Financial Innovation Diffusion Mechanism

Along with the economical reform advancing gradually in our country, financial system consummates step by step and the financial markets develop continuously. Financial depth deepens unceasingly, and a lot of new financial tools are introduced and developed. After our country's entry of WTO, the domestic financial markets open more gradually, competition between financial institutions intensifies, and various new financial products are promoted. The financial innovations make great influence to our country economy and financial development. Under this background, the financial reform became economists' hot topic, and financial innovation research also received widespread attention.Although our country's scholars have already pay much attention to financial innovation, and have produced massive research literature, they gave little attention to financial innovation process of our country, moreover their researches concentrate on introducing western theories. The western scholars' theories origin from western mature market economy. Their theories cannot necessarily be used to explain Chinese financial innovation. Considered the great influence of financial innovation to our country's financial industry, it is extremely important to perform full theory explanation to the dynamic process of financial innovation.Based on the predecessor studies and the Chinese practice in finance innovation of more than 20 years, this paper conducts the preliminary research to this thesis. The author hopes to understand the process of Chinese financial innovation more deeply; also hopes to explain Chinese financial reform from a new angle. This article is for the purpose to interpret the diffusion mechanism of financial innovation, and to analyze the diffusion process of Chinese financial innovation, and to try our best to make the simple experiential analysis to the diffusion process of one innovation product.This article comprises four chapters. In the first chapter the author summarizes the related financial innovation theories, which include two parts. One part makes...