The Research In Credit Risk Of Auto Financial Company In China

The auto industry has been a supporting power to national economy of Chinasince the real estate market sagged. According to some measurement, the profit ofauto financing can be up to almost60%of the whole chain of auto industry. Afternearly10years`development in China, the auto industry has been made remarkableachievements. But when it comes to compare with the other developed countries,there are also some problems in our auto market such as late start, small scale andimperfect supporting facilities. Take permeability, an index to measure the maturityof the auto industry of a country, as an example, the permeability in China is17%,which is far lower than that of developed countries, as80%-40%. The developmentof auto market in China is rather huge.At the same time, the time of Big Data and Cloud Computing has come,represented by the rise of Internet finance, which gives the traditional auto financingmuch room to develop. Chance and challenge are always hand in hand. Therefore, asone of the most valuable business in the future, how to avoid the credit risk ofInternet auto finance is one of the urgent problem to be solved.This essay aims at analyzing the development room of the Internet auto financein China and proposing some advice, by analyzing the experience of controlling theauto finance risks both home and abroad, in order to offer some feasible advice forthe healthy development of China`s Internet auto finance.First of all, the background and meaning has been laid and related literaturereview has been summarized, which are bedding for the main body of the essay.Secondly, related theoretical knowledge, including the definition, the character, the category and the reason of auto finance and the credit risk of auto finance. Thenthree countries has been taken as the breaking point, in which the market of autofinance is rather developed, to analyze their management of credit risks. After that,thehistory of auto finance market of China has been reviewed. Thirdly, the space ofInternet auto finance in China has been explained in detail, the attempt of Internetauto finance in China, the strength and the credit risks are included. Finally, relatedsuggestions are made according to the previous research.The study of the management of Internet auto finance credit risks is the mostimportant part of this essay. However, because of the immaturity of the developmentof our auto finance and the not long appearance of Internet auto finance, the formerresearch is nearly zero. Based on the limitation of the writer`s knowledge, someraised view and suggestions still need to be tested, and there are much room to beimproved.