Why can direct financing promote the healthy development of multi-level capital markets?

Because direct financing can make fund demanders obtain long-term sources of funds, thus promoting the healthy development of multi-level capital markets.

In direct financing, the demanders of funds can get funds directly from the providers of funds. Therefore, direct financing can make fund demanders obtain long-term sources of funds.

Direct financing, in a certain period of time, the capital reserve unit provides monetary funds to the demand unit through direct agreement with the demand unit or purchasing the securities issued by the demand unit in the financial market.