International Comparison Of Capital Account Opening And Enlightment Of China

With the growth of china's economy, China plays more and more important role in theworld economy. It is inevitable for china to open its capital account。And china's capitalaccount opening is not only the need of china, but also the need of the world. China's currentaccount opening in 1996 and entry into WTO in 2001 boost the capital account opening,Capital account opening brings benefit, however it bings risk too. How to realize china'scapital account opening has become a heated topic in china. The thesis proceeds with basic financial theory, focuses on international comparison ofthe experience of several countries' capital account opening and summarizes indictions forreference. First, the basis for capital account opening are provided, which include the theory offinance liberalization, the theory of finance globlazation and the theory of finance sustainabledevelopment. Morever, the paper analyze the relationship between theories and capitalaccount opening. Second, the experience of three kind of countries' capital account opening is comparedand analyzed. The general rule is summarized as: current account opening before capitalaccount, a sound financial system, a national financial system with effective supervisions,stable macroeconomy and so on. Finally, the paper analyzes reasons for china's capital account opening andrestrictions ofliberalization. It is suggested that restrictions of direct investment be lifed first, portfolioinvestment second and banking credit last.