Research Of Financial Support In Chinese Modern Agricultural Development

Agriculture is the foundation of the national economy,a strategic industry which plays a significant role in maintaining a stable social development.To crack the modern rural economic development problems,a key aspect is how to reform and perfect the agriculture-related financial mechanism through new concepts and ideas to create a harmonious socio-economic environment.Third Plenary Session of the party's 17th National Congress indicated that one of the fundamental objectives of rural reform and development in 2020 is "to create a more robust rural economic system,set up integration mechanism for urban and rural economic and social development".This congress also set up detailed implements for rural reform and development in current and future periods,including one of the most pressing issues that need to be resolved,which is how to advance the modern agriculture development through financial mechanisms in terms of banking,credit,insurance and securities.As the core of resource allocation in modern economy,finance is always attracted the great expectation and the hotspot in theoretical researches in various factors supporting modern agriculture development.The results from many researches trend to agree the positive correlation between financial system and improving rural economic situation.However,there are many main points that we have to clarified in modern rural financial construction,including what kind of financial system we should adopt in supporting modern agricultural development effectively; should we rely on physical economics' self-promotion and cultivation,or rely on external force and import mature financial institutions and models;should we enhance subsidy and other supports from government,or perfect the market-oriented commercial and financial functions actively.This research starts theory and practice of the modern agricultural development in and out of China,through conflict analysis between China's agricultural situation and financial mechanism, explores main issues that influence the formation of financial system in rural area.Further more, based on establishment of modern rural financial mechanism,solutions with targeted maneuverability are also suggested to provide reference for decision-making in relative governance institutions.This research is divided into four parts.After a general introduction of modern agriculture,modern financial theory and their correlation in part one,and introduction of foreign practices and experiences regarding that finance supports agriculture,the emphasis is part three and four.By analysis on the issues existing in current rural financial system establishment,detailed recommendations are suggested.Writer believes that the problems need to be handled in developing Chinese rural finance at present includes:financial resources subject vacancy,legal deficiencies at informal financial institutions,weak financial risk transfer mechanisms,lag in financial service system,shortages in land management,weak in innovation of financial products and small funding scales participated in capital market.In this case,recommendations suggested in this research include to:perfect financial organization system construction,strengthen financial service system,speed up financial products innovation,enhance financial credit establishment,improve the financial risk prevention system,and set up a unified multi-tier financial markets...