China's Cross-market, Cross-industry Financial Risk

In recent years, with the rapid development of China's financial industry and acceleration of financial innovation, China's various types of financial markets, financial institutions are increasingly closely linked together through capital, finance, business and other ties, weaving to form a complex and large system. Practice shows that such close links greatly improve the efficiency of financial resource allocation, while also making financial institutions or financial markets highly vulnerable to the adverse impact from other market and industry. Coupled with the inherent vulnerability of the financial system, the risk in a certain financial institution or financial market is likely to evolve into a crisis of the entire financial system, thereby seriously affecting our financial stability. Thus, cross-market, cross-sector financial risks get growing attention.April 26, 2005, Governor Xiang of People's Bank of China said in "the first Chinese financial reform Forum"that the practice of prevention and disposal of the systemic financial risk of PBC has shown that cross-market, cross-sector financial risk are on a rising trend. The financial reality compels us to study financial risk from a broader perspective and requires us to give full attention to the cross-market and cross-sector financial risk and implement effective monitoring to ensure the economic and financial security. So what is cross-market, cross-sectoral financial risk? Why would such a risk? What are its specific transmission channels? How to prevent and control? The hope on these issues some preliminary exploration. This thesis will do some preliminary exploration on these issues.The main ideas and logic structure of this thesis is as follows : first defining the cross-market, cross-sectoral financial risks, using this as the standard to summarize our current major cross-market, cross-sectoral financial risks, and then analyzing the causes and major transmission...