Research On Local The Evaluation System Of Regional Finance Centers Based On Factor Analysis Model

The comprehensive strength of a country depends on its economy, and its economy relies on the finance. Financial center is a symbol of a country’s financial strength, and it gets the financial transactions, financial resources, and financial information together. Financial center has an important role in the worldwide economy and even the world political landscape. All countries have realized the importance of the financial center. So they are all busy in building financial centers to enhance its economic power and economic scope of radiation. China is a rising power with its rapid economic growth, and its economic aggregate ranks second in the world. In order to our economy develop better and faster, we need to establish financial centers.In order to balance the development between different areas we need to establish regional financial centers. So all local governments want to establish local regional financial centers to promote the financial system reform. Thus there are many regional financial centers in China, some strong financial centers play an important role for the local economic development, but some others did not lead to the development of the economy. We urgently need an evaluation system to evaluate the financial centers to find the real regional financial centers under the background of there are too many regional financial centers. We can focus resources, capital, talents and infrastructure to key financial centers. So we can optimize the allocation of financial resources and financial personnel to expand the scope of the regional financial center’s radiation and ability, and promote the development of the surrounding areas.This paper analyzes the theoretical basis of regional financial centers. And establish the evaluation system of regional financial centers on the basis of factor analysis model.This paper divides China into seven areas including north China, northeast China, east China, central China, south China, northwest and southwest China. And studies26typical cities in the seven areas including Beijing, Tianjin, Ningbo, Dalian, Shenyang, Taiyuan, Jinan, Fuzhou, Shanghai, Hangzhou, Nanjing, Nanchang, Hefei, Wuhan, Zhengzhou, Changsha, Shenzhen, Guangzhou, Nanning, Kunming, Chongqing, Chengdu, Huhehaote, Wulumuqi, Xi’an and Lanzhou.We measure various financial centers by setting indicators of economic development, financial development, financial internationalization and urban development and23secondary indicators. We can rank the26cities according to each evaluation indicator and comprehensive evaluation indicator.Through the ranks a city can find the gap with other cities and raise the overall level. And we can the real regional financial centers of each area.Finally we find the regional finance center for every region. Then put forward some policy suggestions based on the special situation of our country to establish better regional financial center. First, we should improve the financial legal system laws and regulations to avoid financial risk effectively. The second is to improve the development of financial market. The third, we must strengthen the construction of infrastructure to create good operating conditions for the development of financial centers. The fourth is to strengthen the cultivation of financial professionals because the core competitiveness in the financial industry is people. The fifth we must speed up the financial innovation to promote financial reforms.