The statistics reveal that at the end of June 2011 China’s external financial assets hit USD4615.2 billion, external financial liabilities reached USD2630.1 billion, and external net financial assets totaled USD1985.1 billion.

Among the external financial assets, direct investments abroad amounted to USD329.1 billion, portfolio investments USD260.4 billion, other investments USD755.1 billion, and reserve assets USD3270.6 billion, accounting for 7 percent, 6 percent, 16 percent, and 71 percent respectively. In terms of external financial liabilities, foreign direct investments totaled USD1583.8 billion, portfolio investments USD230.9 billion, and other investments USD815.4 billion, accounting for 60 percent, 9 percent, and 31 percent of external financial liabilities respectively.

The International Investment Position (hereinafter referred to as the IIP) is a statistical statement reflecting the stocks of financial assets and liabilities of one country or region to other countries or regions in the world at one specific point; together with the Balance of Payments Statement (BOP Statement) it constitutes the complete international accounts system, indicating the country’s or region’s trade flows.