Study On The Legal Adjustment Of Chinese ROSCA

ROSCA is a kind of traditional organization with folk capital aid and lending,it isan important component of folk finance in our country.ROSCA is very popular in thesoutheast coastal area of China because of its flexible operating mechanism,strongability of credit resources mobilization,effectively overcome asymmetry ofinformation, cheap capital,to a certain extent can relieve farmers borrowing difficultand small-micro enterprises financing difficult. However dual financial structure andfinancial repression policy forming institutional repression, make formal financesqueeze out and government financial authorities suppress ROSCA.The absence ofROSCA’s legal system and indistinct of its legal attributes,which make it inaccordance with lawlessness.Some ROSCAS turn into illegal crime tool,such asfinancial fraud and usury,which disturb financial order and hide financial risk.In orderto let ROSCA continue to play its utility in financial reform,we must let it walk up inthe path of standardization and legalization by building a legal system.The legalsystem of ROSCA should include two parts:the obstacles of ROSCA are,We shouldeliminate financial repression and institutional repression gradually throughrenovating legal idea of financial liberalization;draw on the experience of Japan, Indiaand Taiwan of legal system,which can guide us enact a scientific and reasonablestatute to protect and improve ROSCA’s lending and financing functions,at the sametime,guard against and dissolve the risk of ROSCA.Besides preface and conclusion, the Master’s thesis consist of five parts.The firstpart: the overview of ROSCA, including ROSCA’s concept, characteristics,functionand operation mechanism,cites ROSCA with competitive tender to introduce theoperating mechanism of ROSCA.The second part: the historical evolution of ChineseROSCA’s legal adjustment,it can be divided into three stages in the perspective ofhistorical:laisser-aller,ban,relaxation.The third part: the real problems and its reasonsof ROSCA’s legal adjustment, it interlinks the second part, summarizes two mainproblems of ROSCA’s legal adjustment: the fuzzy legal attribute of ROSCA, theabsence of legal system, the reasons of two problems lie in system and history.Thefourth part: the experience of legal adjustment with its reference in extraterritorialspace, mainly introduces legal system of Japan, India and Taiwan, compares thesimilarities and differences between them and its enlightenment to our country.The fifth part:the idea of legal adjustment and construction of institution of ROSCA.Theinnovation of idea of legal adjustment and draft specific legal system,whicheliminates the suppression of institutional hindering,and realizes the development ofROSCA with normative, orderly and healthy,and makes the standardization andlegalization of ROSCA come true finally.