| Informal finance as well as internet finance are two concepts with many discussions during recent years in China. For informal finance, the peak year was from 2010 to 2011. For internet finance, 2013 was the first year it recognized by the majority.The reason they became both noticeable was because they both related to China’s Financial Repression, which makes it hard for non-state- owned minor enterprises to apply financial resources.The laws and policies that ban the informal finance never actually killed the informal finance in China. Instead, they pushed informal finance to operating underground, bringing higher risk to the real economy. For Internet finance, after years staying unknown, it merged by 2013, influential and powerful. Informal finance and internet finance in China have something in common: Both operate beyond government regulatory with no license; Can hardly judge they are legal or illegal;serve to the minor enterprises mainly. As internet technology improves and the environment to private economy becomes more open, internet finance may become a breakthrough to the future financial system reform. |
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