China's Major Financial Risk And Control At Present

Finance is the core and arteries of the modern market economy. Financial system stable, orderly, efficient and sustainable operating, related to a country's political, economic and social security. At the same time, finance is a double-edged sword, financial risk associated with the whole process of financial activity, if can not timely identify and control risks, these risks have the same great destructive power to seriously threat to a country's economic and financial safety. Since the 20th century 90's, many countries have been occurred financial crisis, causing enormous economic losses and social unrest, so governments and international financial organizations increasingly pay attention to early prevention and control of financial risks.Since 2001, our country joins into WTO, more and more integrate into the global economy. According to the promises when joining the WTO, China's financial sector has been fully liberalized at the end of 2006. But our country's financial system is still not perfect, financial markets is not yet well-developed, the reform of interest rates and exchange rates system is not supporting, the competitiveness of financial institutions is not strong enough, which means that our country's economic and financial system in an open process will be more and more exposed to external influence and impact. Whether then or now, the Asian financial crisis, the sub-prime crisis impact our country's economic and financial by varying degree, and the impact must be bigger and bigger. In this paper, based on the development actual of China's financial industry and the current background of international financial crisis, focusing on analyzing of the existence of our country's major financial risk, puts forward a series of proposals to effective control the financial risk.This article is divided into five chapters. In the first chapter, the author introduces the background, the significance and in recent years about the study of financial risks. It plays a programmatic role of the full text. In the second chapter, the author first introduces the concept of financial risk, compares and defines the concept of financial risk, financial security and financial crisis. Make a detailed introduction of various theories of financial risk, to analyze China's current financial risks. It's a strong theoretical guidance. In the third Chapter, the author focuses on analyzing of the current global outbreaking American sub-prime crisis, describes the economic environment of the United States, discusses the whole process of the sub-prime crisis, deep thinks about the reasons of the sub- prime crisis. Reflection from the sub-prime crisis to China's financial sector reform, put forward the necessary lessons our country should draw. In the fourth chapter, the author from the status quo of China's financial reform and opening up and facing the reality of the international environment, analyze of China's current principal financial risks. In the last chapter, the author puts forward a series of risk control measures, in order to ensure our country's financial industry in the process of reform and opening up keeping smooth and healthy, having strong practical significance.