Analysis China's Financial Services Trade Competitiveness

Since joining the World Trade Organization, China has enhanced the reform and restructuring of the financial sector, such as the implementation of the stock market and the consolidation of the trust industry. Also we have promoted large-scale state-owned banks listed on Hong Kong and the mainland, and established the basic frame of modern enterprise system. Now we can say that Chinese financial ecology compared to the past has greatly improved. Financial enterprises, especially large state-owned banks, have been deprived from the state administrative system and transformed into corporate governance and self-financing business Organizations. We know that all of these above mentioned were based on bank's five-year transitional protection system. By the end of 2006, Chinese banking industry opened fully to the outside world. So facing great pressure from international competition, we must not treat it lightly, but should strengthen our risk control, innovation of products and regulations, and the building of service capacity. After all, on the circumstances of economic globalization and integration, international service trade takes a greater proportion of world export& import trade. As a prominent part of service trade, financial service trade is promotive to other kind of trades. Moreover, financial enterprises take the strategic leadership of nation's economy. Finding out the gap between China and world powerful-nation of financial service has great historic and realistic significance for us to raise the position in world division of labor and to become a powerful-nation of international trade. Under this background, this paper, based on domestic and foreign scholars' relevant theories of foreign trade competitiveness, not only analyzes the financial trade competitiveness by statistical indicators, but also makes more in-depth empirical research on our financial service trade competitiveness issues from three aspects, namely the human capital, openness of financial services trade and international banking assets. Moreover, on this basis, this paper put forward some Countermeasures to upgrade Chinese financial service trade competitiveness.In this paper, first is to review some relevant theories of competitiveness. Second is to define some related concepts. And then statistically analyzes the financial service trade competitiveness in world market from the points of financial service market share of international trade, revealed comparative advantage index, trade competitiveness index and intra-industry trade index, in order to get a general grasp on our financial and trade competitiveness. After that, according to the Yearbook of World Competitiveness by Swiss College of International Management& Development, develops an index as comprehensive as possible to measure and analyze our financial system's competitiveness in detail. Finally, there is an empirical model researching on Chinese exportation of financial service trade from these aspects of human capital, openness of financial service trade and banks' international assets. This model, mainly using multiple linear regression analysis, deals with the weight set issue in a more scientific way and makes a detailed analysis on the reasons that impacted Chinese financial service trade. Moreover, on the basis of model analysis combined with conclusions that made from above-mentioned researches, put forward relevant improvements and ways to improve our financial service trade competitiveness. Based on the above writing ideas, the whole text is divided into six parts. The first part is the introduction, which introduces the background and significance of the topic choosing, home and abroad review articles, the structure and writing ideas.The second part contains definitions of some related concepts. This part introduces the elements of financial service trade, the scope of tradable financial service, the offer of international financial service (including Cross-border Delivery, Consumption Abroad, Commercial Presence and Movement of Natural Persons), and the statistics of intentional financial service trading. It also introduces service trade competitiveness.The third part of the analysis mainly discusses the current situation of Chinese financial service trade from the aspects of cross-border delivery and commercial presence. In cross-border delivery, the total importation& exportation of financial service trade is in the increasing trend, but there are still some unbalanced points in the structure of trade types and import& export, which is mainly the too high proportion of insurance service trade whose exportation is far less than the importation. In the financial service trade of commercial presence, on the contrary, the exportation is far greater than the importation.The fourth part is the specific analysis of statistical indicators and competitiveness indicators. The statistics indicators mainly include export market share targets, revealed comparative advantage indicators, trade competitiveness index and intra-industry trade index. The competitiveness indicators are made mainly according to the Yearbook of World Competitiveness. The analysis on our financial system's competitiveness is carried out from the following aspects: whether can credit funds flow from banks to enterprises easily? Whether can the stock market offer enough funds to enterprises? Whether can enterprises get venture capitals easily? and the quality of financial regulation, the rate of non-performing assets and competitiveness of financial enterprises.The fifth part is an empirical model based on the theoretical basis that modern finance is capital& technology intensive industry, economics of scale industry and intra-industry trade industry. The model, from the aspects of human capital, openness of financial service trade and international banking assets, uses multiple linear regression models to make the conclusion: with other conditions remain unchanged, as the human capital, the openness of financial service trade and the international banking assets change 1% respectively, the exportation of financial service will be leaded an increase of 2.334%, 2.064% and 0.509% respectively. So the rank of utility strength is the human capital> the openness of financial service trade> the international banking assets.The sixth part is conclusion and measurements. The measurements mainly include these following items:1. Promote the opening to the outside world, and improve its quality and level.2. Make great efforts to train financial professionals.3. Comprehensively implement the strategy of going out.4. Establish governmental coordination mechanism, and improve the sense of developing the financial service trading.5. Strengthen the statistics work of financial service trading.6. Establish a comprehensive financial regulatory system.