Changes Of Financial Regulatory System In China And The Orientation In Post-crisis Era

Since August 2007, the U.S. subprime mortgage crisis has swept the globe. A large number of investment banks failed, and the stock market and housing market fell into a prolonged slump, causing the world economy, including China seriously impacted. The financial crises broke out in a country with sound financial system, which undoubtedly sounded the alarm for the world's financial regulatory agencies. As a result, many countries began to reform their financial regulatory systems to better prevent and resolve crises. After two years of hard work, the economy of many countries has been gradually recovering. As we know, the development of financial market in our country is relatively backward, then after the crisis, what lessons should we learn and what mistakes should we avoid? This paper focuses on the characteristics of financial market and the trends of financial regulation after the crisis, and proposes some thoughts for financial supervision in China.The author started from the theory of institutional economics and financial regulation theory and summarized the relevant theories. On this basis, we used relevant theories on institutional economics and financial regulation to summarize and analyze the characteristics of financial regulatory system in China on each stage. This paper is based on the background of the financial crisis, and we described the characteristics of the world's financial markets after the financial crisis, and then foresaw the global trend of the adjustments in financial supervision. Finally, the emphasis of this paper was on the practice of financial supervision in China. It described the problems of the financial supervision in China exposed in the financial crisis and the new opportunities and risks the financial industry of our country will face after the financial crisis. Regarding the current financial market environment in China, this paper gave some policy recommendations about the future orientation of the financial regulatory system in China, pointing out that improvements should be made both in institutions and mechanisms of the financial regulatory system in our country. Meanwhile, it pointed out that in this process we should avoid some misunderstandings such as denying the validity of the market, over-regulation, neglecting traditional risks and so on. Through these scientific and reasonable adjustments, I believe that the financial regulators in China will be able to regulate the financial market more effectively, so that the financial market of our country will work more securely and efficiently.