CHAPTER 1 CHANGES AND REFORM OF NEW CHINA'S FINANCIAL SYSTEM

After the founding of New China，the financial system and the financial industry were restructured under a new political and economic system. As the country moved from a planned economy to a market one，the financial system evolved progressively. The financial industry continues to expand the scale of transactions while serving the real economy，and has been gradually upgraded，with continuously improving efficiency. The share of the financial industry in the national economy keeps rising，and the size of the financial market has leapt to the second place in the world. The financial system has reinforced and promoted the development and practice of the financial industry，and vice versa，leading to the creation of China's financial system today. Given the characteristics of the development of China's financial system as well as relevant historical stages and socioeconomic environment，the development of China's financial system can be roughly divided into three stages：exploration and reconstruction，systematic construction，and technological reconstruction.