THE CONSTRUCTION AND APPLICATION OF FINANCIAL STRESS INDEX IN CHINA.

Maintaining the stability of the financial system is of great significance to a country's economic security, and accurate measurement of systemic financial risks is the basic premise. This paper selects nine important factor index data in China's five markets, uses the credit weight method and extreme value method to construct a time-sensitive China financial stress index. It is concluded that the change of the financial stress index precedes the change of the economic development trend, which proves the guiding significance of constructing the stress index to economic development. Finally, reasonable suggestions were put forward to relevant departments. [ABSTRACT FROM AUTHOR]