The Impact Of European Debt Crisis On China’s Finance

When the world has stilll been in the U.S. subprime mortgage crisis caused by the global financial crisis, the European debt crisis began in Greece at the end of2009began to spread rapidly. European debt crisis is a global crisis spreading from the private sector to the public sector, it is possible to bring the world economy second bottom. With the deepening debt crisis in Europe, the European debt crisis has become the focus of global attention. European governments, the European Central Bank and the European Union have been discussions on how to rescue, and also gradually introduced a number of relief measures, but due to difficult to reach mutual consensus,the prospect of the European debt crisis still is worrying. With the impact of the European debt crisis, the global real economy has been slowdown. In the context of economic globalization, as the largest developing country of the emerging economies, the European debt crisis’s impaction on China in the financial system has gradually emerged. Therefore, the study of European sovereign debt crisis and its impact on China’s financial have very important theoretical and practical significanceBased on the comprehensive and lessons on the results of existing research, The paper give full consideration to the current debt crisis in the background, by using the combination of theory and practice, and the establishment of Garch models and VAR model, According to the latest data about European debt crisis, I analyze the European debt crisis’s impact on China’s financial system compared with the impact of research.This paper is divided into five parts:The first chapter is introduction.this paper introduces background on the topic of this article and practical significance, the European debt crisis concept, literature review, research contents and methods, and innovations.Chapter II, the European debt crisis,this chapter introduces the formation and development. Including the reasons for the outbreak of the debt crisis, the European debt crisis spreading to Europe and the European debt crisis spreading to the global economy, as well as the status of the debt crisis. Chapter Ⅲ, the European debt crisis’s impact on China’s financial. From the RMB exchange rate and foreign exchange reserves, the impact of international hot money, banking and other multi-level perspective,I use qualitative analysis method to analyze the European debt crisis on China’s financial impact.Chapter Ⅳ,the European debt crisis on China’s financial Empirical Analysis. Combined with the analysis of the previous chapter and the use of empirical method of combining the European debt crisis on the RMB exchange rate, international capital flows, bank credit conditions and bank liquidity empirical test.Chapter Ⅴ, This chapter presents China’s response to the European debt crisis-related policy recommendations and measures. This paper argues that, to strengthen China’s economic restructuring, accelerate the transformation of economic growth mode; seize a good opportunity for overseas acquisitions; financial crisis and the European debt crisis created a good opportunity to RMB internationalization, we should accelerate the internationalization of the RMB; promote the RMB exchange rate reform effectively. We should achieve the diversification of foreign exchange reserves and expand domestic demand and stable external demand,and strengthen the supervision of financial institutions and financial institutions reform.