The Research On The Development Of Informal Finance In China

China's informal finance has been active increasingly in recent years, which plays a positive role in promoting economic development. In the meantime, the funds of informal finance have drifted away from the supervision system, the disordered development of informal finance in some sectors has appeared, which brought about financial and social unstability. Therefore, doing research on the regulation and development problems of informal finance has great theoretical significance and practical value.The dissertation studies systematically on the relationship between China's dual economic structure and informal finance, the possibility and the necessity of informal finance existence and development in China, and the impact of the informal finance development on China's economic development and so on. Then, based on the analysis above, practical policy suggestions are provided on how to regulate and guide informal finance development. The dissertation is divided into five parts, including the theoretical basis on the existence and development of informal finance, informal financial development's boundary and forms, the impact on China's economy and problems of informal finance, drawing on international experience and the countermeasures of the informal finance regulation development.By doing empirical analysis, the dissertation finds both short and long-term Granger causal relationship between dual economy structure and Chinese informal finance development, which shows that the growing degree of the dual economic structure is the reason for the existence and development of informal finance, and demonstrates the deficiency of formal financial development also promotes the development of informal finance. Under the circumstance of China's dual economic structrure, the degree of information asymmetry in finance market is even higher. Because of the grassroot characteristics of informal finance, it has information advantage in narrow credit transactional circles compared with formal finance. Then, the dissertation demonstrates the scale boundary of informal finance using economics theory, that is, the intersection point between the average cost curves of informal finance and that of formal financial. The intersection point is the best cut-off point indicating that informal finance has comparativ advantage in the economy when its business scale is less than the point, and formal financial institutions has a comparative advantage in the economy while its business scale is greater than the point. That is, the informal finance has the comparative advantage only when its business scale is small. The dissertation desmonstates the geographical boundary and interpersonal boundary of the informal finance, and points out that it fits for the geographical space with stable interpersonal relationship by case study analysis.The dissertation studies the forms and the evolution routes of informal finance. According to the organization forms of informal finance and the features of asymmetric information, informal finance is divided into three forms, i.e. the basic form, the intermediate form and the more advanced professional form. This division provides a theotical basis on classific guidance and management to the informal finance. After analyzing the evolution route, it comes to the conclusion that formal finance is the terminal of informal professional form's evolution.Then, the dissertation analyses the status and problems of informal finance, and analyzes its impact on Chinese economic development from the positive and negative respects. Then, through empirical analysis, it finds that informal financial development is the short-term and long-term Granger reasons for Chinese economic development. The empirical results shows that informal finance has positive supporting effect on the development of the private economy. Taking into account that the development of the private economy has an important contribution to China's economic growth, and informal finance has made up effectively the inadequecy of Chinese formal finance in supporting the private economy, therefore, the existence and development of informal finance in China should be affirmed and supported. Then, the dissertation also discusses the positive and negative effects of the informal finance through case study. Last, it learns from the experiences and draws on lessons of some countries for Chinese informal finance regulation development.Finally, according to the evolution processes, the practical problems and development direction of the three forms of informal finance, the dissertation states that the basic idea about regulating the basic form of informal finance should be to make sure of its legal status. While, the basic idea on regulating the intermediate form of informal finance should be to prevent its high risk. As to regulating the more advatage form of the informal finance, the basic idea should be to provide guidance for its management refering the fomal small and medium-sized institutions, and depending on the time opportunity to accordingly guide it to the formal financial institutions.