TITLE:
Current Situation, Management Policy and Effects of Cross-Border Capital Flow in China
AUTHORS:
Wen Liu
KEYWORDS:
Cross-Border Capital Flow, Management Measures, Management Effect
JOURNAL NAME:
Open Journal of Business and Management,
Vol.8 No.3,
May
6,
2020
ABSTRACT: Firstly,
based on the data of international balance of payments, this paper analyzes the
current situation of China’s cross-border capital flow, and finds that China’s
cross-border capital flow can be divided into two stages due to its
differentiated characteristics, and China’s short-term capital outflow pressure is relatively high at this stage. Secondly, in order to better manage cross-border capital flows, this paper sorts out four types of management policies (namely,
structural policies, macroeconomic policies, macro-prudential measures, and
capital flow management measures), and analyzes the management effects of
cross-border capital flows. Finally, the paper puts forward some policy suggestions.
1) The goal of China’s macro-control is to maintain the balance of
international payments, and the more foreign exchange reserves we do not pursue, the better. 2) The main objective of strengthening cross-border
capital management is to buy time for necessary reforms and
adjustments; 3) In the future, China should avoid
excessive efforts in daily management of cross-border capital flows.