Financial Risk Analysis On Condition Of Open Economy

From 1980's, serious problems occurred in financial systems of many countries. Financial risk and financial crisis have become a problem that cost a great amount of economic resource to deal with, and the situation exists in not only developing countries but also developed countries. With the gradually increasing of economic opening degree in worldwide, complexity of forming cause and influence of financial risk are enhancing. As a result, the study on financial risk is of significance not only on theoretic level but also on practical level.As a systemic analysis of financial risk on the condition of open economy, in the angle of information economics, risk roots from inadequacy and asymmetry of information. Inadequacy of information arises of exogenous risk, and asymmetry of information arises of endogenetic risk. Considering theoretic meanings of risk in economy field, division of labor and its evolvement are involved. Occurrence of division of labor and private information are the root of asymmetry of information in economic field. With the development of modern economy, as its symbol and foundation, finance occupies "control" position, and risk father evolves into financial risk. At the same time, finance evolving by itself result in financial risk also. With the development of economic financiation and enhancement of finance evolving by itself, financial risk occupies chief position in risk world increasingly.Opening is another character of modern economy. On the condition of open economy, resource can gain a better distribution, and financial opening can improve financial efficiency; However , on the condition of open economy, financial risk, whether exogenous risk or endogenetic risk, increases observably.Financial risk has evident diffusibility and infectivity. There is common feature in the way by which financial risk spreads in financial field, and that is financial risk conducting mechanism: asymmetry of information enhance adverse selection and moral hazard in financial market, which result in fluctuation of financial asset price. Price of financial assets has a self-inducing mechanism which make it depart equilibrium level. Price departure , whether overhigh or overlow, might lead to overoptimistic expectation or overpessimistic expectation. Due to flock effect and herd behavior, price regression occurs, which usually happens suddenly and penetrates start point. Consequently, crisis breaks out. On the condition of open economy, financial crisis spreads to other countries through international trade, capital flow and expectation. The mechanism can be illustrated by financial crisis in Japan in the end of 20 century. The study on financial risk conducting mechanism is the main basis of financial risk prevention. To know how financial risk to form, conduct is necessary to build reasonable financial prevention system. So, the study on financial risk conducting mechanism is the key part and main creativity of this paper.Our country is in a special term of economic shunt, so forming and evolvement of financial risk have some new features. Faced with complete opening of financial industry, financial risk prevention is of more importance in economic work of our country. To prevent financial risk in our country, we should stand on the objective situation of our country, explore a China-characteristic road.