In recent years, cross-border short-term capital flows in the emerging securities markets become increasingly frequent, and gradually extend flow scale. it is easy to increase the fluctuations of the emerging securities markets and throw a chain reaction. Compared to mature international market, China's securities markets is an immature, imperfect, emerging and transitional market, which is more vulnerable to the influence of external financial markets in the internationalization process. With the gradual liberalization of the capital account, the hot money will cause larger system risks which affect the entire financial market system. Therefore, it is particularly important to understand the risk of short-term capital flows during opening-up of China's securities market, to learn from the experience of other emerging market, to take effective preventive measures and to strengthen supervision of short-term capital flows.
