| Throughout the history of China’s economic development,opening up and development are two indispensable themes.In the historical practice of the Chinese economy,opening up has always been the starting point of many world-renowned historical achievements,among which the history of the development of local depository financial institutions is an important part.Looking back more than 100 years ago,China’s domestic market opened up for the first time with the Opium War,and local depository financial institutions began to transform from feudal tradition to modernization.Although western monopoly capitalism and feudal government controlled and hindered the transformation process of China’s local depository financial institutions,history shows that traditional financial institutions such as old-style money houses have achieved part of the modern financial transformation.Before the Nanjing national government monopolized the market in 1927,a new type of bank appeared in the local financial industry,which was a prototype of the modern financial industry.From the study of this important history of opening up,it is found that China’s local depository financial institutions have shown a positive and active transformation in a passive environment for its opening up,and have a place in the era of modern transformation.After learning the lessons of history,the strong vitality and endogenous power presented by the development of local depository financial institutions between 1840–1927 is worthy of being remembered by history.It also provides a reference for China’s domestic banking industry in the current deepened opening up environment.After the wars and the construction of a planned economy in New China,reform and opening up opened the door to China’s closed market again in 1978.Unlike 1840,it was China’s own will to open up its market.China’s financial market has continued to expand its degree of openness in the course of reform and opening up.At the same time,China’s local banking industry has strengthened its own reforms and improved its internal structure in the environment of opening up.Starting from the unified banking system,it adopted incremental reforms and established a more complete local banking industry structure before the 19 th CPC National Congress proposed the expansion of financial opening up.With the continuous expansion of the opening up of China’s financial market,under the pressure of external competition,the local banking industry developed steadily in competition and learning,the functions of local banking institutions gradually become clear,and the strength and competitiveness of banks was significantly improved,laying a solid foundation for the local banking sector participating in competitions after the expansion of market opening up condition.The lessons of history and the review of the examples of the development of China’s domestic banking sector from 1978,banks,a window of economic sector,showed the success of the “Chinese path” and “Chinese character”.It will also become a historical blueprint and a reference for banking institutions participating in international competitions of China and other developing countries in the future.The reviews and specific studies of the development history of China’s domestic depository financial institutions under the condition of opening up in the two periods of modern market opening up(1840–1927)and post reform and opening up(from 1978)are significant,because they unveil the development rule and theoretical value,which are historical lessons for now.In terms of the current development environment faced by China’s local banking sector,after the end of a 15-year buffer period for China’s WTO accession in 2016,under the impact of Western countries’ complete denial of China’s status as a full market economy,external adverse factors for economic development continued to affect China’s economic and financial development.The situation is especially intense since US President Trump took office in 2017.The protectionist and unilateralist policies of the “US First” strategy have been causing an escalation of Sino-US trade frictions and a rising in the uncertainty of Sino-US trade policies,which led to frequent fluctuations in China’s financial market.In a new pattern of world politics and economy,China has been insisting on carrying out reform and opening up to the end,coordinating reform internally and deepening its opening up to the outside world.In 2018,the Boao Forum for Asia announced 12 specific measures for China’s financial opening up.In 2019,the State Council of China introduced 11 measures to further expand the openness of the financial industry to the outside world,which marks the opening of China’s financial industry switch onto the fast track.In a new round of opening up and development strategy,how to correctly grasp the direction of Chinese banking sector is an issue that needs to be carefully considered during the current transformation of China’s banking industry.To face this problem,we need to learn from the global advanced ideas to innovate thinking on the one hand,and deeply review and summarize historical experience in China’s financial development practice on the other.“As we learn history,we know how we succeeded and how we failed,what we gained and what we lost,where we rose and where we fell” said President Xi Jinping.Summarizing the practice and development of China’s domestic depository financial institutions and acquire some experience from the history will undoubtedly be important in guiding the practice of deepening the development of China’s domestic banking industry in the context of opening up.Theoretically,financial opening up can significantly promote the development of a country or region,especially those with backward financial conditions.By bringing in relatively cheap international capital,improving the investment structure,optimizing the financial structure,and building a diversified financial system,financial opening up can better serve the development of the local real economy.Therefore,financial openness usually marks the beginning of a financial transformation in developing countries,after which the financial sectors of backward countries begin to take the road of change.However,in the process of their financial opening up,these financial sectors tend to deviate from the local realities and take the path of “dependency on others” in the containment of western countries.In particular,the “financial liberalization” theory of the 1970 s has become the dominant method for developing countries to solve the problem of financial restraint.However,in the practice of many countries and regions,the financial developing concepts of western countries are not universal.Most of the developing financial reforms were eventually suspended or permanently stranded due to financial crisis.In 2008,the subprime mortgage crisis brought irreparable losses to global financial development,after which countries around the world,including western developed countries,started to reexamine financial opening and the neoclassical-type laissez-faire strategy of development.Experience of the practices in the past brought us reflections: in the context of financial opening,what kind of development path can help developing countries’ financial sectors to “catch up”? As a proving ground for financial latecomer countries,what are the characteristics of the development history of China’s local financial sector? What kind of new theoretical references can the cases of China’s financial liberalization and the development of domestic depository financial institutions bring to China and to other developing countries in the future? To this end,based on theoretical analysis,historical review,and empirical research,this article explains the proposition of financial opening and the development of domestic depository financial institutions.In order to be rigorous and scientific while conducting this proposition research,this article lays its foundation on the pattern of “questions – analysis – conclusions”.The author takes a historical review and focuses on the comparative analysis of the two periods of China’s financial opening since modern times.After theoretical analysis and historical elaboration,the author adopts the method of empirical analysis to verify historical experience and conclusions from the case studies of China.Finally,the author puts forward a prospect for development based on historical experience.According to this pattern,this article sets up the following 6 chapters:In the first part of the article(including Chapter 1),the realistic background and theoretical background of the writing of this article are introduced,based on which the author explains the theoretical significance and practical value of the research.At the same time,the research ideas,structural arrangements and research methods of this paper are also introduced.The second part is the theoretical analysis of this article(including Chapter 2,Chapter 3,Chapter 4).Among them,the second chapter mainly introduces the basic concepts and theoretical basis of the thesis,points out the problems or loopholes in the existing research based on the review of the existing results,and proposes the space for further research.Chapter 3 introduces the changes of domestic depository financial institutions under the background of openness in modern Chinese history.Starting from the market opening,this chapter analyzes the development history of local depository financial institutions and the facts of capital invasion of foreign banks in China against the local financial industry under the conditions of a forced opening up.By reviewing the development history of local depository financial institutions after the opening up in modern era,the development of the domestic financial industry under the condition of forced market opening in modern Chinese history is summarized.Chapter 4 makes a theoretical analysis on the second key period of China’s financial opening,namely a theoretical analysis on the financial market from the reform and opening up to the beginning of the 19 th CPC National Congress.The establishment and improvement of the functions of the central bank,the development of the banking sector within the system,and the creation of the domestic banking industry outside the system are discussed respectively.According to the continuous expansion of the degree of openness,the analysis is divided into three levels,and the development of the local banking system is discussed in depth at different stages of market opening.This paper believes that through theoretical analysis of the theme of financial opening and local deposit financial institutions,it can be seen from the vertical comparison between Chinese cases in the two periods that the development of the local financial sector in the context of opening up should be based on local characteristics and local advantages,and a development strategy adapted to local structures should be implemented;an open market attitude will directly determine the thoroughness of the development and transformation of local deposit financial institutions,to which the cases in the history of development have given the answer.At the same time,it is confirmed through history that the success of China’s domestic banking reform under the leadership of the Communist Party of China after the reform and opening up,that is,adherence to the path of development with Chinese characteristics.The third part(including Chapter 5,Chapter 6)is the empirical analysis of this article.In Chapter 5,by adopting exploratory factor analysis,structural equation model and intermediary effect tests,this paper integrates and verifies the factors that influence the transformation and development of local depository financial institutions in modern Chinese history.Through empirical analysis,the paper concludes that the key factor for the development of local depository financial institutions in the context of financial openness is the endogenous motivation for development.The sixth chapter analyzes the development of local banking industry under the active opening by using panel regression model and dynamic panel model.Based on the previous theoretical and empirical analysis,the fourth part(including Chapter 7)summarizes the experience and lessons of the historical development of China’s two-period financial opening.Based on the summary of experience and drawing lessons from history,the author concludes the paper with the inspiration for a further development of the domestic banking sector in a new round of financial opening.By reviewing the development history of China’s domestic depository financial institutions under the context of financial opening up,this paper summarizes the lessons and developing patterns of local depository financial institutions in the context of China’s two-period openness,and adopts methods in economics to elaborate the law of development.The author supports the successful experience of taking local structures as a foundation for the development of domestic depository financial institutions and the incremental development through combining open learning with local advantages under the background of China’s two-period openness and the key role that an endogenous motivation plays in the development.This historical experience can be a proposal for the development which is different from other perspectives.It also puts forward a significant lesson for the current and future development with openness in China’s banking industry and for the development of banking sectors in other developing countries. |
