Study On China Regional Financial Agglomeration Factors

With the development of China’s economy, financial center construction and financial industry cluster are gradually getting more and more people’s attention. Financial industry cluster is a basic organization of financial industry now. Financial industry cluster is a dynamic process of financial resources, such as financial funds, financial institutions, financial markets, financial information and financial professionals. Nowadays New York, London and Tokyo are representative major international financial gathering area. In some emerging countries and regions, there is a clear trend of financial institutions gathering. In China, financial gathering trend has become increasingly evident in some areas. Beijing Financial Street has become a gathering place of domestic financial institutions and Shanghai Pudong financial institutions gathering is also very obvious tendency. But the domestic financial concentration degree have a certain gap with the international financial centers. The aggregation ability towards financial institutions, financial products and other financial resources is not strong enough. There is an urgent need for us to explore the internal mechanism of financial gathering, to identify factors and take them to be rational used, and eventually guide the formation of financial agglomeration.This paper analyzes the development of China’s financial markets. In China, Eastern relatively has more advantage in the allocation of financial resources than Midwest. While the use of space Gini coefficient, industry concentration, the Herfindahl-Hirschman index and location entropy index analysis of market conditions to make quantitative analysis. The empirical study researched on several factors’ affect toward the whole country and three regions respectively bases on domestic and foreign financial agglomeration theory. The related factors are human capital, and the level of opening up the financial sector workforce level. The level of economic development is the main factor of the financial industry gathering, and it makes possible for the formation of the financial industry and the financial center. The level of opening up is the external power for financial development and agglomeration Human resource is the core power of financial industry.Based on theoretical and empirical analysis, we Expounds the problems and the causes of China financial industry agglomeration. In accordance with the status and characteristics of China’s financial industry, and after learned from foreign experiences, we get the conclusion that we should promote the development of financial industry with the national economy. At the same time, different regions should strengthen financial cooperation, guide financial resources flow freely and eventually build up a perfect financial market system.