China'S Fastest Growing Market For Internet Finance

The balance of treasure took off and immediately pushed China's Internet finance to an unprecedented climax. This not only brings all kinds of payment Internet financial products to the market, but also the emergence of other Internet products (such as the crowd raising market, the net loan market, etc.), which has made explosive growth in China's Internet finance since 2013. China has also become the best soil for the growth of Internet finance. This not only lies in the strong support and encouragement of the Chinese government in various ways, but also in China, where the strength of human resources has brought more talents to this market. In a short span of one or two years, China has become the fastest growing Internet financial market and the world's impressive market.

However, when China's Internet Finance flourished, I pointed out that China's Internet finance, no matter how high the penetration of the Internet is, no matter how extensive the Internet financial benefits are, it must be changing all the time. The essence of Internet finance is finance, and any financial product or financial market is pricing the risk of credit. If the credit basis of Internet finance is not established through market and has corresponding system to guarantee, then it is impossible for such Internet finance to develop smoothly. It can be seen that in recent years, the opening of China's Internet finance has opened up. Due to the lack of market credit foundation, the problems faced by China's Internet finance have emerged immediately. Recently, China's Internet financial market has fallen into the net loan market. For example, the sudden collapse of e renting treasure overnight is a very important crossroad to the development of China's Internet finance. And this intersection determines whether China's Internet finance can develop smoothly.

From the e leasing event, it is also a net loan company in China. Internet The establishment of financial explosive growth was established in July 2014. In a short span of more than a year, the amount of e leasing business jumped to the top of the whole net loan trading platform, and its total turnover amounted to more than 74 billion 600 million yuan. However, when the government checked the e rental treasure, it found that illegal fund-raising amounted to about 50000000000 yuan. Because, the 95% fund-raising items on e rented treasure are false projects, which belong to the typical pet scam.

At the beginning of the line, e rented the treasure to advertise and create sensational effects. First, it bought the gold advertising hours before CCTV news broadcast, and then sponsored many TV programs to win fame. And the advertising effect of this bombardment is to attract more investors into the e bait trap. E rent treasure attracts investors in a variety of ways. In addition to undertaking guaranteed capital and interest payments, it also offers a high return of 9% to 14.6% The rate of return on projects is much higher than that of ordinary banks.

By December 2015, e had invested more than 900 thousand users, and the total transaction volume was more than 70 billion. The actual absorption of funds was about 50000000000 yuan. In the actual operation of e renting, the contracts which are funded through the platform and signed are basically false contracts. For example, the public security disclosed that only one of the 207 item company that has been verified has actually launched a financial leasing business. Its finance is only 3 million yuan, and the rest is basically a false project. Most of the funds absorbed by e rent treasure are occupied by the actual controller Ding Ning. Only with this in-depth analysis can we find the problem.

First of all, from the case of e renting treasure, the net loan industry as a financial industry, not only has strict professional requirements and market access requirements, but also requires a set of laws to protect investors. judicial system Otherwise, for vulnerable investors, their interests are most likely to be infringed. However, in order to encourage the development of Internet Finance in China, the government has developed rapidly in the absence of market access, no industry standards and no supervision by the competent authorities under the condition that all the system conditions are not ready. Under such circumstances, the net loan companies will inevitably be mixed up, so that all kinds of companies, especially some usurious companies and underground banks, will enter the market in the name of financial innovation and engage in illegal business. China's net loan companies can develop more than 2000 in one or two years, which is largely related to the phenomenon of "three noes".

Secondly, the development of e rented treasure can not only take advantage of the "three no" realities of the net loan industry at its initial stage, but also the importance of the government's complete implicit guarantee for China's financial market. Otherwise, what investors believe that e will rent the treasure, which will carry out the contract after taking the investor's money. Because, at present, China's financial market, whether banks, stock market or insurance, and other financial sectors, is basically under the implicit guarantee of the government. That is to say, if there is no problem in China's financial market, how the market can operate can be carried out normally; if the market goes wrong, the government will come out to shoulder the responsibility. Only because the government has implicit guarantee for Internet finance can investors believe in E's promise to rent treasure. Otherwise, ordinary investors will not dare to enter easily. Net loan company . For example, the encouragement of China's Internet Finance in the name of the government is actually the most important government's implicit guarantee for the industry.

Third, the reason why e leased treasure is such a huge impact in the short term and the volume of transactions has increased greatly is very important in CCTV, especially in the news broadcast. And CCTV's advertisement is not only a sensational effect, but also lets more Chinese audiences know such an internet financial innovation company, and it is in the state's obvious credit guarantee for e to rent treasure. Because CCTV is a national TV station. Its advertisements are not only recognized by CCTV, but also guaranteed by e's credit. Under such circumstances, investors only subscribe to e rented financial products. Otherwise, the interest of e will be the most attractive, but in the case of high risk, investors will not enter the market simply. Therefore, the problem of e leasing treasure is not only the problem of inadequate government supervision, but also the implicit and explicit guarantee commitment of e to rent treasure.

Fourth, arguably, in the era of Internet big data, through the modern network technology and the tracking technology of big data, it is easy to identify this simple financial fraud, so that the behavior of a fraud company like e leasing treasure is not easy to succeed. But why can e rent a treasure such a company can be unimpeded? This is because the government has made implicit guarantee for the credit of such companies. It also lies in the fact that China's Internet finance has not entered the era of real big data at present. These companies or the net loan industry are merely traditional faces and put on a mask of Internet financial innovation. Therefore, the key problem of China's Internet financial chaos is not related to the Internet age. Now the so-called Internet finance can only be reborn from the bath fire.

In short, in 2015, China's net loan came into chaos, making the newly emerging net loan industry in an unprecedented crisis. The collapse of e rented treasure has completely destroyed the public's confidence in the net loan industry, and the investment in various projects has been greatly reduced. For example, as Beijing, Shanghai and other places began to restrict the registration of Internet financial companies, the number of new online platforms dropped sharply. There were only 27 new online platforms in February this year, but there were 74 new platforms, of which 32 were active. This phenomenon also brings a huge shadow to the developing Internet Finance in China and has lost all confidence in investors. If the regulatory authorities introduce new regulatory rules and market access system, in order to strictly restrict the network loan platform business, it will probably be the last straw to crush the current net loan industry or China's Internet finance.