Topic: China’s financial liberalization
Title: China’s financial liberalization and the policy transformation towards openness
Author: Xuepan Cheng 4136801
Abstract
This paper focused on the research of China’s financial liberalization reform in order to discuss the economic and financial effects casted by financial liberation. Also the article pointed out the current problems of China’s financial system and provided suggestions for implementation. The main argument of policy suggestions for China is to further lower down the financial limits, so that China will be able to build a better foundation for financial liberalization. Also the effective and constant supervision and modification of the financial regulation system is also necessary for maintaining a healthy macroeconomic environment and continuing capital flows. While the economic globalization, and financial liberalization has become a major tendency that attracts a lot of people’s attention in world economic development since the 1980s, the financial liberation and reform has become a necessity for China to develop it’s financial market and economy wellbeing. 1. Introduction
China, as one of the fastest expanding economy in the world, is largely owing to the economic globalization, and financial liberalization since the 1980s. Economic globalization refers to the fact that economic resources (goods, capital, labor, technology, information and other transactions) flow from one country to another. This tendency makes connections among country’s economy around the world, and help strength the economic relationships between one country’s economy and the whole world economy. Since 1970s, financial liberalization is another major trend which has swept the world and become the mainstream of financial innovation in developed western countries. Many emerging market economies have imitated, with the development of