Chinese International Capital Flows: QFII, QDII And Liberalization

Under the background of globalization, international capital flows after World War II begin to be more and more important to the world economy and even become the main power of driving the global economy in place of international trade. In the consequence, liberalization of international capital flows also become the hot topic all over the world, especially for the developing countries.After attending WTO, with the development of Open and Reform, there is a high necessary for China to further the liberalization of international capital flows. The liberalization is not only important to the Chinese economy, but also required by the Chinese strategy of globalization. However, the process of the liberalization should be realized step by step instead of immediately, which is mainly because of the imperfectness of domestic capital market, the pity of low international competitive power of domestic institutions and the absence of domestic financial supervision.Liberalization of Chinese international capital flows, QFⅡ and QDⅡ are analyzed in details in this thesis. Basing on the theories of international capital flows and opinions of western researchers on the effect of liberalization, the first and second chapter analyze the necessary for China to proceed it's liberalization of international capital flows. As the necessary step of Chinese liberalization, QFⅡ and QDⅡ are the best choices now. They can on the one side release Chinese supervisions of international capital flows and control institutions or the amount of qualified institutions or capital flows on the other side. So, the third and fourth chapter of this paper analyze both the situation of in- and out- Chinese international capital flows and effect of realizing QFⅡ and QDⅡ. And it also should to be mentioned that a lot of measures should also to be done in the liberation process of Chinese international capital flows besides QFⅡ and QDⅡ, which are concerned in the last chapter of the thesis.In this thesis, that QFⅡ, QDⅡ and the Liberalization of Chinese international capital flows are chosen as the research projects show the innovative of this paper. Combining the great effect of QFⅡ and QDⅡ with Chinese economy, analyses in this paper aiming to find the best way for China to proceed the process of liberalization of Chinese international capital flows is meaningful to China.