Legal Regulation Of Private Financing

In2012, the case of “Wu Ying” raised the attention of the nationwide, then thefolk financing become a social hot topic. Till now, the government didn’t take apositive or negative attitude to it, but the truth is, the folk financing exists widely inthe society. The government has strict control on the financial system, and also takeshard rules on loaning auditing. On the other hand, with the limitation of small scale,asset, bad management and repayment ability, the private company and the exclusiveinvestment enterprise cannot get enough money for investment and production fromthe formal financial institution such as business bank, so then can only turn to the folkfinancing to make sure the running and development of the company, which alsoboost the development of the nation economy.The government didn’t make related rules and policy to standardize the folkfinancing, nor did they make laws to protect it, all these let the folk financingwavering at the condition of legal and illegal, which has big risk, and also hardlyinfluences the stability and harmony of the society. Recently, more and more scholarbegin to study the”folk financing”, also analyzing the “Wenzhou mode” folkfinancing behavior, and give a lot of ideas to the government. But as the nation stillhave no rules for the folk financing, then the research only stay on paper work.It is sure that medium-sized and small enterprises have great promotion to thequick development of the national economy, and the folk financing takes greatimportance for the start and development of the middle and small enterprises. Thegovernment cannot ignore the existence and importance of the folk financing and themarket also expect the entrance and protection of the government to the folk financingarea. As the folk financing turn to the hot topic of the nationwide, the ice cold policyof the government to finance is about to melt. Since2012, the attitude of thegovernment to folk loaning becomes much tender, which at some point shows thechanging attitude. In March14th,2012, at the news conference of the fifth meeting of 11thNPC, premier Wenjiabao says, the government should do more research for folkfinance, and speed up the revolution and of finance system and law making of folkfinancing, standardize the folk financing behavior timely. Thus many people predict,the spring of folk financing is about to come.This essay will study the definition, character and the legal attributes of the folkfinancing with the knowledge of law、financing and economy, analyzing the financingsystem and rules of our nation, and talk about the running and condition of the nativefolk financing, also borrow the international developed folk financing system.Hopefully, all these can promote the birth of related laws and rules, and give someuseful suggestions to it.