Research On Financial Support Of China's Commercial Circulation Industry

Over the past 40 years of reform and opening up,the contribution of commercial circulation industry to social economy and its importance in the national industrial system have gradually been accepted by the whole society.The circulation industry has become the foundation and leading industry of our economy.However,there are still many problems in China's commercial circulation industry,such as the task of reducing the cost of circulation still exists,the circulation efficiency needs to be further improved;compared with developed countries,the market concentration of the whole industry and the scale of leading enterprises are still far behind.At the same time,after years of deepening reform and development,China's financial industry has steadily improved its ability to promote economic development,but it should also be clearly recognized that under the special background of the economic downturn in recent years,the financial industry itself has appeared some problems such as "disintegration from reality" and so on.The exertion of financial functions is out of touch with the actual needs of the real economy,and the financial industry's ability to transfuse blood and hematopoiesis to the real enterprises.The level needs to be further improved.It is against this background that the financing difficulties and high financing costs of enterprises encountered in the development of real economy are more common in the commercial circulation industry.The lack of financial support has become an important factor restricting the development of commercial circulation in China.The report of the Nineteenth National Congress of the Communist Party of China put forward that we should "promote the construction of a powerful trading country".The Thirteenth Five-Year Development Plan of Domestic Trade Circulation also points out that by 2020,the modern circulation industry has become a strategic pillar industry of the national economy.At the same time,the real economy of financial services has become the realistic choice of the country.The central government has clearly put forward a series of guiding principles of the real economy of financial services."Serving the real economy is the essence of finance" etc..Especially in February 2019,the central government clearly proposed that "financial activity,economic activity;economic prosperity,financial prosperity;economy is the body,and finance is the blood".It clearly demanded "deepening the structural reform of the financial supply side,enhancing the economic capacity of financial service entities",which provided new opportunities for various industries in China to make good use of financial resources and achieve development.However,there are few studies on the relationship between finance and commercial circulation in academic circles.Most of the existing research focuses on theoretical discussion,and quantitative analysis is very rare.Fewer papers have been published on the influencing factors of financial support in commercial circulation industry.The research on the financial support of China's commercial circulation industry not only has a strong practical value,but also has a certain theoretical value.Based on the above background,this paper takes the commercial circulation industry as the research object,studies the financial support for the development of China's commercial circulation industry.On the basis of systematically reviewing the existing research results on the relationship between commercial circulation industry and finance,this paper discusses the development process and financial support of commercial circulation industry.Combining with the industrial characteristics of commercial circulation industry and its development stage,the paper analyses its financial demand.From the perspective of function,this paper discusses the mechanism of financial action on commercial circulation industry,compares the mechanism of direct finance and indirect finance in promoting the development of commercial circulation industry and their performance in the real economy.From the perspective of industry finance combination mode,this paper analyzes the main industry finance combination mode of commercial circulation industry.On the basis of the above theoretical analysis,this paper measures the financial support level of commercial circulation industry from an empirical point of view.Through the establishment of panel data model,this paper makes an empirical analysis of the influencing factors of financial support level,and further puts forward relevant countermeasures and suggestions.The main research results and conclusions of this paper can be summarized as follows:1.The development of China's commercial circulation needs financial support.From the perspective of industry characteristics,commercial circulation industry has three characteristics:light assets model,low profit growth and competition mode of scale economy.From the point of view of industrial development stage,China's commercial circulation industry has gone through 40 years of reform and opening up process,and has entered a new round of transformation and upgrading stage.These conditions determine the huge demand for financial services in the commercial circulation industry.At the same time,the current financial industry has insufficient support for China's commercial circulation industry.It is mainly manifested in three aspects:insufficient financial policy support,insufficient scale of capital supply and irrational structure of capital utilization.2.From the point of view of financial deepening,the mechanism of financial industry on commercial circulation industry is mainly manifested in three aspects:financial scale,financial structure and financial efficiency.From the perspective of financial function,the mechanism of financial industry on commercial circulation industry is mainly manifested in capital formation,risk dispersion,incentive and restraint,and information disclosure.However,the focus of direct finance is different from that of indirect finance.The mechanism of direct finance is mainly reflected in capital formation,risk dispersion and information disclosure,while the mechanism of indirect finance is mainly reflected in capital formation and incentive and restraint.3.China's financial development has a positive role in promoting the development of commercial circulation industry,but there are differences in the role of financial scale,financial structure and financial efficiency in promoting the development of commercial circulation industry.Among them,financial scale plays a larger role,which shows that from the perspective of China's commercial circulation industry,there is no problem of over-development of finance,and it is necessary for the financial industry to further expand the scale of funds for China's commercial circulation industry.Financial structure also has a significant positive effect on the commercial circulation industry,but the effect is less than the financial scale.The role of financial efficiency is the smallest,while the level of significance is low.Therefore,to improve the financial support for the commercial circulation industry,we can focus on expanding the scale of financial support and improving the structure of financial support,while the financial efficiency can be a long-term direction for improvement.In addition,the national financial expenditure is also positively related to the development of commercial circulation industry,which enlightens us to make rational use of government fiscal and tax expenditure policies to promote the development of commercial circulation industry.4.From the perspective of the role of financial support,there are significant differences between direct finance and indirect finance in promoting the commercial circulation industry.For the direct financial support,the regression results show that the total market value coefficient is 0.55,which means that when the total market value increases by 1%,the total assets of enterprises will increase by 0.55%.This indicates that the direct financial support system dominated by capital market has a greater driving effect on the development of listed commercial and trade enterprises.For the indirect financial support.The regression results show that the interest payable coefficient is 0.02.The indirect financial system mainly based on credit has less support for the development of China's commercial circulation than the direct financial system.5.From the perspective of the commercial circulation industry itself,in terms of the influencing factors of financial support level,direct financial support and indirect financial support have different influencing factors,which are as follows:(1)Net sales interest rate has a greater impact on direct finance,with the impact coefficient reaching 2.69.However,the net interest rate of sales has less impact.(2)liquidity ratio is positively correlated with direct financial support.But it is negatively correlated with indirect finance.(3)Inventory turnover is positively correlated with direct financial support,but not with indirect financial support.(4)Fixed assets turnover rate has a negative impact on direct financial support.Over the past decade,China's economy as a whole has been in a downward phase.Although fixed assets turnover rate has increased,it has not played a positive role in the entire direct financing market effectively.Fixed asset turnover is positively correlated with indirect financial support,but the correlation coefficient is low,only 0.14%.It is worth noting that the correlation coefficient between indirect finance and equipment level of fixed assets is as high as 17%,which indicates that indirect financial support in China's commercial circulation industry tends to rely too much on mortgage guarantee.(5)The growth rate of business income is positively correlated with direct financial support,but not with indirect financial support.(6)In terms of technology level,the correlation coefficient between intangible assets ratio and direct financial support is 1.85.The technology level of commercial and trade enterprises will significantly improve the level of direct financing.However,it may be that the economic effect of technological progress needs a certain period,and financial institutions seldom consider such indicators when carrying out credit business,so the correlation between technological level indicators and indirect finance is not significant.(7)In the aspect of national policy support,tax and fee return has no significant impact on direct finance.However,tax and fee returns are positively correlated with indirect finance.Similar studies have found that government subsidies have a significant positive regulatory effect on the value of enterprises.(8)The influencing factors of direct financial support,such as technological progress and growth ability,are long-term and gradual,while the influencing factors of indirect financial support,such as annual tax return,are more short-term,and the indirect financial support of commercial circulation industry tends to be short-sighted.6.In view of the above research results,this paper holds that in order to enhance the ability and level of financial industry to serve China's commercial circulation industry,we should start from five aspects:(1)establish a multi-level capital market,expand the proportion of direct financing of commercial circulation industry;(2)innovate financial products and services,and reduce the mortgage of fixed assets.Guarantee dependence;(3)strengthen the support of national policy funds,improve the subsidy management mechanism;(4)build the credit system of the circulation industry,improve the credit rating of the industry;(5)Strengthen technological innovation;(6)Strengthen the supply chain construction of circulation enterprises and play a good role in supply chain finance;(7)strengthen the combination of policies to enhance the effectiveness of the policy role.The results of this paper can provide a reference for the circulation authorities and the financial decision-making departments to formulate the development policies of the commercial circulation industry,as well as for the operation and management of commercial circulation enterprises and financial institutions.