| The paper analyzed the status quo of private financing in Handan city, Hebei Province, helps us to understand better about the development of private financing in China. With the study of its characteristics and obstacles it may encounter, the essay comes up with several suggestion and solutions in establishing legal system to regulate and supervise private financing. The paper is stated in four chapters. The Chapter One mainly introduces the general situation and rapid growth of private financing, which due to the difficulties that small and medium enterprises meet in getting loans and financial help from the formal financial institutions. The private financing features in rapid expansion, diversification in borrowers and lenders, diversified financing channels, simplified procedures as well as its flexibility and high returns. In Chapter two, summarizes the disadvantages of legal system about private financing, for instance, the private financing laws and regulations are scattered in different laws and regulations, and lack of coordination and feasibility, and the laws and regulations, are even controversy with each other. The Third Chapter researches other countries or districts’experience in regulating private financing and legislating. The experience in America, Germany, Japan and Taiwan will enlighten us in different lights. In the last chapter, the paper gives four advices from legislation, judiciary, executives and enterprises to establish an efficient legal system and enhance the economic development. |
