International Risks And Countermeasures Of China's Securities Market Research

With the integration of global finance, markets of all countries are making their way to internationalization foot by foot, securities market included. Since the reform and opening up policy was implemented, national economy has been keeping a continuous and fast growth, which makes our country one of the countries which is attractive to capital. In conditions like that, it is necessary for the securities market of our country to make its way to internationalization. Especially after China entered WTO and QFII system was put forward, we will be more rapid on our way to internationalization and melt in international securities market and become member of international securities market. While securities market internationalization benefits China, it makes us face huge uncertainty risk. If we can't treat it appropriately, it might do harm to the economic development and social stability. Therefore, it is necessary to make a study on risk of securities market internationalization and put forward risk prevention measures。The article gives the basic concept of securities market internationalization; analyzes basic theory of securities market internationalization in detail and briefly describe the history of securities market internationalization of China and other countries. We used history and logical method to study feasibility of securities market internationalization, used the conclusion about premise of securities market internationalization from international organization and some professor, and compare with the securities market opening history of other countries, then verify the feasibility of securities market internationalization of China. The article studies the correlation among international securities market and uses Mundell-Flemming model to analyze the relation between securities market internationalization and exchange systems and money policy. It's key point to analyze the risk with securities market internationalization. We study the influence of securities market internationalization on real economy and securities market, and set forth appropriate measures to deal with the risk. It is difficult to collect data of benefit and risk of different securities market. Furthermore, we need to consider the right suggestion we are going to raise. Additionally, we dedicate to the reason why securities market internationalization makes us face risk, while we don't try to measure the risk. It is one of characters of this article.We arrange the contents like that:Chapter 1, firstly, we give the concept of securities market internationalization and analyze the relation between securities market internationalization and capital account opening and securities market opening in detail; secondly, we expound the basic theory of securities market internationalization, and we look back the history of securities market internationalization of China and other countries by the end of this chapter.Chapter 2, firstly, we analyze how securities market internationalization benefit the national economy and securities market, then we studies feasibility of securities market internationalization of China. Finally, we think it is advisable for China to promote the securities market internationalization.Chapter 3 is important because we analyze the question of risk in this chapter. Securities market internationalization has double faces: benefit and risk. In the first part of this chapter, we make a deep study on how the risk comes. In part 2, we list all kinds of risk we might face after securities market internationalization.Chapter 4 is a chapter to resolve problem. China is a new Market Economy country, so we pay attention to the success and failure other countries met when they made their way to securities market internationalization before we raise appropriate risk pre-prevention advice.Based on our study, we see the risk through the impact of capital flow on securities price in macro-level, and influence the money supply, interest rate, investment and so on, and then influence the macro-economy of host country. Risks of asymmetric information, risk of investors'selling the stocks, failed supervision and competitive risk that investors, listed firms, regulatory authority and intermediaries face respectively are the performances in micro-level. We also see though the risk is inevitable, its influence deeply depends on the extent that national economy follows the market economy system. As far as the risk prevention method is concerned, we think we should work hard in two ways. Firstly, we should get international capital flow under control with appropriate measurement. Secondly, we should dedicate ourselves into further market economy reform with the principles of coordination,moderation and step by step, among which exchange rate system flexibility reform and interest system market reform are most important.