International capital flows become an important factor affecting a country's financial risk. In China's capital account, direct capital investment is basically liberalized, while financial investment is partially liberalized. Since the financial crisis, China's capital flows have assumed new characteristics. With a large amount of capital flows, China is the largest investment recipient and outward investor among developing countries. Capital inflows and outflows fluctuated fiercely. The rapid growth in overseas investment and foreign capital inflows will increase the potential risks of China's financial system. The two most common risks that trigger China's financial risks are imported risks and endogenous risks. In order to cope with the financial risks, China should strengthen the supervision of international capital flows and capital markets, and rationally screen and utilize foreign capital.
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