The Choice of legislation of China's Financial Regulation:An Example of UK's Experience in Addressing the Crises

This article analyzes the measures UK financial regulators applied as responses to the 2008 financial crisis, in order to provide reference for the post-crisis regulation for our country. The article compares the pros and cons of rule-based regulations and principal-based regulations, then takes United Kingdom as an example, analyzing the introspection and rectification of the principal-based regulations, and the prudent incremental changes of the legal rules, proposed that the regulators in our country should focus more on the reconsideration upon the principles of the regulation, rather than the change of the legal rules themselves, which may be a more meaningful and cost effective choice in practice. The revised principal-based regulations may provide reference for our country to answer the questions caused by the complexity and innovations of the financial market. Finally, the article points out the non-transparency in the process of government bailout leads to the unpredictability of the market, and proposes that our government should draw lessons from their experience, to make the rescue process more open and definite, to ensure the predictability of law. Therefore the market participants will be able to expect the consequences of their actions.     

A Study on China's OFDI influencing Factors and the Dynamic Effect of Economic Growth: Based on Principal Component Analysis and VAR Model

This paper selects the influence factors and economic growth effect of OFDI as a starting point, using China’s OFDI and related data, building VAR model, with a principal component analysis, co-integration test, impulse response and Grainger test method to explore the impact factors and the economic growth effect of China’s OFDI. The results show that the basic economic factors, investment environment factors and operating cost factors are the main factors affecting the development of China’s OFDI. At the same time, China’s OFDI and economic growth maintain a positive equilibrium relationship in the long term. In the short term, the economic growth effect of China’s OFDI is still weak, requires further development to better serve the economic restructuring and economic growth.