Analysis for the Existing Restrictive Factors and OptimizationPaths of Anshan Financial Industry

毛蓓蓓?オ?

Abstract：Modern economists believe that the degree of financial development playsa significant role in economy development. The financial industry takes an incumbent duty to promote the development of regional economy. Using the city of Anshan as research object， this paper has analyzed main factors that constrain the development of Anshan financial industry and correspondingpaths to resolving these defects.

Key words：financial industry；existing defects；optimization paths

1 Current Development Status of Financial Industry at Anshan

Anshan， known as Steel City， is the significant supplier of iron and steel product in Liaoning and on a national scale. Anshan's economy has developed rapidly during the "Eleventh Five-Year" period. By 2015， with a total economic output of 234.9 billion Yuan and a per capita GDP of 67，675 Yuan， the economic aggregate of Anshan is rated the third economy entity in Liaoning Province， only ranking after Shenyang and Dalian.

During the same time of economic development， based on the gradualimprovement of financial system， the scale of Anshan financial industry is alsomaking a rapid growth. At present， Anshan financial industry， differing from national， regional and local scale， consists of banking， insurance， securities， trust and other financial institutions that coordinate together to promote local economic development. In Anshan financial market， there are 15 banking institutions， 17 insurance companies， 6 security firms and 3 futures companies.By 2015， the balance of deposits， the balance of loans and the premium revenue of insurance section were 3，083.4 billion Yuan， 1，949.5 billion Yuan and 6.5 billion Yuan correspondingly. However， since Anshan is still at the stage of social and economic transition， the construction of financial system lags behind current social innovation and economic development. There are still some constraints existing in local financial market， causing urgent need for financial system reform and further improvement of financial market.

2 Factors Constraining the Development of Anshan Financial Industry

2.1 Insufficient Financial Assets and Distorted Financial Resource Allocation

In Anshans developing economic system， local financial industry is now facing a handful of problems， such as the low proportion of financial industry assetsaccounting for the total municipal GDP， the incompletestructure of financial industry， the low degree of mercerization and the correspondingly weakened role of local financial intermediaries. Current existing financial intermediaries have not contributed much to improve the investment scale， thus the savings cannot be effectively mobilized and transformed into investment rationally.

Due to the excessive financial repression， a large number of small or medium sized enterprises and private companies are excluded from the financial market， leading to serious distortions in financial resource allocation.The scarce financial capital， on one hand， may not only be separated from good investment opportunities， but also be invested inefficiently by local governmental departments while other sectors that urgently need this capital cannot be granted reasonable development funds； the other hand， because of the profit-pursuingnature， the scarce local financial capital will flow to other regions with higher investment yields， causing outflows of valuable capital and exacerbated situation of financial constraints.

2.2 Regional Imbalance of Financing Ability in Capital Market

Anshan capital market， especially the stock market， fund market and bond market， is developing more rapidly in recent decades and has formed an initial framework needed by modern financial industry， but there are still several short comes exist in this region. Owing to the insignificant capacity of Anshan capital market， the issuance scale of stocks and bonds is small， and the numbers of listed companies， as well as the amount of funds raised from the securities market are far behind other similar cities.The inadequatecapital formation ability and inferior organizational function of local capital market has constrains further financing ability， thus restraining the development of the whole financial industry.

Due to the lagging development of capital market， the scale of capital and efficiency of capital operation are very limited， the degree of asset securitization is low and the proportion of direct financing is small.The transformation of savings-investment is mainly depended on the deposit and loan channels of banks， which seriously weakened the development potential of Anshan's overall financial industry. At the same time， it also increased the pressure and risk of indirect financing of commercial banks.

2.3 Low Level of Economic Development and Lack of Capital Formation Capacity

The city of Anshan is an area with rich mineral resources and relatively large population， but the degree of its market-orientation has lagged behind other importantmunicipals in Liaoning Province， such as Shenyang and Dalian， hence its economic efficiency is almost unsatisfying.

For a long time， the economic development of Anshan is mainly promoted by the numerous inputs of production factors， rather than technological progress economic efficiency. The municipaleconomic growth disproportionally depends on primary resources since the steel and raw materials industry constitutes a pillar industry of the economy. The economic growth mode is still extensive. This pattern of division makes Anshan area suffered from benefit loss caused by both raw material outputs and low value-added initial processing， which have seriously weakened the self-accumulation ability of this city.

At present， in order to promote economic development on a whole-province scale， Liaoning region has focused on Ladder - type resource allocation， instead of financial balancing strategy. Combined with the decline of the steel industry and the decay of old industrial base in northeast China， Anshan city is neither capable of obtaining huge amount of investment granted from upper-level institution nor able to attract foreign capital. In this way， the long-term lag of extensive economic development， the dysfunctional capital endogenous mechanism and the serious shortage of capital formation will result in a huge gap between actual investment and expectation； meanwhile， this gap also presents a trend of expanding. This kind of economic operating condition makes local financial industry restricted by the high pressure of capital investment demand and low capital operation efficiency， therefore highly restrains the development of the financial industry and the role it plays in Anshan economy.

2.4 UnreasonableDominant Position of Governmental Institutions in Financial Resources Allocation

Since the process and direction of Anshan economic system reform is basically determined by the goal and the will of local government， the government of this city has become the main supplier of financialresources. The lack of market-oriented purpose of local financial system makes financial resource allocation render its market nature. Most state-owned enterprises refuse to innovate， causing low yield and income in financial industry. Because of previous institutional and policy reasons， major amount of local financial resources are granted to state-owned enterprises， while other private companies are facing huge barriers when trying to get bank loan and direct investment in capital market. This misallocation has restricted non state-owned enterprises from raising funds via financial leverage.

3 Paths for Resolving Defects and Consolidating Anshan Financial Industry

3.1 Tilt Financial Industry Policy

City of Anshan should strive to expand regional money supplyfrom the provincial level and actively introduce state-owned commercial banks， joint-stock commercial banks and foreign banks to expand their branches in this region， trying to regulate and improve the small and medium-sized financial institutionsfunctional role to enhance their support and services for Anshan economic development. Meanwhile， throughinfrastructure construction and industrial development， the basic investment environment and the financial development platform of Anshan city should be created to improve the capital marginal efficiency of social capital investment

3.2 Enhance Capital Market Competitiveness

Capital market is an important component of financial industry. Securities firms， as an important participant in Anshan stock market， are disappointing in both quantity and average scale. Therefore， we must make big effort to cultivate the local security firms to promote the development of Anshan capital market. Based on the experiences of developing backward areas in the United States， Japan， Germany and other developed countries， the establishment of a regional fund for financial industry development is a very effective channel to achieve this goal. The development funds can be wholly granted by local government or co-financed by private financial institutions and relevantorganizations， aiming to cultivate investment banks in Anshan area and to promote the development of local capital market. At the same time， in order to improve market competitiveness， it is feasible to offer priority for well-performing security firms to be listed and to expand the scale of securities firms via M&A.

3.3 Deepen the Financial System Reform and Improve the Management Mechanism of Financial Institutions

To settle the dislocation or vacancy of governments role and supervision loopholes， Anshan city must find an effective approach to promote the process of financial reform. Specific solutions include enhancing the bank's ability to resist risks， improving the internal control mechanism and incentive mechanism， stripping the bad assets off state-owned banks and establishing efficient management mechanismand transaction platform. In order to guarantee the sound operation of financial market， Anshan financial institutions should take the initiative to improve their capabilities of internal control and risk assessment， thereby reducing the uncertainty and the cost of daily operations and transactions in local financial industry.

Meanwhile， the establishment of a matured credit evaluating system can provide local banks with an information sharing platform offering multi-perspective credit status of enterprises in all directions， making credit rating of governmental and non-governmental firms more transparent. A transparent credit assessment system can reduce both information costs and risk evaluating costs， therefore enables the whole financial industry to operate smoothly.

3.4 Maintain Local Financial Stability and Market Order

Anshan government should take the initiative to take charge of financial stability. It is the governments responsibility to coordinate with the Central Bank， the Banking Regulatory Bureau， Security Regulatory Bureau， Insurance Regulatory Bureau and other financial institutions， making simultaneous efforts to regulate and resolve financial risks and reduce risk disposal costs effectively. Through mass media's positive guidance and regular analysis for local economic and financial conditions， most sudden financial crisis and social problems caused by financial disorders can be effectively prevented.

It is also quite important for local government and supervision department to pay a close attention to the status and trend of civic financial operations. By creating opportunities to legalize non-government capital， the potential of private financial capital can be fully uncovered and a virtuous circle mechanism in financial industry can be formed.

基金項目：本文為2016年度鞍山市社會科學研究立項課題研究成果。項目名稱：鞍山金融產業現存制約因素與優化路徑分析。項目編號：as20163004。

（作者單位： 遼寧科技大學 經濟與法律學院，遼寧 鞍山 114051）