Discussion on the development of informal finance in China

Informal finance plays an influential role in meeting the multi-level demand of financial service. At the same time, it is the source of financial innovation and the important component of money market. At present, the scale of informal finance in China expands continuously, and it has been more organized. However, it′ s adverse for informal finance to develop without instructions from the law. Meanwhile, informal finance weakens the effect of macro policies and contains high system risk, which prevents the stable development of finance and economics. Facing new challenge, Chinese government must change concept, improve legal system and create favorable institutional environment, so as to promote the development of informal finance.