Private Financing In WenZhou Risks And Regulatory Tools

Since China's adoption of reform and opening-up policy in late1970 s,along with the rapid economic development in China,Zhejiang's economy has sustained rapid growth,largely due to the rapid development of private economy in Zhejiang and private financing.But in recent years,the outbreak of Wenzhou lending crisis draws attention to private financing.As an effective means of funding,resource allocation,private financing in the Bank inadequate supplementary funds,the rational allocation of resources to meet the financing needs of SMEs(Small and Medium Enterprises)and the "three rural" and other market players has played a very big positive role,which lot promote economic prosperity degree.However,due to the continuous expansion of market scale of private financing,the transaction subject is very complex,traditional folk financing is gradually self-enforcing mechanism fails,the people on the "private financing is a double-edged sword," the concern is increasingly becoming a reality.In recent years,China's Wenzhou,Ordos and other economic regions had been more active because the capital chain rupture occurred in private financing crisis,many business owners,private financing for customers with the industry's debt,the final choice on foot;there are many companies not owned debt,have been closed down;even some people,a lot of their savings into private financing market for many years,it is intended to seek high profits,they are down the drain.The risk of large private financing can be described as shocking.It's wide influence,is attracting the attention of people across the country,the deep harm,have threatened the security of our financial system,the healthy development of China's economy and social harmony and stability has had a huge negative impact.Profit is the nature of private financing,the risk born with private financing,and will be associated with it to proceed.In any country in the world,in any area,there is a risk of private financing.But the risk of private financing in our particular highlight was heavy,its causes and many,such as our irrational industrial structure,economic development is relatively backward,excessive expansion of the virtual economy,the macroeconomic situation is poor and so to some extent this influential,but the financial system is imperfect,imperfect rules and norms,regulatory measures are not in place is too risky private financing mainly lead.Based on the above analysis,the study of "Wenzhou private financing risk and regulatory tools to select" the subject,it is particularly necessary at the moment.At the same time,which promote China's financial reform,improve the financial system,promote the sound functioning of the financial markets,maintain financial security and ensuring the healthy operation of the economy and other aspects,also have important significance.