The Reform Of International Short-term Capital Flow Supervision In China

Nowadays, financial globalization expands quickly with the enlarging scale of internationalcapital flow, which brings stimulation and opportunities to the development of the worldeconomy;on the other hand, it handicaps the effect and efficiency of controlling internationalcapital inflow as well as outflow, even results in constant financial turmoil taking place indeveloping and developed countries.Typical cases for the damage of the international capital flow include European financialturmoil, Mexico financial crisis and Asian financial turmoil etc. The last one, which broke out in1997, covered most of the Asian countries and areas, endangering the whole economy for a longtime with serious lingering impact.With China's entry to WTO, we should be clear about the significance of the internationalcapital supervision, and speed up the revolution in the manner of management andadministration. As a result, we will be able to protect the national economy from financial hazardand boost economic development within the framework of WTO regulations so as to guarantee asustained, fast and sound national economic growth.This text use theory analysis with real example, history analysis with Realistic analysis andcomparative analysis to analyze the characteristic, reason of international short-term capital flowand theoretical foundation to management of international short-term capital flow. On the basisof recommending experience that other countries manage international short-term capital flowfor reference, the article proposes own opinion of how to control international short-term capitalflow in China.