Mechanism Of Capital Formation And Its Practice In China

The thesis was directed by basic theory of capital formation, pointing out connotation of capital formation and essence of mechanism of capital formation. It looked back variance of mechanism of capital formation in China, reviewed development of people's savings specially, analyzed the factors blocking mechanism of capital formation operate smoothly, finally put forward some countermeasures to make it perfect. The thesis is made up of five parts. Part one: On the basis of defining the concept of capital and mechanism of capital formation, pointing out the scope of capital in the thesis definitely and the differences between currency and capital, this part expound connotation of capital formation and present the status and function of capital formation in economy. Part two: This part based on discussing three aspects of mechanism of capital formation: savings, investment and savings—investment converting mechanism, then analyzed confinement factors on mechanism of capital formation, including financial factors and non-financial factors. Part three: This part retrospect variance of mechanism of capital formation in China linking with the periodical characters of economy operation in China. Part four: On the basis of analyzing deeply the characters of people's savings, the reasons of huge savings and its effects on economic development, this part pointed out the obstacles that make the mechanism smooth, analyzed functional limitation in financial system and financial markets. Part five: This part aimed at present conditions of mechanism of capital formation and put forward countermeasures on improving the mechanism, which including two aspects: reform and perfect financial institutions and financial markets, reinforce acceleration of non-financial factors.