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Forging A Firm Chain Of Funds

Posted on:2004-04-13Degree:MasterType:Thesis
Country:ChinaCandidate:J ZhengFull Text:PDF
GTID:2156360095456733Subject:Technical Economics and Management
Abstract/Summary:PDF Full Text Request
It is amazing that Chinese economy has kept sustained growth for over twenty years. Every Chinese is proud of the great achievements of China. But now China has entered a critical stage of economic transition, with the severe trials at home and abroad. China needs powerful support of finance, in order to carry the reform forward and to assure the sustained growth of economy. Therefore, at the present, it is extremely important to research financial model, which is to study how to finance through various channels.Firstly, the paper starts with the theories of financing, which include the theory of financial structure and the theory of financial repressing and deepening. The briefly review of these theories lays a foundation for the whole paper. On the basis, the second part compares two typical financial models used in different countries. And then, the concept of Complex System is introduced into the paper, which is put to define the financial model. The financial model is a complex system, composed of some factors such as government, banking institutions, enterprises and security market. Through analyzing these essential factors and the internal relations of theirs, we are getting an understanding of the financial model from the surface to the center: the starting point for the study is to solve the problem of funds shortage; but with the deepening analysis, the central point is to merge those essential factors into the market mechanism, and to change the traditional distribution of resources by plan; and the ultimate point is to harmonize the relationship between the real economy and the fictitious economy. On the basis, the paper further probes into the development of Chinese financial model, and points out some facts: â‘ The difficulties of financing originate from the conflict between the planned method and the market method in the distribution of resources. â‘¡In order to solve the problem thoroughly, China needs not only the reform of state-owned banking system, or the regulation of the security market, but also the establishment of the market mechanism. The ability of adjustment by market should be enforced and the administrative methods should be reduced. The enthusiasm of enterprises should be aroused, which can make enterprises be the motive power of fund cycle. All of these describe the ideal way of Chinese financial model development. But the process is tortuous, because many contradictions are mingled with each other duringthe process, such as the economic growth and the financial risk, the monopoly and the market mechanism. The reform can't make a clean break between the two sides, and can't realize the ideal at once. On the contrary, the reform has to consider the actual situation. The development step by step may be reasonable. That is said, the Chinese financial model will develop spirally.In fact, the paper researching on the financial model is equal to research on the Chinese economic reform from a new angle of view. The goal is to open up a new way for the development of the Chinese financial model, as well as the Chinese economic reform.In addition, the introduction of Complex System is very important, which is widely used in the field of natural science. The paper only offers a few commonplace remarks about it in the field of social science, so that others may come up with valuable opinions.
Keywords/Search Tags:Complex System, Financial Model, Financial Repress, Market Mechanism
PDF Full Text Request
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