An Exploration of the Characteristic of Small Loan Companies in the Chinese Credit Market

Abstract: The small loan company is an emergent novelty for the Chinese credit market. The basic function of it is the financial intermediary which provides important services to some private sectors of the China economy. But as a new-born business, there are no systematic research on it and lack of effective supervision as well. This study investigates the features of financial service constitution, time distribution, risk management and earning capacity of small loan company. The results indicate it will continue to play an important role in China credit-system. Key words: Characteristic; Small loan companies; Chinese credit market