New Trends in Rural Cooperative Financing in China

-Case studies of internal fund raising in rural financial institutions and fanners' cooperatives-

Abstract

This article analyzed recent trends in rural cooperative financing in China. The study was conducted by looking at cases of internal fund raising in rural financial institutions and farmers' cooperatives. Analysis showed that internal financing did contribute to solving the shortage of funds that has affected rural institutions and farmers' cooperatives. However, the strict terms of financing, the short supply of existing funds that are a result of agricultural production being the leading financing method, and limited financing channels set limits on the availability of funds in the cases studied. Under existing policy, only pro-active solutions to these problems will fuel stronger growth in the area of rural cooperative financing in China.