Recently, the 2022 China International Fair for Trade in Services (CIFTIS), co-organized by the Ministry of Commerce and the Beijing Municipal People's Government, was held. Guests from over 20 countries joined discussions on global development and security.

The Financial Security Index Report (by Country), a research by Tsinghua PBCSF and published by Economic Press China, was released at the Achievements Release Event of CIFTIS, which received widespread attention. Zhou Daoxu, Director of the Center for Financial Security at the Institute for Fintech Research, Tsinghua University, and Ma Tianping, a part-time research fellow, attended the event and introduced the report.

Photo: Zhou Daoxu at the event

The world is faced with multiple issues such as trade de-globalization, controversy monetary policies, rising fiscal deficits, and strong international financial correlations. What's more, the world is undergoing an important period of development transformation. All those issues highlight the importance of national financial security. To better convey changes of national security under the new finance and provide high-quality global services, the Center for Financial Security developed the national financial security index for enterprises going abroad by analyzing the national financial security of typical global economies at multiple levels. And index are expected to reflect the essence of economic security, highlight the orientation of financial security, focus on risk identification and measurement, and provide forward-looking/early warning.

Ma Tianping made specific report on research methods, effects, and impacts of the development of the country-specific financial security index and its value to the financial security of countries. He also introduced the differential value of the index to China's financial security, and the development principles, evaluation methods, compound algorithms and application effects of the index.

The report monitors and compares 15 countries’ data, including developed economies, emerging economies, as well as countries rich in bulk commodity resources and those with complicated geopolitics, for comparability and in full consideration of the reference value,. Taking the year 2017 as the base period, the global financial security shows a trend of "benefit to one means benefit to all, whereas harm to one means harm to all. Generally, China is in the upper middle of the spectrum and has relatively low volatility in financial security. The difference between China and developed economies is that China still has a huge policy leeway and resource space when dealing with financial insecurity shocks. Taking countermeasures and available space into account, China's financial security may take a higher rank.

The Financial Security Index Report (by Country) provides a valuable reference for identifying country-specific financial risks, and promoting the globalization of enterprises.