A Glimpse at the Microfinance Industry in China

Examining the current microfinance climate in China
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This paper, written by the China Association of Microfinance (CAM) team, is based on input papers, presentations and discussions from the Inclusive Access to Financial Services in China: Challenges and Opportunities workshop held in February 2008 in Beijing. The workshop focused on the history of microfinance development, microfinance demand and supply, the general financial and legal framework in China, function of microfinance networks, and the possible impact of new technology on microfinance growth. Findings include:

  • Few MFIs have achieved sustainability although the Chinese microfinance industry has been developing for the last fifteen years;
  • Huge demand is observed for microfinance services within China;
  • Current supply does not meet demand;
  • Policy makers and regulators, in collaboration with domestic networks and international organizations, are making significant efforts to improve microfinance supply.

Finally, the paper states that a few trailblazers can fundamentally change perception about the Chinese financial market, at home as well as abroad. They can usher in a prosperous new era for the sector and its clients, leading to the formation of an inclusive financial sector in China.

About this Publication

By China Association of Microfinance