Use Of Foreign Strategic Adjustment And Open Stock Market

Introducing and utilizing foreign capital is one of the forms by which a country participates in international economic activities. It is greatly contributed to advance the developments of a host country. In China, we have made great achievements in this aspect since we began the policy of reform and opening up. In 1990s, we reached a unprecedented level in utilizing FBI, and China became the second largest country that attracted FDI most, only next to the United States. But at the end of 1990s, the speed slowed down, and there was an obvious decrease of amplitude in attracting FDI. With the development and changes of macro investing and financing environments, and also national economy, the way of introducing and utilizing foreign capital has come into a different stage. To match the trends of attracting foreign capital, we must consider changing the strategy, adjusting the structure, innovating and developing the forms of utilizing foreign capital. And one of the effective ways is to open the securities market step by step and raise foreign capital through it.Firstly, this paper analyzes the current actualities of international direct investment, and how the main external factors, such as globalization, international capital flow and trans-national merge and acquisition have influence on the development of utilizing FDI in China, Then, it discusses the economic environment of utilizing foreign capital home and abroad, and also the actualities and prospects of utilizing FDI in China. And it points out that we must improve the scale and quality of our utilization of FDI. And we should seize the opportunity of the entry of WTO, innovating the system and make strategic adjustment on the policies of utilizing foreign capital. Finally, the paper indicates that opening China securities market is an effective way to improve the level of utilizing foreign capital. But the opening of our securities business is still in low degree. In choosing the mode and way of opening securities market, we can do it step-by-step and stage-by-stage, and ultimately make it internationalized so as to advance the utilization of foreign capital through capital market.