Under the current dual-structural financial system, private Lending is a double-edged sword. One the one hand, private lending promotes the advancement of real economy; and especially, it plays a positive role in stimulating the development of small and mid-sized enterprises. However, on the other hand, private lending also brings significant risks and potential hazards to the stability of our economy. Since 2011, government has adopted a stringent monetary policy, which poses financial difficulties for small and mid-sized enterprises. As a result, the scale of private lending expands rapidly and has driven the lending rate to record high level, which demonstrates a tendency of irrational growth. Consequently, we have witnessed frequent occurrence of cases relating to private lending. And the incidents of rupture of chain debt and the break of cash flow are quite common in some areas. Therefore, the risk of private lending has become an important factor that affects the stability of China's economy. <<