Defense Of Financial Risk In China During The Process Of Financial Globalization

Financial globalization is the trend of the development of finance in the world, and the economy of the world is affected by it. The development of the financial globalization was fast and catching our eyes from 1980's and the financial globalization is the foremost character of international finance. On the one hand, the financial globalization provides capital element and the chance of arbitrage and the measures to evade risk to every country; on the other hand, it aggravates financial risks. Especial of the Asia financial crisis happened in the 1997, and binged on the international financial unrest, and the development countries were warned to keep away financial risks. Therefore, with the development of financial globalization, there are more overseas and domestic risks for China. Only evading and keeping away these risks effectively, we can maintenance China's financial safety and get more benefits from the financial globalization more safely. This is the aim to choose the theme.Summarizing the evolvement and relative theories of the financial globalization, the reason of engendering it is analyzed from tow aspects, both immanent and extrinsic causes. Financial liberalization creates the environment of regime for the formation of financial globalization. The development of industry of computer and information provides technologic supply to produce the financial globalization. The development of financial innovation provides mighty power to develop financial globalization. These are the extrinsic causes. Under the effect of the capitalistic elementary conflict, capital accumulation was overmuch and profit margin was dropping in capitalistic countries. The capital countries boosted the development of economic and financial globalization in order to delay the conflict and crisis. This is the immanent cause. Only integrating both of the tow aspects, we can know better of the reason of the formation of financial globalization.The reason of the formation of risk of financial globalization is analyzed from the tow aspects we talk about before. The extrinsic causes, on the one hand, provide mighty power for financial globalization; on the other hand, provide good environment to produce risk of financial globalization. Financial globalization can delay the conflict and crisis, but in the same time it brings new conflict. The conflict of hypostatic economy and fictitious economy is more and more drastic under the inflatable credit. The large numbers of capital is accumulated in financial realm from produce realm. Especially large numbers of speculative capital moving globally exasperates the formation of risk. This is the basic reason.The financial risk in China is analyzed from tow aspects in the financial globalization. On the one hand, the financial risks binged by financial globalization are analyzed; on the other hand, the financial risks of finance industry in China are analyzed from banking, securities industry and insurance industry. And how does the financial globalization affect the finance industry in China is analyzed. Through the analysis of financial risks in China, some advices and countermeasures are given.