The Study On The Risks From The Internationalization Of China's Securities Market

With the trends of financial globalization, many countries have relaxed their financial controls and liberalized their domestic financial markets. At present,the main securities markets of the world are International. After China joined WTO and introduced QFII, China's securities market has already begun the course of internationalization. Along with the deepening financial reform, the internationalization of China's securities market will be greatly accelerated. Eventually, it will become an integral part of the international securities market. The internationalization of the securities market brings many opportunities to China's development. But it also can cause huge risks. So it is a necessary work to study on the risks from the internationalization of China's securities market and put forward many countermeasures.In fact, the internationalization of the securities market is the capital flowing from one country to another in the media of securities. Using the theories of portfolio and the Krugman's"trilemma", This paper analyzes the relationship of the internationalization of securities market and the financial risks. Then this paper shows the necessary preconditions to the internationalization of securities market. If the internationalization of securities market want to be successful. It's necessary that its securities market must be mature and perfect, and also its macroeconomic must be stably, and the internationalization of securities market should be guided by its inherent development law.China's securities market is a very young and premature market. For such a market, it has some preconditions for the internationalization of securities market although. Because of problems in the stock market itself, and the lack of macroeconomic conditions, the internationalization of China's securities market will face huge risks. Therefore, we should take the following countermeasures to reduce the risks associated with the internationalization of our securities market. First we should nurture and develop the domestic securities market, then maintain coordinating between the internationalization of securities markets and macroeconomic,finally follow the inherent law of the securities market internationalization.