Supply And Demand Balance Of Payments And Dvelopment Of China's Modern Finance

Changing of supply and demand on Financial payment functions is the main driver of the evolution of Chinese modern finance. We can be divided into three periods of the evolution of finance by analyzing recent economic history of modern China. In each period, the main body of the financial payment system may be new changing. In 1823, the establishment of Shanxi Draft marks a national payment system established, butduring the 1840-1870 period, the expansion of foreign trade, development of domestic trade and commodity economic makes more payment demand. With a lower supply costs and relaxed environment, Supply of payments is also growing. And a new balance of supply and demand achieve,promoting the development of the payment system. Means of payment at this time are not only money votes, the ocean, bills of exchange, but pawn ticket, Zhuang votes; Financial institutions from banks and silver number, ticket number, extended to the pawnshop, accounts Bureau, banks, bank number, and Ticket number.During 1871-1900, China's economy is more dynamic, the mainland trade and foreign trade is gradually controlled by the foreign trade,being the source of raw materials and place of industrial products selling. The growth of foreign trade gradually makes the foreign banks controling of China's foreign exchange market to meet the needs of domestic and foreign currency exchange; Ports and the mainland trade center makes more distance and more difficulty of transactions,and increasing the Payment needs .To meet new needs, account Bureau and banks started to operate off-site currency exchange business, Draft provision of payment services are fast, but the original payment system does not meet the needs, new banks come into being, adding payment system.Furthermore, the Government jont into the systerm, which makes the Draft more margain. At the same time the structure of the Draft business has changed. Overall, the supply of finance of changes make a new pattern of financial payment. Draft is still the core of the systerm, banks, bank number, account Bureau playing a supporting role, new banks change into a new force in competitive exchange business; Foreign banks control China's foreign exchange market in international trade , banks, Draft and the new banks participate in foreign exchange.The financial payment pattern has been formed in the 70s, which lasted more than 30 years.During 1900-1927, conditions of domestic economic and political changes, and the financial situation has gradually been broken. The payment system is no longer adapt to the prevailing economic situation. In the new payment system,foreign banks still control the international exchange, the new bank is the center of the domestic exchange, banks are supplemented status. Not difficult to find, payment needs and supply determines the form of payment system.After 1911, new banks began to grasp the domestic exchange rate. With the Chinese economy opening up, foreign banks penetration of the Chinese economy also increases, and control international exchange markets.Meanwhile, the political and economic environment changes and the financial crisis occurred frequently, interrupted the continuity of financial development in modern China, and even change of the processe of the natural evolution of modern China's financial, make the entire payment system changes.