Research On The Financial Support For Economic Restructuring Of Zhejiang Province

Since Chinese economic reform and opening up, Zhejiang has been growing at a high speed, with a leading growth rate and economic aggregate in the country. Per capital GDP in Zhejiang has exceeded that in moderately developed countries. However, we should also see that its extensive economic growth not only wastes a lot of scarce resources, but also makes the environmental problem more serious. What’s more, developed countries are now in a contraction period with a decreasing demand after the financial crisis in 2008. And domestic factor costs are increasing so fast that the foreign trade enterprises in Zhejiang which depend on low-value-added exports can’t survive. Therefore, it is necessary for Zhejiang to make an economic restructuring which means rescheduling all kinds of resources. How to take advantage of financial tools to support it is the key problem I want to address in this paper.First, we analyzed the background and initial conditions about economic restructuring in Zhejiang and put forward the basic orientation and development path based on Zhejiang’s economic feature. Second, we did both descriptive analysis and positive analysis on the adaptability of financial and economic restructuring in Zhejiang. The conclusion is that there is a structural contradiction between the current financial system and new financial demand. Therefore, we should not only keep expanding in scale, but also need a further development in optimizing financial structure, enlarging financial market and improving financial environment. Last, we provided some advice about how to support economic restructuring in Zhejiang from the angle of finance, depending on the historical experience in Taiwan’s economic restructuring in 1980s.We get the following research results in this paper.1. Zhejiang’s current financial condition can’t satisfy its demand in economic restructuring. It will have a positive effect on Zhejiang’s economic restructuring to get enough financial support.2. We can get the similar experience from Taiwan’s economic restructuring period in 1980s.3. To solve this problem, we should do two things. On one hand, we should consider market demand and construct a comprehensive financial support system from three dimensions:financial market, financial institution and financial product. On the other hand, we should propose some strategic measures based on the initial conditions on Zhejiang’s economic restructuring and its economic features.