The Report on China's Balance of Payments in the First Half of 2022 recently released by the State Administration of Foreign Exchange shows that in recent years, China has implemented a wider range, broader fields and deeper level of opening to the outside world, promoting the continuous optimization of China's cross-border investment and financing structure. The report shows that with the continuous optimization of the domestic business environment, the consumer market has huge potential, and foreign investors are willing to invest in China. By the first half of 2022, the stock of foreign direct investment had reached 3.6 trillion US dollars, an increase of 73% over the end of 2012. At the same time, with the development of the real economy and the enhancement of enterprise strength, the demand for domestic enterprises to "go global" has increased. China's foreign direct investment has increased from more than 500 billion dollars at the end of 2012 to 2.6 trillion dollars in the first half of 2022. Driven by the two-way opening of the financial market, more international capital is investing in domestic securities products, and the channels for domestic institutions to invest in overseas securities markets are also expanding. As of the first half of 2022, China's absorption of securities investment and foreign securities investment accounted for 28% and 11% of total liabilities and assets respectively, up 12 and 6 percentage points from the end of 2012. The report mentioned that in recent years, the growth of foreign debt mainly comes from the allocation of domestic bonds by medium and long-term investors such as overseas central banks. The proportion of funds with strong stability in foreign debt has increased, while the proportion of traditional financing type foreign debt has decreased. "China has continued to promote the reform of the RMB exchange rate market formation mechanism, giving greater play to the decisive role of market supply and demand in the formation of the exchange rate." The report points out that with the popularization of exchange rate hedging tools, more enterprises use foreign exchange derivatives to manage exchange rate risk. In the first half of 2022, the proportion of enterprise hedging will be increased to 26%, and the adaptability of enterprises to exchange rate fluctuations will be significantly enhanced, making foreign exchange transactions more rational. According to the report, under the comprehensive effect of market-oriented regulation and other mechanisms, since 2012, China's international balance of payments has gradually formed a pattern of independent balance between current account and capital account, and basically stable balance of reserve assets. (Liu Xinshe)