The Study Of China's Rotating Credit Association

The rotating credit association prevails in history and space. In chinese history, the rotating credit association has an impact on the people's life in many parts of the country and meet the financial demand of people. As China's economic development since the reform and opening up, in the case of the financial system being imperfect, the rotating credit association had its chance for existence and development. In China's Zhejiang, Fujian,Guangdong and other coastal provinces, the rotating credit association provide financial support for local private enterprises and farmers,objectively help for economic development and people's lives. However, due to the acceleration of social transformation, the rotating credit association in the new social structure is at risks. In various parts of China, the rotating credit association face so many problems such as the qualities of members being too many, the amount of the money being too big, the interest being too high, cycle being too short.So that, the rotating credit association had lost its oringinal nature of mutual aid and has become an illegal financial organizations.This financial theory of evolution, social capital theory, and theory of law and history are used to as different perspectives to illustrate the development and characteristic as well as the issues and the status quo of the rotating credit association and to predict the future development. Hopefully,it would promote the healthy development of the rotating credit association.