Status And Challenges Of Finanical Integration In East Asia

Asian financial crisis highlights the importance of regional financial integration inEast Asia.Governments in East Asia have strengthened the cooperation and dialogue infinancial sector.Through establishing the mechanism of regional financial cooperation,thefinancial integration is promoted and the ability to withstand crisis is aslo enhanced.Especially after the advent of the euro,the East Asian countries and regions realizedthe strategic importance of regional financial integration to the stability and developmentof the regional economy and to enhance regional influence in the internationalarena.Academia put forward various proposals,in which the idea of building AsianMonetary Foun and sub-element system caused widespread concern in East Asiacountries,and even in the international community.In2008,the East Asia’s poorperformance in global financial crisis make people think:what degree of financialintegration in East Asia actually arrived?In facing with the deepening of fiancialintegration,what challenge will East Asia face?Clearly understanding the problem canhelp government clear what the constraints in regional financial cooperation and can laya solid foundation for further promoting the process of fiancial integration in future.This paper use two methods of quantity and price in stock and band markets tostudy the current situation of the East Asian financial integration.First, the degree offinancial integration in East Asia is increasingly enhanced,especially after the2007global financial crisis,the integration is accelerating.Second,there is a significantimbalances in the financial integration of East Asia and there is a significant gap in tepace and degree of bond and stock market.At the same time, the continuous progress offinancial integration of East Asia bring challenges in the level of domestic, regional andglobal. These challenges become the "reaction force" in promoting the financialintegration in East Asia.