The Financial System Structure In The Process Of Chinese Economic Growth

This paper analyzes the vicissitude, characteristics of the financial system structure within the framework of the Chinese economic growth as well as its relationship with the economic growth from the perspective of the financial system functions.A rational financial system structure is helpful to accelerate the economy. The way in which the financial system accelerates the economy is virtually the application of the financial functions with the help of a simplified endogenous economic growth model, this paper tries to demonstrate that the financial functions of saving integration, resource distribution and risk allocation can not only increase the capital accumulation of economic entities, reduce the capital losses and damage so as to transform the savings into investment, but also promote the investment efficiency. While within the different financial system structures, the functional mechanisms of financial functions upon economic growth are different. On the other hand, with the growth of the economy, new demands will arise concerning the development and changes of the financial system, which is to say that it is from within the economic growth process that the financial system comes to form its characteristics. Based on the theoretical analysis, this paper indicates that the financial system development should is conformity with the economic growth.But the quantitative research on the relationship between transformation of China's financial system structure and its economic growth demonstrates that neither the finance intermediary ( mainly the banks ) nor the finance market ( mainly the stock market ) has obvious impact on the acceleration of the economic growth under the present financial system structure of China. We use 'the lack of function' to explain the weak impact. The core of the problem is that the financial system structure of China is irrational.In order to accelerate the economic growth, financial system structure of China needs to be improved further. Aiming at consolidating the functions of finance, the thesis finally put forward some strategies and suggestions on optimizing the financial system structure of China and the harmony development of finance and economy.