| At the present stage,China’s financial industry has formed the management system of separate operation and separate supervision,and the People’s Bank of China,China Banking Regulatory Commission(CBRC),China Securities Regulatory Commission(CSRC)and China Insurance Regulatory Commission(CIRC)play an important role in this management system.However,the private financing activities have not been included in this management system.Since the reform and opening up,the private capital has gained a lot of accumulation,on one side,it provides loans to support small and medium-sized enterprises to solve the funding needs and promote the prosperity and development of China’s social and economic,on the other hand,In recent years,illegal fund-raising,illegal absorbing of public deposits,money laundering and usury problems occurred frequently.Wu ying’s "run away" case,the running behavior of entrepreneurs in Wenzhou and the collapse event of Dongtou 600 million bidding are even triggered unrest in society.The occurrence of these problems makes the public more worried about financial security and it has also worsened the investment environment,thus it is urgent to regulate the private finance.The connotation of private finance has not been determined,and there is a controversy on its definition in the theoretical circles.The key point of the debate is to see whether it has been included in the national financial management system and whether it is regulated by the financial regulatory authorities.In general,private finance refers to various forms of financing activities between individuals or between enterprises or between individuals and enterprises outside of the formal financial system.Private finance mainly includes private lending,small-loan companies,enterprise internal fund raising,He-hui,private banks and P2P network lending,and it differs from government-run finance or illegal financial.Private finance has a long history in our country,after the reform and opening up,with the growth of small and medium-sized enterprises,private finance began to active up.Until now,it has occupied a place in the financial market,its role and function can not be ignored.Private finance not only eases the financing difficulties,promotes economic growth and expands employment channels,but also has a promoting effect on the development of formal financial market.In 2011,the outbreak of the private financial crisis in Wenzhou deeply reflected that there is a necessary to guide and regulate private finance.In order to better understand the current situation of the development of private finance,the author adopts the method of forums,questionnaire survey,field visits and other ways,through the field research of private finance in the three provinces of Zhejiang,Guangdong and Jiangxi to explore the present situation of private finance and its reform result.Through the research,it could be found that there is a great risk to private finance,its concealment,blind profit-driven,easy violations and weak character,coupled with the lack of private financial supervision resulting in the prevalence of usury and illegal fund-raising.In addition,those small loan companies develop rapidly,however,due to face many difficulties such as the tax burden and financing leverage not in place,they appear to be inadequate in solving the problem of financing difficulty of small and medium-sized enterprises,so it is an important subject to explore the development of private finance.In recent years,the problems of illegal absorbing of public deposits,money laundering and usury occurred frequently which have increased the appeal of the public to the private financial regulation.The theories about private financial regulation mainly have market equilibrium theory,negative externality theory,financial development theory and public interest theory,while the financial development theory is the most consistent with the development of private finance.Financial development theory refers to that the government gives up excessive intervention of financial system and implements a series of financial liberalization policy so as to form a virtuous circle of financial development and economic development.Under the guidance of financial development theory,the goal that China’s financial reform should be achieved is mainly embody in the reform of big banks,the promote of the interest rate market,the establishment of a flexible exchange rate regime,capital account liberalization and internationalization of RMB.As early as in 1973,the American scholar Mckinnon(Ronald I.Mckinnon)put forward the theory of "financial repression".The main characteristic of China’s financial system is the bank indirect financing as the leading factor,under the strict supervision of highly centralized financial system.This financial system makes banks occupy a monopoly position in the financial markets,which hinders the development of private finance.However,due to the formal financial market can not meet the needs of enterprises in the market for funds,it leads to private capital begin to flow between enterprises which to eliminate the negative externality of the financial market brought by the formal finance.When private finance plays its role,its own characteristics will lead to negative externalities,which need to be eliminated through government supervision.In recent years,in order to make sure the healthy development of finance,governments have been promoting financial liberalization,with the emergence of financial social phenomenon,the concept of inclusive finance was put forward.In the new financial environment,private finance presents three remarkable characteristics,that is,transition from the "hidden" gradually to the "sunshine",from the "disorder" to the "normalization",from the "private financial repression" to the"associated with formal financial development".These characteristics also show that the private finance has developed to a new stage.In the new financial environment,the transformation of the private finance has created a challenge to the traditional private finance.The challenge is reflected in a series of difficult aspects of the legal environment,such as the legal status of private finance has not been established,the lack of private financial legislation and the insufficient law enforcement on private finance.Of course,as part of the entire financial industry,the generation of private financial has brought a huge challenge to the whole financial market.The reason why regard the generation of private financial as a huge challenge to the financial market is that compared with the traditional four elements of the formal financial market,that is"market players,trading objects,trading tools and trading prices",they have a big great difference.As the establishment of the concept of "free,fair,service and cooperation"in the new financial environment,the new requirement for the design of the macro top-level system of the private finance has been put forward.It has not only services for financial efficiency and financial security,it also should be extended to financial fairness,financial inclusion and financial equality.This requires that the civil law,which takes the rights and obligations between equal subjects as the core,the economic law,which emphasizes on economic efficiency,economic order and social equity,and the financial criminal law,which emphasizes on the order of financial security and financial,should match apply to private finance to play the effectiveness of coordination and interaction among the three kinds of law.Financial legislation,financial justice and financial enforcement represent the operation process of law,under the new financial environment,the theory of legal protection of private finance should also carry out this method throughout the period of operation,offering services for the private financial health,sunshine and standardized development.Throughout the financial reforms,Guangzhou in Guangdong,Wenzhou in Zhejiang,Ganzhou in Jiangxi and other places are the most representative regions that obtained some remarkable results in the process of financial reform.In June 2012,Guangdong province set up Guangzhou private financial street,through nearly four years of construction,private financial agglomeration efficiency and radiation effect have been further enhanced,gradually formed "Guangzhou small loan price".In March 2012,the financial reform of Wenzhou in Zhejiang was carried out by innovative forms of regulation,broadened channels for private capital investment,vigorously developed the capital market and guided the healthy development of private financial,gradually formed the "Wenzhou model";Ganzhou in Jiangxi Province make full use of national support policies of the Central Soviet areas,and vigorously carried out financial reform which achieved remarkable results.All of these efforts of the above regions provide some experience to further explore private financial regulation.By drawing lessons from the experience of Guangdong,Zhejiang and Jiangxi of the private financial reform and combining with the financial development theory,the regulation of private finance in our country needs to be optimized and improved on both the tool and the development strategy.In the present stage,the common regulatory tools of private financial mainly include market access,interest rate restriction,credit mechanism and tax system.However,each tool has more or less problems in our country at present,which has restrained the development of private finance in China.The optimized direction of the private financial regulation tools is shown in many aspects:firstly,the private financial development should be legalized and standardized through multiple channels;secondly,private financial interest rates should be market-oriented and differentiated from "four times red line" to "two lines and three areas" of the highest interest rate of private lending system;thirdly,set up multiple credit system dominated by Central Bank;fourthly,establish tax fairness based on"replace the business tax with a value-added tax".Through the optimization of regulatory tools,it can be more effective to regulate the private finance and promote the development of private finance.The experience of private financial reform in Zhejiang,Guangdong and Jiangxi Province has brought us a lot of inspiration on how to promote the development of private finance.First of all,the private financial regulation legal system need to be improved,which not only requires local legislation to play a leading role and perfect financial legislation,but also needs a professional financial trial team.Secondly,to build a regional financial services platform to enhance the aggregation effect of regional financial services.Finally,it should actively foste the development of private capital led by local financial institutions so as to make investment and financing channels more flexible. |
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