Strategy Of Introducing Foreign Investment And Preserve Financial Security

Since the economic reformation, introducing foreign investment, especially the direct investment and foreign loans, promotes the rapid development of the national economy. In recent years, however, the scale and structure of foreign investment become unreasonable that cause a series of negative impacts on stable economic growth, especially the large number of short-term capital inflows to China. How to use the foreign funds, and reducing the negative impacts on financial security, people become increasingly concerned about the issue. From the characteristics of introducing foreign investment, the paper studies the use of foreign capital main channels, including direct foreign investment; foreign borrowing Securities and external financing, following the large number of short-term speculative capital inflows to China, analysis the negative impact on financial security, such as: increasing payment disequilibrium and increasing the instability of the structure, liquidity pressure on presence of external debt, excessive growth of foreign exchange reserves, and the problems of unreasonable source structure. All these crease greater threat on china's macro-financial security. The Papers analysis the relationship between the use of foreign investment and banking business's safety, it includes foreign financial institution's investment trends and key features in China, the main problems and the resulting impact of use foreign capital.According the analysis, the papers put forward measures to solve these problems. It includes financial security situation in the detection and early warning and safeguarding of basic financial security measures. First, strengthen the financial security awareness, enhance financial security in the national security strategy in the status, specifically referring to strengthen the regulatory function of the international balance of payments, strengthen external debt management, strengthen management of foreign exchange reserves and so on. Second, speeding up the reform, strengthen internal controls of domestic financial institutions, improving the competitiveness of the financial sector. Third, improving the RMB exchange rate formation mechanism; Fourth, improving the financial legislation, rectify the financial order, to the financial security situation in the monitoring and early warning model, to safeguard national financial security provided a good proposal countermeasures.On the background of the accelerated development of financial globalization, and financial crisis frequent, we must speed up the pace of reform and construct China's characteristics finance, we must implement a gradual financial liberalization, and actively and steadily push forward the reform of financial institutions, and constantly improve RMB exchange rate formation mechanism, establish a good and reliable financial risk early warning system, more active and more effective to preserve our financial security, provide reliable and good financial guarantee for the efficient use of foreign funds and the comprehensive construction of the motherland.