Research Of China's Rural Finance In The Perspective Of Property Right

The status quo of China's rural reform and the modes of pilots result in some regions without financial institutions and an outflow of capital from rural to urban area. It indicates that China's rural financial reform is inefficacious, even unsuccessful.Rural finance reform is a significant economic puzzle in China's reform, and also an important social problem.This paper investigates the representative rural financial institutions at large by the means of survey, such as Rural Commercial Bank, Rural Cooperative Bank, Loan Companies, Village Bank, Rural Mutual Cooperatives, China Post and Saving Bank, Community development funds. In the perspective of property right which including governance right and capital ascription, the survey analyzes contributor structure of different financial institutions and governance right distribution, especially their evolvement.Based on the survey of pilots and the analysis of successful experience from different countries, the paper draws the conclusion: (1) The participation of government which has different mode is the popular paradigm in foreign rural finance. But in China the participation of government is clearly inadequate, it is China's rural financial reform pilot the main reason for the results. (2) Participation of members is the key of rural finance. Members are the main customers, also the key of long-term survival of rural finance. Rural finance based on cooperation indicates that the more members participate in the rural financial institutions, the better rural finance develops in right direction. (3) Profit-making organizations can bring enough capital to the rural finance, also result in the commercial orientation of financial institutions. Pay more attention to the double-sided-oriented of profit-making organizations is an important problem of reform. (4) Maintaining the not-for-profit nature of the rural finance is the government's responsibility and obligation. People need the rural financial institutions. Rural finance based on cooperation is suitable for China.This paper describes the whole information of China rural financial institutions. The conclusion of research provides some enlightenments for rural financial reform, especially the financial institutions in existence don't keep their non-profit character.