The Studies Of Measurement And Prevention Of China’s Systemic Financial Risks

From the Southeast Asian financial crisis in the late1990s to subprime mortgage crisis of2008and then to European and American sovereign debt crisis,the financial crisis in recent years in an international context of frequent causing countries attach great importance to the prevention of financial crisis has become a worldwide issue. China has achieved remarkable tremendous development after30years of reform and opening up,but also we confronted with new problems especially in the financial sector. Perfecting the financial system, strengthening financial supervision and prevention of Financial Risks have been imminent.The article summaried the relevant research literature and prevention measures by analysis of the systemic financial risk status quo and researched China’s financial systemic risk throgh the use of system analysis. The article explained the generation, change and predict prevention of systemic financial risk by the concept of financial stress index. The index system draws on the construction method of Balakrishnan, Danninger, Elke Dag and Tytell. The variable was selected three indicators of banking risk spreads, stock market volatility and sovereign debt spreads. According to the comparison of different periods of financial stress index changes it reflected the changes of systemic financial risk.The article verified the financial pressure changes impact on GDP by construction of the regression model and as a basis pointed out timely that it is important for China’s steady economic growth to guard in a timely against financial systemic risk. On the above analysis of prevention systemic financial risks the article proposed the relevant recommendations.It is an effective way to prevent risks to improve the financial system, tostrengthen financial regulation, to establish appropriate early warning mechanism and to respond promptly.