Research On Threats And Countermeasures Of International Capital Flows On China’s National Financial Security

International capital flow is an important part of economic globalization, and its full performanced flow can make international resources configuration better. However, the changes in the international situation and the problems of international capital flows made our country disadvantaged. Currently, with unrestricted capital flows becoming more freely and fairly, there will be a serious threat in our financial system in China.Based on the further opening of capital markets in China,this paper means to finding the new characteristics and trends of International Capital Flow in China. This paper mainly combined the global characteristics of international capital flows with China’s current situation in 2014 to find the characteristics of International Capital Flow in China. That included China’s international balance of payments continued to be the double surplus in 2014, while showing greater volatility; Chinese direct investment returned to the stable growth, at the same time, showing strong volatility, securities investment accelerated growth trends, other investment projects changed between surplus and deficit.This paper mainly applied Klein method estimates, ADF test unit root test, HP filter method Johansen Cointegration. Test results shows that international capital flows may cause long-term impact through direct investment, stock market and other aspects of the exchange rate on the market, the domestic economy and the stock market and other financial institutions, and even a threat to national financial security.Long-term of international capital flows is the largest impact to our national financial security. The dominant of short-term capital flows to national financial security was mainly influenced in the economic growth. Dominant international short-term capital inflows are sustained driving force for economic growth. The influence of recessive short-term capital flows on China’s inflation rate, and the real exchange rate were relatively obvious. And the recessive international short-term capital flows or the speculative capital flows was the main reason for the impact to China’s national financial security. But its impact mechanism is more complicated, can’t use simple linear model, could not reflect a simple linear model.Finally, China’s response to the impact of international capital flows countermeasures, included: to strengthen the ability of the capital controls; to strengthen the central bank’s monitoring; to strengthen the domestic economic recovery ability to enhance the capacity of resistance; open the capital markets gradually; to improve deposit insurance system constantly; To enhance software monitoring technology.