The Study On Finance Security Of Our Country Under Financial Globalization

Less developed countries (LDCs) have unavoidably been involved in the financial globalization tendency leaded by developed countries since the end of 1960s. As to LDCs, financial globalization brings forth more disasters as well as development chances. Through analyzing finance crisis in LDCs, this paper attempts to study the risk during China's economy going globally, in order to protect our finance security and take relative methods.The paper has five chapters. Chapter One talks about the definition of finance security and the relations between financial risk and finance crisis. Starting with finance crisis in LDCs, Chapter Two analyzes the side effects that financial globalization brings to LDCs and the reasons why crisis happens. Chapter Three underlines the state of China's finance security, considering the current state of our finance industry. Chapter Four probes the international conduction system of finance crisis, especially paying more attention to RMB's reform and the possible risks of our capital market opening. Chapter Five is the conclusion and points out the methods that we should take to protect our finance security are given out.The many idea of this paper is that China is still in the stage of finance marketing. The incomplete financial system exists many unfavorable factors in respect to our finance security. Under such situation, joining into financial globalization, free exchange of RMB and opening of capital market will probablycause large size flow of capital which shocks our current exchange system. At the same time, international finance crisis may transport to our country through these ways and affect China's finance security. So we should strengthen supervision of domestic financial system and accomplishment of financial running system. At the same time, we should make full preparation for finance market which is as a bridge of national and foreign relations, to set up adequate opening policy.