On the Selection and Transformation of Finance Mode in China ——Starting from Studying the General Laws in the Development and Evolution of Finance Mode

The development and evolution of finance mode is restricted by basic economic laws and, objectively, will go through four developmental stages, namely primitive finance, traditional finance, public finance and constructive finance. Of these, public finance is the finance mode that is in compliance with the development of market economy. It is an objective law independent of man's will that public finance has to be built in order to develop market economy. The constructive finance mode that was established under the planning system was in contradiction to the general laws in finance mode development. And China is bound to experience the transitional stage of dual finance so as to effect the transformation from constructive finance to public finance. With the deepening reform at state-owned enterprises, the public nature of state-owned capital will become increasingly manifest and dual finance eventually replaced by unitary public finance.