China's Economic Restructuring In The Financial Support Policy

In the process of China's gradual reform, the financial development and the evolution of financial system have followed a peculiar path, played a special role and thus formed the sole systematical financial risks. In transition, sustainable high-speed development and system transition rely on rapid growth of the public sector of the economy, and government provides a strong financial support for the public sector through implementation of the policies and methods, that is the policy of discriminatory credit, capital market disparity entering policy, funding subsidies, etc. The series of policies and methods, aiming at realizing the overall accelerating economic increase, taking the government interest rate controls, credit monopoly, capital market entering controls and credit regulatory controls as premise, supporting the speed of the economic increase with pushing of the growth of the public sector of the economy, are called as financial supporting policy. Making and implementing of the financial supporting policy are the most outstanding feature of the evolution of the China's financial system in the gradual reform, which influence the evolution of the financial system and the allocation of the financial resources profoundly and comprehensively. The research on this problem conduces to the mastering of the endogenetic logic and special risks of the China' s making of financial policies, it also provides a new angle for commentary on the reform efficiency and reconsidering of the reform features.This thesis will develop its expoundation from the following parts, and explain several points as follows:1. The phenomenon of the rapid financial growth and the strengthening and accumulation of the financial risks has deep systematical root. The evolution of the financial institution possesses the intense characteristic of government forcing domination, and government's aim and starting conditions have a determined effect on the financial development and the evolution of the financial system. The main goal of the decision-making of the government has always been keeping rapid increase of the economy and overall, accelerating development. From initial condition of the development of transformation, there are three factors are worthwhile noticing: first is low-level of monetization. Two, the public economy is the decisive sector. Third, suppressed demands and released demands under the economy of shortage, transition from the economy of shortage to the economy of relative surplus influences greatly on the operating efficiency of the China's enterprises.2. In the development of China' s transition, publ ic sector's rapid development shows special importance. Always, public sector is the major source of state finance, the major employment section for the cities' and towns' workers, the main undertaker of the cost of system evolution. High investment rate of public economic sector has supported the rapid growth of the National Economy. Technology diffusion, supports of the talent and product demands of the public sector of the economy also have a great effect on the development of the non-public economy. Comparing with other-countries in transition, China's achievement of the gradual reform receives benefit from the sustainable growth of non-public sector's output, so as to release the pressure of the state finance and social employment.3.High rate of the fixed capital investment's growth of the public economy sector means existing of the broad demands of investment capital. Looking for the resources of this part capital becomes the key if the gradual reform could be successful. Assembling of the sum of capital benefits from the efficient moblizationof the financial surplus of residents since the reform, in the transition, seriously distorted agricultural products price system and labor price system has been adjusted gradually. State owned enterprises' reform, which includes discentralization of power and transfer of profits, has lifted the worker's role of the profit distribution in the enterprises. Ch...