Research On Risk Measurement And Evaluation Of Internet Finance In China

With the continuous development of the Internet in recent years,the penetration of various areas of society has become more and more obvious,and then gave birth to changes in various fields.In the financial field,the combination of the Internet and the Internet has produced a new Internet finance,so that the masses who want to gain income from capital and the vulnerable groups who have strong demand for financial financing are all satisfied.However,the legal system of Internet finance is not perfect,and the characteristics of Internet finance are not targeted to create a complete risk prevention and regulatory system,leading to the gradual emergence of various risks in Internet finance.To guard against the risks of Internet finance and strengthen the supervision has become a practical need to ensure the healthy,stable and sustainable development of the industry..Based on the GARCH(1-1) and TGARCH(1-1) models,this paper studies and analyzes the VaR value calculated by the Internet financial index rate of return during the period from July 2015 to April 2018 in China.It is concluded that the variance of Internet financial returns fluctuates greatly from July 2015 to April 2016,and then it fluctuates slightly from July 2015 to April 2018,and tends to flatten out;The emergence of the Internet financial risk accident will increase its risk,on the contrary,strengthening risk supervision can also control its risk;after testing the VaR,we can draw the conclusion that the GARCH(1-1)model can effectively calculate the VaR value of the Internet financial risk.Finally,this paper combines the empirical and theoretical analysis results,and from the legal,technical,regulatory and other aspects of the recommendations,to guard against and regulate the risk of Internet finance in China has a certain reference value.