International Hot Money, Research On The Impact Of China's Banking System

The 21st century, with the sustained and rapid speed of growth of our country economy, the investment environment is shown as a perfect status. For this reason, the massive international hot money, which is made for getting high profits of speculation, frequently inflows and outflows our country. In particular, after the financial crisis of USA in 2007, countries the macroeconomic situation of European and American is depressed, but which is good enough in China. Therefore, more and more international capital began to frequently flow into the economic system of China, which led to increasing pressure on rising in value of RMB, rising the inflation rate of China, fluctuating the housing sales price. Those can be given a great threaten to our national economic system and a serious affection to the smooth development of China's rapid economic. Based on this, the theory of international hot money will be analyzed, focusing on international capital on the impact of China's commercial banking system related issues.In order to withstand the international hot money frequently flow into China's domestic economy, which can be given a result of arising the exchange rate risk, in this thesis, firstly, we describe the concepts of international hot money, the entering our country ways of hot money and the factors of driving the international hot money into our economics system; Secondly, we analysis how can the international hot money make the threaten to our country commercial bank system. Based on the analysis above, we also make a research for the transmission mechanism. Then, we select the typical seven commercial banks to make an exchange rate risk pressure testing, which clearly described the relationship between the international hot money and our country commercial bank system. Finally, we take some relevant policy suggestions to avoid the shock of China's commercial banking system by international capital.Through the above analysis, the conclusion can be made as following:first, we get the entering channel into our country of the international speculation; second, we know the factors and transmission mechanism of the international capital of China's financial system; third, we get the key factors of the commercial Banks which is under the threaten of the international speculation; forth, we get the pressure testing results among different kinds of commercial banks under exchange rate risk; fifth, we make some targeted policy suggestions for preventing international hot money threats the banking system in our country.