Changes In China's Financial Opening-up Strategy, China's Financial Industry Internationalization

â… The background of topic selectionIn recent years, under backgrounds of global economic integration, following with the China's reform and opening-up deepening, China's economy has kept fast growth rate as well as its internationalization degree became much higher, its global influence continued to increase somewhat. According to the statistics of NBSC, if measured by USD, China's GDP ranked third in the world in 2009, which is close to Japan's GDP. And China's export ranked first in the world in 2009, which exceeds Germany's export.We analyze the capital inflow and outflow in the balance of payments of China, and the financial service flow in and flow out, since the beginning of China's reform and opening-up. We find that the inflow of foreign capital increased constantly in China, which was inducted by China actively, and the principal of capital outflow was payments of service trade and overweight overseas financial assets.Currently, China's BOP kept great surplus constantly. There are many foreign financial institutions doing business in China, and the service which provided by foreign financial institutions or international financial markets is substituting the service which provided by domestic financial institutions or domestic financial markets. On the other hand, there are only a few Chinese financial institutions doing business overseas, and the capability of overseas service which provided by domestic financial markets is quite limited. Obviously, the power of influence between China's economy and Chinese financial markets mismatches.In the presence of the situation as aforesaid, we must think the question about the transition of China's financial opening-up strategy. We should transit China's financial opening-up"Introduction priority"strategy, and implement"Balance of In and Out"strategy.â…¡Contents and main opinionsChapterâ… is introduction, the contents introduces topic selection, research method, research contents and research object, and indicate the main characteristic and innovation of this paper.In Chapterâ…¡,we review and evaluate the capital and the financial service inflow and outflow, and analyze its cost and benefit. After that, we suggest that China should transit its financial opening-up"Introduction priority"strategy, implement"Balance of In and Out"strategy, and push forward internationalization of financial industry. Furthermore, we analyze the necessity and feasibility of transition of financial opening-up strategy.In view of the process of internationalization of China's financial industry must have relationship between currency internationalization, financial institutions internationalization and financial markets internationalization, in Chapterâ…¢, Chapterâ…£and Chapterâ…¤, we introduce the common theories and international experiences relatively systemic about the currency internationalization, financial institutions internationalization and financial markets internationalization. After that, we analyze the current situation, the matter and the future prospects about the RMB internationalization, Chinese financial institutions internationalization and Chinese financial markets internationalization. In the end, we demonstrate the opinion of implement"Balance of In and Out"strategy, and push forward internationalization of financial industry further.The Chapterâ…¥is the most important part in this paper, and includes the main innovation of this paper. In Chapterâ…¥, we introduce the relevant literatures about the currency internationalization, financial institutions internationalization and financial markets internationalization, as well as the literatures about their interactions relatively in detail. After that, we analyze their distinction and relationship among the"three internationalizations", and suggest that China should promote three internationalizations coordinately so as to push forward internationalization of financial industry further. In view of the questions which occurred during the pilot program of RMB settlement for cross-border trade, we suggest some policy proposals such as"develop and exploit overseas RMB market","develop and exploit RMB offshore market","relax limit on overseas RMB invest in domestic financial markets step-by-step, arrange an institutional measure such as"quasi QFII", so as to resolve the circulation of overseas RMB. In the end, we analyze their cost and benefit through international experiences, and demonstrate the opinion of the necessity which must promote three internationalizations coordinately.In Chapterâ…¦, we change another perspective which focus on how to promote the construction of Shanghai international financial center in a coordinated way further, and analyze its relationship between"three internationalizations". In the end, we suggest some relative policy proposals. â…¢Main characters and innovationsThe main characters and innovations in this paper includes:First, we review and evaluate the capital and the financial service inflow and outflow, and analyze its cost and benefit, and suggest that China should transit its financial opening-up strategy as well as its necessity and feasibility. Furthermore, we suggest some policy proposals so as to push forward internationalization of financial industry further. Analyzing through the way as aforesaid, it is rare instance among literatures somewhat.Second, when domestic scholars research the issues of"three internationalizations", they often research the issues separately and lack analyzing the relationship and interaction among the"three internationalizations". In this paper, we analyze the"three internationalizations"as an organic whole, and suggest some relative policy proposals for push forward internationalization of financial industry step-by-step, it is rare instance among literatures somewhat.Third, In view of the recent developments and its questions which occurred during the pilot program of RMB settlement for cross-border trade, such as the circulation of overseas RMB, we suggest some policy proposals such as"develop and exploit overseas RMB market","develop and exploit RMB offshore market","relax limit on overseas RMB invest in domestic financial markets step-by-step, arrange an institutional measure such as"quasi QFII", so as to resolve the circulation of overseas RMB. And we analyze their cost and benefit, it is rare instance among literatures somewhat.