Which is a major reason for China looking more towards informal financing?

Question

Quizplus · Accepted Answer

China currently faces a lack of formal institutions such as venture capitalists, which has led to a rise in informal financing options such as peer-to-peer lending and angel investing. However, microfinancing is not the main reason for this shift, and the Chinese government has not outlawed formal financing. While family relationships may play a role in some cases, it is not a major driving factor for the overall trend towards informal financing. China lacks formal institutions such as venture capitalists, making informal financing a more viable option for businesses seeking funds.

Which Is a Major Reason for China Looking More Towards