Research On Chinese Policy Finance At The Turn Of Chinese Economy

When researching Chinese policy finance,we must compare it with foreign policy finance. In a certain degree,policy finance is the contrary of commercial finance and the important constituent of contemporary finance system. Policy finance has been one and half centuries from its construction. As its special investment direction,exploiting bank is the pillar of policy finance structure. After the Second World War,it really became apparent. Between 1940s and 1960s,exploiting bank sped up in the world,and this period was the gold time of its development. Especially in developing countries,exploiting bank provided large amount of money for many programs and acted important role. After 1970s or 1980s,economic environment has undergone big change and appeared economic globalization,which brought the problem of finance globalization and stimulated the contention. This trend became more apparent in the 1990s. Whether developed countries or developing countries,all reformed their finance systems and changed their structure. After the crisis in 1997,the function of exploiting bank has attracted more importance from people. In the crisis,many banks had to be closed down,which destroyed the credit,and made bad account increase. In addition to it,many manufacturers went bankrupt and unemployment increased. Therefore,many different governments hoped policy bank to act again. Through which,they could renew the economy. Although finance crisis didn't happen in China,the exportation and national need decreased. So Chinese government 100k the national exploiting bank as a kind of importantly financial and monetary tools. And at the same time,China has given more attention into the loan,and supported the fundamental instrument building to promote the economy. On the other hand,in the theory area,R. McKinnon's finance oppressing and Shaw's finance Deepening theory has always been thecenter after the second world war. After 1980s,many developing countries were in many problems of policy finance except East Asia. Meantime,there were also many examples of failure,which promoted people introspected the omnipotent finance freedom,and rethought the government intervening the credit market and built the theory that the government intervene the credit market and build the theory foundation. Fortunately,in this time,intelligence economies' development supplied a kind of theory tool. But the purpose of policy finance in post-developing countries is not only to deal with intelligence asymmetry and replenish the "market failure". Furthermore,the market foundation is not perfect in the first period of development. In order to put the "overstep strategy" into effect,the government must concentrate part of its finance strength on basic investment area to direct the development of economy. This paper tries to unfold in theory and practice on the base of Japanese and Korean policy finance example. Furthermore,it tried to analyze Chinese policy finance problem,then suggest a kind of train of thought for the reform and development in China.