The RMB’s rise above 7.0 presents a development opportunity for cross-border payments and fintech.

On December 25, 2025, the financial market witnessed a significant change as the offshore RMB exchange rate against the US dollar broke through the 7.0 mark, the first time since the end of September 2024. Exchange data showed that the Cross-border Interbank Payment System (CIPS) sector performed actively, with Sifang Jingchuang and Zhongyi Technology rising by over 10%, and Cuiwei Co., Ltd., Lakala, Chutianlong, Xinchen Technology, and Xinguodu following suit. The strengthening of the exchange rate is generally seen as reflecting a positive economic outlook, improved cross-border capital flows, and increased confidence among international investors. From the perspective of the transmission path in the financial market, RMB appreciation helps reduce the foreign debt repayment costs of domestic financial institutions and enterprises, and may attract more foreign investment into RMB-denominated assets, thus directly benefiting the financial sector. Furthermore, the stable and favorable exchange rate environment has created more favorable operating conditions for fintech companies involved in cross-border payments and settlements. The fintech sector is poised for significant growth. The strengthening of the RMB exchange rate and the accelerated digital transformation of the financial industry will directly benefit this sector. A stable exchange rate reduces the technical development and operational risks of cross-border business, while the huge demand from the banking industry for fintech software development and innovative services provides relevant service providers with a certain market growth space. In particular, companies with deep experience in core banking systems, digital banking channels, payment clearing, and blockchain applications are expected to benefit from the industry’s high growth. Traditional financial institutions will also benefit from two aspects. On the one hand, the expectation of RMB appreciation may attract foreign investment to increase allocations to A-shares, which is beneficial to brokerage and wealth management businesses. On the other hand, insurance companies and other institutions hold a large amount of foreign currency assets, and the appreciation of the exchange rate will directly improve their financial statements. Meanwhile, regulatory authorities have recently adjusted the risk factors for insurance companies’ investments in related stocks, which will help release the space for equity investment by insurance funds and improve their profitability and valuation levels. The cross-border payment and settlement sector is also seeing development opportunities. The RMB exchange rate breaking through a key psychological threshold has enhanced the attractiveness of RMB assets and is expected to promote cross-border trade and capital flows. This will directly increase the demand for efficient and secure cross-border payment and settlement services. Companies focusing on RMB Cross-border Payment System (CIPS) related technologies, solutions, and operational services are expected to see their business volume grow accordingly. Zhongyi Technology, as a domestic IT architecture service and fintech solutions provider, recently won the bid for Huatai (Hong Kong) Futures private cloud construction project and Huatai Futures IT technical support service project, demonstrating its competitiveness in the financial industry’s IT services field. The company’s business is closely related to the digital transformation of financial institutions and is expected to benefit from the expansion of the fintech market. Sifang Jingchuang is a fintech service provider focusing on the banking industry, providing software development, consulting, and system integration services to banks, regulatory agencies, and others. The company has submitted its listing application to the Hong Kong Stock Exchange, and its prospectus reveals the broad prospects of the fintech market. ZT Electronic’s main business covers fintech electronics, IDC, and cloud computing. In the fintech sector, the company provides products such as payment terminals and encrypted keyboards, which are closely related to the construction of bank payment systems. The internationalization of the RMB and the deepening of cross-border payment business may drive demand for its financial terminal equipment and solutions.