Abstract: This paper constructs a systemic financial risk indicator system composed of financial open indicators and different risk surfaces. Through the time-varying parameter structure vector autoregressive model, it analyzes the impact of financial openness on China's systemic financial risk and the internal conduction effect of systemic financial risk. The conclusions of the study show that financial openness effectively suppresses macroeconomic and monetary flow risks in systemic financial risks, but it exacerbates the accumulation of external market and asset bubble risks, and has a tendency to further expand adverse effects in the near future; there is a transmission mechanism within systemic financial risks. And the risks will be affected in the same direction, and the diffusion effect will be obvious. According to the current complicated economic situation and open conditions, China should combine deepening financial openness with preventing systematic financial risks, and promoting the all-round and orderly opening of the financial industry is an active choice for preventing and defusing systemic financial risks, also is an important measure of risk digesting channels.

Key words: financial openness, systemic financial risk, risk transfer