An Analysis Of Hedge Fund Speculation Lash' Impact On International Economic Relations

The decade of 1990's is both a fast developing period of economic globalization and a period during which the world economy suffering unrest and turbulence. Among the factors which contributing to the frequent international financial crisis, the Hedge Fund is an important one. During the1992 European exchange rate system crisis, 1997-1998 Asian Financial Crisis, the Hedge fund, due to its direct speculation attack, it touched off these crises. After the 1998 Russian crisis, some of the macro-hedge fund failed in investment and stepped into its lowest development stage. Yet the Hedge Fund industry, as a whole, is not affected enormously, it is still undergoing fast development and global penetration, gradually; it becomes a mainstream of the international investors.Hedge Fund has great impact on the contemporary international economic relations. Concerning international finance relations, under the attack of Hedge Fund Speculation, the weakness of the present international currency system is exposed thoroughly: for example, the interior instability of the floating exchange rate system, the neglect of guarding against financial crisis, slow reaction to the financial crisis, international assistant, lack of cooperation and coordination in international assistant, etc. On the aspect of international financial supervision, the insufficiency of legal regulations in developing countries, lack of the supervisory ability and the noninterference attitude of the developed countries, are the key to the success of Hedge Fund speculation. Meanwhile some critical subsidiary conditions to the economic assistant made by IMF also arouse wide-spread dissatisfaction and suspect in the developing countries. Which requires more drastic reform in international financial institutions?Hedge Fund speculation has negative side on international trade, after the outbreak of financial crisis , trade protectionism rises again, trade war appears everywhere , which cause a serious lose on our country's export trade.Hedge Fund speculation lash damages the normal international investment policy. Due to the deteriorating investment environment, huge amount of international direct investment has flowing back to its native place, facing such situation, many developing countries have to readjust their investment policy and identify more preferable provisions to attract foreign investment.This thesis states that, Hedge fund is a new appearance of and crucial tool for international financial hegemony. In different international occasions, Hegemony countries, by maneuvering some international economic organizations to make unfair international economics regulations, paves the way for the Hedge Fund's speculation activities. Hedge Fund speculation lash has posed a severe threat to the economic development, political stability and national security of developing countries. China, as the biggest developing country in the world, after more than 20 years' reform and opening up, it has made remarkable economy achievements. At the same time, it also becomes the target of the international speculation capitals.Therefore, we should do more research on to guard against the hedge fund speculation lash, choose correct way to open financial section, take prudent steps to finance opening procedures, reinforce financial law construction, improve the financial supervision level and actively participate in international financial cooperation, expand its influence in international financial organization, and make great efforts to establish a fair, impartial and reasonable new international economic order to protect our fruit of reform and make a contribution to the healthy development of world economy.