Comparative Analysis Regarding To The Global Financial Crisis And Southeast Asia Financial Crisis' Influence On Chinese Economy

Comparative Analysis Regarding to the Global Financial Crisis and Southeast Asia Financial Crisis'Influence on Chinese EconomyFrom Sep.2008, American government announced that both Fannie Mae and Fannie Mac were taken over, MER was under the acquisition, Lehman Brothers filed for bankruptcy protection, AIG was nationalized, Goldman Sachs and Morgan changed their roles to bank holding companies, the American subprime crisis which lasted more than one year deteriorated further, and has evolved to an global financial crisis, many global financial institutions had to face to the significant loss, even bankruptcy situation. The global financial crisis leads to drastic fluctuations of global stock market as well as currency market, which hurts the development of the real economy in the end. Currently, Chinese capital and financial account is opening up further, overseas investment is still limited, whereas, our financial system is not mature, and cannot be suited to market mechanism completely, it is lack of the experience in economy-control as well, and the complex economic situation, which adds more difficult to prevent financial risk, therefore, our economy has been influenced by the global financial crisis to a certain extent, besides, considering the Southeast financial crisis which had a profound influence on our country's economy, the comparative analysis of the two financial crisis'influence on Chinese economy is not only necessary for us to learn lessons from other countries during the process of our financial market's development, but also a signal for us to pay attention to national financial safety, particularly in the situation that there is insuperable systematic defect in the existing global monetary system, which leads to financial crisis, therefore, we need to be on the alert and strength the prevention towards risk.This paper is divided into four parts. Part one states the selected topic's purpose and significance, forms a literature review on the related research regarding to global financial crisis and Southeast financial crisis, and introduces this paper's research method and structure briefly.Part two starts to do the comparative analysis on the global financial crisis and Southeast financial crisis briefly, first, the general introduction of Southeast financial crisis is carried out, there are three aspects that contribute to its explosion: 1. Foreign exchange payment means deficiency is the direct reason to the Southeast financial crisis; 2. Overinvestment and bubble economy; 3. Develop capital market with limited effective management and out-dated as well as defective financial system reform. This part engages in the analytical research on these three aspects, and its manifestation, its influences on Southeast economy and global economy. Second, the general introduction to the global financial crisis is carried out, there are five aspects that contribute to its explosion: 1. Overly permissive monetary policy (interest) gives rise to the great development of American real estate industry, which is one of the reasons to the explosion of American subprime crisis. 2. Financial innovation products which are out of real economy's development. 3. Unbalanced internal payment leads to significant excess liquidity in the global financial market. 4. Failure to financial supervision and policy. 5. American over-leveraging lifestyle. This part engages in the analytical research on these five aspects, and the process from American subprime crisis to internal financial crisis, as well as the influences on American economy and global economy. The last part engages in the analytical research on these two crisis in the aspect of their essences, intrinsic motivations, reasons and sources of explosions, primary economic index fluctuations before explosions as well as countries' rescues-the-city-policies after explosions, The results are:Southeast financial crisis belongs to monetary crisis in essence, while the global financial crisis belongs to debt crisis in essence. They are different in essence. Besides, the sources of these two financial crisis are dissimilar as well. Southeast financial crisis sources from overproduction, while American subprime crisis sources from overconsumption. Southeast financial crisis is regional, whereas global financial crisis is global. What's more, comparative analysis regarding to primary economic index fluctuations before explosions and countries'rescues-the-city-policies after explosions are carried out.Part three starts with the comparative analysis regarding to two financial crisis' influence on Chinese economy. Firstly, the reasons that why our country's economy is affected little from Southeast financial crisis are carried out, and Southeast financial crisis'influences on Chinese monetary, attracting global indirect investment, attracting foreign direct investment as well as external trade are analyzed as well. Secondly, the global financial crisis' influences on our country's export trade, attracting foreign direct investment, outward direct investment, real estate and employment are analyzed; besides, case analysis of the global financial crisis' influence on our country's export trade is carried out, as well as the analysis of the influences on our bank industry, stock market and foreign exchange reserves.Last but not the least, comparative analysis regarding to these two crisis'influences on our country's economy, foreign exchange reserves, real economy, foreign investment, attracting foreign investment and financial system is carried out. The results are:the influences caused by global financial crisis are much deeper and wider than that caused by Southeast financial crisis., As the increase of outward foreign investment, the global financial crisis brings us loss more directly, in the meanwhile, these two financial crisis result in more difficulty in global fund, which means the real economy's shock on finance is much larger. Generally speaking, the comprehensive influence caused by global financial crisis is much more significant than that caused by Southeast financial crisis.Part four concludes this paper and lists the preventive countermeasures of financial crisis. This part starts with the summary of this paper. What's more, combining our country's current condition, propose four personal suggestions:1. Strengthening the supervision over financial derivative product, bring financial system reform and innovation into force.2. Opening capital account with cautions, realizing the liberation of capital account gradually.3. Intensifying outward trade strategic adjustment; 4. Reforming foreign exchange reserve system and enlarging investment channel.This paper states the reasons, backgrounds, manifestations, features, and influences on Chinese economy and global economy of global financial crisis and Southeast financial crisis, and pays more attention on the analysis of global financial crisis and Southeast financial crisis'influences on Chinese economy, during the process of analysis, influences on the aspects of foreign exchange reserve, import & export trade, attracting foreign direct investment, outward direct investment, industrial structure, real economy are illustrated, and case analysis of the global financial crisis' influence on our country's export trade is carried out. This paper ends with the conclusion, and the experience as well as lessons we should learn from these two financial crisis. Combining our country's current situation, personal opinions regarding to financial crisis prevention and resolution are presented.