The Research Of The Urban Financial Competitiveness Of Shandong

Xi Jinping mentioned finance is the core of modern economy general secretary in the Fifth Plenary Sessions of 18 th Central Committee of the Communist Party. Finance as the artery and soul in development of the current city. Moreover, financial competitiveness has become a key part of the city’s comprehensive competitive strength. Meanwhile, financial competitiveness plays an irreplaceable role in the development of cities, regions and even the national economy. Therefore, the research of Shandong urban financial competitiveness has far-reaching theoretical and practical significance. It is conducive to the improvement of finance with focalization, enrich on study of urban financial competitiveness. And it is conducive to establish the strategy of the development of finance with focalization. Finally, it is conducive to promote development of Shandong Province economy.In August 2013, the Shandong Provincial People’s Government issued on speeding up financial reform and development in the province of a number of views and clearly put forward the goals of development in Shandong financial: In 5 years time, to establish a initial modern financial system which is commensurate with real economy of our province, with high-level marketization. By the end of 2017, added value of the financial industry in whole province accounted for the proportion of GDP will reach more than 5.5%, which accounted for service industry will be more than 12%. There will be a significant improvement in the structure of social financing, a obvious enhancement in the level of financial openness. In addition, financial risk prevention and control capacity will significantly strengthen. In November 2015,13 th Five-Year Shandong plan referred to develop the modern finance.Therefore, deepening the reform of the financial system, developing of modern finance,creating a regional financial center, and enhancing the competitiveness of urban finance are particularly important.In this paper, 17 prefecture level cities in Shandong Provinceare are samples. Based on literature about the domestic and foreign urban financial competitiveness, author determined the evaluation system and research methods.This paper designed index from the two aspects,including intrinsic and extrinsic factors that affect the competitiveness of urban financial. The internal factors summarized financial development, financial market and economic supportwhich are three secondary indicators. The external factors includes technological innovation and opening to the outside world which are two secondary indicators. In this paper, it explains the city’s financial competitiveness by 5 secondary indicators and 23 three level indicators.The author made a ranking by factor analysis for data of 17 cities in Shandong Province for financial development, financial market, economic support force, force of innovation of science and technology, open force, financial competitiveness respectively and discovered the advantages and shortcomings of each city according to the ranking. Then, it utilized the cluster analysis to divide the urban hierarchy.The rank of Shandong urban financial competitiveness was relatively stable through comparing empirical results of 2014 and 2010. Through the empirical research of Shandong urban financial competitiveness, it showed that Qingdao, Jinan and Yantai were the top three among the cities, Dongying, Zibo and Taian were in the middle, Zaozhuang, Dezhou and Laiwu had a lower ranking on the list. Focusing on the empirical results, this paper presented some countermeasure to enhance the urban financial competitiveness of Shandong from two perspectives- improving the level of urban financial competitiveness and creating innovative external environment, in order to provide references for the rational allocation of financial resources in Shandong, improvement of the competitiveness level and the scientific decision-making of financial departments.