Financial support and policy reform in China's new rural reconstruction

The new rural reconstruction movement in China cannot develop without financial support. Current situation, however, is that most social capital are invested in non-agicultural and highly profitable industries, and most rural capitals that are already very short in rural areas are devoted to urban areas via various channels, which severely limits the rural economic development,in most parts of China. At present, the limitations on rural finance supply constitute one of the bottlenecks in the "Three Rural Problems" of Agriculture, countryside and farmers. The paper starts from the present situation, analyses the reasons why rural finance has currently fallen into difficulties and puts forward proposals for policy reform.