The beginning of a new-round rural finance incremental reform in 2004 has added a new chapter to the development of rural finance,with dramatic increase in the number of rural financial institutions and the intensified competitions among them.However,due to the backward regulatory approach for China’s new rural financial institutions,it can not meet the rapid growth of current China’s rural finance,and the main contradiction of the rural financial reform,i.e.that the rural financial supply can not keep up the pace with its demand has changed to that the rural financial regulation can not keep up the pace with organizational development of rural finance.Therefore,innovation of regulatory approach for China’s new rural financial institutions has become a breakthrough to crack a new round of financial reform in rural areas.