The Research On Risk Management In The Course Of RMB Capital Account Liberalization

Nowadays our world has already entered the financial globalization era. With the intensification of the financial globalization extent, the desire of China which is at the economic takeoff stage to walk up to the world financial market becomes stronger increasingly. In order to share the income of the financial globalization more, RMB has started to the course of capital account opening transition since it realized current account exchangeable in December 1, 1996. The opening of capital account makes the joint between the domestic financial market and the foreign financial market even closer and enhances the financial risk greatly. Moreover, opening the capital account will enlarge the domestic and foreign impacts, thus makes the obverse function to the economy of opening capital account counterbalanced by some related negative factors. Being negligent in supervising and regulation will produce some adverse effects on the international payment balance, the national economy and even social stability of the countries which have opened their capital account and will even lead to large-scale financial crisis. Since the Asian financial crisis erupted, a prudential attitude has been generally adopted to the opening of capital account in the international society. At the same time, the researches on the resistance of financial risk and the guard agaist financial crisis have been strengthened.Looked on the present economic financial situation of China, there are many insufficiencies such as the high proportion of non-performing assets, the weak ability of financial supervising and managing, the large recessive financial deficit and the low marketization degree of the interest rate and exchange rate. Therefore, opening the capital account rashly will be confronted with certain risks. It is a realistic subject concerning Chinese economic development which risks the Chinese capital account liberalization will meet and how we will be supposed to guard against these risks. This article detailedly analyses the risk factors which we may be faced with in the course of advancing the opening of capital account of RMB proceeding from the theory in combination with the practice. On the basis of the theory and methods of the overseas scholars and the official related to guarding against financial risks,this article also carries on the risk assessment in conjunction with the objective conditions of the opening of Chinese capital account. At the same time, considering the special restrictive factors of the non- international currency country and according to the...