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Analyze the Effects of Financial Globalization on China's Financial System

In: Business and Management

Submitted By nanashize
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Analyze the Effects of Financial Globalization on China's Financial System

With the development of financial globalization, the free flow of international capital contributes a lot to the development of the world economy, however, many short-term speculative capital wandering around the world with rapid speed and complex means have impacted on developing countries’ financial markets, which constantly induce financial instability and crisis. And fluctuations due to capital flows also makes the international financial turmoil have a huge ripple effect and zoom effects. Financial globalization has exacerbated the instability and the risk of global economy and financial development, so financial security is increasingly becoming an important part of national security .In this essay, we are going to talk about the impact of financial globalization on China’s financial market and what the measures will be taken to ensure the security of China’s economy.

The main performance of financial globalization
1. Globalization of capital flows is the most prominent manifestations of financial globalization. Since the 1980s, the scale of international capital flows has continueally expanded, while financial technology and financial innovation and the development of various financial derivative helps accelerate the speed of cross-border flows of international capital. By using computer and modern finncial technology, on one hand hundreds of millions of funds can move from one side of the earth to antother within few seconds, on the other hand the international capital can quickly flow to a country or just as quickly evacuate from the country only for the pursuit of high returns.
2. Globalization of financial markets. Widespread use of modern communication and network technology has broken the boundaries of geography and time on financial transactions, so...

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