Research on Financial Resources and Private Enterprises in the Eastern Region

Abstract

The realisation of high-quality development is largely dependent on private enterprises, which are a driving force behind China's comprehensive revitalisation in the new era. Meanwhile, efficient financial resource allocation can enhance capital use efficiency and encourage the reorganization of the industrial structure. The financial sector allocates financial resources in a fair and efficient manner to promote economic growth and enhance the environment for that growth. A "Matthew effect" shows up in the relationship between financial resources and private enterprises in China's eastern coastal region, where large state-owned enterprises and small and medium-sized private enterprises are impacted by the emergence of talent, capital, technology, and other unbalanced phenomena. The article demonstrates this relationship between financial resources and private enterprises, based on almost a decade of empirical research in the city panel data. Banks, securities, insurance, and other industries are deployed reasonably to facilitate the development of the social economy during the period when more financial resources flow to private enterprises, as well as to ensure the stability and advancement of society. This is done in order to further enhance the efficiency of financial resource allocation in the eastern coastal region and promote the efficient development of private enterprises.