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Informal Finance in China: American and Chinese Perspectives

Online ISBN:
9780199869329
Print ISBN:
9780195380644
Publisher:
Oxford University Press
Book

Informal Finance in China: American and Chinese Perspectives

Jianjun Li (ed.),
Jianjun Li
(ed.)

Professor

Central University of Finance and Economics in Beijing, China
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Sara Hsu (ed.)
Sara Hsu
(ed.)

Professor

Trinity University in San Antonio, Texas
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Published online:
1 February 2010
Published in print:
26 August 2009
Online ISBN:
9780199869329
Print ISBN:
9780195380644
Publisher:
Oxford University Press

Abstract

Informal finance consists of non-bank financing activities, whether conducted through family and friends, local money houses, or other types of financial associations. Informal finance has provided much-needed financing to small and medium enterprises (SMEs) in particular, in the face of a tightly constrained, overburdened formal banking system. Unable to obtain a bank loan, firms have relied upon individuals and informal organizations outside of the banking system in order to obtain financing for their ventures. Informal finance has played a critical role in China's economic boom of the last thirty years. This book describes the evolution, characteristics, and variation of informal finance in China, from American and Chinese perspectives. Literature by Jiang Shuxia, Jiang Xuzhao, and Li Jianjun has heretofore been available only in Chinese, while work by Kellee Tsai, Jianwen Liao, Harold Welsch, David Pistrui, and Sara Hsu has been available in English. For the first time, they come together to discuss informal financing and its many aspects. Much of the work stems from detailed surveys conducted locally, since this type of data is not normally collected by the government. Informal finance is a local and personal activity, but it also affects the macroeconomy; particularly in China, where it is pervasive.

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