In the first half of 2022, China’s capital market performed well in the storm of epidemic and inflation in most markets and economies around the world. According to PricewaterhouseCoopers, the number and financing amount of IPOs in the A-share market exceed that of other major capital markets in the world. Although IPO fund-raising activities in the Hong Kong market slowed down in the first half of this year, the long-term prospects are still good. Boston Consulting Company even predicted that by 2026, with the rapid rise of Hong Kong’s status as a global wealth management center, Hong Kong will replace Switzerland as the world’s largest cross-border asset center< Br > < div class= "contheight" > < / div > investing in China and optimistic about the unified market has actually shown strong performance as early as the beginning of this year. According to the statistics of the Ministry of Commerce, from January to May this year, China’s actual use of foreign capital increased by 17.3% year-on-year (denominated in RMB); For large projects with contracted foreign capital of more than US $100million, the amount of foreign capital actually received increased by 40.3% year-on-year, reaching US $47.68 billion, accounting for 54.3% of the actually utilized foreign capital in the same period. A large number of multinational giants, including Tesla, BMW and Volkswagen, are stepping up their deployment in China< Br > < div class= "contheight" > < / div > foreign investors are optimistic about China’s central and western regions. They believe that the central and western regions still have the same growth space as the coastal regions in terms of global production factors, including land, capital, technology, talent and information, and human capital will be better than China’s coastal regions. The central and western regions will be an important driving force for China’s development, and with the implementation of the “the Belt and Road”, the western region will become a key plate connecting the East with the west, intersecting land and sea, and intersecting Europe and Asia. In fact, in the first five months of this year, Chongqing and Chengdu attracted a substantial increase in foreign investment year-on-year< Br > < div class= "contheight" > < / div > multinational companies have increased their investment in China, which reflects that global capital is optimistic about the Chinese market, and investors have good expectations for the development of China’s economy. Recently, chambers of Commerce and associations such as the American Chamber of Commerce in China, the European Chamber of Commerce in China and the Japan trade and Investment Promotion Agency (JETRO) all believe that China is a hot land for future investment after the epidemic, and an important investment destination to get rid of the impact of the epidemic and achieve the profit growth of multinational enterprises< Br > < div class= "contheight" > < / div > the development of the conflict between Russia and Ukraine, especially the disconnection and “decoupling” of the global industrial chain and supply chain, has accelerated the eastward movement of global capital to Asia and China. Chinese technology stocks have been heavily overweight by U.S. investors. According to statistics, from May to June this year, global capital has injected $15billion into China’s A-share market, that is, an average of $7.5 billion per month. This amount and speed of capital injection have never been seen in the past< Br > < div class= "contheight" > < / div > and direct investment (green space investment) is even more outstanding. According to the statistics of the Ministry of Commerce, from January to May this year, China attracted an average of US $17.5 billion in foreign direct investment per month, with an average monthly growth rate of 20%. It can be seen that foreign capital favors the Chinese market< Br > < div class= "contheight" > < / div > how will China attract foreign investment in the second half of this year and the next five years? In my opinion, it is the best time for China to attract foreign investment, especially in the central and western regions, which will usher in a new round of investment boom. The main reasons are as follows:

< /div> first, since the conflict between Russia and Ukraine, world energy prices have soared, and European enterprises have shut down or shut down many factories due to lack of energy or insufficient supply of parts and components, such as some automobile manufacturing enterprises, chemical enterprises, steel enterprises Medical device enterprises, precision instrument enterprises, etc. It is understood that many factories have turned their goals to invest and set up factories in China in order to get out of the enterprise crisis. We should firmly grasp this opportunity< Br > < div class= "contheight" > < /div> second, China’s unified market highlights its charm of attracting foreign investment. So far, the global epidemic is still rampant, and the US inflation data may exceed 10% in the next few months. The whole market fluctuates greatly, the signs of economic recession have appeared, and the eastward movement of the global manufacturing industry has accelerated in the second half of the year. It has become a general trend for multiple capital to rush into the Chinese market. Many multinational companies’ investment in China has changed from hesitation in the past to a decisive decision. Many projects have also increased capital, expansion and capacity, which is a great opportunity for China, especially the central and western regions, We should let more capital, technology, manufacturing and talents develop in the new round of market competition by taking advantage of the advantages of the central and western regions< Br > < div class= "contheight" > < /div> third, in order to curb inflation, the Federal Reserve raised interest rates by 75 basis points in June, causing a sharp rise and fall in global commodities, making China’s economy show strong advantages and resilience. Not only the domestic market price is relatively stable and the supply is sufficient, but also the dual circular economy pattern has brought more domestic and foreign market orders to enterprises. According to the statistics of the General Administration of customs, in the first half of this year, China’s import and export increased by 10.3% year-on-year (denominated in US dollars), which is expected. The relatively strong growth of foreign trade is due to China’s ability to fight the epidemic in the early stage, taking the lead in resuming production and business in the world, enabling the industrial chain and supply chain to turn around, and the superposition and release of the effects and powers of various stable foreign trade policies. Similarly, the effect of the government’s policies to promote consumption and investment is believed to be gradually apparent. I think China’s GDP growth will soon return to about 6% in the third quarter of this year< Br > < div class= "contheight" > < /div> fourth, China will continue to strengthen its high-level opening-up. The 20th National Congress of the Communist Party of China will be held this year. China will introduce more favorable policies, especially in strengthening the protection of intellectual property rights, creating the best business environment in the world, and realizing a market-oriented, legalized and international market system as soon as possible. There will be more policies and measures for opening to the outside world. With the improvement of the epidemic situation in China, these measures will have a stronger effect of attracting foreign investment. This opportunity is rare for private enterprises, especially for the central and western regions< Br > < div class= "contheight" > < / div > to sum up, China will usher in a new round of foreign investment boom, and China will be regarded as the best choice for investment by the world. A new round of investment boom is bound to accelerate the formation of China’s dual cycle pattern and accelerate the building of China’s unified market< Br > < div class= "contheight" > < /div> (the author is the former Vice Minister of the Ministry of Commerce, and the original title: “Wei Jianguo: currently is the best time for China to attract foreign investment”)