| Because our country is in the period of economical transition, the financial markets and system development are unbalanced and the developing rural areas are in the situation of financial loss for a long time. The development of new socialist countryside can not proceed without financial which must go first. In the developing rural areas capital supply and demand is imbalance, farmers are forced to choose mutual funds. Mutual funds have brought significant economic and social benefits to developing rural areas, but there is no due attention by the government, the development of the road is difficult.The main part of this paper is divided into four parts:The first part is chapter II, introduces mutual funds development status, summarized the two main modes of mutual funds: Baixin mode and Xingwang mode. Believe that rural mutual funds are innovation in rural financial system. And analyzed the behavior of the three main institutional innovations: farmers, system designers and local government's motivation.The second part, Chapter III, introduce the operating mechanism of Baixin mutual funds and Fumin mutual funds, systematic comparative analysis the six differences in operating mechanism between Baixin mode and Xingwang mode. Proposed the two modes should complement each other, improving the operating mechanism from the inside.The third part is Chapter IV, by analysis the survey information of Dongcui village and SWOT analysis for Fumin mutual funds, finding the three major difficulties in Fumin mutual funds, these three difficulties and obstacles are universal, other mutual funds are also have these three difficulties. Mutual funds can not solve them on their own.The fourth part is Chapter V and VI, by contrasting the developed countries' rural grass-roots financial support policies and China's existing policies, we find China's existing policies are not enough in supporting mutual funds. By theoretical analysis we find the necessity and feasibility of removing interest rate controls, suggested that the government should give the mutual funds preferential policies and financial support policies. |
