Research On The Development And Performance Of Internet Finance In China

The internet finance is the focus of the current academic and industrial research.As a new financial format,though born in the United States,its glorious development happened in China.As the largest transitional country in the world,under the background of promoting the structural reform of supply side and realizing the transformation and development,the Chinese internet finance emerged in response to the need of times and growing stronger.The report of the 19 th CPC National Congress pointed out that the major social contradictions in our country have been transformed into "the contradiction between the ever-growing need for a better life for the people and the uneven and insufficient development".In the long-term Chinese financial development,there are phenomena such as unbalanced financial repression.The provided financial products and services can not meet the needs of economic restructuring and people's good life.The emergence and development of the internet finance have solved this crux.The reports of the government working papers mentioned four times to promote the internet financial regulation and healthy development.Therefore,researching the problems of the internet financial development in our country,summarizing the new features in the development,analyzing the relevant factors affecting its performance,revealing the general rules of promoting its healthy and sustainable development has great practical and guiding significance in bettering China's financial work.The internet finance presents an "explosive" growth in our country.From the year of 2013,known as “The first year of internet financial development in China ”,a large number of internet financial product models such as P2 P,crowd funding,the network micro-lending,mobile payment and so on have been developed.With the influx of capital,the internet financial institutions have sprung up like mushrooms,and the marketing share expanded dramatically.P2 P platform "runaway tide" in 2014 and "e-Zubao " case in 2015 made the internet finance a controversy.Reality shows that the theoretical research and practice are lagging behind the rapid development of the internet finance.Due to the tepid development of the internet finance in western countries,there are fewer research results available for reference.Although the domestic research shows a trend of increasing year by year,it still can not keep up with the pace of its development.This paper focuses on the researching of the development,impacts,performance,risks and supervision of the Chinese internet finance.Starting from the application of relevant theories and building the foundation of the internet financial theory,overviewing its development status and characteristics,the paper points out the outstanding problems in the development of Chinese internet finance.Comprehensive applications of a variety of research and analysis methods are conducted in this paper,such as theoretical research,case analysis,qualitative analysis and quantitative research.A basic model of the internet financial development,analyzing the interaction between internet financial development and economic development,is built.By analyzing the related factors of input-output efficiency of the internet financial institutions in China and the impacts of consumer participation on the internet financial performance,the paper analyzes the performance of the internet finance from the perspective of industry supply side to consumer demand side.Through the overview and comparative analysis of the internet financial development both at home and abroad,the advantages and opportunities,weaknesses and threats of the internet financial development in China are evaluated.By studying the impacts of the internet finance on the traditional commercial banks in our country,it reveals that the relationship between them is not a "single alternative" but a "win-win cooperation".By studying the impacts of the internet finance on the performance of the central bank and analyzing typical risk cases,it provides an objective and accurate basis for the regulatory agencies to build a scientific and effective Chinese internet financial regulatory system,fulfill their duties and formulate its industrial development strategies.The following views and suggestions are put forward based on the research of this paper.(1)In the background of the transformation development,the rapid development of Chinese internet finance has its historical inevitability.It not only has made up for the traditional financial shortages and taken the "catfish effect" but also has promoted the overall financial industry transformation development.Because of its good performance and technology,idea,mode and cost advantage,the internet finance has obtained the support of the Chinese government,the favor of funding and the vast number of financial consumers participating in a high degree;(2)The unbalanced and inadequate development of Chinese internet finance is the current outstanding feature.Due to the different input in capital and management,there is a big difference between the comprehensive efficiency of different institutions.Long-term improvement of overall efficiency can be achieved through such measures as expanding asset scale,increasing the ratio of assets and liabilities and returning on assets,and reducing management costs;(3)"Financial consumer participation" is another important factor that affects the performance of the internet finance in China.Simple and easy to use,high profit,innovation and information searching are all important factors;(4)The development of internet finance in China is at its critical stage.Its "barbaric" development mode has brought high risk problems.The 5th national financial work conference put forward the task of "strengthening internet financial supervision"(1).By carrying out the special risk rectification to solve the problem of high risk in the current stage,we should establish a regulatory mode of "Institutions Supervision + Industry Self-discipline" to solve the problem of long-term standardized development;(5)In order to realize the healthy development of Chinese internet finance,China also needs to enhance the effectiveness and forward-looking of the monetary policy from the perspective of the central bank,improve anti-money laundering system construction and the payment system management,strengthen the construction of credit system,protect the legitimate rights and interests of the financial consumers;(6)The development mode of Chinese internet finance should adopt "Internet + Finance",and we should promote the accelerated internet of traditional commercial banks and the internet companies will be in-depth financialization.The three main academic contributions of this paper are as follows:(1)The research analysis is from new perspectives,which includes the research of performance at micro level by using the Data Envelopment Analysis(DEA)and the empirical research of the efficiency and related impact factors of 64 internet financial institutions by using the Panel Data analysis.While using the method of SWOT to evaluate the strengths,weaknesses,opportunities and threats of the Chinese internet finance development in macro level which makes up for the deficiency of the single method of analysis.(2)The research method of this paper is advanced.In this paper,the reliability of the questionnaire data are tested,the use of project overall correlation analysis(CITC analysis method)to purify each factor,the use of KMO and Bartlett test to test the effect of the survey,once again purify the data exploratory factor analysis,the factor loading matrix is formed after factor rotation,and the convergence validity(excluding the variable whose measured value is less than 0.5)is established.The structural equation data model is finally established to study perceived benefits,perceived ease to use,perceived risks,information search,cooperation behavior and value creation and other factors on the internet financial performance in China.Finally extends from the SEM analysis to GSEM's Logistics analysis to study the composition of Chinese internet financial participation in the crowd.The above mentioned methods make up for the shortcomings of less involving consumer participation in quantitative research in the past;(3)The research content is systematic.Based on the main research line of the Chinese internet financial development,impacts,performance,risks and supervision,this paper comprehensively studies and analyzes the related factors affecting the performance of the Chinese internet finance and the current outstanding risks,and triggers the discussions and research on regulatory issues.Through giving play to my own work advantages,from the perspectives of the central bank and industries,I put forward more complete regulatory strategies and development proposals according to local conditions,which make up for the lack of pertinence and operability of the policy proposals in the past researches on such issues.