Hot debates about the evolving, if not worsening, global financial crisis offer much needed food for thought as China's financial development enters a new era.

Explanations of the root cause of the current financial tsunami vary greatly, but few disagree on the need for China to further deepen financial reforms to sustain its long-term growth.

"Among all the financial crises, this may be the one that affects China most," Tang Shuangning, chairman of China Everbright Bank, told a financial forum in Beijing Tuesday.

With the world's largest foreign exchange reserve worth more than US$1.8 trillion, China is relatively well positioned to weather the financial crisis. But the impact it may exert upon the Chinese economy remains huge.

According to Tang, such negative consequences may include a crashing stock market, loss of overseas investment, declining exports, economic slowdown, rising unemployment and a collapse of market confidence.

The soundness of the Chinese economy and limited participation in the international financial market have so far saved the country from bearing the brunt of the financial crisis.

"But we cannot take it lightly," warned Tang.

The one-year-old crisis has already resulted in astronomical losses for many established financial giants around the world. The world was particularly shocked over the past few days when Lehman Brothers went bust, Merrill Lynch gave up, Goldman Sachs and Morgan Stanley became regulated banks, and AIG was practically nationalized.

By constantly improving the financial system as well as strengthening the effective regulation of the financial market, the Chinese government has put great efforts and resources into creating an increasingly competitive domestic financial market.

China's financial reform has surely contributed to its rise as an emerging global financial power. But a question mark hangs over how global financial liberalization, securitization and integration will influence China's further financial system reform.