Analysis On Regional Disparity Of Financial Assets In China

This paper shows China's financial development and the degree of economy monetization from 1990 through analyzing the amount and structure of China's financial assets. It discusses China's financial assets structure by three ways: component analysis, financial interrelations ratio and monetary structure. The conclusion is the amount and financial development level of China's financial assets have greatly risen, but the structure of China's financial assets should be improved further.The paper then divides the whole region into small regions with three different viewpoints, that is, three major regions, six main regions and 31 provincial regions. Based on the divided regions, this paper describes the present disparity of regional financial assets and financial development in three different levels, which shows China's regional differentials of financial resources during the period from 1996 to 2005. It can be concluded that the China's financial development gap between regions is highly significant.As till now, there is no international standard on the reasonable disparity range of regional financial development, it can't be directly judged whether the disparity of China's regional financial development is reasonable or not. This paper chooses the econometric method of Granger causality test to prove that China's financial development gap between regions is the granger cause of the regional income differential. The result can easily lead to a policy suggestion that during the process of building the harmonious society, the government should not ignore to balance the regional financial disparity.