This book analyses the effect of financial internationalisation and financial crisis on international and country level financial risk and financial stability, summarises the experience of international and country level financial regulation system reform and its inspiration on China. It studies the current situation and existing problems of China’s financial regulation, proposes the countermeasures to enhance financial regulation. Based on these analyses, the authors propose the direction of China’s financial regulation reform, that is, functional regulation, and design the framework and corresponding reform steps to implement it.

The recent financial crisis taught China a lesson: without necessary regulation the financial market cannot achieve sound development by self-adjustment. Although developing economies, including China, survived and performed much better than developed economies during the crisis, it’s also necessary for them to improve their financial regulations to avoid crisis.

This book looks into the financial regulations in China – its current situation, existing problems, and provides the policy suggestions on implementation of financial regulation reform, such as the design of the framework and functional regulations.