Research On Financial Suppotr In Zhongyuan Economic Zone Construction

Zhongyuan economic zone is given priority in the plan of functional zones, which takesZhengzhou, Kaifeng and Luoyang as the core and is supported by Zhongyuan city group.Zhongyuan economic zone covers the whole Henan province and surrounding regions with similareconomic structure, industry development and growth stage, including33cities of5provinces. In2013, the population of this zone is170million, whose GDP is almost5000billion, whichoccupies8.7%of national GDP, the economic aggregate ranked No.4next to Yangtze River Delta,Pearl River Delta and Beijing-Tianjin-Hebei Region. Zhongyuan economic zone has an obviousgeographical advantage, the traffic is well-developed, and the market potential is enormous, whichis an important part of Central China Development Strategy. Zhongyuan economic zoneconstruction needs perfect financial system and high efficient financial support of the region.Therefore, this paper took the financial support in Zhongyuan economic zone construction as thetitle, studied the contribution of financial industry development in Zhongyuan economic zone tothe economic development, as well as the problems that existed, took the regional finance andregional economic interaction mechanism as theoretical base, combining with the key tasks,proposed the financial support direction, reform program and policy suggestions.In theory, regional finance could increase financial service level and capital allocationefficiency by financial innovation, enhance total factor productivity by improving financialintermediary system, provide diversified financial products by accelerating financial marketconstruction, influence the output by adjusting monetary policy, further to promote regionaleconomic growth. From the regional finance and economic interaction mechanism, in the earlystage of economic development, financial supply actively guides the economic growth,represented as “supply leading type”; in the mid-late stage, economic development produces morecomplicated and diversified financial demand, forces financial sector to reform to meet the needsof economic development, regional finance and regional economy then represented as “demandfollowing type”. The mutual promotion between them could push regional finance and regionaleconomy to develop to a higher level.Though the economic development of Zhongyuan economic zone has achieved remarkableresults, the process of urbanization continues to accelerate, the economic aggregate continues togrow, people’s living level improves year by year, and the foreign trade develops rapidly. Someproblems still exist, the quality of urbanization is low, the regional difference in GDP per capita,third industry contribution rate, foreign trade is large compared to the whole nation and otherdeveloped regions, the vocational education develops slowly and shows a declining trend, etc. It isrelated to the overall situation of financial development in Zhongyuan economic zone. Since2008,the financial industry in Zhongyuan economic zone operates stably, financial reform deepenscontinuously, financial ecological environment optimizes unceasingly, and the effectiveness offinance supporting real economy strengthens significantly. While the financial industrydevelopment in Zhongyuan economic zone still has some problems such as low economiccontribution rate, unmatched to real economy and imbalance of development. Therefore, thefinancial development in Zhongyuan economic zone lack of impetus to economic growth, and is difficult to support the economic development.According to the strategic positioning of Zhongyuan economic zone, the key tasks of futureeconomic zone construction are: promoting new industrialization and constructing modernindustrial system; accelerating the infrastructure construction; promoting agriculturalmodernization and new urbanization process; strengthening the protection of resources andenvironment and promoting the construction of ecological civilization; enhancing public servicelevel, insuring and improving people’s livelihood, carrying forward Zhongyuan culture, etc. Thefinancial support to complete these key tasks including taking advantages of traditional financialinstitutions such as banks, improving financial efficiency, constructing regional financialinstitutions, developing capital market and insurance market, developing local debt platform,innovating financial service and financial products, developing new financial service, whichprovide sufficient and strong financial support to Zhongyuan economic zone construction.To solve the problems existing in the financial support of Zhongyuan economic zone, it needsnot only to improve and optimize the regional financial system, increase financial efficiency, butalso all kinds of financial institutions need strengthen construction and deepen reform. Therefore,banking industry should increase financial service level, develop inclusive finance, changeoperating mode, develop offshore banking business, optimize inner structure, deepen riskmanagement, and provide financial service for Zhongyuan economic zone construction; Trustindustry should innovate trust products, broaden trust business innovation channels; Insuranceindustry should increase investment in rural insurance market, strengthen the support to small andmicro business, broaden insurance service field, diversify insurance market entities; Financeplatform construction should serve strategic new industry, establish diversified finance channels,improve investment and finance platform management structure, construct new finance industry,including internet finance, technology finance and finance lease etc. Policy financial institutionsshould strengthen its support and guidance function, optimize finance service; Securities andfutures industry should accelerate kerb market construction and achieve diversified development.