Research And Evaluation On Openness Of Financial And Capital Account In China

While world economic deeply on the way of globalization, China has started opening thecapital and financial account in order to participate in the optimal allocation of internationalresources, to buoy up and develop our country economy. With innovation of technology andfinancial instruments, international capital flow become convenient and the scale of flowincreasingly large. This not only requires adapt to the change for the national rejuvenation, butalso requires new process of openness based on economy security and stable development.This article analyzes present capital account liberalization and measure the effect to studyChina’s openness of capital account, aiming to provide some reference for the opening of capitalaccount.There is still not an accurate and effective index as a universal fit guide for measuringopenness of capital account. The existing methods can be classified as descriptive index andnumeric index. This paper uses numeric index to fill up efficiency and accuracy what is deficientin descriptive index, and uses descriptive index to atone for endogenous defect of numeric index.Based on analysis and data collection that refer to China’s opening of capital account, this articlehave measured it and catch the conclusions: China selecting steady,cautious strategy in theopening of capital account, as in most situation the government encourage opening politicallywith a lot of specific circumscription. On the data study, rapid development of economic,increasing scale of capital flow can not conceal the fact that our opening of capital account is inan early stagy. The problem is administrative capital controls, poor financial industry andconserved reform of structure. On personal opinion, increasing efficiency of enterprise, financialdeepening and improving market system are the keys to the success of the opening of financialand capital account.