Development of China's Financial Opening up and Suggestions
China's economy has made remarkable achievements in its opening-up endeavor，and grown into the world's second largest economy. China is also the world's largest manufacturing country，and a major trading partner of all countries. With the long-term and stable development of China's economy，China's financial industry is also growing. China's financial sector not only has a huge commercial banking system，but also has the world's second largest stock market，the second largest bond market and green bond market. The breadth and strength of the opening-up of the financial sector has been continuously enhanced. It is becoming an imperative part of the world economic and financial development.
China's Financial Opening up Process in Recent Years
China's financial opening up has made significant achievements，which is also reflected in various aspects of cross-border finance. With regard to cross-border financing，China has established a full-caliber cross-border financing macro-prudential management，which has enabled Chinese enterprises and banks to better participate in the international financing market. When it comes to cross-border investment，China has not only encouraged foreign direct investment for a long time，but also has various financial opening up arrangements and reasonable guidance for Chinese enterprises' outbound investment in recent years. China's foreign investment reaches an unprecedented scale. By the end of 2021，China's stock of foreign direct investment was US$2.79 trillion，ranking among the top three in the world for five consecutive years. In 2021，China's two-way investment scale is basically equivalent.
China's financial opening up is also reflected in the construction of free trade zones that began in 2013. Up to now，China has established 21 pilot free trade zones. Those zones actually utilized foreign capital of 213 billion yuan，and achieved total import and export of 6.8 trillion yuan. In free trade zones，we have used less than four thousandths of our country’s land to achieve 18.5% foreign investment and 17.3% import and export. In 2021，China also launched the country's first negative list in the field of cross-border service trade，namely the negative list of cross-border service trade in Hainan Free Trade Port. The establishments of free trade zones，free trade ports and negative lists have also further promoted China's financial opening up.
In addition，the RMB internationalization has also promoted China's financial opening up. After years of development，the cross-border payment function，investment and financing function，as well as the functions of reserve currency and pricing currency of RMB internationalization have been continuously enhanced. The RMB internationalization continues to promote the opening up of China's financial market. By the end of 2021，the amount of financial assets held by overseas entities in domestic RMB stocks，bonds，loans and deposits totaled 10.83 trillion yuan，an increase of 20.5% year on year. The offshore RMB market has been even more active. By the end of 2021，RMB deposits in major offshore markets had reached nearly 1.5 trillion yuan. The RMB internationalization provides a new currency carrier and channel for overseas entities to participate in China's financial opening up，and will provide more convenience for China's further financial opening up in the future.
China's financial opening up is also embodied in the growing presence of foreign participants in China's financial system. At present，China has implemented pre-establishment national treatment plus negative list in the financial sector’s management. For example，in the fields of banks，securities，funds，futures，and personal insurance，the restrictions on the proportion of foreign shares have been removed. In addition，China continues to promote cross-border connectivity of the securities market，launch the Shanghai Shenzhen Hong Kong Stock Connect，Shanghai London Stock Connect，and Bond Connect，and improve the system of qualified institutional investors. These arrangements are conducive to foreign investment’s participation in China's economic development through various channels. In the field of commercial banks，the capital and assets of foreign banks in China have grown by more than 50% in 2021 compared with ten years ago. In the insurance sector，the assets of foreign insurance companies in China increases by six times in 2021 compared with ten years ago. In the section of securities investment，by the end of 2021，foreign investors invested US$2155.4 billion in Chinese securities，a threefold increase over the end of 2012. The continuous participation of foreign capital is continuing to promote the process of China's financial opening up.
Suggestions on Further Promoting China's Financial Opening up
On Financial Opening up of Commercial Bank Sector
After joining the WTO，China began to increase its opening to foreign capital in the financial industry，including commercial banks，which even caused domestic concern about the "cry wolf". However，after decades of financial opening up，the proportion of foreign banks in the total assets of China's b