Notice of RetractionFinancial Liberalization and Stability ---Where is China´s Financial System Going?

Notice of Retraction

After careful and considered review of the content of this paper by a duly constituted expert committee, this paper has been found to be in violation of IEEE´s Publication Principles.

We hereby retract the content of this paper. Reasonable effort should be made to remove all past references to this paper.

The presenting author of this paper has the option to appeal this decision by contacting TPII@ieee.org.

This paper focuses on whether China´s financial system still needs market-oriented transition after recent global financial crisis which hints that financial liberalization may weaken financial stability. We analyze the structure of China´s financial system and highlight that current system doesn´t possess the so-called advantage of dealing with fluctuation. In fact, the good economic performance under crisis is mainly built on the administrative resources deployment that counterbalances the negative effect of short-term fluctuation. The high cost of such counterbalance makes market liberalization reform imperative. We take German financial mode as example to indicate that financial liberalization and stability can coexist under certain conditions.