On Internationalization Of Chinese Securities Market

Securities market internationalization is a necessary requirement of the global expansion of multinational corporations and trade liberalization and it also is the inevitable result of the internationalization of capital and the production in backdrop of world globalization and financial globalization. And also is the inevitable choice to develop national economy and integrate into the world economies. From the early 1990s, China's securities market has started the process of internationalization. China's securities market internationalization has made remarkable achievements under the guidance of progressive mode and an open market-based securities market is emerging that not only increased the resources allocation efficiency, but also provided a strong capital support for China's economy development. However, the securities markets internationalization is"two-edged sword". It will not only increase the resources allocation efficiency, but also bring a huge risk to the world economy and national economy as the same time. Therefore, this article attempted to carefully choose a suitable international road for China's securities market from other countries experiences and lessons base on China's actual conditions, and ensure the financial stability.This paper can be divided into three parts.The first part is theoretical research, including first, second chapters. Firstly, this part analyzed the meanings, motivations and economic effects of the securities markets internationalization. The analysis showed that the securities market internationalization is essentially a process of constantly deregulation and allowing free flow of securities capital in the world. The securities markets internationalization is the result of many factors. There are not only micro-level subjective reasons to promote, but also macro-level constraints on the objective environment which creating a dynamic relationship between objective and subjective reasons, and jointly promoting the securities markets internationalization of in a country. It can be seen from the practice of countries, securities market international can help to allocate capital, attain a vacancy effective allocation of resources and promote economic growth. But the securities market international no doubt will be an impact to the country's economic security while bringing economic benefits. Secondly, this part analyzed international securities markets theory in a more systematic sort and focused on analyzing capital flow theory, the theory of financial deepening and financial innovation theory for this analysis providing a theoretical support to this paper. Through the analysis, this part showed that the securities market internationalization is not only the process of free flow of international capital which mainly promoting by motive to achieve maximum profit of micro-economic body, but also the process of a country's financial system innovation and a process of achieving a continuous financial deepening process for developing countries. The risks and benefits are coexist in the process.The second part includes chapters 3-6 which is the focus of this part, mainly discussed the internationalization of China's securities markets around the key issues.Firstly, pointed out that the internationalization of China's securities market have made great achievements in financing, investment and securities organizations base on the analysis of internationalization process of China's securities market, and have made a significant contribution to China's economic development, securities market development and enterprise restructuring. However, China's securities market is not perfect and international foundation is weak, which also determine the level of China's securities market internationalization is not high. At the same time, China's securities market has also exposed some problems in the process of securities market internationalization; need to be addressed in the future.Secondly, the process of securities market internationalization is a gradual process. It is the result both of institutional change in a specific historical context and the securities market self-development continually, but also constrained by the current system environment, economic environment and its state of development. China's securities market has had the further opening of international conditions through analysis of the external environment and self-development state. But there are many constraints, especially the international basic conditions, the securities market development be still relatively backward which determined that the internationalization of China's stock market can only be gradual, not with strength to quick or full push international.Third, this part analyzed the goals, mode and the main path of Chinese securities market internationalization base on study the history of China's securities market development and various factors which affect on the China's securities market. The development goals and the mode of a country's securities market international must remain consistency and coordination with their national conditions, including economic development, the degree of reform and maturity of securities market development. Therefore, China should choose a limited direct opening mode base on China's actual conditions and achieve the goal of China's securities market internationalization gradually. Meanwhile, China has always attached importance to the foreign securities market for financing to develop national economy and the development of investment and international financiers in China's securities market is behind. Therefore, the emphasis of internationalization will be changing imbalance through the QFII, QDII and introduction of international board timely in the future. We must regulate the securities market development, deepen financial reform in order to successfully achieve the desired objective of internationalization, promote internationalization safely and create conditions for internationalization.Finally, the risk of China is increasing as the process China's securities market internationalization is speeded up. Meanwhile, it also raised new challenges to China's securities market regulatory system and it is difficult to regulate China's securities so that our regulatory system has not been suited to the needs of securities markets internationalization. In this case, we should not only have a full international awareness of the risks and adhere to a gradual development strategy, but also strengthen the securities market regulation in order to response the challenges of internationalization.The third part is learning from International experience, including the seventh chapter. This chapter selected typical representative in developed and developing countries to analyze process comparatively. Although the securities market internationalization process of the developed and developing countries had different background, strategy and results, but we can still find the general law and provide useful lessons to the internationalization of China's securities market, Which are Promoting the securities market internationalization progressively, attention to against external risks and improving financial supervision, regulating the securities market development; fourth is to strengthen coordination with the relevant financial reform.