| China has been the Article eight country in the International Monetary Fund since December1996, when RMB current account was convertible in china. Moreover China has quickened it's pace to bland in the global economy since2001when China entered WTO. There is a tendency of speeding openness of Chinese capital account especially with the practice of the strategy of RMB internationalization. Admittedly, there are advantages brought about by the convertibility of RMB capital account. On the other hand, it expands the risk of capital flight by providing a smooth channel.In part I, there is a literature review about the convertibility of capital account, in which firstly comes the definition, and finally the relationship between the convertibility of RMB capital Account and RMB internationalization.In part II, there is firstly the definition of capital flight in China, then analysis of the capital flight under the influence of openness of capital account in China, and finally the discussion about a new tendency of capital flight in China.In part III, there is an estimate of the capital flight in China from1990to2010, together with a cointegration analysis on the relationship between the estimate and the openness of capital account. Then, a module test involved the concept of capital account openness results in a multiple linear regression equation of capital flight, inflation rate, increased foreign debt, foreign direct investment and financial deficits.Policy proposal comes as the last part of the thesis, which includes some suggestions to stabilize the domestic macro economy, to promote the openness of capital account, to improve the financial supervision, etc. Last but not the least, there is an idea of establishing a monitor mechanism against capital flight. |
