Control over Financial Innovation,Regulation Synergy and Systematic Risk

The global financial crisis occurred in essence due to the imbalance between the financial supervision and financial innovation,and to financial regulation vacuum which caused innovative financial derivative products to be out of control.All the fundamental factors finally triggered the financial systematic risk.In the post period of the sub-prime crisis,both international organization and western developed countries re-examine numerous vital issue of regulation,and seek for reconstruction financial regulatory system,which will have a far-reaching influence on global financial market.In the post period of the financial crisis,China should conform to the trends of the global financial regulatory reform,promote the synergy between financial innovation and financial supervision so as to achieve effective control over the systematic risk of financial markets.