The Strategic Research On Resolving Financial Risk Of Hainan Province Facing To Financial Crisis

Finance is the core of modern economy, and economy determines the finance. The economy in 21st century is the financial economy. With the improvement of socialist market economic system, China has also established a multi-financial system with the core of central bank. On such basis, financial risks have also become more prominent accompanied by the growing variety of financial instruments, increasingly active financial innovation and intensified financial competition. If such risks were not prevented and resolved, it would lead to financial crisis after the accumulation of financial risks. Such result would not only harm the public interest, but also affect the security of the assets of financial institutions and social stability.On the basis of theoretical study, and on the unique views of the author with nearly 20 years` experience in government department, the financial issues in these 20 years since the construction of Hainan province, especially after the Asian financial crisis, were analyzed in a detailed and comprehensive way. The original point of views such as"finance engagement, finance refueling and economy acceleration,"and"six systems` construction"were proposed. In addition to introduction and the conclusion, there were four parts in this paper.In the first part, through the analysis on the process and causes of Asian financial crisis in 1997, the impact on Hainan province, especially the financial sectors in Hainan province were pointed out. Thus, from the perspective of financial sectors, the closure of financial institutions such as Hainan Development Bank, Hainan International Trust and Investment Company, and Hainan securities company, and etc were taken as typical cases.In the second part, accompanied with the formation and factors of global financial crisis in 2008, the influence on the economy and finance in Hainan province were discussed, including the downturn of real estate market, the decreasing number of tourisms, lower use of foreign capital, reducing supply of financial credit and other aspects were studied.In the third part, the causes of crisis outbreak, intrinsic mechanisms and differences between Asian financial crisis and global financial crisis were compared. Furthermore, the different approaches and strategies to deal with different crises were posed.In the fourth part, combined with the current situations of Hainan financial operations, the goal and direction of further development were taken into consideration, and the construction and improvement of reform and development strategies on"six systems"were pointed out against the mainly problems in the development of financial sectors in Hainan province.