Banks And Enterprises In China Relations: A Financial Analysis Of Property Rights Perspective

AbstractChina has experienced the transition from the planned economy to the market economy,which can be viewed as the institutional change,especially the institutional change of property rights.At the same time,the relationship between banks and enterprises is one of the important relationships in the economic system.The thesis will focus on the property rights of finance,and analyze the relationship on the background of the transtional economy.The gradual reform have to provide fund for the SOEs to develop economy steadily.With the decrease of financial capacity and the increase of resident income,the financial investment mode has been transfered into the monetary one,and formed the property rights of finance that is characterized by monopoly and state-own, so the relationship between banks and enterprises is the endogenous result of the gradual reform.The special relationship has developed virulently,which means the adverse selection and moral hazard in the administration of state-owned economy,the fixed interest rate and division in the monetary market,this condition has enlarged the economic fluctuation and weakened the influence of macro-policies.It should be stressed that the low efficiency has not made lethal crisis,the state capacity has supported the state-owned banks to get the resident fund sustainably,but the capacity has trended to decrease again and again.According to the analysis,we should improve the property rights of finance to adjust the special relationship,the way depends on the two main points:first,to develop the non-state-owned economy and substitute the present property rights;second,to perform stock-system reform in the state-owned economy and better the present property rights.