Research On The Management Of Cross-border Capital Flows In China

Cross-border capital flow, refers to the general conditions of capital outflows and inflows.For cross-border capital flow management, its essential starting point and the foothold in the capital flow on is macro economic development and financial economy influence on safety management. With the global economic integration further development, the scale of international capital flow of cross-border constantly expanding and the form of that is more complicated. Large, sustained capital inflows not only provide the driving force of economic growth for a country, but also intensify and expand the transmission and impact of financial risk, which finally form a threat to the stability and economic security of financial system. How to strengthen the effective management of cross-border capital flows, make sure the capital flows play a positive role to the economic development and prevent the potential financial risk is an important task for many countries.With the level of open economy expending in China, the scale of cross-border capital flows is increased significantly and showed a trend of long-term net inflow, which is resulted in the imbalance of the international payments and affected the independence of monetary policy. Furthermore, there are still a large number of exceptional funds in Cross-border capital flows, which is a threat to the financial security of our country.At present, because the cross-border capital flow management system in China formed in the background of shortage of foreign exchange, the management of large number cross-border capital inflows appears relatively weak and difficult to adapt from a very scarce foreign exchange resources to relative excess of this new situation.From brushing domestic and foreign scholars'researches of cross-border flows management at present,drawing lessons from developed and developing countries'experiences of cross-border capital flows management, this text studied further about the relation among cross-border capital flows, macroeconomic and financial crisis, to building up and improving a cross-border capital flow management system with objectives, principles, strategies and policy recommendations, which adapts to the new situation in China and is more effective. To establish a mathematical model to presents an empirical analysis among cross-border capital flows in China, the real economy and financial factors, come to a conclusion that cross-border capital flows in China are consistent with real economic activities, and there is a certain correlation with the economic cycle. Normal trade and investment activities are mixed with some exceptional cross-border capital flows. The paper researched the impact on cross-border capital flows by the internationalization of RMB and summarized multiple channels of exceptional capital flows in China, analyze the relationship between the net balance of import and export and the net difference of banking exchange, propose the idea of overall supervision for cross-border capital flows and the basic principles for cross-border capital management. To give a definition of "hot money" which formed by cross-border capital flows in China, the paper proposed a theory of the "hot money" both in a broad and narrow sense, give an innovative research to explore the "hot money" causes, analysis method, early warning design and supervision approach.The main conclusion is:large-scale cross-border capital flows in China are consistent with real economic activities, and there is a certain correlation with the economic cycle. Normal trade and investment activities are mixed with some exceptional cross-border capital flows. Exceptional cross-border capital flows, the lagged development of domestic foreign exchange derivatives markets and the internationalization of RMB are the important issue for cross-border capital management in China. Base on changes of the new situation, an overall regulatory system for cross-border capital flows should be established to promote the balance of funds flow, prevent macro-economic of China from adverse effects by exceptional cross-border capital flows.