Analysis Of The Opening Of Chinese Capital Account

Nowadays, the economic and financial system is changing deeply. Internationalization and market-oriented finance have become the dominant trend in this transformation. With the deepening of the innovation, most countries try to smash the finance logjam which formed traditionally and seek resource collocation all around the world. The opening of capital account becomes the focus of every country, especially for the developing countries.With the rapid development of Chinese economy, China acts an more and more important role in international economic and financial system. Capital is the basic force which would midwife the Hi- Tech industry, realize the transfer of the industrial configuration, and promote the economic growth, the opening of Chinese capital account would be an inevitable trend. The opening of often account in 1996 and entering WTO in 2001, accelerated the course of capital internationalization. "Central Committee on the Formulation of the 11th Five-Year Plan Proposal" specifically advanced to push the transformation of market-oriented rates steadily, perfect directorial and floating exchange rate system, and implement the opening of capital account gradually. China brought the opening of capital account into the "11th Five-year Plan" for the firs time, which means Chinese government will look the opening of capital account as the significant work aftertime.But the opening of capital account is just like a kopis, carrying out the opening of capital account is full of challenges for China as a country which is not yet mature in economic and financial system. The opening of capital account relates to tranquilization and the financial security, concerns the rapid growth of Chinese economy and the harmonious progress in the society. Consequently, the opening of Chinese capital account becomes the focus of both theoretical and practical public. The paper uses lots of study measures such as theoretic analysis, cases investigate, China versus foreign countries comparing analysis, stock tests, etc. It mostly discusses the income and hazard of the opening of the capital account, degree calculation, sequencing rule, policy recommendations and so on. It also analyzes the opening of capital account in developed countries, developing countries and countries in transition, illustrates the risks of the opening of capital account and puts forward feasible policy recommendations for China.