The Build Of China’s Financial Risk Indicators System And Risk Measurement

Look at the history of the international economy, the financial crisis occurred more and more frequently since the1990s as the economic, financial globalization and intergration advances gradually. At the same time, China will face grater and more complex financial risks come from the intematinal financial makets as China deepens it’s reform and become increasingly merged with the global economy. The build of China’s financial risk indicators system thus is of important theroretical and pratical significance, it can lend some support to the prepare to dealing with the financial crisis in advance and enhance the anti-risk ability to withstand the international financial crisis and finally promote economic development and safeguard social stability.This article comparatively elaborats the foundamental therories of the financial crisis and traditional crisis early-warning models, and then, outlines the inadequacies of the previous studies at home and abroad. Though summaries the previous research results this article deeply explores the root reasons of financial crisis, based on this, the article chooses16early warning indicators from the macro-economy and the micro-economy maket. Then, utilizes the Granger Test method, the article selects10indicators to construct the China’s financial risk monioring indicators. Then, with the help of factor analysis, this article find out the main factor of China’s financial risk, witch can lend some support to the prepare to dealing with the financial crisis in advance. Based on the factor analysis, this article synthesizes the financial vulnerability index witch then used to analy the overall risk situation and predict the future risks. The outcomes show that, the early warning indicators system this article constructed can describe the overall risk situation of China and the financial vulnerability index can predict the future situations.