Abstract: There are still three main limitations in Chinese finance system: Low level marketization, weak ability to take risks and low internationalization. Accordingly, we should push forward the “width” reform of finance by developing capital market, the “length” reform by opening up and internationalization, and the “depth” reform by internet-based finance. Internet matches with the finance genetically and couples to finance system basic functions of the allocation of resources, payment and clearance, diversification risk and bidding mechanism, which leads to optimize these four basic functions. Finally, we analyze the alternative boundary between internet-based finance and traditional finance, and point that in the future finance modes will develop in competition and compete in developing.
Keywords: Reformation of finance system, Internet-based finance
source:Finance & Trade Economics ,No1,2014