Open Journal of Business and Management

Volume 8, Issue 3 (May 2020)

ISSN Print: 2329-3284   ISSN Online: 2329-3292

Google-based Impact Factor: 1.13  Citations  

Current Situation, Management Policy and Effects of Cross-Border Capital Flow in China

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DOI: 10.4236/ojbm.2020.83070    599 Downloads   1,640 Views  
Author(s)
Wen Liu1,2

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.

Share and Cite:

Liu, W. (2020) Current Situation, Management Policy and Effects of Cross-Border Capital Flow in China. Open Journal of Business and Management, 8, 1103-1112. doi: 10.4236/ojbm.2020.83070.

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