Analysis Of Risks In The Security Of National Finance And Corresponding Strategies After China Entering WTO

After China entered WTO, the theoretical research on the security of national finance once again became a focus issue, whereas the research in this field is far from adequate in terms of the need to explore the key factors relevant to the security of finance and the lack of economic analysis and definition.This paper starts with an analysis of the. status quo of Chinese finance with a purpose of exploring the key factors relevant to the security of finance. Under current situations, an omnibearing opening of finance industry to the outside world is liable to give to rise to systematic risks in finance industry and thus lead to a financial crisis and even a threat to the security of national economy. In the .transition from a safe close-door finance system to an omnibearing opening finance market with many risks, there is a dialectical factor that we have to face up and that is critical to the security of finance, that is, the extent of opening our finance market. It is exactly this extent that this paper will give an economic analysis and some practical examples. In this paper the emphasis is put on the discussion as to what the influence the opening of capital items will bring to the effectiveness of currency policy and the power of our government to macro-control national economy under current exchange rate.Based on the above analysis, the strategy we should have is to macro-control the extent to which the finance market is opened and micro-promote the competitiveness of finance industry. Our finance industry should follow the course of developing intensively and reinforcing its conventional as well as non-conventional information work.Logically, this paper is presented in the following order: a summary-thestatus quo and risks of Chinese finance- an analysis of key factors andexamples-a discussion as to the opening of finance market and the effectivenessof macro-control policies-corresponding strategies. Structurally, this paper iscomposed of 5 chapters, with the emphasis put on the acknowledgement that the issue of the security of finance is worthy of national attention.