This paper discusses prerequisites and patterns of Less Developed Countries?(LDCs) Capital and Financial Account opening. According to general principal of LDCs?Capital and Finance Account opening and circumstance of China, I put forward the possible way and strategy China may choose. This paper consists of four parts. The first part analyzes LDCs practical condition. I advance LDCs must achieve four most important prerequisites before they open their Capital and Financial Account. These prerequisites are: steady macroeconomics policies, effective financial system and financial supervision system, elastic exchange rate formation mechanism, liberalized interest rate. The second part summarizes different opinions that foreign and civil scholars have on the speed and order of Capital and Financial Account opening, that is, the radualism?pattern and the adicalism? pattern. I hold that LDCs should choose radualism?pattern because they have not achieved these four prerequisites. Then I sum up LDCs?Capital and Financial Account liberalization process. The third part makes a concrete analysis of actual obstacles for China to open Capital and Financial Account. Just because these obstacles, certain measures should be taken before RMB become convertible currency. In the last part, I argue that in the process of Capital and Finance Account opening, we must achieve real exchange rate system, liberalized interest rate, sound macroeconomics reconciling system, perfect financial system and financial supervision system. |