| According to the theories on finance and economics, as the financial market develops, the capital socialization has been promoted, which further reduces the enterprises' fund raising cost. The increasing fund raising proportion can bring about the fulfillment of efficient resource allocation. With the financial market development, most manufacturing and operating units practice capital accumulation, transfer, and transaction, and realize scale effect. To sum up, finance promotes capital flow, can optimize resource allocation and boost capital production, thus contributing to the economic development.Further more, the central government's policy of "The Rising of Central China" imposes this paper of significance as to arrive at the development target of Anhui, as Anhui is one of the central China provinces.Currently, some provinces see poor and imbalanced economic development from their undeveloped financial markets, and can resolve to financial strategies. The paper, based on empirical analysis of financial and economic development of Anhui Province, attempts to prove that Anhui's economic development is closely related to its financial development. In the meantime, the paper tries to identify the problems and setbacks occurred in Anhui's financial development and offer suggestions on policies as solutions respectively. |
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