China's Financial Industry Business Model To The Analysis

The operation mode of financial industry can be generally divided into the two kinds - single operation and mixed operation. Currently, China adopts the single operation, while internationally most countries adopt mixed operation, or turn towards mixed operation gradually. A large number of scholars have put forward their viewpoints on which kind of operation mode China should take, which on the one hand indicates that this question had already aroused academic attention, on the other hand shows that we still need in-depth discussions on it.The current materials show that many scholars confined their research to the macro areas on this issue, such as coming to conclusions by comparing with other countries, or elaborating from the angle of China's era background. The research on the behavioral influence of actors in financial industry is relatively rare. There is no doubt that the operation mode has influence on the actors'behavior in the financial industry. It restricts not only the actors'behavior mode but also the behavior willingness. However, this is only one side of the "coin". The actors'behavior mode and behavior willingness also affect the operation mode in the financial industry, in that the interests of actors should be considered to great extent while choosing the operation mode of financial industry. If one operation mode can guarantee the practical interests of all actors at the same time, this mode will be stable and sustainable. In the meantime, when an operation mode can meet the common preferences of all actors simultaneously, the operation mode will be easily changed. If great differences exist in the preferences among the actors, competition will arise among the modes, and the institutional arrangement with the highest return-to-cost ratio and the greatest social welfare will be selected by comparing their pros and cons.Therefore, the gaming of the various actors in financial industry is of great significance for choosing the financial operation model. This essay will probe into the problem of choosing the operation mode of financial industry in China from the microeconomic perspective, analyzing through Nash equilibrium.The essay is composed of five chapters. The first chapter mainly summarizes the theory and introduces the background and relevant concepts. The second chapter proposes the author's own theoretical assumptions and the gaming model based on the Nash equilibrium. As the main body of the essay, the third chapter and the fourth chapter not only carry out the gaming analysis of actors, but also compare the competitiveness of various actors, and further explore the leading force and the possible development direction of China's financing industry. The fifth chapter analyzes and elaborates the possible problems in the switching process of China's financial operation model, such as barriers and path, etc.