Urbanization promotes the modernization of agriculture, at the same time, it transfers the rural surplus labor force to cities and towns, and changes the original rural management mode. On the one hand, agricultural modernization needs intensive large-scale mechanized agricultural production, and at the same time needs a lot of financial support. On the other hand, farmers who have moved to cities and towns need more funds to start businesses to adapt to the lifestyle of new towns.
Rural finance refers to "rural monetary financing" (Gong Zechang, 1984: P4-20, Zhang Lin,1984: P1-Kloc-0/0) and "various economic activities related to rural monetary circulation and credit activities".