The Opening Of Capital Account Under The Circumstance Of Financial Globalization

Globalization means the increase of the means and scale of multi-national commerce and service exchange and the growth of economic dependency and interaction among the nations, caused by the swift and wide spread of technology. International capital transfer has gradually taken the place of international trade to be the chief engineer sponsoring globalization since 1970s and it's enhanced the association and integration among the domestic financial markets and that between international ones to make the financial globalization be the leading constituent of globalizationInternational capital transfer is not only the band between the finance markets of nations but also the significant embodiment and market foundation of finance globalization, which could be frankly evidenced among the members of the international economic cooperative associations since 1980s, magnified, possibly, in the perspective of some economists who still admit the accelerating predisposition of financial globalization and its impact upon the aspects of economics and society.The opening of capital account might be the rapier that not only brings advanced technology and covers the shortage of domestic saving but also conveys serious finance turbulence. Hence how to properly open the capital account is critical for financial development of less developed countries.It is inevitable to open the capital account to the international financial system to meet the need of financial globalization and market integration. China is not an exception, which calls for adopting and the alien experience and adapting it to the local practical situation to gradually realize free capital transfer and to be melt into world economic system.