An Overview of International Capital Flows and Its Impact on Chinese Financial Market

The University of Melbourne Faculty of Business and Economics Australia, Victoria. Melbourne

^* junxiny@student.unimelb.edu.au

Abstract

With the acceleration of economic globalization and financial market integration, there has been a gradual increase in the amount of international capital and considerable global movement of capital flow. Due to its inherent uncertainty, immense capital flows, and complex structure, international capital flows have an enormous impact on international trade, finance flowing, and economic development for countries all over the world. This paper aims to provide a full overview of international capital flow, focusing on the internal fluctuation patterns and developing trends in the near future. Through the qualitative analysis of China’s capital flows, this paper also summarizes its major characteristics and multiple effects caused by international capital flows.