Empirical Research On The Financial Crisis Contagion To Financial Security Of China

In today’s world economic integration environment, the financial crisis have becomeincreasingly frequent and the contagion of financial crisis exists in different sub-marketsis an indisputable fact. The financial crisis contagion has devastating effect analysis ofseveral recent financial crisises, such as sharp fluctuation of financial asset prices, rapiddeterioration of the financial institutions’ operating condition and even quick depletion offoreign exchange reserves. Therefore, the contagion of financial crisis has become asignificant factor which threatens the financial security of one country. financial securityis a hot topic in financial circle in recent years, because financial security has replacedthe traditional political security and military security, which has become the core ofnational security. This thesis is intended to discuss how to maintain China’s financialsecurity from the view of preventing financial contagion, I consider this exploration hasstrong practical significance.This thesis is divided into five parts.The first part is to introduce the background and significance of this study, anoverview of the research results at home and abroad, and also the main research methodand innovation point of this paper.The second part defines several important concepts, including the contagion of thefinancial crisis and financial security, it also analysed the factors consisted of financialsecurity index and the new challenges to financial security.The third part discusses the main mechanism of financial crisis contagion,this is theessence of this theory.It also analysed the impact of financial crisis brought by financialcrisis contagion on China’s financial security.The fourth part is consisted of two pieces,the first on is to verify the exist of crisiscontagion, I utilize the major indexes of China and the United States as the study sampleduring subprime mortgage crisis to make VAR analysis. The second one is to constructfinancial security index and verify the impact of financial crisis contagion to financialsecurity.The fifth part raises countermeasures on how to prevent and defuse financial crisisspread to China.