The SWOT Analysis On The Imbalance Between Supply And Demand And The Future Development Of Private Capital

Private lending crisis in Wenzhou city caused the concern of all sectors of society to the Private Capital. The State Council has set up the new36guidelines of approving the establishment of private banks. On the one hand, with the policy tendencies, the majority of investors are optimistic about the prospect of the development of private capital. On the other hand, private capital has its inherent flaws, that is, large amount of funds, individual funds is low, and scattering needs gathering cost, and private capital market is not standardized and lacking of relevant laws and regulations. Therefore, private capital has a higher risk in operation. Under this circumstance, this paper first analyzed and summarized the classical theory and literature review at home and abroad, and then generalizes the theory related to the development of the private capital. Finally, this paper give the conclusion after applying the supply-demand analysis method and SWOT analysis method, and suggest that the Private Capital should be put into a policy of normalization.This paper is divided into six chapters. Chapter One is Introduction, including Background and Significance of this thesis, research scope and framework, research methods and thoughts, innovation of the article and the article’s defects. Chapter Two is Theoretical Review; this chapter combs the research about the Private Capital at home and broad, and then concludes and comments the current research results on the basis of the previous research. Chapter3analyzed the private capital supply from its form, scale and source, and concluded that the stock and increment of the private capital is very significant. Chapter4analyzed the demand market of the private capital, whose result indicated that, at present, capital is needed greatly on the market in China, the capital gap among all walks of society is big, and Chinese private capital market can develop well in the future. Chapter5analyzed the development of private capital by using the SWOT analysis from its advantages, disadvantages, opportunities and competition, and analyzed the current situation of the private capital, seeking private capital development advantages to make up for weaknesses in order to ensure the development of the private capital in a healthy direction. Chapter6has the conclusion and gives policy recommendations to make its development better according to the problems of the Private Capital development.