Financial Innovation and New-Type Urbanization of China

New-type of urbanization is a kind of urbanization with the characteristic of urban and rural overall development, urban and rural integration, industrial interaction, economical and intensive, ecological and suitable residence and harmonious development. The imbalance problem between supply and demand in the capital market is still exiting in the process of new-type of urbanization development in China. Financial Innovation is an effective way to solve this problem by recombining various financial elements and optimizes the allocation of financial resources, which could provide financial support for the new-type of urbanization and guide the production factors (such as land and labor force)in the optimal allocation between different regions and industries. This paper analyzed the interaction mechanism between financial innovation and new-type of urbanization respectively from the perspective of theoretical and empirical analysis, which points out that financial innovation is the granger reason of new urbanization construction in China, and it brings a positive promoting effect to the development of new-type urbanization respectively from the three aspects: population urbanization, industrial urbanization and space urbanization. The author puts forward to the related financial innovation plans according to above research results.