Financing Plight Of The Private Economy And Financing System Changes

This paper research on the Chinese financing institution from the view of the financing predicament of private economy. It discusses the inherent logistic and trend of the financing institution and tries to give more practical suggestion for the next system reform. The relative contents and results are as following:Firstly, the private economy is facing severe financing predicament. During the past twenties, the private economy has rapidly grown, and taken up the main status in the whole economy. However, the financing straits have become the most important factor restricting its development. So it is pressing and vital to reform the present financing institution.Secondly, the Chinese financing institution has plunged into the puzzledom of the evolutionary path. Both the banking financing system and the stock financing system mainly sever the state-owned enterprises. This results in the huge bad loans accumulating in the system of state-owned banking and the destruction of stock market, which also make the Chinese financing institution plunge into the state of high risk and low efficiency.Thirdly, the low efficiency of the state-owned enterprises, financing institution predicament and private economy financing straits, influence and interact with each other, which has become the most critical problem for Chinese reform and economy growth. The private economy financing straits just is the facial phenomena, the deep problem behind which is the unreasonable institution construction and the low efficiency of financing institution. The financing institution predicament results from the soft constraints of budgets and the limitation of corporation structure. And the single property rights of state-owned bank and the recessive assurance from the government make the it more worse.Fourthly, according the analysis above, the paper gives following advice:1 . It is the important content for the property rights reconstruction of state-owned bank, however it is not the only one, which is the necessary term to optimize the financial resource. And the sufficient term is to cultivate the small and medial private financial organizations in order to form efficient market competition construction.2. It is pivotal to create impartial market competitive environment for the development of private financial organizations, and strengthen supervision on them. The private economy has the inherent institution demand for the private financial organizations. On the other hand, the latter is able to serve the former efficiently.3. It is necessary to relieve the governmental recessive assurance and to build the comminatory law to supervise the market.4. To cultivate the local capital exchange market is significant for an efficient financing institution so as to form a multi-layer direct financing system.