| Opening capital account in Free Trade Zone is an important action of exploring financial openness for our country,and also a significant arrangement in the process of gradually improving finance system and isolating finance risks.Along with the development of economy in our country,real economy become supportable for the openness of capital account,and the construction of trade and investing of our country,on the other hand,needs to optimize and improve."Twin surplus" in both the current and capital accounts in international payment lead to the pressure for RMB to appreciate,meanwhile the risk of excessive dependency on foreign currency desperately need the internationalization of the RMB.Therefore,in the basic of needs of attracting capital,optimizing economic structure and promoting RMB internationalization,opening capital account becomes a real demand.However,the tent towards interest of capital inevitably lead to it’s instability of flowing,which may cause mortal threat to a country,the rashly openness of general capital account is undoubtedly inadvisable,so the free trade zone is the best medium of grope and transition.As the international organization which relate closely to China’s financial openness,IMF encouraged all the countries to open it’s capital account,as the financial crisis breaks however,people realized the risk of capital openness,the WTO and IMF allow capital controls for countries based on requisite circumstances.For now though,the direct invest account of our country has almost been convertible,as for portfolio invest account,transactions other than stock,money market instruments and derivatives issued by foreign institutions in China,has been almost convertible or partly convertible.The openness of capital account itself is a complicated matter,and it has important impact on financial security,the legislation system and regulatory system however,are still in trouble,which may cause obstacle to the process of capital openness.Rules of capital account openness are much reflected in foreign exchange regulations,and as important content of financial system,foreign exchange affects the security of countries directly,while the superlative rule of foreign exchange is now just administrative regulation,which hinders the implementation.On the other hand,the arrangement of Free Trade Zone also complicated the legal system while isolating risks.As the region to explore reform,the rules of Free Trade Zone enjoy autonomy,we allow Free Trade Zones to pause the implementation of some regulations,but the legal system of Free Trade Zones may steal be conflict to epistatic laws.Moreover,capital account refers to the supervision of multiple departments,the CSRC,CBIRC,industry and business department,foreign exchange administration departments may regulate through their own perspectives,which may cause department conflict.And in the process of capital account openness,capital supervision is the key point which can not be neglect,the openness would increase the reliance of our country to the world’s financial market,and weaken the independence of policies,which brings great challenges to the ability of financial supervision of a country.The multinational flow of capital let single countries to be more passive,while the standard of supervision of countries are so much different,which may also bring chance for some illegal activities.Therefore,as the propel of capital account openness,we need to update and improve the legislation and supervision system.We should straighten out the class of different laws and regulations,clear and harmonize the power of different departments,and promote the sharing of information,improve the supervisory system of capital abnormal flowing,and planning and coordinate the Interest rate and exchange rate system,tamp the real economy,and strengthen the cooperation of international financial supervision,to be on guard with systematic financial risk. |
