Research On Financial Risk Of Chinese Peer-to-Peer Lending Platforms

"the major areas of work for 2016" in Report on the Work of the Government which released in March of this year submitted:"We will move faster in the reform to improve the modern financial regulatory system and ensure that the financial sector serves the real economy more efficiently and that regulation covers all financial risks.We will work to see that Internet finance develops in line with regulations, and we will make a major push to develop inclusive and green finance. "From 2014 to 2016,Reports on the Work of the Government have mentioned three times in a row referred to ’internet finance develops in line with regulations’,this shows that the Internet finance industry has received more and more attention.Released in March of this year’s Government work report "2016 focus section":"speed up reform and improve modern financial regulatory system, improve the efficiency of financial services to the real economy, financial risk management coverage. Standard Internet development finance to develop inclusive financial and green finance. "From 2014 to 2016, three times in a row in the report on the work of the Central Government raised the issue of standard Internet development finance. Internet financial industry has received more and more attention.So far,financial risk’s identification, measurement and prevention of Chinese Peer-to-Peer lending platform is lack of rigorous, systematic theoretical basis.Practitioners and researchers of Peer-to-Peer lending industry have not take enough attention to the financial risks,this situation is not conducive to the healthy development of this industry.Based on theory of financial risks of commercial banks and other traditional financial institutions,and combined with China’s unique current statue of Peer-to-Peer lending industry,this article take 11 Peer-to-Peer lending platforms as samples.Find out classification, impact factors,and the importance of financial risks of Chinese Peer-to-Peer lending platform with detailed analysis and research.Analysis of causes of risks,and suggests reasonable recommendations for financial risks prevention and response.The first part is exordium.This part describes the research background, significance, the main content and research ideas,methods of the research,and presents innovations and shortcomings. What is more,this article apply and analyze literature research of findings and standpoints of domestic and foreign experts and scholars,plus the industry rule of thumb.By the above information, the authors determined the overall tone of the whole article.The second part is the main mode and the main difference of Chinese and foreign Peer-to-Peer lending platforms.This section describes three typical operation modes of Peer-to-Peer lending platforms-UK mode,USA mode,and China mode,Describes the development of Peer-to-Peer lending industry in China and foreign countries.By comparing each other to find out each other’s similarities and differences,compares and analyzes advantages and disadvantages of three modes.Learn from experience of UK mode and USA mode,to find suggestions of financial risk prevention measures.The third part, author set out the basic theory of financial risk.The fourth part,the article elaborates mainly financial risks of China’s developing Peer-to-Peer lending platforms with detailed analysis of the platform’s main financial risk.In this part,Financial risk is divided into four main types of platforms.Then author describes and dissect these types of risk.The fifth part is investigations in various forums by vote,from results of these votes author dissects Peer-to-Peer lending platform’s investors pay attention to what kind of financial risks,and use it as a reference.Then author select samples from daichuqu-fund’s platforms, counts data of these platforms,and rating financial risk of these platforms.With the help of AHP model,article assigns weights,and scores financial risks.The sixth part,with the help of results of the fourth part,author find out some serious problem in Chinese Peer-to-Peer lending platforms’ financial risk managemet,and then study on causes of financial risks.The seventh part make suggestions on coping and preventing financial risks.By analyzing the results, find out the existing problems in financial management of Chinese Peer-to-Peer lending platforms. The eighth part proposed conclusions,and presented to the Peer-to-Peer lending industry as a whole improved recommendations for financial risk management.These recommendations will help Peer-to-Peer lending industry achieve the stability, health, sustainable development, making it a favorable national economic development arm.Methods used in this study is literature study method, theoretical method,empirical analysis method, and surveys and comparative analysis method of four kinds of methods.