International financial stability has been improved over the past year. However，the markets are sensitive to the factors such as uncertain global economic recovery，different pace of each country’s exit policies，and the possible outbreak of European sovereign debt crisis. International financial markets have been featured by the following aspects：excess global liquidity has been formed due to anti-crisis measures of fiscal stimulus and easy monetary policy；capital flows have chased the differentials in growth rates，interest rates and exchange rates；affected by externality of developed countries’ stimulus policies，emerging markets have become the principle recipients of international capital and have to face challenges of potential domestic assets bubble；foreign exchange markets and equity markets have been continuously turbulent due to gloomy prospect of economic recovery and deterioration of public debts in the developed economies；the scale of international debt securities have shrunk again. International financial markets will continue to be volatile because of a bunch of uncertainty on the sustainability of economic recovery in the developed economies：the choices of fiscal and monetary policies，the global rebalancing，and the reconstruction of international financial system in the medium and long term.