A Research In China’s Rural Financi Al System Improving And Fiscal Support

The issues of agr i cu I ture, rural areas and farmers have been focused by the Central Document Nol for 12 consecutive years, which are basic issues In the process of our modernization construction. China is rich of agriculture, and the population in agriculture occupied the majority. Since China’s reform and opening up, great changes have taken place in rural areas in China, a sequence of policies which facilitate the rural economic development have been formulated, and the development trend of "for stability, stability into, the good stability" is forming in rural economy. However, the overall development of China’s rural economy still remains laggard, and it is of significance in the imbalance of Urban and rural economic development. The longtime standing three Rural Issues are the major factors that restrict the Chinese modernization. With consideration of the economy development, the finance should be put to the prior the position. As the core of the rural economy, the modernization of agriculture, rural urbanization, and the improvement of people’s livelihood is inseparable from the strong financial support. To thoroughly solve the problem of lags behind, of rural economic development the rural financial problems must be solved firstly. The backward rural finance in China roots from the lags behind rural financial system and the little innovation of the financial system, because of which, agriculture, countryside and farmers financing are facing difficulties, and the defective rural formal financial institutions are hard to provide good financial services to the rural economy. Meanwhile, Folk finance can only provide simple financial services for rural areas and farmers, which far less satisfy the needs of the development of rural economy; furthermore, it is a serious phenomenon of rural capital outflow. The solution of Three Rural Issues depends on the innovation of Chinese rural financial system and the construction of the fabulous rural financial system environment, which assure the rural financial security and meet the money demand of agriculture, country and farmers. The development of Chinese rural finance cannot depart from the support of national fiscal policy. High natural risk, long recovery period low rate of return consist of the agriculture natural predisposition. To encourage the increasing folk capitals into the rural financial market, some preferential fiscal policies should be formulated to support the development of rural economy. Based on the research related to the exploration of a proper Chinese rural financial policy support in accordance with the present situation, rural financial supply can been effectively optimized, it is possible for the construction of rural financial system to promote the development of rural economy.In this study, a deeply analysis of Chinese rural financial system has been conducted from the perspective of institutional economics, and the issue of the development of rural finance is located in the framework of system; additionally, the deficit of Chinese rural financial system and some possible methods of innovation are demonstrated, as well as the brought out of Some matched fiscal policy support. Besides, the macro and micro analysis are both involved in this study. The expectations of the current study are to provide some valuable research findings for the later researches related to the Chinese rural financial system and to trigger off the sound development of rural financial system. The methodology integrates the quantitative analysis and qualitative analysis, In particular, the problems about the Chinese rural financial system and the situation of supply and demand of the Chinese rural financial capital have been qualitatively analyzed, the construction of model and the data collecting of related supply and demand of the Chinese rural financial capital are further quantitatively analyzed based the conclusion of qualitative analysis, and the results of quantitative analysis greatly support the conclusion of qualitative analysis.Innovation points of this article:Firstly, in the research field of China’s rural financial sys tem, this paper focuses on the innovation of agricultural insurance and the status of financial s upport; secondly, in the innovation field of China’s rural financial system, it elaborates a new method to solve the financing problems of farmers through implementing rural land contract management rights the homestead mortgage. But due to the limited materials,different financial institutions in different rural areas are not take into account in this research,and do not pay attention to the individual differences,these are to be improved in the future work and research.