The problem beneath the private lending crisis is the difficulty and expensiveness of financing for local enterprises, which reflects the deterioration of China's domestic financing environment. ANBOUND research team suggests that in order to tackle the financing difficulties, we must make practical breakthroughs in the following two categories of issues: first, financial market reform; second, financial market construction. The financing problem in China’s domestic market is increasingly severe, and it has reached a critical moment requiring urgent reform. If a number of small and medium enterprises went bankrupt because of the financing problem, the fundamental ecology of China’s economy would be facing a big problem.