The Improvement Of China’s Rural Financial System From The Demand Perspective

China has typical "dual economy" features. The rural economy, as an important part of the whole national economic system, has a vital position. In addition, rural finance is the core of the modern rural economy, which plays a critical role in promoting rural economic development, accelerating agricultural sector to upgrade and improving farmers’living standards.Since the reforming and opening up, although Chinese rural financial system has some achievements, there are still many problems, such as has not established the true cooperative finance, lack of rural public finance, the exiting of commercial finance from rural areas, and accompanied by outflows of capital, which has seriously hampered the further development of Chinese rural economy and the upgrading of the agricultural sector. Previous reform initiatives which are under the guidance of "institutional view", mostly pay attention to adjustment around the formal financial institutions, and the rectification of non-formal financial institutions. Excessive focus of the reform on the existing forms of financial institutions and affiliations, but neglected the main demand for the diversification of financial resources and multi-levels. The implementation is done by a very typical mandatory path from top to bottom and excessive administrative intervention exists. Consequently, the result of the reform will inevitably backfire, and it is difficult to fundamentally improve the efficiency of rural finance in China, as well as to ultimately meet the practical needs of the farmers and rural enterprises.To meet the financial needs of farmers and rural enterprises is the starting point of reforming and improving Chinese rural financial system, as well as the ultimate inspection standard. Therefore, starting from the perspective of the main requirements, the paper analyses various factors about the demand for rural finance. And at the same time, on the basis of rural financial needs in accordance with the subject and purpose of division, we give a detailed analysis of the demand for different subjects. Next, we discuss Chinese current demand characteristics of rural finance and the present situation of current rural financial supply, come to the conclusion of imbalance in Chinese rural financial market, and further reveal the reason and possible solutions. Finally, in the basis of excellent experience learning from the United States, Germany and India, we believe that to take a "bottom-up" reform road, do in-depth and detailed analysis for the main needs at the grassroots level, then build diversified rural financial organizations and impose the perfection of the supporting systems, only that we can fundamentally improve Chinese rural financial system, meet the practical needs of the rural needs of the principal, and finally promote the further development of Chinese rural economy.