The Study On Improving Regulatory Measures Of Short-term International Capital Flows In China

Under the trend of global finance integration,China is steadily promoting financial liberalization.In the international finance area,capital and financial accounts are gradually being increased the intensity towards opening in order to fulfill the demand of opening and the RMB internationalization.But it is inevitable that issues occur during the process of the opening of the capital and financial accounts,and they are inevitable twists and turns during the way forward.Short-term international capital flows(SICF)issue is one of the important issues.SICF is the key issue to the economic overall situation because of their features.From the big side,SICF are the culprit in many financial crises while from the small side they are connected to the stability and development of a nation or area.So it is a vital important issue that China has to face in the future that how to effectively regulate the SICF under the background of the opening process of capital and financial accounts.It is also the meaning of this paper.This paper studies the issues of SICF of China and its regulatory measures to find out the inner connection between them,and make issue-solved-oriented suggestions to improve the current regulation.This paper consists of five parts.The first part is the introduction.It mainly consists of the background and significance of the study and literature review.The background of this paper is that the continuous opening process of capital and financial accounts,and the significance of this paper is that maintain the security and stable development of finance under this very background through the study of improving the regulation of the SICF of China.The foreign part of the literature review is listed systematically in chronological order which mainly includes the study of regulatory measures of the short-term capital flows in the developed countries and the emerging countries.The domestic part of the literature review is listed systematically by different backgrounds which mainly includes the studies of regulation of the SICF under different backgrounds.The second part is the basic theory on the SICF and its regulation.The theories on SICF include the Asset Portfolio Theory,the theory of currency crisis and the theory of expectation.And they are instructive to analysis the current situation of the SICF.The basic theories on regulation of SICF include the Impossible Trinity Theory,the Financial Innovation Theory,the theory of public interest and the big data theory.These theories can answer the question on why should we implement regulation and what kind of regulation should we implement.The big data theory is the highlight of this paper and it makes innovated suggestions to set up the big data financial regulation platform.In the third part,it analyses the current situation of SICF and its main issues.In the first place it uses the data on the BOP to calculate the scale of SICF of China through the directed and undirected methods respectively.And this paper analysis its current situation and draw the conclusions that the scale of the SICF are increasing fast,the continuous net outflow of the SICF and the huge Net Errors and Omissions.Finally it finds the issues of the SICF: the Net Errors and Omissions include so much capital flight,the continuous net outflow of the SICF leads "depreciation expected self-fulfilling" currency crisis risk,and the bad situation of capital outflows via the non-compliant channels.In the fourth part,it discusses and sorts out the main issues of current regulation on SICF in China: current regulatory ideas are weak to improve the micro-prudential regulation,lacking of necessary coordination between the regulatory authorities,conflicted goals of the regulatory objects,simplification of regulatory measures and the outdated regulatory techniques.These issues are connected to the main issues of the SICF of China.The fifth part proposes specific suggestions against the issues found in the fourth part: establishing the "two peaks" regulatory idea of "macro-prudence plus behavior regulation",setting up SICF regulation committees to improve communication and coordination between different authorities,implementing different regulation to the regulatory objects,introducing price means and setting up the big data financial regulation platform.