Ma yun202 has thought that the internet finance is commercial activity of internet business practices in the financial sector. Internet finance has recently gained increasing attention in china. In this way, the mobile internet allows finance to move. The individual contributions of xia huosong to the manuscript are as follows. One is online banking, where all the financial institutions go online. The success of online wealth management products such as yuebao has pushed internet financing into the spotlight and it even appeared in the government work report in march this year. Just ask yang ren jun, a 26yearold translator and interpreter in shanghai.
Chinas internet finance industry continues to grow while encountering ongoing challenges as fraud remains prevalent in the loosely regulated sector of the finance industry. Analysis of the yu ebao and its impact on the financial sector. The theory of internet finance by xie ping, zou chuanwei. These financial institutions have obvious deficiencies in. The transition from traditional banking to mobile internet. Internet finance has grown rapidly in china over the past years. In the last two decades, internet technologies, such as cloud computing, mobile communications, social media, and big data analytics, have brought tremendous changes to our society and reshaped the business in various industries. Research on influence factors of the internet financial. For example, yuebao, which literally means leftover treasure in chinese, is operated by chinas biggest ecommerce firm alibaba group.
Xie ping, zou chuanwei china investment corporation, beijing, china abstract. With the internet wealth management iwm capital size and users expanding, the status of it in financial system has become increasingly important. The dataset is gathered from national internet finance association of china nifa. Innovations in dfs in china beyond internet banking and electronic. Keqiang march 2014 during two sessions internet finance was mentioned in the report on the work of the government for the first time and premier li stressed thepositive effectsof internet finance on national economy. Alibabas yuebao becomes first chinese fund management. Chinas rapidly evolving internet finance industry is characterised by di. We think the boom in internet finance in china is attributable not only to the mega transformation trend to mobile internet, but also to the. Internet finance is an important innovation and a driving force in chinas economy which deserves tolerance and protection. For the internet finance, the account is the world, and the account sticky determines the market share. Alipay is the leader of internet financial payment.
In this report, we present our indepth analysis of these new products in an. Pdf drawing on a valence framework and innovation diffusion theory, this study examines yuebao deployment to model consumers intention to use. Chinas internet finance boom and tyrannies of inclusion. A study of volatility and externality compensative return. Beside indirect financing via commercial banks and direct financing through security markets, a third way to conduct financial activities will emerge, which we call internet finance. Citescore values are based on citation counts in a given year e. Alipay, internetbased mutual fund sale yuebao, p2p online lending, and so forth. Bitcoin exchanges lack legal foundation, china internet. Case study 1 the rapid growth of social networks and ecommerce platforms has transformed the way people communicate and transact around the world. Through introducing internet finances reducing management cost and raising capital cost effects into bank risktaking model, this paper systematically investigates the dynamic and heterogeneous influence of internet finance on china commercial. Online finance good news for everyone economy chinadaily. This association was approved by the state council and was jointly established by the peoples bank of china and the regulatory commissions for the banking.
It also examines the major practice of internet finance in china, such as internet payment thirdparty payment service. If 20 is the first year of internet finance in china, then internet finance may erupt in 2014. By ana swanson like many businesses the world over, investment in china has gone mobile. Sheng songcheng and zhang xuan hold the opinion that yuebao, essentially, is a policy arbitrage, fortified supervision shall be made to ensure a fair and orderly financial market 1. In the past, most of the research results have been studied from the aspects of internet finance or thirdparty payment, and thirdparty payment has not been considered in the financial field 9. Yue bao grows by over 40% qoq in the first quarter of 2017 and totals 1.
Since january 20, their combined net asset value nav. China internet finance leaders eclipse their us peers on many fronts. Integrating mobile internet platforms and financial instruments generates financial product innovation. Yue bao is a wealth management product using the alipay account balance built by alipay. I almost started a post on how does paypal makes money, but it would bore me to tears. Acceptance behavior of internet wealth management based on.
Chinas internet finance association issues ico warning. Drawing on a valence framework and innovation diffusion theory, this study examines yuebao deployment to model consumers intention to. Many are concerned about whether it will reshape the financial service industry and significantly threaten the existing players. To learn the market reaction and influences of internet finance in china, we started with background that the internet finance was generated. Chinese premier li keqiang made the healthy development of internet finance a policy priority in 2014 stateofunion address. A lot more decisions, especially with respect to consumer finance, have been automated with the support of data analytics. The money in yue bao can also be used to shop online with flexible withdraw. Harnessing internet finance with innovative cyber credit. The country also rolled out a more substantive data protection framework3 in 2017 that imposes additional. A study of volatility and externality compensative return of internet financial products in the case of yuebao.
Bitcoin exchanges lack legal foundation, china internet finance association says. Pdf consumer use intention of online financial products. Therefore, the focus of our research is not internet finance but mobile internet finance. The research sample contains a set of 19 online p2p lending platforms operating in china. Request pdf a study of volatility and externality compensative return of internet financial products in the case of yuebao we use the data of 10. A fast growing but chaotic internet finance industry. This paper is based on the technology acceptance model and has added the perceived risk variable factor. A big money migration is under way in china, as depositors loosen their longheld ties to traditional banks and start parking their hardearned money in. Its service content, service convenience and service innovation are the main aspects to attract customers. It is a new financial service that made its debut in 2016 and has succeeded in collecting in excess of rmb 8 trillion. Internet based technologies, such as mobile payments, social networks, search engines and cloud computation, will lead to a paradigm shift in financial sector. The influence of internet finance for sme financing in china introduction currently, sme small and mediumsize enterprises is the foundation of promoting national economy development, constructing the subject of market economy and promoting the development of social stability in china wang, 2011. The crowdfunding sector of the internet finance industry is far smaller but growing rapidly.
Online finance models mainly include financial third party payments, p2p peertopeer network loans, ecommerce big data finance, crowdfunding. Peter cai, alibabas yuebao gives chinas banks a rude awakening. The influence of internet finance for sme financing in. A recent report published by yangzhou evening news, a city newspaper, carries a quote that can be easily ignored for its brevity.
Research on the consumer finance system of ant financial. On the one hand, these customers massive trading data can. This paper analyzes the development of chinas internet finance in recent years. On the other hand, the creation of the national internet finance association of china2 in 2016, which consists of more than 400 traditional and internet finance companies, is the countrys answer to regulate fintech firms and control risks. The financial industry needs spoilers to make a revolution. This simple internet financial model is highly welcomed in china. Chinas internet finance association issues ico warning a selfregulatory organization focused on online finance in china has issued a warning to its members on initial coin offerings icos. Basically, yuebao is a moneymarket fund thats pegged to corporate debt and government bonds. Wu xiaoqiu32015 has thought that the internet financial can be referred to the third financial format, refers to having a basic function of finance, to use the internet as a. The performance of the p2p finance industry in china.
See important disclosures, including any required research certifications, beginning on page 37 whats new china has witnessed a wave of new internetbased financial products since 20, some of which are changing the traditional landscape for some financial services. Following this we introduced the main forms of internet finance to give a picture as a whole. Consumer use intention of online financial products. This ebook explores how xiaohongshu successfully pivoted its growth and. We realized that the launch of yue bao has led to the booming of this industry. In 2015, successful financing for crowdfunding in china. The one paragraph article quotes a chinese central banker, unnamed. Beside indirect financing via commercial banks and direct financing through security markets, a third way to. This post is a contribution from leesa shrader, a cgap consultant, based on her august 20 interviews with alibaba senior management in china. Request pdf a study of volatility and externality compensative return of internet financial products in the case of yuebao we use the data of 10 thousand accrual of zenglibao monetary fund of.
The impact of internet finance on commercial banks risk. Ebao is readily available for online shopping and alipay transfer and so on. In the 18 days since it launched, it has become chinas most popular single personal finance fund. Everything you need to know about alipay and wechat pay. Money transferred to yue bao buys money market fund of tianhong asset management. At present, the main operators of the internet finance industry in our country are mainly internet companies and ecommerce platforms 6. Earlier this year it surpassed the assets of citylevel lenders such as the bank of. Yuebao new era of investment by selwyn ho on prezi.
Hui fung 10550047 lee chi fung ho shing hin leung man cheung lee kai chung shi yi han wellestablished thirdparty payment platform, alipay attracting more consumption in. Studies on risks predication of the internet financial. The rise of chinese money market funds reserve bank of australia. The progress of innovation of internet finance in chinas.
Integrating digital payments into these growing networks and platforms has presented vast opportunities to drive economic opportunity, financial inclusion, transparency, security, and growth. This book, as a detailed report on internet finance in china, will help readers understand the status quo and development of chinas financial system. Secondly he takes yuebao as research object to build a use intention model of the internet financial products in the context of internet finance. See important disclosures, including any required research. Specifically, the mushrooming innovations in the financial area fertilized by information and communication technologies. Firstly, hx presents the research idea and the research model of the manuscript. Internet finance is highly popular and heavily discussed in china.
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