On The Relationship Between China's Financial Development With The Economic Growth

China's economic system reform has experienced for almost 30 years, China's GDP has maintained rapid development. So what are the reasons for the rapid economic growth? This paper does not find the general reasons for economic growth such as demand pull,factor promoting and technical progress but try to find the special explanatory variable, namely, financial development indicator. At the same time,China's financial sector is booming, but there are many factors uncoordinated with economic growth. What is the relationship between the financial developments with the economic growth on earth? How to coordinate? Many related domestic and foreign research drew different conclusions. To analyze the relationship between China's financial developments with the economic growth, in this paper, empirical testing methods are used to have a specific analysis. Having correct understanding of the relationship between them is beneficial to putting forward reasonable policy proposals for China's financial development, it can help the financial sectors better meet the needs of economic development and promote the early realization of economic goals.In this paper, firstly the domestic and foreign research results in this field are briefly reviewed, and then the model of financial development and economic growth is introduced. Then according to China's actual situations, we use error correction of the Granger causality test methods for empirical analysis. According to the conclusion of the empirical study, China's financial development and economic growth has long-term interaction relationship .In the short term, the economic growth is the Granger reason for financial development, but the financial development is not the cause of economic growth. From a long-term perspective, the economic growth is on the decline in the role on financial development, but financial development has strengthening role on the economic growth. This reflects that China's economic was in the rapid development at the initial stage of the reform and financial reform lag behind economic reform, China's financial has limited role on the economy growth in the short term. by analyzing the reform of China's financial system, we find it is not just financial or economic issues, but closely related to political and economic development. Therefore, to design a reasonable program of financial reform, we need to use a scientific thinking, such as the financial ecological concept. Optimizing the financial ecological and promoting the coordinated development of financial and economy by a series of measurements, such as: improving the property rights of financial system, optimizing the financial ecological structure, improving the financial ecological adjustment mechanism and i mproving the financial legal system etc.