A Research on the Early Warning of Chinese Financial Risk in the Process of RMB Internationalization

This article identifies risks during the process of RMB internationalization,and further develops financial riskearly warning index system for those risks. This index system consists of 24 different indices,falling into 6 categories. Webuild this warning system based on BP artificial neural network model and incorporate insight of historical economical datafrom 1995 to 2014. We then forecast financial stability for 2015 using data from 2014. Our forecast indicates that China is ex-periencing a stable situation as a whole,whereas the fluctuation in exchange rate risk warning subsystem,international envi-ronmental risk warning subsystem and asset price volatility risk warning subsystem show alarming results,which are a sign ofnegative impact on Chinau0027s macro-economy.