Research On The Financial Support For Economic Transformation Of China

A country’s financial development has a crucial impact on economicdevelopment．There are different levels of financial development in different stages ofeconomic development， and financial development plays an important role inpromoting economic development．Since reform and opening up，the economy ofchina has achieved a remarkable achievement，which has a great relationship with therapid development of development．At present，Chinese is in a critical period ofeconomic transition，which is extremely significant to research the financial supportfunction that is more effective to enact a policy and steer economic to be fast，smoothand restructuring．Agriculture is the basis of a country’s economy，which goes withoutsaying that is almost certain to promote successful rural economic restructuring andrevival．This article focuses on the financial support function for China’s economictransformation and China’s rural economic transition，which is theoretically andphysically vital for this research paper．Firstly，this paper makes detailed analysis of Current situation of financialdevelopment，Chinese development situation，the development of securities market，China status China banking system development present situation Chinese financialintermediaries and Chinese rural financial development status，and describe theoverall situation of Chinese economy and rural economy in the period of economictransformation．Then，using the econometric analysis to research the relationshipbetween financial development and the economic transformation China，and Therelationship between Chinese transition of rural economy and rural financedevelopment．We finally arrived at the conclusion：First，there is a obviouscharacteristics between financial development and economic transformation whichhas long-term stability and short-term fluctuation in China．Second，in the period ofeconomic transformation，financial deepening，financial efficiency and financialstructure have different effects on the China economic transformation，and theinfluence degree exist significant differences in the statistical sense； financialdeepening and financial efficiency improvement and play a more effective role in theeconomic transformation，and indirect financing system of China than the directfinancing system to promote greater economic transformation．Third there is aobvious characteristics between rural financial development and rural economic transformation which has long-term stability and short-term fluctuation inChina．Expanding Chinese rural financial scale play the positive role to effectivelyprevent the rural savings fund outflow，increase rural credit financing，reduce the costof investment．Because of China rural financial development in the lower stage，thereare many factors which impact and restrict the efficiency of rural finance，whichcontains the impact of external factors，internal competition facing many businessmanagement system is not perfect and other factors．Chinese rural financial structurehas the negative impact to China rural economic transformation，the reason areascribed to single rural financial structure，the lack of financial products and the exitsof rural informal finance which lead to financial structure imbalance．At last，thispaper gives the relevant conclusions and policy recommendations．...