Study On The Financial Support System Of Forestry In China

Under the circumstance of modern marketing,finance has become the core of the economy which determines the speed and efficiency of the development of the economy.The growth of economic will inevitably be restricted by capital investment insufficience and financial resources allocation inefficency if the basic functions of financial factors were restrained.The market oriented development of forest industry in China requires extensive and effective running of credit activities and financial operation which ensure the sustainable increase of capital investment and the effective allocation of financial resources.In no doubt,currently,forest industry in China appears the nature of apparent weakness in producing and financing therefore suffering from severe capital formation insufficience and development funds shortage.The shortage of forest capital will result in the shortage of investment in forest industry and will seriously restrict the ecological construction and sustainable development of forestry industry in China.Therefore,in addition to capital support from the public financial budget and stable income,it is very necessary to develop new special policy to allow reasonable fund raising from the society,to widen the investment channel and to improve the configuration efficiency of financial resources to meet the demand of the forestry development.Forestry finance support is exactly a new system which aims to make up for the serious capital shortage.The core function is the achievement of forestry capital configuration and efficiency.The configuration of forestry finance is a process which is jointly decided by its financial system,management,operational mechanism.Efficiency is decided by the completion of system supply and efficient distribution.The basic function of forestry financial support is to achieve the allocation and configuration of forestry finance,investment risk prevention so as to meet the increasing capital demand of the forestry development.Forestry financial support should become the strategic mechanism and important channel of sustainable development of forestry industry in China.In this paper,the internal logics and actual basis of financial support in the process of forestry development are discussed,which are inspired by the reasonable factors of the industry economics,finance economics and information economics.This paper also analyzes in three aspects of capital formation,investment efficiency and financial operation to provide theory evidence for the financial support frame for forestry industry through the construction of "forestry caption formation shortage model".This article points out the reasonableness of financial support system arrangement and the completion of system will provide the financial resources allocation and configuration mechanism which is needed by the development of forestry development.A basic supporting platform is therefore formed through the development of budget financing,policy financial and commercial financing.In the framework of forestry financial support,this paper analyzes financing demand and financing ability of the forest industry in the angle of financial supply and demand.Firstly,this paper analyzes the current financing demand of forestry in China and suggests the introduction of mortgage and extension mechanism and the development forest financing service system to ease the difficult financial situation of the forest industry.Secondly,by evaluation on the commodity forest revenue and profit rate,this paper analyzes the impact of forestry policies and other factors on investment profit and risks with the conclusion that the current policies are not able to change the basic situation of low profit and high risks in commodity forest investment and will not encourage more investment on commodity forest.This paper suggests to promote industrialization operation of forest industry,and to develop new forest financial mechanism with the hope to complete the forest risk prevention system and forest industry policy system.In addition,combined with building the support system of forestry financial,financial instruments innovation system of forestry,forestry risk management system and forestry income security system,to address the problem of the shortage of capital formation and development funds in forestry.Thirdly,this paper also analyzes the development of mortgage substitution and extension mechanism,forest financial instrument and risk prevention management system.With the increased industrialization of forest industry in China,it becomes increasingly important to develop and complete the forest financial support system and high efficiency financial system.Forest financial support not only has economic function,but also has apparent society function and policy direction.The forest financial support should follow the general direction of promoting forest ecological system and industry coordinated development through "system construction and renovation".It is necessary to complete the forest financial support system supply,to improve the forest financial support supply structure,to develop and coordinate the forest financial development system so as to promote the development financial support of the forest industry and to increase the comprehensive development ability of Chinese forest industry.