The World Financial Integration And Its Impact On China's Finance

The trend of world financial integration is making an extensive and far-reaching impact on the development of world economy as a significant character. It has not only promoted the production of the world, but also increased the risk of international finance, and weakened the independence of monetary policy of each country. The finance service in China is opening its door to the world. We need to make a research on the influence of the world financial integration on China's finance.Beginning with the introduction of the related concepts, the thesis, in the first part, expounds the connotation and character of the financial integration. Then analyzing its cause theoretically and empirically, the author reveals the necessity of the financial integration. The third part is a thorough analysis of the opportunities and challenges of China's finance in the background of the world finlancial integration. The opportunities include the following aspects, i.e., improving the management environment of china's finance, optimizing financial resources allocation, and accelerating the internationalization of China's financial institutions. The challenges include China's economy being put into a dilemma by Krugman's Trilemma; the independence and validity of monetary policy being weakened; the unsound financial laws and regulations as well as the supervision system, the moral risks from excessive protection of the government, the integrated market as a possible excuse made by some countries to interfere in China.Finally, the author logically puts forward some suggestions: moderately opening finance service towards the world and controlling it; building the micro basis of the financial integration by reforming the commercial bank systems rapidly; exploring the integration of banking and security, consummating the financial supervision system, playing China's part in the process of world financial integration by joining the reform of international monetary system.