Study of Financial Market Efficiency in Rural Area in China

The evaluation of the China's rural financial market efficiency should be studied from the following two aspects: First,the role of China's rural finance in promoting economy;second,the balance of financial resources in China's rural financial markets.There is evidence that China's rural financial market efficiency is lower than the national average.Therefore,the paper recommends that: small-sized financial institutions should be developed to make up for the lack of formal finance;financial instruments should be innovated;financial risk compensation system should be established to reduce financial risks;financial subsidies and pricing policies should be reformed and rural financial benefits raised.