This paper expands the traditional financial conditions index, and uses 33 financial indicators to estimate the monthly financial conditions index of 39 developed and emerging economies from 1991 to 2016 to study the impact of international financial shocks on the domestic financial conditions. The study finds that a large share of the fluctuation of a country's domestic financial conditions index comes from international financial shocks and domestic monetary policy. The common part of the international financial conditions index explains the domestic financial conditions index of countries with significant heterogeneity. Finally, the paper puts forward the following policy recommendations: First, we should promote the continuous deepening reform of domestic finance, promote sustainable financial development, and enhance the ability to withstand international financial shocks. The second is to establish a financial risk prevention mechanism and improve the relevant financial system. Third, we should establish a systematic risk monitoring system and a multi-sectoral regulatory coordination mechanism. Fourthly, we should strengthen the supervision function of the central bank and improve the mixed monetary policy control tools.