Finance in Rural China

✍ Scribed by Xingyuan Feng, Christer Ljungwall, Guangwen He, Tongquan Sun

• Publisher: Routledge
• Year: 2023
• Tongue: English
• Leaves: 162
• Edition: 1
• Category: Library

✦ Synopsis

This book offers insights into the scholarly debates on formal and informal finance in rural China and fills a gap in the existing literature.

The book provides an overview of the overall development of rural finance in China and explains the necessity of embarking on the pathway toward rural financial pluralization through the "Local Knowledge Paradigm". The authors also analyze formal and informal financial development and inclusive finance (including digital inclusive finance) in rural China in various dimensions.

This book aids the understanding of the structure of the rural financial system and the operations of rural financial service providers in China. It will be a useful reference for those researching and interested in rural economy and rural finance.

✦ Table of Contents

Cover
Half Title
Title
Copyright
Contents
List of Figures
List of Tables
Preface
List of Contributors
1 Towards a Competitive and Inclusive Financial Market in Rural China: A Theory-driven Approach
1. Introduction
2. Existing Rural Finance Paradigms
2.1 The Subsidized Credit Paradigm
2.2 The Rural Financial Systems Paradigm
2.3 Incomplete Market Paradigm
3. The Local Knowledge Paradigm as a New Rural Finance Paradigm
4. The Structure of China’s Rural Financial System
5. Demands for Rural Financial Services
5.1 Structure and Diversity of Demand
5.2 Meeting the Financing Demand of Farm Households
5.3 Meeting the Financing Demand of SMEs in Rural Areas
6. Development of Rural Formal, Semi-formal and Informal Finance
6.1 Development of Agricultural Bank of China
6.2 Development of Rural Credit Cooperatives
6.3 Postal Savings Bank and Policy-Oriented Banks
6.4 Development of New Financial Institutions
6.5 Development of Informal and Semi-formal Finance
7. Improving Financial Market Mechanisms
8. Concluding Remarks
References
2 70 Years’ Evolution of the Rural Financial System of the People’s Republic of China
1. The Establishment of Rural Financial System and the Formation of State Banking Institutions
1.1 Strategy and Objectives
1.2 Progress
1.3 Achievements and Deficiencies
2. The Establishment of a Specialized Banking System and the Initial Formation of a Rural Financial Market
2.1 Reform Strategy and Objectives
2.2 Main Reforms and Implementations
2.3 Achievements and Deficiencies
3. The Formation of Rural Financial System in Which Different-type Institutions Working Together
3.1 Reform Strategy and Objectives
3.2 Main Reform Contents and Implementations
3.3 Achievements and Deficiencies
4. The Further Open-up of the Rural Financial Market and the Formation of a Modern Rural Financial System
4.1 Reform Strategy and Objectives
4.2 Main Reform Contents and Implementations
4.3 Achievements and Deficiencies
5. Construction of a Rural Inclusive Financial System
5.1 Reform Strategy and Objectives
5.2 Main Reform Contents and Implementations
5.3 Achievements and Deficiencies
6. Outlook of the Reform and Development of the Chinese Rural Financial System
6.1 Continue to Adopt the Principle and Direction of Marketization and Market Opening to Promote the Reform of the Rural Financial System
6.2 Continue to Construct Rural Financial System Suitable for Serving the “Agriculture, Rural Areas and Farmers”
6.3 Further Strengthen the Construction of Rural Inclusive Financial System
6.4 Accelerate to Complete Rural Financial Legislation
References
3 Farm Households’ Demand for and Access to Loans in Rural China
1. The Problem Statements
2. The Source of Data and the Basic Situation of the Sample Farmers
2.1 Data Source and Sample Description
2.2 Farmers’ Production and Operation and Income Characteristics
3. Evolution of Farmers’ Credit Demand and Credit Accessibility
3.1 Farmers’ Credit Demand Remains Strong and Formal Credit Satisfaction Rate is Still Low
3.2 Informal Credit is Still the Main Channel for Farmers to Meet their Credit Demands
3.3 The Degree of Formal Financial Satisfaction of Farmers’ Productive Credit Demands Has Increased
3.4 Collateral and Guarantee Are Still the Main Ways for Farmers to Obtain Formal Credit
3.5 The Degree of Self-exclusion of Financial Services for Farmers is Still High
4. The Hierarchical and Structural Characteristics of Farmers’ Credit Demand
4.1 Demands of Farmers with Different Production and Operation Modes Are Still Relatively Strong
4.2 All Types of Farmers’ Borrowing Still Rely Heavily on Informal Financial Channels
4.3 Farmers at All Levels of Income Have Relatively High Credit Demand
4.4 The Credit Demand of Small-scale Farmers Remains Relatively Strong
5. Countermeasures for Deepening Credit Services for Farmers
References
4 Ownership, Governance and Interests of Financial Institutions within the Rural Credit Cooperative System
1. An Overview of the Reform Process
2. Policy Impacts: Advantages and Disadvantages
3. Current Ownership Structures of RCCs and Rural Cooperative Banks are Detrimental to Operations
4. Distribution of Responsibility, Rights and Interests of Financial Institutions within the RCC System
5. Opportunities Remain for New and Genuine Rural Credit Cooperatives to Prosper
6. Downscaling Branches and Services Fit Best the Interests of RCC Institutions
References
5 Improving the Financial Sustainability of the Financial Institutions within the RCC System: Problems and Policy Options
1. Introduction
2. Factors Affecting the Sustainable Development of the RCC Institutions
2.1 Ownership Structure and Governance of the RCC Institutions
2.2 Risk Factors
2.3 Other Factors
3. Countermeasures to Promote the Sustainable Development of RCC Institutions
3.1 Improving the Management and Business Operation of RCC Institutions
3.2 Further Pushing Forward the Reform of the RCC Institutions
References
6 The Development of Digital Inclusive Finance in Chinese Counties: Index Construction, Measurement and Analysis
1. Introduction
2. Concept Definition and Literature Review
3. Construction and Measurement Method of Digital Inclusive Financial Development Index of Chinese Counties
3.1 Compiling Principles of Digital Inclusive Financial Development Index of Chinese Counties
3.2 Data Sources
3.3 Construction of the Digital Inclusive Financial Development Index System for Chinese Counties
3.4 Determination of Weights
3.5 Measurement Method of Index Score
4. Measurement Results and Analysis of Scores of Indicators at All Levels of the Digital Inclusive Financial Development Index System
4.1 The Overall Situation of the Development of County Digital Inclusive Finance in China
4.2 Comparison of Digital Inclusive Financial Development in Different Regions and Counties
4.3 Development of Digital Inclusive Finance in Different Provinces and Counties
4.4 Analysis of the Top 100 Counties in the Development of Digital Inclusive Finance of Chinese Counties
5. Conclusions and Policy Considerations
5.1 Conclusion
5.2 Policy Considerations
References
7 China’s Financing Support for Poverty Alleviation
1. Introduction
1.1 Lack of Funds for Development in the Rural Poor Areas of China
1.2 The Importance of Finance for Poverty Alleviation and Development
2. Specialized Financial Policies for Poverty Alleviation
2.1 Credits for Poverty Alleviation
2.2 The Policy of Insurance for Poverty Alleviation
2.3 Participation of Capital Market for Poverty Alleviation
3. The Evolution of Comprehensive and Targeted Financial Policies for Poverty Alleviation
3.1 Financial Poverty Alleviation Policy as a Basic Public Financial Service
3.2 Policies for Developing Inclusive Finance
3.3 Complete, Comprehensive and Targeted Financial Poverty Alleviation Policies
4. Monetary, Regulatory and Fiscal and Tax Support Policies in Compliance with Financial Poverty Alleviation
4.1 Monetary Policy
4.2 Financial Regulatory Policies
4.3 Fiscal and Tax Policies
5. Progress and Effectiveness of Finance for Poverty Alleviation
5.1 Government-led Subsidized Loans
5.2 Microfinance of Non-governmental Organizations
5.3 Rural Mutual Funds in Poor Villages
5.4 New Mechanism of Policy-Oriented Banks
5.5 Innovation in Financial Mechanism and Products of Other Commercial Banks
5.6 Innovation of Insurance Products for Poverty Alleviation
5.7 Role of Capital Market for Poverty Alleviation
5.8 Role of Rural Internet Finance
5.9 Stimulation by the Monetary and Regulatory Policies
6. Summary
6.1 Experiences
6.2 Outlook for the Future
Reference
Index