The Development Of Informally Financial Markets In China

This paper studies the McKinnon and shaw’s theory as the starting point based on theframework of financial development theory. Separately listed financial development theory,theory of financial repression and financial deepening theory, theory of financial constraintsand elaborated profoundly, which leads to the the interaction between informal financialdevelopment and economic development. Then discussed the development of informallyfinancial markets in China.First, this paper introduce the history, the characteristics, the forms, the difficulties, andthe reasons, in order to achieve the goal of sustainable development of informal finance.From the economic system, the financial repression policy, financing, credit discrimination,limit aspects elaborates the significance of the informal financial to economic developmentin our country.Second, the method of analysis cases from informal finance are discussed indetails,Guagnzhou is a case.Third, according to the above analysis to our country informalfinancial markets, this paper put forward some countermeasures and suggestions.