A Study On The Optimization Of China Financial Regulatory From The Viewpoint Of "Animal Spirits"

China's financial industry has a new development opportunity with the deepening of China's rapid economic growth and reforms since entering the new century.The financial system is more diversified,and the financial products are more various.The financial markets are more open and the system of financial transactions are more complete,especially the financial innovations such as crossing financial products and the Internet financial are increasing,which are a significant challenges to existing financial regulatory framework.Risks of Some areas of China in recent years occur frequently,such as "shadow banking" in 2010,"money shortage" in 2013,the stock market crash in 2015,"Pan-Asian crisis" and "Ezubao" in 2016 and other Internet financial risk,which means that our existing financial regulatory framework has become increasingly unsuited to the development of Chinese financial industry,it is imperative to reform the financial regulatory framework."The nation economic and social development of the 13th five-year plan"(the "thirteenth five-year plan")had been passed in the Fifth Plenary Sessions of 18th Central Committee of the Communist Party,it is recommended that "reform and improve the modern financial regulatory framework of the financial markets to be suited".Therefore,how to establish and improve the framework of financial regulation is the important topic of the theory and practice industry recently,it is necessary to make innovation in theory of regulation,to provide a theoretical basis for the practice of financial decision.The outbreak of the economic risks shows that financial regulation paradigm has fundamental flaw.The past mode of financial supervision and financial regulatory policies are mainly based on the "economic man rationality" hypothesis of financial theory.In fact the "economic man rationality" hypothesis is limited to explain and solve the reality financial problems.So theory field of vision is forced from "economic man rationality" to"animal spirits" perspective to explain many problems existing in the financial practice."Animal spirits" is the important reason for the financial risk,and the theory of "animal spirits" should be the theoretical basis of government financial regulation."Animal spirits" was first proposed by Keynes,he defines "animal spirits" means the decisions on impulse because of individual's self-psychological characteristics,while macroeconomic volatility because of the investors having "animal spirits"."Animal spirits",written by Nobel Economics Prize laureate Akerlof and Shiller,is a significant development of Keynesian theory.In their views,modern market economy depends on confidence more than that at any time in the past,animal spirits is the root cause of the financial crisis.Therefore,animal spirits provided the Government a theoretical basis for economic regulation and financial supervision.In this paper,author give the interpretation how the systemic financial risk occurred from "animal spirits",do some theory predicts and positive research on how "animal spirits"cause the risks of systemic financial,and analysis on the financial regulation with "animal spirits" by evolutionary game.Meanwhile,in view of the current problems in financial regulatory framework of China,learning the experience of the financial regulatory reform in developed countries,this paper propose the China financial regulatory optimization from the viewpoint of "animal spirits",to wish to be a useful guiding for theory and decision-making of China financial regulatory practice.This paper generally is divided into four parts.The first department is about introduction and theory basis,including first chapter and second chapter.The first chapter describes the background and significance of this study,the literature reviewed,and determines the research contents,methods and technology routes,and summary the main innovation.The second chapter discusses the main involves of theory--animal spirit theory,and theory of systemic financial risk and the theory of financial regulatory,in order to lay the foundation for future research.The second part mainly makes analysis on animal spirits to the impact of financial risks and financial regulations,including the third and fourth chapters.The third chapter analysis on how animal spirits cause the financial risk,from both the normative and positive analysis for research.It describes the logic path of animal spirits affect economic activity and how it causes financial risk in normative analysis.It is demonstrated by the sample of the global economic crisis and China stock market crash.There are two separately positive analyses for different purposes.In positive analysis 1,it focused on the effects of animal spirits to investors and the market,through studying the domestic and Hong Kong stock markets,using the relationship between trading volume and investor behavior to test whether rational expectations and the animal spirit exist in the investors of the mature markets and emerging market,as well as in the impact of market volatility.The result shows that rational expectation is difficult to explain the market volatility,and trading is more under the influence of the animal spirits of investors.In the positive analysis 2,it focused on the effects of animal spirits on systemic financial risk by selecting seven representatives' variables from banks,stocks,bonds,foreign exchange market to build China financial stress index.It measure the situation of the systemic financial risk in China during January 2002 to June 2016,and use SVAR models to study the dynamic effects between financial stress and animal spirits.It is found that animal spirits and financial stress have the significant interaction.Animal spirits will have a role to financial pressures in the short term,while the impact of the financial stress on the animal spirits is more reflected in the long term.In the fourth chapter it is based on evolutionary game model to simulate the dynamic processes of the financial regulation under the "animal spirits",to analyze and study the evolution of financial regulation in the view of "animal spirits".The third part of this paper discusses how to optimize the financial regulatory by the "animal spirits" theory,including the fifth,sixth and seventh chapters.The fifth chapter discusses the history of China financial regulatory and basic components,especially the China financial regulatory issues caused by "animal spirits".The sixth chapter summarizes financial regulatory reform experience from abroad and analysis it from "animal spirits".The seventh chapter determine the targets,core content and focus areas of China financial regulatory optimization in the view of "animal spirits",and the guarantee of China financial regulatory to optimize.The fourth part is the conclusion and the prospect,to sum up the core content of this paper and look forward to the future research.