Study On The Credit Agency Business Of China Post At Rural Finacial Markets

For over30years of magnificent reform and opening up, China has realized unprecedentedachievements, which have been scored in economic development as well as rapid growth ofurbanization and industrialization. Doubtlessly, China‘s economic development will focus on the vastrural areas over the next30years with the purpose of getting dividends to the rural residents from thereform. Finance is the lifeblood of the modern economy in China. However,"anemia" has always beenone of the factors of restricting the development of rural economy. During the key period of reform,how to make use of financial leverage to boost rural economic development, correct the imbalancebetween urban and rural areas, and ensure a long-term stable and sustainable development of societyand economy have gradually become the focus of government, academies, and financial institutions.Postal finance has the most popular and complete service network in China. Since the PostalSavings Bank of China has begun its specialized operation in2007, the postal finance became anotherfresh troop in rural finance. This paper mainly analyzed around the questions about how to give fullplay to its own brand, network, resources, so as to serve the Sannong goals. By making field surveys in7provinces in china, this paper described current situations, existing problems and financial needs aswell as credit situations of farmers in rural finance. After that, this paper summarized and analyzed8types of credits rationing, causes and influence factors existed in the rural finance by using the Logitmodel. It demonstrated that now our rural finance development is facing some troubles as follows:-When facing the rural market, the traditional formal financial institutions cannot effectively usethe resources and conventionally relied on mortgage credit technology in an excessive way, and lack ofexploring spirits and innovations;-Lacking collateral, the financial demands of farmers who are under weak positions are chronicallyshort of satisfaction, which led to serious dual credit rationing between suppliers and demanders.Therefore, rural economy can only be maintained for backward and low efficiency production for lackof financial supports.Our country‘s rural financial information asymmetry, however, is only relative. Within thecommunity, the information flowed sufficiently and low-costly, and farmers formed a tradition ofhonesty in generations under the repeated game. However, the traditional financial institutions failed todiscover and utilize these information and elements effectively. There are240,000channel ends ofpostal distribution businesses, which go directly into the administrative villages. After more than10years of operation, they have become a part of rural community.―Insiders‖can capture information andsupervise implementation with low cost and high efficiency, and can even guide social informationfactors to participate in production and distribution through the linkage of postal financial anddistribution businesses, which provide opportunities for postal rural financial innovation. This paperwill introduce an agent of information superiority to alleviate the information asymmetry betweenhouseholds and financial institutions, and give full play to the rural society internal credit andpunishment mechanism to solve the problem of insufficient collateral, and ensure the mechanism runs smoothly through the dual role between contract constraints of agency system and economic interestsdriving system.To break the predicament of rural finance still needs government‘s support. After analyzed thepredicament of rural finance in China, this paper proposed some suggestions as follows:-Firstly, government should increase the construction of rural financial ecological environment andbuild an atmosphere of honesty.-Secondly, government should strengthen the fiscal and monetary policies‘guidance and supportfor financial innovation.-Thirdly, promote the development of agricultural insurance and establish risky sharingmechanism.-Finally, improve the construction of farmland system and promote the farmers‘property to becapitalized.