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On the basis of presenting the terminology and classification of Rural Microfinance, this paper introduces the present situation of China's rural microfinance development and analyses the factors that hinder the highly efficient and sustainable development of rural microfinance in current China. These factors include the operational risk, the financial resource and the sustainability of development, the regulation issues, and the issue of financial supporting services. This paper also makes several suggestions concerning policy making: the government should vigorously promote innovations in systems and mechanisms as well as products, constantly improve financial supporting services, and put more emphasis on supervision and control, as well as policy support.


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