WANG Guogang, ZHANG Yang:A Critique of Internet Finance

Abstract：Since 2012, accompanied with the hot topic of internet finance substituting traditional finance, China internet finance entered the period of high speed development and some local governments even selected it as the key project. This paper holds the opinion that there exists obvious limitation in the concept of internet finance, and it is impossible for internet finance to substitute traditional finance functionally. Internet finance mainly makes use of the flaw in China finance system to take up regulatory arbitrage. Internet finance can be a supplement, but can't become the main operating model of finance. In the boom of internet finance, it is important to avoid a new round of financial bubbles.

Key words： Internet Finance    Network Finance    Function of Finance

source:Finance & Trade Economics ,No.1,2015