Study On The Financial Support In The Development Of China's Cyclic Economy

Cyclic economy is an economic development model which takes the high efficiency and circular utilization of resources as core. Its basic characteristics are low consumption, low emissions, and high efficiency. Cyclic economy follows the principles of reducing the use of resources, reusing of production and recycling of waste. Furthermore, it is in line with the concept of sustainable development and fundamentally changes the traditional economic growth model of "mass production, mass consumption, and mass disuse". China is a large developing country with an extremely low per capita amount of natural resources and a limited environmental capacity. Along with the rapid growth of national economy and the continuous increase of population, the problem of insufficient natural resources is becoming even more prominent, and the situation of ecological construction and environmental protection are becoming grimmer. For these reasons, studying the cyclic economy theory undoubtedly has the strategic significance of speeding up the establishment of a resource-saving society, enhancing the quality and efficiency of economic growth, and promoting the development of sustainable economic.In the modern market economy, finance is a carrier for the interaction of production factors and trade information all over the world. The unique operating law and effective support of financial activities have important effect on optimizing the resources distribution and developing the economic activities smoothly. By analyzing the development characteristics and financial requirement of cyclic economy, as well as the supporting effect of finance on cyclic economy, we know that the development of cyclic economy depends on the support of a well developed and perfect financial system. Without the drive of finance, the technology of cyclic economy won't be exploited and industrialized rapidly and, the projects of cyclic economy won't be constructed rapidly and operated smoothly either. Consequently, in-depth studying the financial theory, as well as establishing and improving a perfect and effective financial support system continuously, are necessary conditions for the development of cyclic economy.In the development of China's cyclic economy, insufficient investment, absent enthusiasm of the main parts of cyclic economy, narrow ways of financing, and high risk of running cyclic constitutes the main problems of financial support. These problems which could be ascribed to the ineffective macroeconomic control of the government, inadequate credit support of the financial institutions and the lack of capital market's support for the cyclic economy, the imperfect credit environment and guarantee mechanisms et al., have restricted the financial support for the development of China's cyclic economy.To resolve these problems mentioned above, government departments should give full play to its role in macroeconomic control, including giving an increase of investment and, adjusting the government's investment structure. In the mean time, the policy banks, commercial banks, small and medium-sized financial institutions as well as the capital market should increase the support for the cyclic economy. Besides, other financing means should be made full used of to improve the social credit environment and guarantee mechanisms. Only by striving to create a good system of financial support can be effective in promoting China's cyclic economy of sustained, rapid and healthy development.