Study On The Perfection And Implementation Of Legal System Related To Private Lending In China

Private lending as a non-formal finance, has a long history in China. After the Reform and Opening up, China has been transformed from a planned economy to a market economy, the change of Relations of production promotes the rapid development of social productive forces. Increasingly active private economy and an increasingly strong private capital intensely require the legalizing of private lending, but the relevant laws and regulatory system of private lending has always been difficult to improve.In this paper, the main point of this research is how to push forward China’s private lending laws and the development of regulatory system. Respectively from the theory and application, it makes a deep analysis of the private lending laws and the regulatory system facing real difficulties combined with the power to be well-developed, and ultimately it makes a recommendation to experiment the private lending laws in the fairly mature regions and it makes a deep analysis of the practical use of this recommendation. In the first chapter, after the multi-level analysis of Wu Ying case legally and socially, it pointed out that the huge legal difference of opinion and the strong rebound in public opinion caused by the death sentence of Wu Ying fully reflect the legal process of Chinese private lending lags far behind the reality of social practice need, and it put forward the full text of research priorities through the summary analysis of different reasons. In the Chapter Ⅱ, it analyzes the defects of private lending laws and the regulatory system by appropriate review of the literature and summarizes the direction of China’s future private lending laws and the regulatory system. In the third chapter, it explains why it is so difficult for our country to develop private lending laws and regulatory system, pointing out that the enormous social risks brought by the release of the private lending is the radical reason why Chinese government put restrictions on the development of private lending, The Chinese government is called the "neutral government", its attention on the long-term development of macro-economic in the future and its objective needs of performance become the inherent power to promote the development of private lending, so in the future, it’s a fairly appropriate choice to start regional financial institutional innovation which the social costs are much lower. Chapter Ⅳ presents the idea of experimenting the private lending laws and regulatory system in areas with appropriate conditions, and it makes a more detailed argument about the necessity, possibility and all kinds of coming risks of this experiment, pointing out that:the private lending’s own risks, lessons learned from other developing countries and the objective existence of the great regional differences in our country determine the practice of the legal system of China’s private lending is both a diachronic development process and a spatial expansion process. According to China’s unique government system which decentralizes its power from center government to local government and the developing path of firstly experimenting in special area and then spreading to the whole country which was formed during the Reform and Opening up, it is possible to carry out this experiment. But still it makes a analysis of possible risks of private lending when released in a given area.The paper concludes that:the main reason for the government to delay relative reforms is enormous social risks brought by the releasing of private lending, but the characteristics of a "neutral government" still have the power to promote the improvement of the private lending laws, but based on China’s huge regional differences, it is an acceptable option to experiment the financial reforms of private lending in a special area when thinking of our country’s state system and the reality.