Underground Finance Investigation in China

Author: Li Jianzhuang
Publisher:
Publish Date: 2006-01-01
Features: This book is the first comprehensive survey report in China to reveal the development of informal finance and the status of illegal financial activities. It represents the first large-scale field investigation and quantitative analysis of underground finance by Chinese scholars, uncovering the mysteries of underground finance. Many of the data and cases are based on first-hand information, providing valuable references for research on underground finance. The author begins with the early folk finance brokers in the southeastern coastal areas, describing the development of intermediaries and intermediaries in folk finance through personalized stories. Based on the underdeveloped rural areas in the central part of China's economy, it examines the financing difficulties in the "three rural" issues. Against the backdrop of the developed private economy in the southeastern region, it recreates the financing difficulties of small and medium-sized enterprises. Using the growth story of private commercial banks, it explains the development process and unique operating mechanisms of private financial institutions. Through multiple cases of illegal fundraising fraud and the disguised absorption of public deposits by non-bank financial institutions across different provinces in the country, it reveals various methods of illegal fundraising fraud and the risks of non-bank financial institutions engaging in disguised public deposit absorption. The author, through personal experience, narrates the rise and fall of private funds in the securities and futures markets. Using examples of gambling and the "underground lottery" in different regions, it illustrates the negative impact of black finance on society. Focusing on cross-border capital transfers and illegal economic and financial activities in border trade areas, it depicts the international characteristics of "underground financial" activities against the backdrop of economic globalization. Based on objective research data, it estimates the scale of China's informal finance and analyzes its impact on macroeconomic operations.