The international financial market continued to be turbulent in 2013． The continuing conventional and unconventional monetary easing in developed economies, the Fed’s uncertain attitude towards its QE tapering, the unstable global economic recovery, and the clear sign of slowdown in the emerging economies have become the major risks in the international financial market． Investors’ risk preference became more yield-seeking than that in 2012, which is in line with the prediction of last year’s report． Yield curves of major government bonds rebounded in a narrow channel． Most equity markets of developed countries gained, while emerging markets suffered losses for the most time of the year． In the foreign exchange market, the US dollar appreciated against the Japanese yen and the most emerging economies’ currencies． Going forward, the possible QE exit remains a key factor for market sentiments． Whether the real economic recovery can sustain will be another major driver for international capital flows and the movement in the global financial market． <<