Research On Private Finance Of Zhejiang

Private finance is an institution different from formal financial institution. It appears spontaneously in China's market-oriented reform. As an new institution, it has advantages and disadvantages. However, the "financial restraint" long-term existing in our country causes private finance exists for long time as grey finance. In actual, private finance impels Zhejiang economy development always although it is not allowed by government. At the same time, the rapid development of private economy in Zhejiang Province, also has brought the private financial sector a great supply and demand. Therefore, it is important to study the status and role of the private finance in the regional economic development。As well as the regional economies, the regional financial development is an objective phenomenon under the background of the market economy conditions. Take a surface watching from the Zhejiang, there are many differences between Parts of the province according to administrative division, like economic resources, development level, the social division of labor, etc. Distribution from industry point of view, the "massive economies" of financial operation and development of their own emerged stronger regional, because different distribution of industries have different requirements for forms of finance, and also because of there different historical background and inter-regional economic credit rating. Thus, among various regions of Zhejiang, the financial situation have a more significant difference, different regions have different private financial characteristic. The main table in the following aspects:Development history, development status of forms and Manifestations. Therefore, we have to examine carefully the differences financial ecological characteristics in various regions, then take different levels of development, guide strategy, the implementation of financial deepening, according to local conditions in order to better adapt to the various regions of the industrial layout and the economic development.In the frame of institution economics theories, such as transaction cost, property right institution and institutional supply and demand, the writer analysis the reason of the private finance from institutional supply and demand. From the view of History-Institutional Analysis (HIA), the writer also analysis the evolution path of private financial organizations. The paper is divided into six chapters. The first part of the Chapter is an introduction. The second chapter is literature review. The third Chapter discussed Private financial activities of the development process, characteristics, status quo and its formation mechanism in areas of Zhejiang (especially Wenzhou, Taizhou). The forth Chapter take an in-depth analysis the causes which impact of Zhejiang private finance from supply and demand factors. The writer also demonstrated the unique industrial clusters in Zhejiang which create a good environment for Zhejiang private finance. The fifth Chapter analysis the financial development mode of two areas deeply, in order to get some advices for Financial System Reform in Zhejiang and even China's. The sixth Chapter summarizes the full text of the research context, re-point out the important role of private finance, put forward relevant policy recommendations. The writer also pointes out the future direction of financial institutional innovation for Zhejiang especially for China.