Research On The Impact Of Different Types Of Capital Account Opening On China's Financial Security

At present,China has realized the convertibility of current accounts,and the degree of convertibility of capital accounts is also increasing.According to IMF's criteria for classification of capital accounts,as of 2017,in the total of 40 transactions,there are 20 convertible projects,9 basic convertible projects,8 convertible projects and 3 non-convertible items.Compared with developed countries and even some developing countries,the proportion of convertible items in China's capital account is low,the proportion of partial convertibles to total projects is high,and the degree of convertibility of capital accounts is relatively low.In the series of measures to strengthen the country,deepen the opening up,promote the internationalization of the RMB and transform the financial powers into financial powers,the major issues of capital account liberalization cannot be avoided.Therefore,it is necessary to increase the openness of the capital account.However,looking at the capital account opening process of countries around the world,accompanied by the financial crisis,the relationship between capital account opening and financial crisis has become one of the hot topics of domestic and foreign economists and policy makers.Now,the implementation of capital account opening is the consensus of Chinese scholars and policy makers,whether it threatens China's financial security has become a topic of discussion among Chinese scholars.Therefore,this paper is mainly based on the three types of direct investment projects,securities investment projects and other investment projects in the capital account to examine its impact on China's financial security.Firstly,it expounds the concepts of capital account,capital account opening and financial security and analyzes relevant concepts to provide theoretical support for the following research.Secondly,it examines the impact mechanism of direct investment projects,securities investment projects and other investment projects on financial security,and then analyzes The capital flows under the three types of capital projects in China,and the concrete manifestation of the impact of cross-border capital flows on China's financial security,then construct three kinds of metrics of the degree of capital account openness,and use the principal analysis method to construct China's financial security index,and then using Vector Autoregressive Model(VAR)to Conduct an Empirical Analysis of the Opening of Three Types of Capital Projects and China's Financial Security.The research found that:(1)The opening of direct investment accounts,the opening of securities investment accounts,and other investment accounts are related to China's financial security.And for the positive impact of capital flows under the three types of capital accounts,China's financial security has begun to have a positive response,and began to gradually change after a certain period of time;(2)From the positive impact response in the three types of capital accounts,the capital flow under the securities investment project has great impact on the volatility of financial security;(3)After the positive impact of capital flows under the three types of capital accounts,China's financial security has changed from a positive response to a negative response,indicating that a certain period after the shock begins,three The opening of class capital account has a negative impact on China's financial security;(4)It can be seen from the impulse response function graph that the impact of the three types of capital accounts on China's financial security will be stable after a certain period of time.In the last part of this paper,we provide policy recommendations for the further implementation of capital account opening in China.