Research On The Historical Shift And The Function Evolution Of The International Finance Centre

The modern economy is financial economy. Finance plays the important role in the economic and social development in every country, and its effect rises unprecedentedly. In a certain sense, the economic competition is focused on the financial competition. The finance has been the implement of international political and economic competition among countries. The international financial centre, controlling the world capitals, becomes the place of various capital game regulation-making and of transferring risk loss, and the commanding height of the national economic growth and the control centre participating in the global resource assignment, and the center in the financial competition among countries. As a rising economic power, China should establish its own international financial centre with a certain influence. In so doing, in twenty-first century, China can establish its strategic position in the fierce international economic and financial competition, benefit from the economic and financial globalization, consolidate the achievement in the opening and reform, and defend the country's finance sovereign and the financial security. Therefore, how to examine and build our international financial centre in order to strengthen our overall financial competition is an important subject facing the theorists.The author thinks that the international financial center is a major city where the financial resources play accumulation and radiation roles in the transnational or trans-regional range. The accumulation and radiation functions of the international financial resources are the key functions of the international financial center. The realizing ways of the financial radiation functions ordinary show as the financial function or its variation.According to the major events in the international economic history and developing stages of the international economy, the development history of the international financial center is divided into five stages in this article: the sprout of the international financial center in the era of the agricultural economy, the preliminary development of the international financial center in the era of the commercial revolutionary, the formation of the international financial center in the early industrialization, the conversion of the traditional international financial center in the period of the mature industrialization, and the pluralism of the international financial centers in the era of the post-industrialization. Particularly the article analyses how the international financial center forms and functions in the different stages of the economy financial. The clue is that the functions of the international financial center are in the progress of constant evolution with the shift of the international financial centers. The each drift of the financial centers in history is based on the fact that because the functional change of the old international financial center didn't catch up with the need of the economic development and declined, the new international financial center catered to the new functions needed in economic development and came into being. So the key of discussing the historical shift of the international financial center is the functional evolution of the international financial center. Its essence is discussing the inherent motives and external environment of the functional evolution of the international financial center, how to meet the new functions of the systematic environment needs for the new international financial center, and the mechanism on the functions of the international financial center.The functional evolution of the international financial centre mainly shows the expansion and increase of the finance accumulation function and the finance radiation function in the international financial centre. The matter mainly embodies in the kind and scale increase and the quality improve of the finance resource accumulation, and the unceasing enhancement of the finance resource accumulation density, and the gradual increase of the economy energy in the finance radiation source. The latter mainly embodies in three aspects: the increase of the financial radiant and the enhancement of radiation strength; and the improvement of the quality of the radiation media and the enlargement of the radiation flow; and the constant progress of the concrete functions.The formation and development of the world economy system are basically the inherent motive of the function evolution of the international financial center. The progress of the science and technology is a key external variable. It has the indirect impetus through the internal cause of the function evolution, and directly promotes the function evolution of the financial centre through the financial interaction. The change of the market environment is an important external cause too. The uncertainty enhancement of the market promotes the international financial center to meet the environment's demands and promote its own functions constantly. The international financial center realizes the function evolution through the financial innovation market subjects and the supply of the government system.The function realization mechanism of the international financial center is different in every historical stage. In brief, the mechanism of the finance gathering includes the four mechanisms connecting and supporting each other, i.e. the promoting mechanism of the spontaneous market strength from bottom to top, the mechanism of the government leading from top to bottom, the mechanism of the government promoting and market participating, and the mechanism of the finance gathering self-strengthening. The realization terms of the finance accumulation function strengthen the gathering strength and raise the gathering density. The realization mechanism of the financial radiation function embodies in the mechanism of the transnational liquidation and payment settlement, the mechanism of the financial product pricing, the mechanism of the risk management, the mechanism of the wealth reallocation, and the mechanism of the international resource distribution, etc.. Its realization conditions are mainly the strong financial radiant, the flow and power of the financial radiation media, and the free-flowing of the transition channels in the course of radiation.The effect that the functions of the international financial center realize is that on the one hand it promotes the development of the world economy finance, on the other hand it causes the reallocation of the economic achievement, national welfare and risk all over the world between the countries in the financial centers and the ordinary countries.From the function, Shanghai is the best city of our country that has established the basic conditions of the international financial center; therefore it is the best location of the international financial center of our country. The key to build Shanghai international financial center is to strengthen function construction, to progressively improve the gathering strength of the Shanghai international financial center of China, to strengthen the gathering density of the international finance resources, and to raise the function of the finance accumulation. Moreover, it needs to develop and strengthen the capability of the financial intermediary and the financial market of our country, to improve its initiative in the international goods pricing and the risk management, to realize the disposition right to the transnational resources, to serve the economic development, the protection of the economic achievement of our country, and to improve the welfare level of the people in our country.The innovation of this article is as follows: The first is to scientifically define the international financial center and its functions. For the first time it proposes that the fundamental mark of forming international financial center is the full play of the transnational financial resource accumulation and radiation. The key function of the international financial center is the financial resources accumulation and radiation. The realizing ways of the financial radiation functions ordinary show as the financial function or its variation. The second is that from the history, it combs the shift of the international financial center according to the landmarks among the international economic evolution. The author thinks that the key historical sign of the evolution of the international financial center is its function's evolution whose basic motive is the formation and development of the world economic system. The third is that in the normal formulas of the function analyzing, through the research of the function evolution, motives, terms, function play mechanism, etc of the international financial center, the author tentatively constructs the frame of the function analyzing of the international financial center.