Wen Hao, School of Finance and Trade

Abstract: Finance is the core of the modern market economy, and China's economy is moving in the direction of the modern market economy. In the face of a series of challenges from both at home and abroad, China needs to change the mode of economic development, and correspondingly, China also needs to change the mode of financial development.

The research theme of this paper is the transformation of China’s financial development mode, with the transformation of China’s economic development mode as its direct aim, and analyzing the achievements and challenges, characteristics and causes, and current situation and future development of Chinese Model. Changing China’s financial development mode fundamentally aims to make China on the road to be a financial power with comprehensive, balanced and sustainable development, to built it to be a science and technology innovation power with sustainable economic development and a country of freedom, democracy, civilization, prosperity and harmony, and to realize China's peaceful rise and the grand blueprint of the great rejuvenation of the Chinese nation.

This paper will be divided into seven chapters. Chapter 1 is the introduction, and the following five chapters are the main body parts, respectively to solve five problems of what the "transformation" is, why tansforms, where, what and how to tansform. Chapter 7 concludes with the policy suggestions and prospect of its development. The seven chapters constitute an argument framework which is clear and logical.

The introduction states the study background of the transformation of the China's financial development mode, and the practical significance and theoretical significance of this research theme. Based on defining the meanings of finance, financial development, and the transformation of financial development mode respectively, it sorts out theoretical literatures related to the research theme. This part also establishes the value premise of studying the transformation of China’s financial development mode, and put forward a new analysis framework (Environment culture-Institute-Structure-Function), which lays a methodology foundation for this research.

Chapter 2 explores the connotation of the transformation of the mode of China's financial development, combined with the classification of the China Mode. By discussing the great challenges which China Mode encountered before and after the financial crisis, it explores the connotation of the transformation of the mode of China's financial development: Dealing well with the dialectical relationship between financial development financial reform, and financial security; Change financial structure imbalance; Change the way of financial development by the way of financial system reform. Finally this paper discusses the government role in economic and financial development mode change.

Chapter 3 explains why the transformation of China's financial development mode is necessary. a) It sorts out the process of China's financial development since reform and opening up, combined with the generating mechanism of the major financial issues in China. b) It elucidates the requirement of the transformation of the financial development mode from the sustainable economic development in combination with relevant arguments of the transformation of economic development mode from CPC and the state leaders. c) It explains the necessity of changing the financial development mode with respect to sustainable financial development. d) It also argues that the transformation of financial development mode is necessary to establish ecologically good and harmonious China.

Chapter 4 explores the methodology, objectives and principles of the transformation of China's financial development mode. Based on the analysis of experience and lessons from Germany, Japan, and the United States, it builds up the planning framework of the transformation of China's financial development mode by employing the method of strategic management. It also puts forward a series of principles of the transformation.

Chapter 5 discusses the content of the transformation of the mode of China's financial development: a) From the administration as dominant mode to market-based and law-concerned mode. b) From emphasis on self-interest to emphasis on serving the development of the real economy. c) From the emphasis on financial security to arising efficiency by fair development. d) From the main emphasis on commercial finance to emphasis on three- dimension finance. e) From the big enterprise project focuses in big cities to size balanced development mode. f) From the emphasis on the national institution expansion to emphasis on serving on local economic development. g）From emphasis on the state finance to giving full play to the development of the folk financial vitality. h) from being preferential to outside world to equality of both inside and outside national treatment.

Chapter 6 designs reform blueprint for the transformation of the China's financial development mode. It puts forward ideal road and premise of the transformation. Then it analyzes the various realistic factors and its mechanism of action of constraining the transformation, and puts forward the overall design and implementation plan of promoting the transformation, in combination of the history and reality of financial institution reform. It also proposes that we should attach importance to financial education and cultural construction, and make use of comparative advantage to realize the transformation of economic and financial development mode.

This paper ends up with policy recommendations and development outlook concerned with the transformation. a) setting up public and publishing foundation of freely discussing academic problems, carrying out theoretical innovation and reconstruction value in theory. b) changing the role of government and construction the law-ruled foundation for reconstruction of financial institution. Some specific policy recommendations are as follows:

1) The establishment of a new three-dimension integrated financial architecture.

2) Changing the market access way of financial industry to realize the balance of the internal and external opening.

3) Attaching great importance to the social security finance

4) Molding the external fiscal environment of the transformation.

5) Establishing the law-ruled framework for the transformation.

It also argues that it is expected to construct China to be a financial power if we advance the transformation of China’s financial development mode seriously and persistently; the ultimate goal of developing finance is to serve the happiness of our people.

Read the article here:       【可持续发展】中国金融发展方式转变研究.pdf