Research On The Management Of Short-term Capital Movements In China

With the development of economic globalization and the liberalization of capital flows, short-term capital in the global market, especially in large-scale, flows in the emerging market economies. From the Mexican financial crisis in 1994 to Asian financial crisis in 1997, from the Russian financial crisis in 1998 to the financial crisis in 2000 in Argentina, every crisis was accompanied by frequent hot money flows worldwide. Every financial crisis invariably was accompanied by frequent international short-term capital flows.What is the reason of international short-term capital flows? How should we deal with the impact of short-term capital flows? How much can China’s economy withstand the negative effects of short-term capital flows? These issues are worthy of our attention.This study has both theoretical and practical significance and it researches the influence factors of short-term capital flows, more targeted measures to take regulatory or guidance, reasonable oriented international short-term capital, in order to reduce its impact on China’s economic and financial environment.This paper studies the causes of short-term capital flows and analyzes the adverse affects of short-term capital flows on China’s macroeconomic, capital markets the commercial banks, and then makes recommendations. This study finds that factors influencing short-term capital flows are mainly arbitrage factor and arbitrage factor. and expectations of RMB appreciation. asset premiums and taxes is the main difference between the US’s international short-term capital flows and U.S. interest rate RMB appreciation expectations, asset premium, US tax differential change in the short term a greater impact on international short-term capital flows. fully demonstrated the short-term profit-driven capital.