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This book is written in the domain of financial and social performance of micro financial institutions. The basis of this book is a research which evaluates and analyzes the financial and social performance of MFI's currently operating in China. It compared the financial performance of MFI's in terms of financial ratios together with the financial performance of conventional banks as a benchmark in order to conclude that which group of institutions in the financial sector of China is performing better and to analyze the factors which are influencing the financial performance of MFI's. In the end it also analyzes the social performance in terms of the average size of loans and the gender preference in the gross loans portfolio of MFI's. Small businesses are being discriminated throughout the world by formal financial systems and approximately 98 million people in China are living below the poverty line. Given this situation the total of 18 major MFI's and 8 conventional banks operating in China were selected for this research. Results had led the author to recommend some suitable strategies so that MFI's will become financially stable in order to support economic growth.