The Research Of Chineses Financial Instruments Innovation During Economic Development Overlap Period

Financial innovation has always been run through the whole process of financial development,when there is no financial innovation, there is no financial development and progress. The innovation of financial tools is the major aspect of financial innovation. Financial instruments are created by human society, in order to completing a certain a financial business and achieving a certain financial function, they are supporters of financial instruments of the time requirements.Chinese economy has developed gradually from the low to high level, has gone through the agricultural economy, commercial economy, industrial economy, and the coming information technology economy, in every economic stage, there has been a wave of overlapping, every crossing a new economic stage, there will be a conflict. But the overall trend is forword. The finance and the economy are growing together, in every overlapping economic stage, the financial innovation is most active. However, in different era of overlap period, the financial tool innovation motivation, form, support factors and the effects are different.At present, we are in the overlapping period of industrial economy and information economy, in this era of "overlapping period",What’s the reasons behind the financial instrument innovation, and what’s the law and support elements? This paper reveals the answers from the history angle. This paper has reviewed the causes,the path and the regular of financial instrument innovation from Chinese history several hundred years ago, by theoretical analysis, feasibility studies, and reference on traditional Chinese financial instruments innovation experiences and lessons.This paper based on the historical research, brook through the previous researches. Created the concept of "era of overlapping period", Divide the stages of China’s economic development into four stages,they are agricultural economy, commercial economy, industrial economy and information economy, in these four stages, there are overlap period of agricultural economy and commercial economy, overlap period of the commercial economy and industrial economy, overlap period of the industrial economy and information economy. From the first two times overlap period found out the inner motive power of financial instruments innovation, innovation laws, forms, and support innovation effects. The research scope including the official government agencies issue money ticket, folk circulation of paper currency, issue stocks and bonds, etc. since Ming and qing dynasty. On the basis of the study,guide the current era of overlapping period industrial economy and information economy.During Chinese history, in every overlapping period, financial and economic development has showed unharmonious aspect, the function of the financial tools could not keep pace with the demand of economic development: However,after financial instrument innovation, new financial instruments shown a strong vitality, its financial function has been strengthened and improved, finance and economy coordinated gradually. In every "overlapping period", there have the motive power from environment support, they are credit support, technical support, the system support and institutional support. in the process of financial instruments innovation these four factors are very important.The financial instrument innovation laws learned from the history also applies to the modern financial tool innovation. At present, China is in the overlapping period of the industrial economy and information economy, with the development of international trend, the pace of financial instruments innovation are faster and faster. Within network technology, the merchandise trade are very prosperous. At the same time, this period is also the financial innovations active phase. As the product of internet and combination, internet financial has begun "the third revolution." more flexible and efficient financial innovations has populated in recent years. The speed of innovation financial instruments in this period surpassed any other stages in the history.After analyzing the Chinese history, this paper concluded that we should pay more attention to the role of credit support than ever before. Secondly, promote the role of information technology for innovative financial instruments in the new stage of economic development. Thirdly, we should improve the regulatory system. Finally, the institutional support is also a key regulatory mechanism in the new economic era, forming the government, industry self-regulatory organizations and financial institutions co-manage system is an important way for the success of financial instruments innovation.