Social Sciences in China (Chinese Edition)

No. 9, 2024

Intermediation Governance of Rural Financial Markets—A Sociological Analysis Based on Two Cases of Rural Financial Reform

(Abstract)

Li Yingfei

Intermediation governance represents a new governance mechanism developed by the Chinese government over the past decade to optimize financial resource allocation and incentivize commercial finance to support agriculture. Through the creation of intermediary organizations, three interrelated and cooperative institutional mechanisms have emerged: local market departmentalization, the accumulation of credit advantages, and the transformation of structural power. These mechanisms have enabled the Chinese government to promote the highquality development of inclusive rural finance, forging a distinctive path towards inclusive rural financial development with Chinese characteristics. As a holistic mechanism taking shape as a result of the Chinese government’s efforts to catalyze economic and social transformation, intermediation governance serves to build consensus and integrate values. It not only plays a crucial role in the domain of rural finance, but also constitutes a new form of governance that requires further academic exploration.