Research To The Development Of China's Financial Center

The financial centers are capital distribution centers and financial transactionclearing centers where various financial institutions carrying out a variety of financialintermediary activities and trading activities. The function of the financial centers is tooptimize the allocation of financial resources, to achieve the financial informationdistribution and price discovery, and to engage risk management. Financial centerscan contribute to the regional economic by capital gathering. They can also acceleratethe financial deepening and financial innovation; enhance national economic andfinancial strength and safeguard national economic and financial security.The development of global financial centers is now showing the trend of constantprogress, but the basic pattern has not changed that dominated by financial centers ofdeveloped countries in Europe and the United States and supplemented by offshorefinancial centers and emerging market countries and financial centers. Because of theimportant role of the financial centers, China has also begun to pay attention to thedevelopment of its own financial centers. All around China there are setting off aboom of building financial centers. The major cities have put in to build various typesof financial centers. In this case, a preliminary comprehensive and timely research tothe current development of China’s financial centers in which the economic andfinancial environment, the basic trend of China’s financial centers’ development, theseveral important problems needs to be solved is urgently needed. Putting forwardspecific policy proposals is undoubtedly of important practical significance, too.In this paper, the theoretical research and empirical research methods arecombined. The paper firstly reviewed the literature of the Chinese financial centerdevelopment issues.Subsequently the economic and financial environment of the development ofChina’s financial centers is studied. It is believed that the environment includes theslow recovery of world economy and trade, constantly changing patterns of globalfinancial centers, the international monetary system facing a major structuraladjustment, the development of RMB cross-border settlement and Hong Kong’soffshore RMB market and the rapid development of the currency swap agreementsand arrangements. This paper also summarizes the fundamental development of China’s financialcenters. There is an even better multi-level system of China’s financial centers withclearer division of labor and positioning. Beijing, Shanghai and Shenzhen are in thelead position of the construction in China’s financial centers.This article argues that the other trends of China’s financial centers constructionare: the substantive progress in the construction of financial functions distinct, theconstruction of financial markets to be paid further attention, the complement andpromotion between the offshore financial centers and in-shore financial centers andthe government-led financial centers’ construction mode.Of course, there are some problems to be solved in the development of China’sfinancial centers. This paper considers that further optimizing the financial ecologicalenvironment issue，the construction of financial centers to serve the real economy, thescientifically planning and buildingthe financial functional areasissue and theintegration of financial resourcesare the major four issues urgently needed to address.The paper lastly presents several policy recommendations.