The study of financial fragility of different years in China based on clustering

Financial crisis originated from the financial system fragility. To prevent the financial crisis, this article used the hierarchical clustering analysis to determine the classification of China´s financial fragility. Firstly, seven micro indexes have main effect on financial fragility through analysis of the financial system in China. Secondly, seven micro index data from 1998 to 2009 are listed according to official figures in China. Lastly, financial fragility of 1998 ∼ 2009 in china is classified through above data based on clustering method. According to the clustering results, conditions of China´s financial fragility during the 12 years are classified four types. 2007 is dangerous state. 1999, 2000, 2001 and 2002 is attention period. The situation of 1998, 2004 and 2008 is normal. The last years´ is safe. This kind of the analysis method provided reference to China´s economic development.