The opening-up of China's financial market continues and the renminbi assets still remain highly attractive to global investors, says a recent report released by the People's Bank of China.

By the end of 2021, the total amount of renminbi-denominated financial assets held by foreign entities was 10.83 trillion yuan ($1.52 trillion), up 20.5 percent year-on-year. More than 80 foreign central banks or monetary authorities include RMB in their foreign exchange reserves; in the first quarter of 2022, the RMB accounted for 2.88 percent of global foreign exchange reserves. The RMB's share in international payments increased to 2.7 percent in December 2021, overtaking the Japanese yen to become the fourth most used global payment currency, and further increased to 3.2 percent in January, a record high.

The RMB's spot rate against the US dollar has maintained a downward momentum ever since the US Federal Reserve began aggressively raising interest rates, but compared with other currencies, the RMB's exchange rate has remained relatively stable, thanks to the resilience of China's economy and the strong attractiveness of the Chinese market.

The Fed's continuing rate hikes worsen the global economic outlook, but that cannot change China's economic fundamentals and reduce its global attractiveness. The Fed's aggressive rate hikes and a resultant stronger dollar is a routine ploy used by the US to loot the wealth of the world. Because of the dominant position of the dollar, many countries have to follow the Fed in raising interest rates in order to maintain macroeconomic stability. Such forced rate hikes raise funding costs and worsen the fundamentals of the global economy.

However, the Chinese economy is not afraid of the Fed's "rate hike trap". Moreover, after nearly two years of continuous appreciation, the US dollar is likely to face periodic adjustment at any time. China's obvious advantage in being the second-largest consumer market for goods helps it to promote high-quality development and build a new development paradigm.

The accelerating digital network and intelligent transformation of China's huge traditional industries has created a very broad market space for domestic and foreign hardware, software, service and other types of enterprises. Strong economic resilience, a vast market, a rich policy toolbox and vigorous demands from all sectors are forging China into a market with the greatest potential and development space and safeguarding it from any "trap".