A Study On Chinese Supervision Of International Capital Flow In The View Of Internal And External Co-ordination

As the international financial crisis spread to the whole world, nearly all of the countries, including the developed ones and the developing ones, are seriously threatened by it, and capital fluidity become slower. The developed countries are forced to withdraw their capital, and therefore, the developing countries have to suffer from the embarrass situation without enough investment. This sharp fluctuation of international capital intensifies the vulnerability of global financial system. The author has the idea that for any one country, the restriction and the supervision should be the precondition for the benign utility of the international capital flow, of which the key point is to keep the internal and external coordination, which refers to the interaction of the full play of the market efficiency and the proper supervision for internal and external co-ordination of economy. This is not only an important academic issue but also a serious practical problem.Basing on the internal and external co-ordination theory, the paper makes a summary about the supervision experience of the international capital in the developed country and the developing country by the help of some typical examples. At the end of the paper, the author draws the conclusions as follows: first, when choosing the regulation pattern, any country should not be too extreme; second, for any country, internal balance is the prerequisite for external balance. So as for the implementation of liberalization of international capital flows, the flow speed, the controlling to the scale and the structure of the capital as well as the defending of the sovereignty and the national security should be considered; third, under the condition of the open economy,internal and external co-ordination is an ideal state of the macro economy pursued by all of countries. However, its realization demands the coordination of internal and external strategy. The scientific choice is as follows: in order to minimize the negative impact resulting from the international capital flow so as to maintain the state's financial security, that supervising prudentially on the basis of the national conditions, coordinating internal and external factors and maintaining the dynamic balance of international capital flow is the scientific choice.Combining with the financial situation home and abroad, the paper analyzes the state-quo of international capital flow and the problem existing in this process, and proposes some suggestions about the supervision of the international capital flow. First, enhancing the flexibility of adjust the interest rate and the exchange rate for advancing the internal and external coordination between local currency and foreign currency; second, strengthening the macro prudential supervision to keep a dynamic balance between the inflow and the outflow of international capital; third, paying more attention to the supervision method to realize the multi-channel prevention of the short-term capital; forth, promoting the process of internationalization of the RMB gradually, strengthening international regulatory cooperation and information sharing among different countries, speeding up the system construction and the reconstruction of the global financial supervision system.