The Research Of Constructing Financial Market System In Shanghai Pilot Free Trade Zone

In recent years, affected by the global financial crisis and the international debt crisis, China's economic growth started to slow down. Reform and restructuring of the economy is also in a critical stage. At the same time, the trend of the globalization is unalterable. After the financial crisis, a new trade rules is gradually formed on a global scale. In this context, the Shanghai Pilot Free Trade Zone was established with the approval of the State Council on August 22, 2013. The establishment of free trade zone is a top-level design for a new round of national strategy of opening up and regime reformation, which is intended to form an institutional mechanisms that can be copied and promoted, and gain experience for the deeper reformation in the future.The system construction of financial markets is inseparable from the reform of the free trade zone. On the one hand, the establishment of Shanghai Pilot Free Trade Zone will promote trade liberalization. With higher extent of free trade, the market will put forward higher requirements of the supporting system of financial market. Meanwhile, the construction of a sound system of financial markets will further promote trade development. On the other hand, the lesson of the global financial crisis is still fresh. It is an urgent issue for government to promote the opening of the capital market under the premise of financial risk is under control.This paper discusses the construction of financial market system in Shanghai Free Trade Zone. This paper begins with the background of the Shanghai Free Trade Zone at both local and global perspectives, analyzes the reasons for its establishment, and discusses the reality and theoretical significance of this research. Subsequently, the paper introduces the development of financial reformation of three important international free trade zones, outlines the situation of financial market system in Shanghai Free Trade Zone and points out the existing issues. Then this paper analyzes the prerequisite of financial reformation, raises the proposed solution based on three perspectives: opening up capital market, applying market-oriented interest rate, reforming the financial services market. Among them, the capital market opening is the cornerstone of building and starting point of financial system reformation, interest rate reform reflects that capital price will follow the demand and supply of the market and the financial services industry is the foothold of the development of financial system. This paper analyzes those three aspects respectively to discuss the process and the status quo of the reformation and the possible solution to the current system problems. In the end, this paper summarizes its opinions and points out the direction of deeper research in future.