Research On The Financial Stability Of China In The Background Of Economic Globalization

With the gradual deepening of economic globalization,the phenomenon of increasingly rich financial products,ever-expanding scale of cross-border transactions,more and more efficient global allocation of capital,and closer ties among financial markets in various countries have become typical features of the world economy.At the same time,however,globalization also provides more and more invisible channels for potential financial risks to spread across markets and countries.These risk factors will restrict the economic development of a country.Once a major financial crisis occurs in the world's major economies,Countries in a stable economy will also face a huge impact.Therefore,in the face of complex and dynamic financial system,how to construct a reasonable index system and how to carry out early warning analysis through effective mathematical model have become urgent financial problems to be solved.This article uses the method of combining system theory,mathematical model and finance knowledge to study.In the aspect of theoretical analysis,firstly,the meaning and characteristics of financial stability are described in detail,and the existing literatures are reviewed in detail from two aspects of influential factors and evaluation methods of financial stability;secondly,from the aspects of international financial environment,macroeconomic financial factors,internal factors of the financial system and financial regulatory factors,this part analyzes the influencing factors of financial stability.Finally,through the analysis of the domestic and international mainstream financial stability evaluation system combined with the current economic situation in our country,we have constructed a complete evaluation system of financial stability indicators.In the aspect of empirical analysis:Based on the framework of the previous theoretical analysis,considering the importance of variables and the availability of data,this paper builds a financial stability evaluation system including 23 risk evaluation indexes of seven plates and uses back propagation neural network to pre-warning china's financial stability.First,the data from 1995 to 2014 are selected as the input data of the neural network model to complete the learning and training process,and then the data of 2015 are used to check the model.Finally,the improved back propagation neural network model is used to analyze China's financial stability in 2017,with the data of 2016 as the input value.The output of the model shows that under the background of economic globalization,the mutual penetration of China's financial market and the international financial market will continue to converge.Based on the analysis of various indicators,the financial stability of China will be in a basically safe range in 2017.