Financial Liberalization In Developing Countries And China's Financial Opening Up

As the world economic and financial globalization deepens and extends, the development pattern and characteristics of the world economy and finance have been significantly changed. Confronted with the tide of economic and financial globalization, developing countries open their finance system, and involve themselves in globalization in line with their respective economic development features. Over decades of development, great achievements like the Four Tigers have been made, but several severe financial crises have been experienced as well.As the largest developing country in the world, China shares the general features with other developing countries, and has her own advantages and weaknesses. It is now a turning point for China to open the finance market. On one hand, it has been four years since China got access to the WTO, and the schedule of China's finance opening has been determined. On the other hand, the interest rate determination and capital formation pattern needs improving, and RMB is expected to become convertible and internationalized, which greatly boosts the finance opening of China. The bank system of China, however, is heavily burdened by historical problems, the international competence of China's finance enterprises is not so satisfactory, and the finance opening of China will face impacts and pressure of many aspects, which are hardships and difficulties China needs to endure in finance opening. By analyzing and introducing the finance liberalization patterns of other developing countries, and comparing those with the characteristics of China, we will hopefully be more sober than aimless, and take more shortcuts than tortuous paths in our finance opening.Analysis of major characteristics of developing countries' finance system and retrospection of finance liberalization theories are made at the beginning of the paper. What follow is the main part of this paper, courses and features of finance liberalization of typical developing countries. On the basis of lessons learned from...