The Study On China's Financial Security Under Financial Globalization

The article is divided into four parts. The first part has carried on an overalloutline to the financial globalization, including its implication, cause, characteristic aswell as its influence on financial security. The second part elaborated the relationshipbetween the financial globalization and the financial security, mainly built on theexchange rate system arrangement, the international capital movement and otheraspects including the interest rate liberalization, the financial innovation, the openingorder of capital and financial accout, etc. The third part has given an empericalanalysis on the relevance between financial globalization and financial security, whichhas established a linear correlation model between the foreign capital and thecommodity retail price index as well as unemployment rate. The last part has givensome suggestions on China's financial security under the globalization, includingbuilding the financial crisis alarm system, enhancing the financial security from themacro, intermediate and the micro perspective.The innovation of this article lays in the emperical analysis based on thetheoretical analysis. The financial globalization can be measured by foreign capital,the open degree and the state intervention, here we select foreign capital as thestudying object. And the commodity retail price index and the unemployment ratehave been chosen as the financial security target. Finally, the result indicated that theforeign capital has positive influence on both commodity retail price index and theunemployment rate. However, the data is not adequate enough to certify thecorrelationship between foreign capital and unemployment.