Studies on the Regulation of People-to-People Financial Activities in China

The paper analyses the possibility and potential risks of regulating informal finance by probing into the characteristics and development of informal finance in China. Some countermeasures are proposed to promote the development of informal finance such as the establishment of legislative security system, encouragement of innovation, cultivation of multi-level informal finance direct financing market, the build-up of informal finance credit system, the establishment of informal finance risk control system and the reform of the process of interest rate marketization.