The Impact Of The Establishment Of China(shanghai) Pilot Free Trade Zone On Capital Flows

The Construction of China(Shanghai) Pilot Free Trade Zone is a major step of our country which actively implement the opening strategy.The core of China(Shanghai) Pilot Free Trade Zone is to accelerate the free flow of production factors, including the free flow of capital, technology and talent, especially to promote the free flow of capital. As the two sides of things, capital flow is not exceptional, which give the capital needed to one country or regional economic development, also likely impact one country or regional economic and financial market, threaten the stability of the market operation. China(Shanghai) pilot free trade zone implement insititutional innovation in investment, trade, finance and government function transformation etc. areas, first try to promote the free flow of capital elements, the key point is not only to promote, also is how effective regulation to control potential risks. The study is based on qualitative analysis, which aims to quantitatively verify the establishment of Shanghai free trade zone whether has a role to the flow of capital in promoting. The establishment of China(Shanghai) Pilot Free Trade Zone is to the influence of the factors of capital flow mainly reflected in which aspects; the risk factors of capital flow and how to regulate. In view of the problems in the process of Shanghai free trade zone in promoting factors of capital flow, put forward reasonable suggestions, to ensure the rational and orderly flow of capital elements.The paper mainly divided into the following seven parts: The first part instructs the selected topic background, significance, research ideas and methods, relevant background and policy of Shanghai Free Trade Zone as a preliminary understanding. The second part of research on related theory, introduced the development of free trade area, the difference between the bonded zone and the free trade zone, the development of Shanghai free trade zone, the relevant theoretical interpretation of capital elements flow. In the third part, the influence of institutional innovation on capital flows is analyzed qualitatively, and the impact of reform measures such as investment, trade, finance, etc., is to promote or inhibit, and the potential risk of capital flow in the process. The fourth part is the main part of this study, on the basis of qualitative analysis of the third chapter, the analysis of the theory and the theory of the capital factor liquidity is verified, and the difference between the system innovation practice and the theoretical analysis is verified. The fifth part studies the global representative free trade area, the development experience of Singapore and Hong Kong SAR, to do know each other. The sixth part is on the basis of existing problems, and put forward rationalization proposal using the experience of other free trade zone. In the end, is to write a summary and outlook.