The Risk Management Research Of Network Finance In China

Nowadays, Small and Medium-sized enterprises(SMEs) play a crucial role in the process of Chinese economic structural adjustment. However, the problem that the SMEs finance always difficulty serious influences the SMEs development process. Facing the problem that commercial banks reluctant to loan to the SMEs especially small and micro enterprises, commercial banks and other financial institutions have less information of those SMEs especially small and micro enterprises and our SMEs especially small and micro enterprises itself does not regulate, the SMEs especially small and micro enterprises financing remains difficult. Aiming at the characteristics (short, sharp, frequency and fast) of the SMEs finance, the network finance becomes the new way to the SMEs especially small and micro enterprises.Although the network finance for SMEs has been studied by some scholars, mainly focused on the theoretical level and focused on how to inprove this business, those empirical analysis such as the risk and the default of the network finance are relatively small. Based on the combination of network finance and risk management theories with network finance cases of the SMEs, especially the small and miniature ones, with the three sides dynamic game in internal credit risks of network finance, and the empirical analysis of risk management on client default arreals in network finance, we did a research on these companies about their risk managing of network finance, finding that there exists numerous advantages in their network financing, including low cost, flexible guarantee and interest calculation, and quick loan transaction, which is fit for widely popularization among the ones of e-commerce and trading from these companies, and which is also an effective way to overcome their financing difficulty. What’s more, through the evaluation and analysis of risk managing of external default arreals in network finance of these companies based on decision tree and the two stages Logistic Regression Model, we built up a basic system for risk identification. Finally, according to the conclusion, we put forward several suggestions for these enterprises to their development of network finance, and some ideas to promote the standardization of folk debit and credit.