Research On Mechanism Of Transforming Saving Into Investment

According to the theory of neo-classicalism, deposits should be identical to the investment, but they are not equal in the real world that is called the enigma of the deposits-investment transformation. An empirical analysis indicates the transformation efficiency between them in China is much lower than that in developed countries. While the banks hold a substantive deposit, the capital market still suffers a depression and corporations' financing undergoes many difficulties. The paper mainly examines this contradiction under the viewpoint of systematic function and some pieces of policy suggestions are also proposed.The functions of capital market during the resource configuration are classified into four parts: liquidity supply, venture configuration, information supply and incentive regime supply. Then the relationship of capital and deposits-investment transformation is discussed under this framework in order to figure out the operation mechanism and the intrinsic essence of the capital market approach to the deposits-investment transformation.The empirical verification to the time sequence of the deposits- investment demonstrates the status quo of its transformation efficiency. In the interest of the connection between the capital market and the deposits-investment transform, an empirical analysis is taken from the aspects of capital-deposits and capital-investment.In the end, under the theory of capital market's functions, this paper analyzes the situation of the deposits-investment transformation efficiency in China, explores the factors that have impacts on its low efficiency and provides policy approach to perfect the capital market system of the deposits-investment transformation and the resource configuration.