The Chinese government set forth a series of the rural financial reform, including the establishment of new type financial organizations such as the Rural Loan Co-operatives. Here, we discuss the structure, conduct and performance of changing rural financial market, referring the actual condition of the Guanyun xian, Lianyungang shi, Jiangsu province. Especially we attempt to clarify the economical feature and social significance about the Rural Loan Co-operatives. The major conclusions are as follows. As the associate of financial organizations, the Rural Loan Co- operatives recognized by the local government are fragile, and therefore in order to make them go to the development path, we need more formal local regulations in accordance with the law set by the CBRC.
