The Study On China's Security Market Opening

The CITIC (China International Trust & Investment Corporation) issued bonds to collect ten billion Japanese Yen in January 1982, which started the process of the internationalization of China's security market. During the past 20 years, great achievement has been attained with China's security market opening, although disfigurements were existed. Simultaneously, international financial crisis caused by security market opening fleetly happened from time to time.All these make us plunge into considerations: with the constraints of specific national situation and international obligation, what kinds of interest and risk could appear with the security market opening? Which measure should be taken to guarantee the safety of national financial system and the stability of macro-economy? How to balance the security market opening and the domestic financial institution reform, so as to improve the competing capability of national security service supplier? These issues are very important in making policy of security market opening.In the dissertation, two issues have been focused on: the liberalization of security service and free exchange under the capital item. After introducing the relevant theories briefly and reviewing the historical experience of security market opening in the main countries worldwide, the situation of financing, investment, security service and regulation of China's security market have been discussed accordingly. The structure of the dissertation is followed:In the Chapter 1, theoretical analysis on the security market opening has been set forth. This issue includes international capital floating and liberalization of security service.In the Chapter 2, the author reviewed the experience of security market opening worldwide and divided them into three categories: "completely direct opening", "limited direct opening" and "indirect opening". Moreover, the historical dynamics in the forming of each kinds of category has also been discussed in this section. With all this done, the author suggest that the process of China's opening should be made up ofthree stages.In the Chapter 3, the author analyzed the security service opening in China and compared that with the foreign partner, which leads to the conclusion that the authority should provide appropriate insurance and policy in the framework of WTO rules.The Chapter 4 concerned on liberalization of financing. The issue has been discussed according to two clues: China's enterprise finance in the international security market and foreign enterprise finance in the China's security marketIn the Chapter 5,the historical background and process of the liberalization on capital items has been discussed and the merit and demerit of security investment opening has been discussed.In the Chapter 6, with theories on the financial regulation being reviewed, the author compared the regulation institution in the U.K, in the U.S and in the China. It is stressed that it is necessary to promote international cooperation in this field to fit for the drastic variety in the international security market.