Zhou Li

The reason why great efforts have been made to solve rural financial difficulty for new countryside construction is that the market logic in the development of rural financial market resulting from the special problem of rural finance has not been known and broken through: there are such essential problems in rural financial market as information asymmetry, absence ofmortgagees, special quality cost and risk, non - productive loan, etc. and these problems have made "market failure" and " negative externality" in the state of natural development of rural financial market. This offers a full condition for government intervention. Yet, the result of government intervention has always been an informal financial arrangement instead of the formal financial arrangement. " Government failure" is hence brought forth after government intervention. These two " failures" have made a tendency of rural financial institutions“separated from agriculture”and“rural fund not used for agriculture”a natural thing. In rural financial regime reform and study, it’s compulsory to know this market logic and to perform the operation of anti - market logic, so as to alternate thoroughly the rural fund flow direction.

Keywords: rural financial system ;market logic; anti - market logic

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