Research Ordos Private Lending

Since2005, with the cyclical rise in the prices of coal, the ordos using its coal and other mineral resources advantages, realize leapfrog development on economy.with the wave of economic development, ordos gathered private wealth and a lot of small and medium-sized enterprise grew up rapidly in a few years. With the lag in financial reform, incomplete financial markets, lack support on medium-sized enterprises of mainstream financial institutions lead to can’t meet the demand of economic development of the financial situation. ordos lending market become popular and entered the era of" national lending does not speculate in the stock market" Due to the large number of private funds to invest in energy and real estate and promote the flourishing development of energy, the real estate industry at the same time, the excessive expansion of real estate and other virtual economy makes economic operation in a high risk condition, also bring worries for the future sustainable development of the local economy.Finally, on the October18,2011, with the burst of "suyenv case","Wangfujin" case occur the crisis of folk loan in Erdos. The capital chain of folk loan rupture and cause a series of chain reaction.Private lending is a beneficial supplement of formal financial support on the real economy. But, the folk lending is in a self-organizing state, have many nonstandard problems, especially the high borrowing, lending risk is quite high, it will directly affect the social, economic and financial stability. Ordos Is the city its rise is depend on the resources, but when its economy realize leap development its virtual economy get fast development but the entity economy such as manufacturing has failed to develop at the same time, in the end, under the impact of the external situatiaon high risk of folk lending capital chain rupture and cause credit crisis.this paper, based on the basic theory of economics and characteristics of ordos, analyzed the ordos local folks formation,developmentand and lending crisis, by studying get the Conclusion that With the combination of special circumstances on ordos region s economic development say the folk lending in ordos future development trend and policy recommendation.