Financial Structure And Its Influence On Deposit-To-Investment Transformation In China

After 20 years from the begin of the reform, china have build the orientation of finance. Through the way of conversion of saving-investment, marginal capital output and saving the financial system can improve the economy. As china's witnessing the high saving rate, the conversion of saving-investment becomes important to china's economic growth.First this paper demonstrates the mechanism of the economy growth processes impacted by financial development and the financial structure. Then this paper verifies the important role of the conversion rate of saving-investment by statistic methods and point out the mechanism of the relationship.The paper introduces the measurement of market orientation of finance and reviews the usually employed measurement in the literature. The author establishes an index system of market orientation of finance in China by using principal component analysis. The index which is concluded from 9 indexes describes the program of china's market orientation.Then the paper analyzes the relationship between progress of market orientation of finance, stock market, credit intermedium and the conversion rate of saving-investment. by using the method of gay correlations index which is amended by the author.Then the paper verifies China's financial structure is in phase of infirm financial market-directing, and points out that the credit market plays the dominating role in the conversion of saving-investment, meanwhile the developing stock market is more efficient than financial intermedium in enhancing the capital marginal output. In the term of financial structure, according to this paper, the most iompotant is the function of the financial system but the financial structure itself. Based on this analysis, it is proposed that as a macro-manager, when government pays attention to the development of stock market and credit market the government should pay more attention to the circumstance-_ laws, policies, guarantee and etc-, from which the financial system can consummate its functions. More relatively advantage they play, more suitable the financial structure will be.