On The Legal Adjustment Of The Relationship Between China’s Financial Innovation And Supervision

After the outbreak of the global financial crisis caused by the Americansubprime mortgage crisis, the coordination relationship between financialinnovation and regulation has become one important focus of the study.Financial innovation and financial supervision is a kind of dynamic game,both of them promote each other and mutual contradiction. The outbreak ofthe financial crisis, in essence, caused by the unbalanced development in thegame relationship between the financial innovation and financial supervision.The free game inevitably be at the cost of destruction of the financial order.Therefore, construct the automatic balance legal system between financeinnovation and the financial supervision should be the important choice ofcoordination the relationship between them. According to China’s specificconditions, and taking the examples from Europe and America’s financialregulatory reform, China should construct risk demonstration before financialinnovation, set up the risk of warn, evaluate and resolve the program ofautomatic balance supervision system, through the legal standard to correctthe two running deviation automatically, prevent and contain the financial riskeffectively in financial innovation.This paper includes three parts: the introduction, body and conclusion.The first chapter " review of2008global financial crisis " mainly describesthe process of the subprime crisis, the effect of crisis on world financial orderand the author’s reflections on the financial crisis; The second chapter "thehistorical evolution of financial innovation and financial supervision" presentsthe development history of financial innovation and financial supervision, anddiscusses the failure of the United States of America in dealing with therelationship between financial supervision and financial innovation; The thirdchapter "analysis of the game relation between financial innovation andfinancial regulation" studies both stimulating and restricting relationship between financial innovation and financial regulation, specifically speaking,is the relationship between the game, and further analyzes the game relationbetween them; The fourth chapter " the defects in the relationship betweenChina coordination financial innovation and regulation " analyzes the currentsituation of the relationship between financial innovation and supervision, themajor defects and the necessity of coordinating the relationship betweenfinancial innovation and regulation. The fifth chapter “construction thecoordinated law mechanism between China finance innovation andsupervision” proposes the construction of the automatic balance legal systemin China’s finance innovation, when the innovation risk occurs, the regulatorymechanism will contain automatically; when the supervision affects theinnovation excessively, the supervision will deregulates automatically.