Study Of Internet Finance Risk Precaution In Wenzhou

With development of Internet technology,its application is common day by day with the birth of Internet finance.Especially since 2012,its development speed is amazing,which involves magnifying multiple increasing.But as a new industry,its supervision level and practitioners including a lot of investors are lack of enough rational acknowledgement.There are many cases on Internet finance in the country,which makes people pay attention to it discussing about it.There are conditions indicating risks on Internet finance like lack of supervision,chaos of modes,the good and bad being intermingled in this industry,and so on.Wenzhou is one of the most active places on economy development in China.In recent years,Internet finance develops fast.But there are a lot of cases catching people’s eyes in this process,which triggers concern and deep thinking from the society.Meanwhile,its’ base and safeguard is to make good risk precaution for continuous development.This thesis pays attention to district features and human characteristics of Wenzhou,analyzing birth and development of main local Internet finance modes and exploring the risks and risk precaution.Private lending disturbance in 2011 in Wenzhou made the whole district’s social credit system almost collapsed,making Internet finance in the bud in Wenhzou with great negative influence.At the moment of crisis,reconstruction of social credit system is involved with the rebirth and stability of Wenzhou Internet finance.This thesis gives opinions on the reconstruction of social credit system.What’s more,because of Internet finance having great dependency on Internet technology,the thesis from the perspective of Internet technology gives analysis on risks of Internet safety,programming safety,technology operation and the risk precaution,describing and interpreting birth,types and features of risks.On precaution of Internet finance risks,supervision departments of the country and the local play a vital part.In the end of the thesis there are opinions and advice on Internet finance supervision.In this new industry,supervision department needs to recognize the difference between innovation and violation first,leading institutes of the industry on the base of running legally being brave and aggressive to innovate.Meanwhile,there is the need of mobilizing the initiative of the local industry association,communicating with institutes of the industry fully,strengthening information disclosure.All these things are for integrating initiative from government,industry association,and the enterprises,driving Internet finance in Wenzhou to achieve“running legally,developing healthily,benefiting the people”.