Explorations on Constructing Northeast Regional International Finance Center

Abstract.Fastening Northeast Regional International Finance Center construction is the objective requirement for economic society development both home and abroad to enter into a new period and a new phrase. It is an important strategic measure to promote the Northeast area to develop in a coordinate, sustainable and rapid manner. It is a realistic choice to promote the industrial structure adjustment and the optimization upgrade of the Northeast old industrial base. It is important practice content to carry out the important policy of revitalizing the old industrial base of the Northeast. Fastening Northeast Regional International Finance Center construction is an wholeness important strategy for Liaoning to take the lead in realizing the super-conventional development as well as the great-leap-forward development and overall revitalization within the Northeast old industrial base. It positively catches the important historical chances such as the decision of “further keeping on carrying out the overall strategy of regional development”, which is put forward in the CPC's 17th National Congress.

Key words： Northeast Region；Finance Centre； Construction thought

Liaoning is located in the southern part of the Northeast; it has got a superior geographical location in the Northeast Region. It is possible to think of Liaoning as three approximate geographical regions: the highlands in the west, plains in the middle, and hills in the east. Liaoning has the largest economy of Northeast China. It has got such fine regional finance base and the regional comprehensive radical ability that the Northeast regional international finance centre can be built based on Liaoning Province. The Northeast regional international finance centre eradicates the Northeast region, faces the Northeast and Asia and the international financial market. It is an important mind transition and the way transition to fasten the Northeast economic region construction and to realize the overall revitalization of Liaoning and the Northeast old industrial base.

1.The Basic Thought of Northeast Regional International Finance Center Construction

The basic thought of Northeast Regional International Finance Centre construction is shown as the followings: the north-eastern region of Northeast Asia as a geographical hub connecting Japan, South Korea, Russia and many other countries, with the inherent advantage of financial services. With ever-increasing enrolment, there is a pressing need to expand the Northeast Regional Centre in Northeast Philadelphia, which has grown tremendously. In fact, the college has had to lease space offsite just to accommodate the current enrolment. At its current size, there is no room to add the new programs and services the students and community have requested. To meet the demand for our services at the Northeast Regional Centre, the College will renovate the current facility and construct a new three-story, square-foot building perpendicular to it, creating a new, unified campus. With more classrooms, new and improved student services, and meeting spaces for local businesses and the community. In addition, it suggests that regional economic cooperation pattern can choose complementary strategic alliance in the form of the following three aspects: building the complementary strategic alliances on education of science and technology and labour fields, sharing the educational resource, science and technology innovation cooperation and the rational flow of human resources; establishing complementary strategic alliance taking optimizing harbor resource and achieving win-win development as the purpose, realizing the joint and cooperation of the ports; establishing regional financial cooperation alliance, improving the financial radiation and leading role of the centre city further.

2.Make a Breach Mainly

2.1.Key to the region ――“two districts and two streets”, which is Shenyang Finance and Trade Development Zone, the Financial City of Xinghai Bay and Shenyang Financial Street and Dalian Financial Street

Shenyang Finance and Trade Development Zone, the tertiary industry development zone, is the only one of its type in China apart from Lujiazui Finance and Trade Development Zone in a Shanghai. It is both the core of Shenyang Central Business District and the regional centre of finance, commerce and trade and infor-mation in North-east China. The Zone is located in the city's centre at the intersection of four big districts, enjoying convenient transportation. Shenyang North Railway Station inside the Zone is one of the most important passenger trans-portation hubs in China. With the implementation of Shenyang central business district project, Shenyang Finance and Trade Devel-opment Zone will do its utmost to become the regional centre of commerce & trade in North-east China, and win the recognition of all cli-ents home and abroad.

The Financial City of Xinghai Bay is located north of Dalian Xinghai Square. The square is the largest in Asia and is at the foot of mountains on the sea coast with attractive scenery. The Financial City of Xinghai Bay will provide preferential policies and convenient and efficient services to all types of investors and it will sincerely invite domestic and foreign financial headquarters, regional management headquarters and functional headquarters to settle down at the Financial City so they may invest and expand their businesses here.

The Shenyang Financial Street into a centre for Northeast finance industry, financial services, financial outsourcing service base and private property rights trading market.

Dalian Finance Street is trying its best to become an important landscape functional street. In this case, it is able to mostly represent the international financial level and the degree of Dalian, and Liaoning as well as Northeast.

2.2.Key to the industry ――“Ten large industries”, which are banks, stocks, insurance, trust, fund, investment, futures, bail, lease, financial affairs, bonds, and intermediary industry

In order to fasten and perfect the organizational system of finance with the major content as banks, stocks, insurance, trust, fund, investment, futures, bail, lease, financial affairs, bonds, and intermediary industry. It should create conditions to support and encourage the innovation and development of the financial industry and it should introduce all kinds of financial institutions face both home and abroad with every effort.

2.3.Key to the functions――“Two large functions”, which are the functions of primary capital market exchange such as the function of Futures Exchange and the functions of Assets and Equity Exchange

The Dalian Commodity Exchange is a Chinese futures exchange based in Dalian. It is a non-profit, self-regulating and membership legal entity. Dalian Commodity Exchange trades in futures contracts underlined by a variety of agricultural and industrial produce on a national scale.

Shenyang Assets and Equity Exchange should closely connect the actual circumstance and the practical characteristics of the Northeast old industrial base.

2.4.Key to the market――“Two large market of foreign exchange and bill business, which are the foreign exchange market and the bill business exchange market with the dependence of the Dalian Foreign Exchange Centre and the Shenyang Industrial Bank bill business trade department

Dalian Commodity Exchange trades in futures contracts underlined by a variety of agricultural and industrial produce on a national scale. In addition, it suggests that regional economic cooperation pattern can choose complementary strategic alliance in the form of the following three aspects: building the complementary strategic alliances on education of science and technology and labour fields, sharing the educational resource, science and technology innovation cooperation and the rational flow of human resources; establishing complementary strategic alliance taking optimizing harbour resource and achieving win-win development as the purpose, realizing the joint and cooperation of the ports; establishing regional financial cooperation alliance, improving the financial radiation and leading role of the centre city further. The exchange has the deepest liquidity pool among all Chinese Commodity Futures Exchanges. According to the Futures Industry Association, the bourse has been the largest mainland futures exchange by volume for eight years.

2.5.Key to the institutions――“Six large institutions”, which are the Shenyang Shengjing Bank, the Dalian Bank, the Dalian Daton Securities, the Liaoning Zhongtian Securities Corporation, Dalian Huaxin Trust Corporation and the Shenyang Hongtai trust corporation

Shengjing Bank is a commercial bank, with its headquarters in Shenyang, Liaoning Province, China. It was established in 1996 as Shenyang City Commercial Bank, opened its branch in Shenyang City only, but changed its name to Shengjing Bank and has since opened a branch in Tianjin. Dalian Bank is a commercial bank, with its headquarters in Dalian, Liaoning Province, China. It was established in 1998 as Dalian City Commercial Bank, opened its branches in Dalian City only, but changed its name to Dalian Bank in 2007 and has since opened branches in Tianjin and Beijing.

The Dalian Daton Securities, Liaoning Zhongtian Securities Corporation should expand its scope of business and expand its depth of operation so as to build the new image of the development of the security corporations in Liaoning. Finance is the core industry in modern market economy. The coastal economic belt development needs a lot of financial support. As well, the financial industry has high added value and is environmentally friendly. It will help to push the revitalization process of the old industries in the region in a fast and good manner.

The Dalian Huaxin Trust Corporation and the Shenyang Hongtai trust corporation should try to realize its scope of operations fast and try to come into the market soon. It is important to emphasize that Futures contracts, like debt contracts, are in zero net supply in the aggregate economy. One person's long contract is another person's short contract. Further, the quantity of outstanding contracts, called the open interest, has no tight relation to the quantity of the underlying. It's an approximate measure of the elasticity of uncertainty relative to the convergence of price.

2.6.Key to innovations――“five large fields”, which are the Dalian Commodity exchange market

Commodity Futures form an advanced clearing function for the physical commodity clearing. Each Futures contract would generate a particular pattern of cash flow and cash commitment at a given price between the counterparties. In a Futures contract, payments are being made all along the life of the contract, whenever the Futures price changes. This is called "mark to market". Concretely, these payments involve additions and subtractions from "margin accounts" held at the Futures clearinghouse. It is significant that both the long and short side have to put up margin, because at the moment the contract is entered, both are in a sense equally likely to lose and so equally likely to have to make a payment to the other side. By means of Margin Calls, Commodity Futures shifts future imbalances between cash inflows and outflows into the present. Financial crisis in the present can also arise when these future imbalances get so large that they disrupt the present. The north-eastern region of Northeast Asia as a geographical hub connecting Japan, South Korea, Russia and many other countries, with the inherent advantage of financial services. At the same time, in the second place, pay special attention to the development of two large functions, which are the functions of primary capital market exchange such as the function of Futures Exchange and the functions of Assets and Equity Exchange.

3.Countermeasures

3.1.Strengthen the leadership

At any moment, a particular pattern of cash flows and cash commitments resolves itself into a particular pattern of clearing and settlement. Deficit Agents in the trade will need to borrow cash from banks today to delay settlement of that Commodity Futures. Fastening Northeast Regional International Finance Center construction is the objective requirement for economic society development both home and abroad to enter into a new period and a new phrase. Liaoning is located in the southern part of the Northeast, and is often called "the Golden Triangle" because of its superior geographical location. The central government's strategy to revitalize industries in northeast China has laid a solid foundation for Dalian to develop into a financial centre in Northeast Asia.

3.2.Form the resultant force

The north-eastern region of Northeast Asia as a geographical hub connecting Japan, South Korea, Russia and many other countries, with the inherent advantage of financial services. In the first place, pay special attention to the development of the districts and two streets, which are Shenyang Finance and Trade Development Zone, the Financial City of Xinghai Bay and Shenyang Financial Street and Dalian Financial Street. Proceed in the light of local conditions and in accordance with a rational division of labour, with all the regions exploiting their own particular advantages for mutual benefit and development.

prehensive development

In the first place, pay special attention to the development of the districts and two streets, which are Shenyang Finance and Trade Development Zone, the Financial City of Xinghai Bay and Shenyang Financial Street and Dalian Financial Street. At the same time, in the second place, pay special attention to the development of two large functions, which are the functions of primary capital market exchange such as the function of Futures Exchange and the functions of Assets and Equity Exchange. In the third place, pay special attention to the development of ten large industries, which are banks, stocks, insurance, trust, fund, investment, futures, bail, lease, financial affairs, bonds, and intermediary industry. Authorities in Dalian have outlined a plan to develop the north-eastern coastal city into one of the financial centres of Northeast Asia. In the fourth place, pay special attention to the development of two large markets of foreign exchange and bill business, which are the foreign exchange market and the bill business exchange market with the dependence of the Dalian Foreign Exchange Centre and the Shenyang Industrial Bank bill business trade department. In the fifth place, pay special attention to the development of six large institutions, which are the Shenyang Shengjing Bank, the Dalian Bank, the Dalian Daton Securities, the Liaoning Zhongtian Securities Corporation, Dalian Huaxin Trust Corporation and the Shenyang Hongtai trust corporation. In the sixth place, pay attention to the product innovation and the system innovation.

3.4.Perfect the policies

The north-eastern region of Northeast Asia as a geographical hub connecting Japan, South Korea, Russia and many other countries, with the inherent advantage of financial services. At the same time, in the second place, pay special attention to the development of two large functions, which are the functions of primary capital market exchange such as the function of Futures Exchange and the functions of Assets and Equity Exchange. It is important practice content to carry out the important policy of revitalizing the old industrial base of the Northeast. Fastening Northeast Regional International Finance Center construction is an wholeness important strategy for Liaoning to take the lead in realizing the super-conventional development as well as the great-leap-forward development and overall revitalization within the Northeast old industrial base, improving the financial radiation and leading role of the centre city further.

3.5.Create the environment

In the firth place, take human beings as the essentials and create the humanity environment that is beneficial for the talents to develop. In the second place, strengthen the regional financial base construction, with the key of two districts and two streets, and create a good financial development space and environment. In the third place, keep on improving the international level of finance industry. It positively catches the important historical chances such as the decision of “further keeping on carrying out the overall strategy of regional development”. In the fourth place, strengthen the finance monitor and the trust system construction, and create a good finance biological environment.

4.Acknowledgement

This paper is the key research project achievement of CPC in 2011.

5. References

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[3]Liu zhi-hao：“neadb and dalian construction international finance center ”， 《 research on financial and economic issues》1997 column 12

[4]Zhang shi-kun：“research on establishment of dalian free trade zone offshore financial market”， 《taxation and economy》2005 column 1.