Governance And Policy Of Internet Finance In China

In recent years,the explosive growth of the Internet presentation development has profound social reasons and economic reasons.Firstly,with the social and economic development,the traditional business model of the financial industry are increasingly unable to meet the growing financing needs,especially the financing needs of small and medium micro enterprises.Secondly,revolution of big data technology,cloud computing,network channel development costs has reduced and more and more customers makes a foundation for Internet finance.Thirdly,without interest rate controls leave a great deal of room for Internet finance growth.Fourth,Internet finance has better risk controlling ability than traditional financial.However,a variety of risks such as illegal fund-raising,money laundering and so on has with the Internet financial innovations.The problem of Internet Finance gradually increased from a simple to complex social problems to a public policy agenda,then become a public policy issues.The issue of this work is the mode of Internet Finance that use Internet technology and spirit on traditional financial sector.It reengineering the traditional financial business model and product design format.This paper will explore its development status,nature and its effect on the economic and social development situation.Any new innovation will encounter a variety of risks and uncertainties,this article analyzes internet financial operational risks,financial risks,investor funds security risks.So the point of this study is the organizational and measure our government in dealing the risk.This study found that compared to developed countries which has improvement measures China still has not yet formed appropriate governance policies and organizational.Finally,this paper gives several suggestions such as improve the financial facilities and strengthen industry self-discipline,etc.In this study,it will combine internet development status and related theories,using inductive and deductive research methods,induction China's Internet financial risk,and on this basis,using the deductive method put forward policy recommendations applicable to China.Nevertheless,due to the time of the Internet finance development in China's is short,relevant theoretical research have not yet formed a complete system of knowledge,therefore,this article still has some shortcomings.After the end of this article,I will continue to focus on the development of Internet financial,continue to explore and improve deficiencies.