Financial Liberalization Of International Practice And China Risk Prevention

Since the 1970s, economic globalization tide has swept the entire world. As one of the important components of economic globalization, financial liberalization began from the large-scale development of the globalization in 1970s, and then some developed countries and developing countries carried on financial liberalization reform , which aimed at relieving financial control and cancelling finance repression. Since the launch of financial liberalization, a series of positive effects have been created, such as the relief of financial repression, the promotion of the economic growth and the improvement of financial system efficiency etc. Especially, financial liberalization exerted a huge influence on the establishment of economical development strategy and the policy of developing countries, stimulating more and more developing countries to implement financial liberalization reform.However, through the research of 30 years' financial liberalization, it was found that developed countries and developing countries presented two entirely different effects. Developed countries have realized the purpose of financial deepening through financial innovation, and that is the main characteristic of financial liberalization, but developing countries suffered from banking crisis or financial crisis to various degrees, which didn't conform to the target that was set up at the beginning of financial reform and shook people's confidence in financial liberalization. Latin American cone countries (Argentina, Chile and Uruguay) ,who attempted financial liberalization reform initially, have encountered deeply grieved defeat, and then caused anxiety to financial liberalization, In the end of 1990s, the abruption of Southeastern Asian financial crisis exposed various problems in the progress of developing countries' financial liberalization, and it also showed many shortages of the existing financial liberalization theories. Therefore, it is urgent for us to study the "two-side" effects of financial liberalization. Through the comparison on contents, ways and effects of financial liberalization, we can get the deep reasons for different effects and put forward the relative recommendations according to the dilemma of developing countries.At present, China is carrying on financial reform enthusiastically. Owing to China's special conditions, we not only face the market crisis brougt by financial liberalization, but also the system risk caused by the fact that the market mechanism has not been established completely. Therefore, China's financial liberalization should base on the absorption of the experiences of other countries. According to the current financial risks and the current conditions of financial system, we should improve the macro-economic conditions to create good institutional environment, make it develop in proper order and moderate protection, accelerate it by financial innovation, perfect the system of financial supervision, and strengthen the cooperation with regional and international economic organizations. Afterwards, we could establish a multi-level, diversified financial system with depth and liquidity, and enhance our country's financial system's flexibility and the ability to circumvent risks, and further promote financial reform and the opening up of finance, and stimulate the healthy and rapid development of Chinese economy.