A Study Of Foreign Exchange Questions Based Cross-border Connected Transactions

After the implementation of the policy of reform and opening up, the country has got30years of rapid development and become the second largest economy in the world. The chinaholds the largest foreign exchange reserve and now our country has got the greatest creditnation in the world. Along with the national strength and the improvement of people’slivelihood, the International risk investment also want to get profit. Because of the strictlyfiscal control, the foreign capital could not invest in our capital market. Another way hasbeen favoured by them—cross border connected transaction.Cross border connected transaction born in the aggress of the western colonial capitaland got the great development belong with the Multi-National Corporation’s furtherstrengthen control with the world economy. And now it is showing a rising scale, diversityform, more complex mode of operation, etc.. Through cross-border connected transactions,the cross-border capital can be more hidden and long duratio,it’s amount can be more large.In particular, domestic and foreign interest rate, exchange rate, capital market profit andother aspects are all having serious imbalance in our country. These lead to the rapid growthof cross-border transactions, and presents the irrational fluctuation.This paper innovatively presents that the fast growth, unfair cross-border transactionswill threat our national economic security and stability. It can become the "nuclear weapons" which the international venture investment impact on the economy of China. And now this" nuclear weapons " have the conditions to be detonated. On this basis, this paper based onthe practice, through a detailed analysis of cross-border transactions theory and behavior, tostudy the existing problems in the current foreign exchange management policy andoversight and explore ways and means of establishing an effictive monitoring system,timelyand effective identification and investigation of unfair related transaction behavior ofcross-border foreign exchange management, to improve the pertinence and the validity. Sothat we can protect China’s economic security and the fruits of reform and development.