Standardizing the Financial System and Stimulating the Regional Economic Development
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World economic recession caused by the subprime mortgage crisis is still continuing. China, as an emerging market economy, has also been affected. Although its main financial sectors such as banking, securities, and insurances, have not been troubled directly, the real economy related sectors including the foreign trade production and social consumption, have been influenced severely. Since the beginning of last year, a great number of enterprises and factories have been going bankrupt or shut down, and it seems the situation is getting worse at this moment. China is the largest market in the world. The 30 years’ rapid economic development since the implementation of reform and open door policy in 1978 has made Chinese market system more perfect day by day. China has accumulated huge and abundant national asset and wealth, which is the fundamental element for China to face the challenges and overcome the influence of financial crisis and the world’s economic recession. However, the problem lies in the fact of the weak Chinese financial system itself: the financial openness is in its infancy and seriously lacking innovation. Furthermore, Chinese financial market remains relatively closed and opaque, it also fails to make full use of global resources or claim rights of asset pricing in the world market. In some sense, the conservative and less developed financial market in China has blocked the direct impacts of the world financial crisis on China’s economy.
KeywordsCorporate Governance Governance Structure Financial Industry Regional Economic Development Innovative Development
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