A Study On The Path Choice Of Financial Support For Private Economy In Yunnan Province

Since the reform and opening up policy worked, the private economy in Yunnan Province has got a long-term development and become an important force in rapid economic growth of Yunnan, especially in innovating technology, enlivening market,optimizing the industrial layout and increasing employment opportunity. It has completed the initial stage of capital accumulation. The new development characteristics and trends of private economy request new evolution of finance, which put higher requirements on the relevant supporting services of financial services in Yunnan. However,under the background of China’s Economic New Normal, the financial constraints that Yunnan’s private enterprises faced becomes tighter, and have become the bottleneck of restricting enterprises’ development at the same time. So this paper will focus on the research of financial support in private economic development of Yunnan in order to reach two basic goals. First, the paper could analyze the present situation of private economy’s development and the relevant financial policy and support, demonstrate the relationship between these two parts by constructing model which puts the index of capital market efficiency in it, and then find the reasons for finance dilemma by using these empirical results. Second, it can provide a path selection of financial reform for Yunnan with the hope of promoting a healthy and sustainable development of Yunnan’s private economy.The train of research thoughts and core content in this article is mainly reflected in five parts. Firstly, by summarizing the related theory and reviewing the latest research, we find out the breakthrough of this research and then establish the framework and the goal of this paper. Secondly, on the base of analysis of the supplies and demands in financial market, we find out the reasons of financing obstacles. And then, by using the dynamic model, it discusses the relationship between the growth rate of private economy and the capital market efficiency, whichwas disintegrated into direct financing efficiency and secondary financing efficiency in order to make the result more effective and useful. Meanwhile, it summarizes the successful experience of financial innovation and refining the excellent technology of control risks. Finally, under the frame of financial system that has already existed, an adjustment of the system and complement of supporting policies are explored in this paper.According to the analyses above, the main conclusions in this paper have been summarized as follows:1. The analysis on the financial demand shows that the reasons of financial obstacles include the financing subjects’ integral scale and core competence is insufficient. Meanwhile, the economic power of private enterprise is not enough for them to borrow loans without obstruction. The main financing method of private enterprise is applying for loans from the traditional commercial bank which reduces the loan for private enterprises firstly when the macroeconomic volatility turned up.Correspondingly, the study of financial supplies reveals several issues. The nation wide financial agencies’ lending standards is tight and the financing costs bring huge burdens on enterprises. Meanwhile, the positive influence of stock and bond markets is tiny. New types of financial institutions lack the core technology to reduce risks,and full of fierce competition made the market lack of confidence.2. The sample analysis of financial innovation demonstrates that the advantages that Yunnan already have are the legality and its strict monitoring system. The sample agency utilizes the information superiority of informal finance and attraction of huge number of investors. At the same time, this organization is searching the way to optimize resource allocation actively by trying to cooperate with various financing institutions such as banks, guarantee institutions, fund companies and asset management agencies. But the weakness of the innovative agency is that its essential operation mode is still P2 B which not changed too much and strongly influenced by policy. In order to solve this problem, we study the core finance technologies ofGermany IPC Company, using Deviation analysis of asymmetric information and cross validation method for technical reference.3. The empirical result of dynamic models indicates that the efficiency of capital of indirect marginal efficiency in Yunnan has declined during 1987-2014,in which index’s numerical value was positive in 1987-2012 and negative in 2013-2014(the negative influence gradually gets bigger in this period). But on the contrary, the same indicator of the direct financing market has showed a growing trend which was negative in 1987-1995 and positive in 1995-2014. On the background of continual financial reforming and preferential policies implementing, the decline of indirect marginal efficiency illustrate that the existing corresponding policies is not suitable for the market demand. So, at the end of this thesis, we bring out a path to refine and adjust the financial system.The main innovative points include: 1. When analyzing the demand of financial service, the paper uses various indicators such as province-level statistics, private listed company data and investigation data of small micro-enterprises from Yunnan.By using varying statistical data, this paper tries to broke the data limitation of existing study; 2. The paper subdivides the financial system into national large banks,national medium and small banks, small and medium sized regional financial institutions, financial reform and innovation pilot and direct financial market like stock and bond; 3. It has a realistic meaning to distinguish the marginal efficiency of different capital market; 4. In the part of reform path selection, the paper combines the characteristics of Yunnan province.