Financial Support Based On Regional Economic Differences

The idea of finance comes from the process of the development of market economy. It breaks the time and space limitations of the currency and commodity exchange. On one hand, the emergence of financial industry has injected vitality to economic development. It provides support for economic development, speeding up the operation cycle of economic activity, reducing transaction costs. While it also improves the capital efficiency, optimizes allocation of resources. But all these can only be realized under the prerequisite condition that the financial system is healthily and effectively operated. On the other, due to the characteristics of financial industry, it carries most circulating funds of the economy when it developed to a certain extent, if not effectively operated, the funds chain may break or the credit of this industry may collapses, causing great damage to the real economy, which can be seen from all the financial crisis ever happened.Finance is an important mean of promoting economic development, its economic impact has two sides and both are powerful. Therefore, at present, the development of the financial sector needs to be encouraged on the one hand, and be suppressed on the other. We should encourage the effective intermediation of funds, the optimal allocation of resources and encourage the financial industry to bring capital gains for the people. But also, the self-expansion type of development of financial industry should be restricted. Financial development should be the based on economic development, and it is sustainable development only if it adapts to current economic conditions. Regional differences in levels of economic development decide that financial investment decisions should be based on the local economic conditions. Financial markets and the real economy are relatively independent, which means that although the financial industry can accelerate economic development to some extent, but in general, its supports for regional economic development lack a certain orientation. Currently, the financial and economic system in China is not perfect, and the capital often flows into developed areas which have adequate liquidity or into mature industries that are already well developed, while the undeveloped regions and emerging industries are not given sufficient support, likely to cause inefficient use of resources and waste.Fujian is an important economic province in China. It has a total of 9 prefecture-level cities; including 67 counties (county-level cities and districts under city administration are all counted). Regional resource conditions and industrial development patterns among different areas have their own characteristics, and that the problem of imbalance of regional economic development is prominent. Nowadays, our country is dedicated to coordinate economic and social development in urban and rural areas, to reduce regional economic disparities, and to prevent the gap between rich and poor from becoming too large. In this context, it is very important to study how to provide financial support for different regions according to the specific economic conditions and development goals in Fujian Province.