A Study On The Progress And Order Of China 's Capital And Financial Account Opening

In recent years as China’s economic scale gradually expanding, and the depthand breadth of China’s opening to the outside continuously increased, capital andfinancial account of opening up is a kind of inevitable trend. Because the maindriving force of the economic globalization is financial integration and the capitaland financial account opening is the precondition to realize financial integration.Economic globalization has all-weather cross-border capital flows and theglobalization of the international capital transactions. After our country implementsthe liberalization of the current account, the capital and financial account area willinevitably be payment under current account and transaction. These make theeffective regulation and measure of the capital and financial account’s difficultyincreasing, and regulatory costs rise. Therefore, in the context of the liberalization ofinternational capital flows, accurate measurement and research progress of China’scapital and financial account opening is a very important subject.Although along with our country really has the certain conditions of openingthe capital and financial account, but the ability of the microscopic main body toresist risk is weak and the financial system is not perfect. Therefore, we must notlook down on the potential risks in the process of opening. Given the opening of thecapital and financial account may lead to some related risks and issues, the opennessand speed should adapt to the present situation of our reform and development.Home and abroad Scholars’ measure of China’s capital and financial accountwas confined to the economic environment, the used data was older and the results’resolving power is not strong. Over the past twenty years, the global economic crisisand financial crisis repeatedly occurred; many crises are due to the improper step ofopening and the too large pace of opening. Therefore it’s very necessary to researchthe progress of China’s current capital and financial account’s opening; we hope tomore accurately measure the opening progress for regulators and provide somecertain references for the decision-making departments. Through analysis and comparison, this article will choose some measurement methods to measure theprogress of China’s capital and financial account opening, and get the latest opennessof the capital and financial account.The opening of the capital account and financial account is a gradual process,and contains many financial tools as well as the potential financial transactions.According to the various actual economic structures as well as the goals, there are alot of possibilities of the opening order. In these possibilities, to find the mostsuitable for China’s opening order is a very meaningful thing. Once the choice of theopening order is unreasonable, it will cause great negative impact on China’seconomy, so the opening order’s choice is very important. In the process of thecapital and financial account opening, it is very difficult to grasp that which itemsfirstly open and which items secondly open. There are a lot of the economic crisisexamples due to the improper selection of the capital and financial account’s opening.Now, although China has the basic conditions to speed up the capital and financialaccount’s opening, but the domestic micro economic main body is relatively fragile,and is weak to resist risk. Therefore choosing the appropriate opening order of thecapital and financial account plays a very key role on China’s long-term stability andeconomic development. This paper will combine the different period measurementresults of China’s capital and financial account opening with the present economicstructures and the target of China to offer some reference to arrange the order.