Research On Legal Supervision Of International Short-term Capital

Since the1990s, the trend of economic globalization has been more obvious. With thedevelopment of economic globalization, the international short-term capital has graduallydeveloped into the world’s economic activity is quite an active force, and the growing scale.International short-term capital inflows, which flows into the country, especially in theeconomic development of developing countries to provide the necessary financial support to acountry’s economic development plays a positive role. However, the international short-termcapital flows, but also has a negative impact on the side, and sometimes negative impact farbeyond its positive role. World, especially in developing countries, the financial system is notperfect, imperfect legal supervision, so when the international short-term capital impact on acountry’s economy, these countries would be a huge impact. Current stage, the internationalshort-term capital flows have shown a higher liquidity, larger scale, greater destructivespeculative characteristics, especially on high profits for the purpose of chasing short-termspeculative capital, which huge scale and speed of response is often to make a quickgovernments unprepared, to a country’s economy a tremendous impact, and even into theabyss of economic crisis.After joining WTO, international short-term capital scale of China is growing into ourcountry.1992, China’s utilization of foreign investment into a large golden age, the use offoreign investment reached about17%annual growth rate, but the scale of capital flight as theuse of the expansion of foreign capital is also growing, in2002there has been an internationalnet of short-term capital outflow phenomenon.2002onwards, the pressure of RMBappreciation is expected to increase, especially high international short-term speculativecapital, highly liquid large-scale influx of speculative capital, rising short-term internationalcapital flows into China international scale, to reach582.927billion U.S. dollars in2008,after the Chinese government has introduced a package of4trillion investment plan, and haveattracted international short-term capital inflows in2010, short-term international capitalinflows reaching record highs. With respect to the momentum of rapid development ofeconomy, China’s international short-term capital flows, risk prevention mechanism has been relatively weak. Massive flow of international short-term capital and stable development ofChina’s economy posed a serious threat.There are many problems of short-term capital flows, international legal and regulatorysystem, our various financial regulations are not perfect, the risk of economic operation, withthe scale of international short-term capital flows continue to expand and increase. On theother hand, China’s international short-term capital flows of international legal and regulatorycooperation also needs to continue to strengthen. With the acceleration of world economicintegration, international development trend of China’s financial market is increasingly clear,stable development of the financial system, the requirements of international short-termcapital flows, and the need for effective legal regulation. However, the internationalshort-term capital flows very subtle, with the process of economic development, a variety offinancial innovations and new technological means to continue to produce, internationalshort-term capital by means of these new products and means to stabilize the economicdevelopment of countries with to a great deal of risk. Therefore, the regulation of internationalshort-term capital flows, if it relies on the strength of a country can only get a very limitedregulatory effect. Take the international road, and has become an inevitable choice.This paper uses the law, economics and comparative analysis of international short-termcapital concept, characteristics and economic impact on the elaborate, and analyzes thecurrent situation at the present stage of international short-term capital flows, regulatory andlegal issues. The United States, Japan, South Korea, Chile and other typical countries,different measures of short-term capital flows in the international legal and regulatory aspectsof a Summary Analysis. Based on the empirical analysis and theoretical analysis, the analysisresults good legal regulatory environment is an essential element of international short-termcapital flows to withstand impact, and proposed a complete system of legal regulation ofspecific recommendations to help to strengthen the legal supervision of internationalshort-term capital.In this paper, the study of international legal regulation of short-term capital flows,including the following four parts:The first part discusses the basic theory of international short-term capital flows legalregulation. This section makes analysis of the concept of international short-term capital flows, characteristics, motivation and its impact on China’s economy and so on, and discusses thehistorical development of international legal regulation of short-term capital. The part makes atheoretical basis for the latter parts of the paper.The second part of the problem of short-term capital flows, international regulatorystatus of our country to make a detailed analysis of the law. By this stage of our currentsituation and problems of international short-term capital legal and regulatory system, cometo our country on the international short-term capital must implement effective legal andregulatory conclusions.The third part, the legal regulation of international practice in international short-termcapital flows out of the concrete exposition of the country to make the analysis of typicalnational practice of international legal regulation of short-term capital, and its success orfailure to make lessons learned, as Construction of the regulatory system to provide areference.The fourth part, on the basis of the above section, is proposed to improve the legalsupervision of international short-term capital.