ncing from trust funds almost the least consideration or the developers. Therefore, after considering the strict control of centralgovernment, bank-tightening loans, difficulties to loan from trust funds, private funds have been made as the most possible way of developers to finance. 2011, 29 real estates fundtotal $ 4.1 billion, an increase from $ 2.9 billion, made last year, according to the consulting firm's branch. Analysts expect will increase more than 6 billion US dollars in 2012, they expected that this number will be given by 40-50% growth in the coming years.Real estate developers are also seeking overseas funds.
In early 2012, a number of major cities, including Shanghai, Beijing, started a pilot Qualified Foreign Limited Partner (QFLP) program, the general partner, to allow foreign funds to buy RMB yuan investment funds (in the amount of not more than 50,000 yuan the percentage of fund assets). This may allow the yuan fund is relative to the "Foreign Investment Partnership," there are a lot of restrictions domestic partners.
There are private entrepreneurs recent efforts to develop "native" equity firms in the Chinese. Therefore, the application of foreign capital is forty-five percent lower than last year, partly because of provisions are not strict, China enterprises.Roadblocks, local authorities faced by foreign investors, are not private equity industry rules of any national who, as well as currency conversion needs.
The central government response
THE CREDIT CRUNCH AND DEVELOPERS
RAMIFICATIONS FOR CHINA'S FINANCIAL SYSTEM
Major problem to be explored
The article would like to discuss the four major problems regarding to the folk lending.
Research method to be used
Expected contribution of resulting thesis to learning in the field of law
Conclusion
Chinese informal finance is complex and its study remains in its infancy. In this paper, we have discussed the most important aspects of what is known about informal finance, as well as issues that require further research. Understanding what types of informal finance are helpful versus harmful is essential to crafting best legal and economic policy. The pace of economic reform shows no sign of slowing, and banking reform must encompass continuing and expanded support of SMEs and individuals. Legal practices andenforcement need to be properly aligned with the interests of legitimateeconomic growth and national security.
Reference list
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Ayyagari, M., Demirgüç-Kunt, A., &Maksimovic, V. (2010). Formal versus Informal Finance: Evidence from China. Review Of Financial Studies, 23(8), 3048-3097.
Caruba, S. L. (2007). Structured Finance in China: Legal and Institutional Perspectives on the Challenges and Opportunities. Law In Context, 25(2), 35-104.
Passas, N. n., Hsu, S. s., & Li, J. l. (2012).Development and legitimacy of Chinese informal finance. Pacific Review, 25(4), 495-511.
CARY, E. (2012). When One Credit Door Closes, Another Opens. China Business Review, 39(4), 12-15.
People’s Daily (2009) ‘Chinese workers
