Application of Comprehensive Evaluation Method in the Measurement of Financial Fragility-Analysis and Research on China-ASEAN(1998-2008)

The steady operation of economic and financial system is an important basis and guarantee of a sustainable and healthy development for any country, even the global economy. On the basis of the foundation of comprehensive evaluation method in the measurement of finance fragility, this paper applies portfolio assessment method, and conducts an empirical research on the economic situation of China and five ASEAN countries (Indonesia, Malaysia, Philippines, Singapore, Thailand) based on the specific index data from 1998 to 2008, and classifies and analyzes the level of financial fragility and influence factors according to the evaluation results. Finally, this paper draws the following conclusions: the level of financial fragility in China and ASEAN generally depressed from 1998 to 2008; influenced by various negative factors from both home and abroad, the stability level was unceasingly disturbed. On the basis of the selected constitute factors of each nation's finance stability, the factors of the overall stability of the region are refined as follows(According to the significance): bank performance level, currency credit level, international payments, macroeconomic environment, government debt, government finances, financial market development level.