WU Xiaoqiu:Internet Finance: The Logic of Growth

Abstract：Internet finance is a new kind of finance format.This paper analyzes the survival logic, theoretical structure and supervision rules of internet finance from the perspectives of its basic contents, operation structure, theoretical foundation, risk characteristics, supervision standard and substitution boundary.Broad market space is the necessary condition of internet finance, and the match of financial function and technological characteristics of internet is the sufficient condition and logic foundation of internet finance.Financial function theory, “second disintermediation” theory, new credit theory, inclusive finance theory and continuous finance theory constitute the unique theoretical structure of internet finance.The risks of internet finance may appear in the forms of operation risk, technological risk, credit risk and liquidity risk, but the intrinsic risk is in the form of transparency risk while the external risks lie in the safety of technology and system.The additivity of risks is relatively obvious.Based on above risk characteristics, this paper holds the opinion that the basic standard of internet finance supervision is transparency, while the external standard is technological safety level of platform. The competition between internet finance and traditional finance will promote the reform of financial structure and the improvement of financial efficiency, and help complete the transformation from finance for big enterprises and finance for the rich to inclusive finance.

Key words： Internet Finance    Financial Function    Theoretical Structure    Risk Characteristics    Supervision Rules

source:Finance & Trade Economics ,No.2,2015