The Internet Can Not Rewrite The Law Of Finance Well.

At the end of 2015, the new regulation of net loan was released, which had strict supervision over the access and operation of Internet financial industry.

Since 2016, the central bank has issued a "double down" policy continuously, making the Internet financial industry ushered in a chance of rapid development, but this is just like the eye of typhoon, but it is only a brief calm.

Then, where is China's Internet financial industry going? Where is the Internet and finance? How to control the wind control problem? Not long ago, Xu Xiaonian, Professor of Finance and economics at the China Europe Business School, delivered the keynote speech on the theme of "small and micro finance, something to do" at the 2nd anniversary celebration of Shi Di finance.

There are answers to these questions.

Recently, P2P has been in trouble for a long time, so that the government supervision authorities have been stirred up.

This clean up has just begun, and more action may be behind it.

Some P2P platforms use the concept of Internet to hype and create financial bubbles. This phenomenon can be prevented by supervision, especially in some fraudulent events.

Xu Xiaonian believes that government regulation should be able to accurately identify what is truly creating value in the economy of financial activities, what is the use of Internet hype activities, should be able to clearly separate it.

Recently, a series of newly created P2P companies have collapsed. Why are they falling out? Because in these failed P2P companies, most of them are born on the Internet, most of them have funds, can not find suitable investment projects, and do P2P. with funds. In other words, most of those Internet Co are not experienced in financial industry, and they do not understand the essence of finance.

So-called

Thinking makes some entrepreneurs think that the Internet as a new thing, so efficient, has rewritten the laws of the economy, it can subvert the existing economic order, it can create a completely new business model, and this business model is contrary to the common sense of the past, contrary to past routines.

Some people believed it, rushed in, rushed back in with enthusiasm, backed by the backing of the funds.

Xu Xiaonian believes that the Internet is indeed a very effective tool, but the Internet has not rewritten the laws of the economy, and the Internet has not subverted the existing economic order.

If you want to succeed in an industry, you must follow the most basic rule of the industry. The Internet can not subvert its laws.

But the Internet can help you overcome the major problems you need to solve in your industry.

P2P thought that the Internet could rewrite the laws of finance, so they failed.

What is the essence of finance? From economics point of view,

The essence is how to lower the cost or how to overcome the asymmetry of information efficiently.

The problem caused by asymmetric information in the financial industry is risk. The so-called finance is that the ordinary people and investors take the money that he does not need to pay to the financial institution. The financial institution finds out the appropriate investment projects, and gives the people's funds to the sponsors of these projects and gives them to the enterprises.

What is the biggest risk in this process?

The user may have two problems. The first problem is that the users of the fund are fraudulent. A large sum of money has been lost and lost in a few days. This is a great risk.

The second big risk is no fraud, but his investment project itself has no vitality and investment projects fail.

Failure or fraud of investment projects will cause losses to the contributors. The reason why it is such a risk is that because of asymmetric information, that is, information asymmetry between users of funds and users of funds, the providers of funds do not understand the integrity of users of funds.

Also do not know how the financial user investment project reports, what is the commercial risk in the end he did not understand.

Asymmetric information is the most important problem to be solved by finance.

The reason for all the financial institutions to survive is to overcome or reduce the information asymmetry between the fund providers and the capital users, and that is the case in all financial institutions.

If a financial institution can not overcome the asymmetry of information or reduce the asymmetry of information, it will help the providers of funds. It will not create value, and the organizations that do not create value can not survive in the market for a long time.