Financial Enterprises Cluster: Study Based On The Theory Of Industrial Agglomeration

As the deepening of financial reform and opening policy in China, the regional arrangement of financial institutions has changed from the traditional mode which is divided according to administration districts. Alternatively, market mechanism turns to more effective. Now the development of financial agglomeration has became a new character of financial development. Because of the influence of finance in economic development, financial resources have been the main competitive object to different regions. In order to pursuit competitive advantages in financial market, many areas bring financial development and financial center construction into their long-term growth plans. According the practice of business and economy, a country or an area can not have a single financial center. The main financial center and the sub-centers should work together to at best improve the allocation efficiency of financial resources. And the construction of financial center need specific outside environment and inside mechanism. The paper analyzes the outside environment of financial enterprises clusters when they are forming and investigates its applicability, meanwhile, studies the experiences of developed country in this field and gives detail suggestions on the suitable path of financial agglomeration in China, in order to stimulate the regional financial development, and bring along the regional economy. The paper consists of four parts.Part one is the theoretical basics of financial enterprises clusters'research. This part explains the theory of industrial clustering, financial geography and the theory of regional finance. The theory of industrial clustering is the research foundation of financial cluster problem. So far this theory has been developed relatively perfect, and there are many empirical research and support. And the financial geography and the theory of regional finance are two new theories, used to analyze the factors that impact regional financial industry development. Financial geography stresses on natural factors such as social and cultural factors. All of these give methods, tools to analyze the problem of financial enterprises clusters.Part two is the background and effect of the forming of financial enterprises clusters. This paper considers the present external environment for financial enterprises stimulate the build and development of financial enterprises clusters. From a macro point of view, regional economy development which becomes the focus of recent discussion needs support of the regional finance. Financial enterprises clusters will provide a developing path. And from the micro level, in recent years, the relationship of financial institutions become closer, for example banking and the securities industry needs the insurance industry to provide protection. These close relationships promote the needs of geographic proximity and further propel the financial enterprises clusters. Next, clusters of financial enterprises have brought a lot of favorable economic effects, including economies of scale, information and knowledge spillover effect. At the same time several kinds of risks exist. Part three is studies of foreign financial enterprises clusters'development.This part gives a brief description of different types of representative international financial center development courses. According to the research, mostly the financial enterprises clusters locate in prosperous cities, economically strong and rich resources. But the mechanism is different, New York and London is market-led, however, Tokyo was mainly encouraged by the government formation. Both models have their advantages and disadvantages, market-oriented model with strong competitiveness and vitality requires opening financial markets with relatively high degree of freedom. And the government promotion model, in the initial stage of development, relies on the government's preferential policies and provides efficient and quality services in a short period of time to attract large financial institutions to settle down. But when the financial center develops to a certain extent, the interference of the government often restricts the development of financial institutions, and impedes the flow of financial resources of flexibility. Part four is analysis of China's financial enterprises clusters'development.First, the paper describes the development of financial enterprises clusters in Beijing and Shanghai. As Beijing's special status, the majority of the total financial enterprises locate here to create a national monitoring center, liquidation center and the financial information center. In Shanghai lots of foreign financial enterprises set up their branches, while it has important Stock Exchange and the Futures Exchange. Then, there are different financial enterprises cluster development directions to these two cities. At last to sum up experiences abroad and make specific policy recommendations.