Research On China’s Social Financing Efficiency

China’s economy has developed into the "new normal".Macro Economy has slowed down,economic downward pressure is bigger,deep-seated structural contradictions is more prominent,the reform has entered a crucial stage.In the economic "new normal" background,the important task for future financial reform is how to speed up financial reforms and improve the efficiency of financial system to the real economy.The financial sector,theorists and researchers need to discuss the important issues.In this paper,based on the theory of financial development,the author clearly expounds the definition and connotation of social financing efficiency as well as the evaluation standard,builds the evaluation index system of social financing efficiency.In this paper,social financing efficiency has been divided into three elements: financing cost,financing benefit and financing risk.Then,the author has a comprehensive scientific evaluation of our social financing efficiency.On this basis,the author puts forward some views to improve the efficiency of social financing,including the financial innovation,development of capital market,and the improvement of the credit mechanism.The overall framework includes seven chapters,as follows:The first chapter is the introduction part.The author analyses global economic trends and China’s economy in the "new normal" background,emphasizes the financial system should serve to the real economy;points out the research meaning of China’s social financing efficiency;states the related literatures and puts forward the research direction of this paper.On this basis,the article describes the research ideas and methods,notes that innovation and the imperfection of this paper.The second chapter is institutional background and questions.Since the founding of our country,social financing mechanism has been changed,the paper briefly describes the different economic and financial institutional background,characteristics and objectives of the social financing development.On this basis,the author analyses the current situation and problems of social financing development in our country.In the process,the author expands central bank announced index “Aggregate Financing to the Real Economy”,in order to understand the social financing scale and structure problems in the development and changes,thus put forward the necessity and significance of the research on social financing efficiency in our country.In the third chapter,setting up a theoretical framework of social financing efficiency.Topics include: the essential theoretical foundation,definition and meaning of social financing efficiencys;some factors in affecting the social financing efficiency.The three aspects of social financing efficiency are social financing cost,financing benefit and financing risk,which are the basis of evaluation criteria.Then the three aspects can be divided into seven areas,such as information cost,time cost,capital cost,allocation efficiency,output efficiency,credit risk and systematic risk.The evaluation index system including 23 specific indicators,which can provide a theoretical reference for financing efficiency evaluation in the later chapters.The fourth chapter analyses the financing cost and efficiency of our society.Social financing cost is one of the three elements of financing efficiency,which can be divided into specific information cost,time cost,and capital cost.Financing cost and efficiency have been the opposite direction.On the basis of the evaluation standard and specific indicators in the third chapter,through researching financing cost of different financing modes from transverse and longitudinal data,we can understand objectively the financing cost and efficiency problem of our society in recent years.The fifth chapter is about social financing benefit and efficiency of our society.According to the definition of social financing efficiency,financing benefit and efficiency is the same direction.Evaluation and considerations of financing benefit include allocation efficiency and output efficiency.This chapter begins with the empirical analysis of the relationship between the aggregate financing scale,financing structure,the real economy investment and industrial restructuring,analyses the recent changes of social financing allocation efficiency and output efficiency with specific indicators and data.The sixth chapter is the social financing risk and efficiency analysis.The higher financing risk,the lower social financing efficiency.Financing risk has been two ways: The first is credit default risk in different financing methods,and the second is society systematic risk.If financing leverage is too high,it could lead to systematic risk.This chapter analyses the two aspects of financing risk with specific data indicators.The seventh chapter is the conclusions and recommendations section.Based on the previous theoretical,empirical,index analysis,the author summarizes some results,proposes some opinions and suggestions to improve financing efficiency of our society in the new normal economic background.Results of this study show that:1.We should pay attention to the relationship between finance and the real economy,but not just focus on the scale and forms of development.In recent years,total social financing scale improved significantly,but still there is a structural problem.As China’s economic development has entered a new normal,if we rely solely on the total amount of financing,it will do more harm than good,so we need to enhance the capacity and level of financing supplied to further enhance financing efficiency.2.Social financing efficiency refers to the quality of financial services to the real economy,including financing cost,financing benefit and financing risk,the smaller the cost,the greater the benefit,the smaller the risk means that the higher the social financing efficiency.Therefore,improving the social financing efficiency,we need to further reduce social financing costs,enhance financing benefits,and reduce financing risks.3.In this paper,the author present social financing cost,which include information cost,time cost and capital cost.About information cost,the financial institutions lending market has decreased significantly,financing efficiency become higher.In the process of capital market direct financing,formation communication cost is declining,but still need to be further improved.About Financial institutions off-balance-sheet financing,information cost is the highest.From the point of time cost,the convenience of financial institutions loan business has been improved significantly.There is a big difference between in the financial institutions off-balance-sheet financing market,the convenience degree of the trust plan financing is poorer.The time cost of stocks and bonds in capital market is high,so efficiency is poor.Through analyzing the financing capital cost,equity financing is the lowest,then is the bond market.The loans average cost is higher,that provided by five big commercial banks is lower.The financing cost from trust loans is the highest.4.Social financing benefit refers tothe gains of the whole society in the process of financial system provide services to the real economy,including output and allocation efficiency.With the increase of social financing scale,output and allocation efficiency has been achieved,but the effect gradually weakened.For the financing structure,the bank loans can increase investment and promote industrial structure adjustment,but capital market financing function has not been played out,the efficiency is not high,which mainly due to China’s capital market system and operation mechanism is not relevant sound.So in the future financial reform,we should to improve the efficiency of the financial system.5.Financing risks in the process of financial service to the real economy include credit default risks and systematic risks.The higher the risk,the lower the financing efficiency.From the index analysis,the financial institutions have relatively low risks,but it is a rising trend over the last years.The default risks from corporate bond market and trust loans have been exposed gradually.In addition,with the rapid growth of social financing scale,the real economy leverage increase rapidly,the potential systematic risk is bigger,the financing efficiency has been declined.6.Based on the evaluation criteria of social financing efficiency,the author compares the financing efficiency in different financing ways with specific indicators and data.The result shows that financial institutions lending market is effective relatively;but financing costs is higher,so production efficiency is on the decline.Financial institutions off-balance-sheet financing is more flexible,but the cost of capital is very high,the risk is bigger,and regulation is difficult.In the capital market,the related operation mechanism is not sound,investment and financing body is not standard,the market environment is bad,so the financing efficiency is not high.Therefore,fostering an open,transparent,long-term stable and healthy capital market is the key to improve the financing efficiency.7.With the development of China’s economy and finance,financial role has been stronger day by day.The increase of social financing scale promotes the real economy development and industrial structure adjustment,but the effect is limited.With the future financial reform,we should do some efforts.The first aspect is to speed up the product innovation of financial institutions and meet the demand of real economy.The second aspect is to promote the development of capital market,increase the proportion of direct financing and efficiency.The third part is to look for some strategies to prevent and resolve social financing risk properly.The fourth aspect is to perfect the system,and especially the improvement of credit system,in order to improve the efficiency of social financing in our country.This article made some tentative innovation in the following aspects:1.This paper theoretically defines the definition and connotation of social financing efficiency,using social financing cost,financing benefit and financing risk as three dimensions to explain social financing efficiency.Establishing an evaluation index system,which contains 23 specific indicators and seven aspects,such as information cost,time cost,capital cost,allocation efficiency,output efficiency,credit risk,and systematic risk.2.In accordance with the three dimensions of social financing efficiency and 23 indicators,this paper using a variety of data to analyze and calculate our country’s social financing efficiency and financing cost,financing benefit,financing risk.Therefore,we can evaluate and find the lack of our socia financing efficiency.3.In this paper,with the development of China’s finance and real economy,the author probes into some improving paths of social financing efficiency.It focuses on the option loan,which can meet the financing needs of Sci-Tech enterprise.As well as,the author puts forward some corresponding solutions,in order to reduce the social financing cost and financing risk.In this paper,there are some drawbacks.For example,analysing the cost,benefits and risk of financial institutions loans,equity financing,debt financing and trust loans,but does not involve the private financing,private equity and venture capital.In addition,since the availability of data and statistical issues,the time points of specific indicators and efficiency analysis are not entirely consistent.Furthermore,this paper builds evaluation index system of social financing efficiency,including specific quantitative index and fuzzy qualitative indicators(such as the financing convenience degree),so does not form a total quantitative efficiency index.In the follow-up study,we should try to quantify the qualitative index analysis,for the purpose of improving accuracy and scientificity of evaluation.