Research On The Legal Regulation Of Private Financing

As the economy continues to develop, market players are constantly increasing the demand for funds. But the traditional way of financing is difficult to meet their financial institutions for capital requirements, informal finance activities are very popular in recent years. It promote economic development to a certain extent, but due to confounding informal finance, informal finance laws and regulations are not sound that lead informal finance market is chaotic, which caused a lot of social problems. Informal finance is as an effective means of capital allocation, financing channels can be enriched and the informal capital markets can be enlivened.It also can make up the gaps for markets funding needs, but through the results that the courts deal with cases of civil cases in terms of financing, often bring area convulsive effects, seriously affect the stability and economic development of society. The development of informal finance is the inevitable outcome of the development of market economy, so the research of the legal regulations for informal finance is a problem we have to face. Only with the development of a comprehensive legal systems can we better promote informal finance methods. In this paper, the author mainly takes Zhejiang Province which is most developed informal finance district in the country for a example. And as the birthplace of the private economy, Zhejiang Province plays a very important role in terms of informal finance ahead of the rest of the country, which has a strong representation to the forward direction of the national economy.In this paper, starting from the analysis of the cases in the informal finance of the problems, and then the author’s explanation of the basic theories of informal finance will be a complete exposition of the necessity of legal concepts and features, the modes of informal finance and the development of civil and the feasibility of a system are analyzed. Then the author will combine the current situation of the informal finance in Zhejiang Province to analyze the obstacles and problems existing in reality we will meet in developing the informal finance in our country. The causes of these problems and an overview for existing laws and regulations regulate informal finance is also included."Stones from other hills may serve to polish jade" is a famous saying. The history and the development of regional development in informal finance of foreign countries is ahead of our country, the paper will discuss the development of advanced experience of informal finance in the extraterritorial area, in order to provide a good reference to promote the development of our country’s informal finance. Finally the paper will combine the current situations in the pilot to make recommendations to improve the legal systems for informal finance and give proposed rationalizations to promote the development of informal finance.The development of informal finance is the process of redistribution of funds and rational allocation of resources. It plays an important role in further improving the financial markets and dealing with the defects of the formal finance. But in our current legal systems, there is a big controversy between the legitimacy and the modes of informal finance. With the rapid progress of China’s economy, the foundation of Shanghai Free Trade zone, as well as the private banks are attempts to develop informal finance in further. Many large cases occurred in the field of informal finance as the result of the backward of the legislation. It has seriously affected the economic development of a region and brought the huge losses to the country. As a result, our legal system needs to be effectively regulated, and it is the only way to promote economic development and social progress better in our country.