Research On China’s Financial Innovation To Promote Economic Growth

The current world economy is showing the trend of Globalization. Goods market, services market and capital market integration to vigorous pace forward, China’s economic development has attracted the attention of the world.In the past30years, the economic development of our country draws lessons from other countries. Having late advantages, economic development makes a spurt of progress, obtains a lot of great achievements. With the developing of China’s economic, the late advantages have become less and less. Along with the economical globalization development, analysis and study of China’s economic growth in the new continuously impetus is very important.The financial industry is the important pillars in the development and stability of the national economic. The financial industry has been occupied an important position in the economic development of a country. China’s financial development is gradually developing, with the development of economy. Financial innovation in China is gradually becoming one of the main driving forces of economic development.This article makes a summary on the theory of domestic and foreign scholars. Through the analysis and derivation of endogenous growth model, we arrive at a conclusion that the financial innovation of enterprise and development of economy is a mutual connection which promotes each other. On one side, the financial innovation of enterprise provides the necessary financial services to develop the economy. Financial enterprises in the financial market make innovation to emerge in an endless stream of new financial products, or to rich varieties of the real economic investment. The innovation meets the diverse needs of customers and promotes the development of economy. On the other hand, the requirements of economy on financial instruments or financial tools provide the inherent power of the financial innovation. When production companies engage in the industrial production, they need to buy more equipment which requires financial institution’s support. Other enterprises involve in the project of reduction also need intermediary service provided by financial institutions. All of these put forward new requirements for the financial enterprises. The mutual promotion and dependence of the economy and financial innovation in this two aspects gives the momentum of economic growth in a spiral way. The correlation between them which finally reaches the" win-win" effect, is not only to offer good growth benefits of the development of economy, but also to promote the development of financial innovation.Through the analysis of present financial innovation, this paper analyzed and summarized the present stage of our country is faced with the problem. In the financial innovation on the road, the old system of financial innovation exists in China. At the same time, the financial innovation lacks of systematic coordination. Innovation and development of regional differences exist and the cultivation of innovative talents shortage exists in our country present stage development.This paper gives advice to promote the development of the financial innovations at the present stage in china. From the aspect of financial subject, we can stimulate the financial main body innovation motivation, cultivate innovative talents, and improve financial competitiveness. From the aspect of financial systems, we can build up a good financial system, promote regional coordinated development, coordinate the pace of financial innovation, and accelerate financial deepening. From the aspect of financial supervision, we can establish macro prudential regulatory framework, break the information gully, and strengthen international financial cooperation.In the background of economic globalization, China must speed up the pace of financial innovation. Improving our country finance the core competitiveness of enterprises to win in the new round of world economic development.