Research On Risk Management Of Private Financing In Dongguan

With the rapid development of China's economy in the past decade and the state's decentralization of economic control and legal support,private financing has been rapidly developed due to its simple,flexible and unique advantages.Private financing has become increasingly active,which has eased to a certain extent.Micro-enterprises and “three rural” financing problems have improved the efficiency of the financial market.However,the rapid development has brought certain drawbacks.Due to the blindness of its development and the lack of supervision,the public has insufficient awareness of risk prevention and the lack of government supervision has led to various types of private financing cases such as illegal fund-raising.It brings many problems and hidden dangers to economic development and social stability.At this stage,on the framework of financial supervision,China has implemented a supervision system based on the “one line and two sessions” as the basic framework.This supervision system has a regulatory gap for private financing.Especially since 2011,Wenzhou,Ordos,Yulin and other places have frequently experienced illegal fund-raising or private lending,which has a serious impact.Therefore,the issue of private financing supervision has received much attention.The National Financial Work Conference held in 2012 pointed out that small financial institutions that are closely related to regional and local connections can be placed under the supervision of local governments,and at the same time,local financial supervision departments should be established.Subsequently,Wenzhou,Guangzhou and other places have set up financial offices,and actively explore the local government's supervision of private financing.From the perspective of practice,local governments have made useful explorations in regulating the development of private financing,and have achieved certain results,but they also exposed problems such as unclear regulatory authority,lack of regulatory means,and low efficiency of supervision.This paper takes the private financing of small and medium-sized enterprises as the research object,and analyzes the problems existing in the financing of Dongguan citizens through literature research,data analysis and actual case study.The article is divided into the following six parts: firstly,the research background,significance and research methods and innovations and deficiencies are analyzed;secondly,some related theories and core concepts of private financing are summarized;the third and fourth chapters are from Dongguan citizens.Financing is the research object,and analyzes thestatus quo of private financing,existing problems and the causes of the problems.The fifth chapter mainly summarizes the experience of private financing in some developed countries such as Europe and the United States and some developing countries through literature reorganization;Combined with the status quo of financing among citizens in Dongguan,the corresponding risk prevention measures and suggestions were put forward.