Folks Finance Development On China's Economy

A non-governmental financial problem in the world is a real and theoretical issue. It not only has supported the new development of finance, but also changed the financial system. Regardless of the attitude of the Chinese Government, nongovernmental finance has actively worked in many areas since the policy of China's reform and opening up is issued several decades. At present, there are many problems in nongovernmental finance. Moreover, Chinese modern folk finance is different to state-owned financial system, which is produced in the advancement of finance marketing. This type of financial system with its characteristics has both own advantages and disadvantages, so it can promote the development of economy, but also bring many socio-economic risks.First of all, based on other authors'study, the concept of private finance, characteristics, formation of a comprehensive overview will be analyzed in this essay. The nongovernmental finance has greatly developed and aggregated wealth, but it still has not fully activated the development of the private capital. Secondly, it will comprehensively analyze the positive and negative influences of nongovernmental finance on China's economy. In addition, the results that private financial development affects to Chinese economy will be tested through examples. The cause-effect relationship between short-term and long-term will be examined and analyzed in the development of nongovernmental economics and private economics. Furthermore, the nongovernmental finance has a determinable effect to the whole economy, and especially to private economy. With the development of private economy on China's important contribution to the economic growth, private finance is effectively up to regular financial support, therefore, private finance in China should be affirmed and supported. Finally, the proposals of the normative development of China's private finance will be listed. Compared with western countries, there is a huge difference between the trend of private economy and nongovernmental finance on the current situation in China. Consequently, it is essential that Chinese government should provide relevant regulation and policy, and the structure of private finance should be adjusted and restricted. Due to the actual financial situation in China, the modality of finance need to be national finance as the primary in the future, and private finance as the supplementary approach supports national finance. As a result, the national finance and private finance will temporarily be existed in Chinese financial system. In addition, government as a leader plays a significant role in the development of finance, so it is strict to manage the institution of private finance. Because of the weakness of private finance, the government has to be cautious to private finance. Therefore, the laws and regulations of government and the institution of marketing should be improved in order to assist the development of private finance.