Zhejiang has numerous medium and small enterprises and they are always bothered by financial problems. On the other hand, Zhejiang is full of private capital, and private borrowing and lending business has always been active. How to make use of the private capital is essential to the economic development in Zhejiang. Yet, developing microfinance company can regulate private capital. Therefore, after China's Bank Regulatory Commission and the People's Bank of China issued jointly 《The Guiding Opion about Microfinance Company》 in May, 2008, Zhejiang began to conduct setting up microfinace companies. This paper intends to study the characteristics and significance of these kinds of companies, and explore the situation after they have been set up, meanwhile, find some problems and risks about them, and then give some suggestions to help them develop.
KEYWORDS: Zhejiang, microfinance company, risks, sustainable development