The Research Of The Government’s Regulatory Role In The Informal Finance

The economy of China is facing a critical period of strategic transformation while the reform of financial market as the core has also draw great attention. At the same time, the informal finance is becoming even more prominent because of its important and unique role in the market. After the Third Plenary Session of18th Central Committee, the Chinese government is working hard to rationalize the relationship between government and the market, and therefore the transformation of the regulatory role of government is more critical in this context. In the course of development of China’s private finance, the Government must improve the legislation as soon as possible, to build a legal system of private financial services, while the regulatory process must change their ideas, to change its role from a sense of unity to the role of service up, completely reversing the current government regulation the existence of" a place on the chaos, one died," the disadvantages and the status quo.The purpose of this essay is to explore the relationship between the regulatory role of government and the informal finance, trying to discover the problem of during the development of the informal finance and the lack of the government regulation, in order to rationalize the relationship between government the market, promote the conversion of the regulatory role and ensure the better development of the informal financial market in China. In this paper, the status of private finance in development, the government and the private financial markets related concepts, features, etc., as background, combined with our discussion of the current situation of China’s civil government regulation of financial markets, which in turn introduce foreign government regulation in the private financial markets measures, and finally through the regulatory contrast abroad, learn from foreign experience and excellent model to provide a useful reference for China’s government regulation, in order to propose solutions to government regulation of private financial measure conversion functions, opinions and recommendations.According to the analysis and summarized of the large number of both domestic and international academic literatures when selecting research methods,which help me to understand the concepts better so I can express the main opinion of this paper much more easier and at the same time laid a solid theoretical basis of this paper. Hotspots like the financial reform of Shanghai FTA and the current Community Bank model stopped by the CBRC also are the important parts in the case analysis, Which could better compare the role that the government should be in the informal finance market. After determining the direction of the research, it’s not hard to get the conclusion combing those research methods, which the government should first change the role, adjust the regulatory functions by building a legal framework that will remove the gray area from the informal finance market and this change of government will better support the development of the market while there will not be too much regulation or too little.