Developing The Fictitious Economy For Implementing The Central Government's New Regional Strategy To Revitalize The Traditional Industrial Base Of Northeast China

This paper makes some studies on how to cooperate the development of the fictitious economy and the real economy during the process of implementing the strategy of the revitalizing the traditional industrial base of the northeast china, it includes four parts: the leading said that Developing the Northeast china known as the old industrial base is the economy-developing strategy of the our Party Committee after creating special economic zone in the coastal area, developing Pu dong region and the west China, aiming at building a more developing society. The northeast china's industrial foundation and resource condition have made an opportunity for itself to go forward. It seems that the fictitious economy's development was ordered because the modern financial means, financial tool, financial market systems were wanted during the transition of these advantages into the real objection. So, we have to focus on the cooperation between the fictitious economy and the real economy during the research on the northeast china's development. The first part is about the relation between the fictitious economy and the real economy. The definition of the fictitious economy is coming from the real economy's, which said that the fictitious economy is the flow of the fictitious capital. the development of fictitious economy have gone through five stages, 1 the capitalization of the free money; 2 the agent for debt coming into being; 3 the security market coming up; 4 the internationalization of fictitious economy; 5 the innovation wave of financial tools. We can tell from the emergency and development of the fictitious economy that the fictitious economy's developing foundation and the objects of its service are all the real economy, which has a close connection with the fictitious economy. The fictitious economy produces the positive and negative influence on the real economy. the positive influences include:1 transforming the save to the investment; 2 easing the capital flow and the combination of the property rights; 3 promoting the risk management; 4 transmit the investment information; 5 regulate the national economy. its negative influences were reflected in the economic bubbles, which will occur when the speed and scale of fictitious economy greatly exceed the real economy. some assets'price are seriously away from the expected profit, pursuing the fictitious profits causes the plenty of capitals rushing into fictitious economy, which makes the serious conflict between the real economy and fictitious economy. And the vanish of the bubble economy will lead the financial crisis, which will cause the harm on the real economy. The second part is that the old industrial base's development needs the support of the fictitious economy. The old industrial base development, in essence, is the process of the activation state-owned asset and the development private-owned capital. The solution of and the two parts all need the support and development of the fictitious economy. One is the state-owned enterprise alteration needs the financial support from the fictitious economy. The structure contradiction of Northeast China is that state-owned proportion occupies a high proportion. Comparing with the non state-owned enterprises, the state-ownedenterprises bear a heavy policy burden, which causes the main reason of low efficiency. The burden comprises two parts. One is called strategical burden, which comes from the absence of self-developing ability caused by the national strategy. The other is called social burden, which comes from the problems of retirement and redundant personnel and so on. Therefore, the solution to the problems of the state-owned enterprises is to peel off such two policy burdens. In real economy, the policy burdens show in 4 aspects: 1. the settling cost of state-owned enterprise bankruptcy; 2. the derated cost of state-owned enterprise liability; 3. to cost of expense gap of social insurance; 4. the cost of peeling off the social function. All the cost above will need a lot of money. But now, there are no more than 5 ways to acquire money. 1. from the capital market; 2. to borrow from the banks; 3. from the government fiscal channels; 4. to operate the extant resource in the capital way; 5. to use the capital more efficiently. But in reality, these ways are all not feasible more or less. So the fictitious economy seems like the only way to increase economic vigor. The other is that the fictitious economy can supply an agreeable environment for private economy. The main obstacle of the medium and small firms is that financial channel is blocked. From the experience of developed countries, the solutions to this problem are as follows. 1. To set professional or policy financial structures for the medium and small firms. 2. To set a credit guarantee system for them by the government. Therefore, the breakthrough of institution is a more important solution to the problem, that means to relax the restriction for private bank and instruct more kinds of capital to the finance field.