Theoretical Study On The Formation And Evolution Of Internet-based Financing Mode

In the background of network economy, Internet-based financing mode cameinto being on the conditions of financial computerization as a beneficial supplement tothe existing system of economic and social structure. As being exposed to thecircumstances of the Internet information age, Internet-based financing mode hasbeen enriched with the innovative connotation of the Internet spirit in a way that putsan emphasis on the promotion of human society welfare. Although the new era welive in has been constantly reshaped, the traditional financing mode which plays thedominant role at the moment can not be replaced by the Internet-based financingmode. However, the Internet-based financing mode plays a supplementary role toperfect the inherent financing mode. Moreover, the formation of the Internet-basedfinancing mode complies with the evolution trend of the inherent financing mode,which signifies that it is imperative to coordinate the development of the financialintermediaries and the financial markets. Only by combining the characteristics of thetwo traditional financing modes can we assure that the financial system as a wholewill function comprehensively and efficiently. As a consequence, the establishment oftheoretical study frame on internet-based financial mode will not only drive theformal research of this newly born financial form but it will also take effect ofpractice instruction on the promotion of financial mode itself and the financialindustry.In this paper, the method of normative analysis has been used to study theInternet-based financing mode through which it is available to establish a theoreticalstudy frame that is conductive to make policy guidance. Firstly, this paper putsforward the notion of financing mode and defines the theoretical connotation offinancing mode by connecting it with financial system functions, this part ends upwith proposing the idea of the evolution of financing mode which leads to theargument that the financing mode has been evolving to make itself optimal andadaptable; Secondly, this paper attempts to figure out some problems about theformation of the Internet-based financing mode in terms of how it came into beingand what exactly it has been. On the basis of former analysis,this paper points out thatthe Internet-based financing mode is all about the way of realizing the functions offinancial system by the means of modern information technology; Thirdly, this paperanalyses the current situation of the business development of the Internet-based financing mode which essentially concludes the extension of the Internet-basedfinancing mode; then this paper goes further to discuss the realizing mechanism of theInternet-based financing mode through the comparison of two traditional financingmodes. Finally, this paper concludes some shortages of current conditions in chinaand proposes some constructive suggestions based on the analysis before.The innovation of this paper includes two parts: the establishment of theoreticalstudy frame on internet-based financing mode and the proposal of policy guidancethrough comparisons from evolving perspective.