USQ-SCNU International Accounting College

Assignment

Chinese Economics in Global Financial Crisis of 2008

Prepared for F.S. Helmut

Submitted January 10th, 2014

Ludacris Yu

As for the financial crisis of 2008 in the world, which is the most serious economics crisis since the Great depression in 1930s, and caused globalized influenced. Many major economics have had flat and passive development over the last two years. Whereas in China, the economics still have been growing stabilized. According to the Wikipedia “China is the world’s second largest economy by nominal GDP and by purchasing power charity after the United States of America. And it is the world’s fastest-growing major economy with growth rates averaging 10% over the past several years.[1]” The financial crisis also mean a financial storm. The meaning of storm that are the financial indexes such as short-term interest rates, monetary assets, securities, real estate, land prices, the number of business bankruptcy and the collapse of several financial institutions suddenly or short-period deteriorated in the largest number of countries and regions. The financial crisis can be divided into a currency crisis, debt crisis, banking crisis or others. The economic crisis in the year of 2008 was originated in the U.S. Sub-prime mortgage crisis, the development of the U.S. Sub-prime mortgage crisis, which evolved into a global financial crisis. In my opinion, the crisis in 2008 which began to emerge in the second half of 2007, after the U.S. sub-prime credit crisis, investors in the value of mortgage securities began to lose confidence, triggering a liquidity crisis, leading to the outbreak of the financial crisis.
The crisis began to losing control in the year of 2008, then caused plenty of large financial institutions bankruptcy or took over by the government such as the