The Research On Behavior Of Three Interests’ Main Body In Informal Financial Market Based On The Case Of Jiangshan City In ZheJiang Province

In quite a long period past of time, informal finance was always the main body of China’s financial system. But nearly half a century after the founding of new country, because the monopoly of state-owned financial institutions throughout the financial markets, and the informal financial organizations have been characterized as illegal financial organizations, the informal finance dispeared. After the reform and opening up, especially enter the new century, the informal finance revitalizing. This is mainly due to the substantial increase in our income, but the modern investment tools to meet the residents are very lack of, their contradictions produce a steady stream of supply of private funds. The recovery of non-public economy especially the private ecomomic develped areas generate a large number of private small and medium enterprises, which generate extreme demand for capital. In this context, many intermediaries provise private financial intermediation for private borrowers and lenders are spontaneously generated these private financial intermediaries with private capital supply and demand sides together to constitute the informal financial system.Suppliers and demanders of private funds and informal financial intermediaries are the interests’main body in informal financial market. Their behaviors determine the development of informal financial market. So, to study the behavior of the three interests’ main body, especially through field surveys to analyze their specific acts, is the basis to in-depth study of informal financial markets. But we look at the existing domestic related literature, the overwhelming majority of informal finance in qualitative analysis, and for the basic behavior of the three interests’main body is the lack of specific in-depth empirical research. This article focuses on the behavior of the three interests’main body theoretical anaylsis and empirical research, and based on actual research results to get som inspiration. Government’s informal finance disorder excessive worry is unnecessary, because in fact informal financial intermediaries have inherently stability and regularity, and they virtually have the ability to control their own risks. The influence of behavior of government about implement the segregation of private capital flows to traditional informal financial activities may be small and directly or indirectly constructe the social integrity may be an effective way to reduce the risk of informal financial activities.There are five chapters in this paper:Chapter1mainly introduces the reasons for selecting informal finance as the object of the study, defines some relevant concepts and the object studied, and gives out the purpose, the route and the method of this research. Chaper2gives the related theories on three parts:financial repression and financial deepening theory, institutional change theory and the theory of financial intermediation, and gives a summary and comment on the literatures on four parts:the emerge cause of informal finance, manifestations and operation mechanism, the root causes of high interest rates, the prospects and the way out. Chapter3including the size of informal finance year to year growth, the main form of informal financial organizations at all stages, and the emergence of the informal financing intermediation from the perspective of the supply of and demand for financial funds. Chapter4is the case study of Jiangshan city of Zhejiang Province. From the start Jiangshan economic and financial background, highlighting the city’s leading informal finance in several forms of organization. Describing the basic situation about suppliers of private funds (residents) and demanders of private funds (private small and medium enterprises), putting the descriptive statistical analysis about the residents and businesses there have been acts of deposits and loans in informal financial institutions, analying the influencing factors of deposits and loans will about residents and businesses there have never been involved in, finanlly select a local informal financial intermediaries to summarize the basic situations. Chaper5sums up the analysis and make a conclusion hereinbefore.