New Finance In The Internet Age And China 's Future Financial Model

At present, China is in the major transition of social and economic development,and the bank-based price controlled by the government financial model which supports our economy to catch up with developed countries in the past needs to be changed in order to lead economy to adapt to the new normal. In the background of the new industrial revolution which Internet has and will continue to change our mode of production and way of life, we need to further focus on the future development trend of the finance in the Internet age and its impact on our financial mode selection.Because of the situation that the new finance in the Internet age may change the classification, content and the path of evolution history of traditional financial model,which will make the finance and the real economy achieve reintegration, only appropriate financial model that adapt in the Internet era can ensure the accuracy of allocation of funds, which will have a decisive impact on the overall development of China’s future. This study hopes to make some preliminary exploration in this area.This article describes the changing process and selection reasons of financial model in developed countries and China in the second and third chapter, noting that whether it is market-driven capital or bank-based with government regulation rates financial model both have a prominent issue, namely the financial elite. The overdevelopment of financial elite distorts the relationship between finance and the development of real economy. This situation urges to be changed. In order to achieve sustainable socio-economic development particularly innovation development under the new normal, China’s financial model selection needs to be based on the “Inclusive Finance” development.The fourth chapter analyzes the development of financial status in the Internet era and makes a reasonable forecast of its future trends. The author believes that with the promotion and integration jointly of Internet banking and Internet of traditional financial industry, new financial development in the Internet era will be presented with two different characteristics compared with traditional financial development in the future, namely platform finance and situational finance. The new financial development may fundamentally reverse the trend of the financial elite to achieve financial services expansion, democratization and human transformation. It may make financial development stage appear a jump, and propel the reintegration of finance and the real economy.Based on the above, the fifth chapter discusses the selection and future reform direction of financial model. Our government is now promoting market-oriented interest rate reform and vigorously accelerating the development of multi-level capital market. In the long term we should vigorously develop new finance. Being different with some scholars’ disputes whether Internet banking will subvert the traditional financial industry or not, this paper argues that the key issue is not whether Internet banking is the dominant financial model in the future or not, but as a service to the real economy and construction of a better society, what finance itself needs to change in a true Internet age.