Research On China’s Private Financial Market Access Legal System

Nowadays, with the rapid development of economy, china’s financial systemhas experienced a large reform, a substantial increase in the number of financialinstitutions, and constant improvement in the financial system, it seems to be afinancial development in the best of times. However, China’s private finance has beenin the ground state in a long time, when comparing with the legal formal financial, itshould not be dispensable, but should play an important role in the development ofChina’s civil economy. In recent years, the increasing number of private capital haslead to a series of problems, even impact the financial system and social stability. Inthis regard, the standardization and institutionalization of private finance willcontribute to the good development of the economy of our county folk.Private financial regulation is of great significance, first, it can solve the problemof financing difficulties for small and medium-sized enterprises; second, strengthenthe private financial regulation can prevent the high-risk of private financial activities;finally, to enhance the capacity of national monetary policy regulation.Fortunately, the official has recognized the importance of the private finance. Asearly as in2004, the central bank released “2004China Regional Financial runreports” for the first time viewed the private finance as the formal finance’ supplement,saying, we should capitalize on the trend, while avoiding disadvantages. In2005and2010after the State Council had issued laws and regulations encourage private capitalget into multiple fields, increased investment and financing channels, encouraged itsinnovative transformation&upgrading and constructed a good environment for thedevelopment of private capital.We must give the private finance legitimate legal status in order to make it better. In the field of private financing, we need to redefine the legal and illegal privatelending. Maintain the ordinary private lending status quo. We can maintain the statusquo in the registration based on mutual aid for the non-profit organization. For a moreadvanced form of private finance, we may consider them to transform intomicrocredit companies, village banks. In the field of private investment, to encourageand guide private capital into the bank financial institutions and non-bank financialinstitutions. Accelerate the development of new types of financial institutions on thebasis of standardized, innovate financial products and services. At the same time weshould have to build a social credit system and strengthen the private financialsupervision and management mechanism.The main text is divided into four parts: the civil financial overview, thedevelopment of the history and the status quo, the typical national and regional privatefinance and the consummation of legal system. The text aimed at understanding thestatus quo and inadequate of China’s private finance. After demonstrating itsspecification necessity, I’ll come up with a couple of possible development path ofChina’s civil financial market access through the introduction of foreign legalregulation in this field.