The Comparative Analysis Of The Phases Of Financial Industry Development Of Shenzhen

Since last century, regional financial theory and financial development theory got a lot of attention and developed so much because the effect of financial industry is getting more and more important and indispensible in promoting the whole economic development. More and more economists started to study the developing level of financial industry in a certain city or a certain region. Due to this, a lot of financial relative theories came out such as financial structural theory, financial deepen theory, financial endogenous theory and financial sustainable development theory. In recent years, different from previous researches which are mainly focus on national level, more and more relative financial researches focus on the developmental level and tendency of regional finance and city finance. The level of financial industry of a region or a city directly affects the development of entire economy and another industry in these regions or cities. So it is extremely important and dispensable to study the development of the financial industry in regions and cities.Based on the life cycle theory of products, we know that a product or an industry has a certain developing life cycle. In most cases, products'development phases include beginning development phase, mature development phase, transforming phase which means the financial industry is transforming from mature development phase to declining phase and declining phase. Many financial theories such as financial sustainable development theory point out that it is also existed in a financial industry. In this paper, we mainly use the financial industry in Shenzhen from 1990-2008 as the research target and use empirical research method to find out whether there is a similar development cycle in a financial industry and what are the characteristics of development cycle in the financial industry of Shenzhen in twenty years.For this goal, we introduce the concept of time factor to build a research model for analyzing phased characteristics of financial industry of Shenzhen. We divide the basic factors into two systems: one is for analyzing the current development level of financial industry and the other one is for analyzing the developing speed of financial industry in Shenzhen. Then we substitute the data of the basic factors of two systems and get the synthetic scores by hierarchical analytical method. We use these synthetic scores of two models to analyze the phased characteristics of financial industry of Shenzhen in recent twenty years.Though studying and analyzing the synthetic scores of financial industry of Shenzhen in recent twenty years, we find the following conclusions: firstly, the development of financial industry of Shenzhen has very obvious phased characteristics which means the financial industry of Shenzhen came though beginning development phase, mature development phase and transforming phase which means the financial industry is transforming from mature development phase to declining phase in recent twenty years. Secondly, the financial industry of Shenzhen is in the transforming phase and is transforming to declining phase. Thirdly, because of the previous conclusions, Shenzhen must take many steps such as financial revolutions and financial innovations to avoid enter into the declining phase and enter into a new cycle. Besides that, in this paper, we also point out how to judge which phase of the financial industry is and what are the characteristics of each phases. Finally, we give the suggestions and solutions about how to maintain the sustainable development in Shenzhen according to the phased characteristics we get though the research.