving the Surge
- Trade settlement: Growing preference for yuan invoicing among Belt and Road partners and ASEAN trading partners
- Capital account expansion: Broader Qualified Foreign Institutional Investor (QFII) and Stock Connect usage
- Shanghai's pilot status: As a free trade zone hub, the city offers streamlined FX procedures
Structural Optimisation
The H1 2026 performance was characterised by "growth acceleration, structural optimisation and quality improvement," according to the PBOC Shanghai office. The share of yuan settlement in Shanghai's total cross-border trade continued to climb, reflecting both policy encouragement and genuine commercial preference.
Context
China's cross-border RMB settlement share hit a record 52.9% nationally in H1 2026 — meaning more than half of China's cross-border trade was settled in yuan. Shanghai's 20.38 trillion yuan figure underscores the city's role as the primary gateway for yuan internationalisation.
Outlook
With more bilateral currency swap lines signed and BRI trade volumes expanding, Shanghai's cross-border RMB business is expected to maintain strong momentum through H2 2026, further reducing reliance on the US dollar in the city's international trade flows.