Abstract: Through the empirical analysis of financial stability’s mediating effects test，this paper explores the influence of China’s capital account liberalization on total factor productivity． The results show that: (1) There is still a certain gap between China’s capital flow growth and the scale of economic growth． Capital account liberalization can have an important impact on China’s high quality economic development through financial stability as an intermediary channel (2) Since 2011，the promoting effect of capital account liberalization on the support ＆ service ability of financial system has been significantly enhanced，while the promoting effect of capital account liberalization on the shock resistance ability is relatively weak and fluctuates more violently．(3) Since the Chinese economy entered the“new normal”，financial stability，especially the improvement of shock resistance ability has produced a significant positive impact on high-quality economic development． This paper suggests that the gradual and orderly progress of capital account opening should be closely linked with the supporting financial market reform measures，so as to maximize the benefits of opening on the premise of ensuring financial stability and improve the financial system’s supporting function for the real economy． 

Key words: capital account liberalization; financial stability; total factor productivity; TVP-VAR Model