Research On The Effect Of China's Internet Lending Regulation Policy Based On Investor's Behavior

With the development of Internet technology,Peer-to-Peer lending has developed rapidly in the financial system in the short term due to its advantages of fast,efficient,low threshold and low cost.However,due to the imperfect financial system in China,there are many risks in the online lending industry,and then a series of normative policies have been published to strengthen regulation.By summarizing the relevant literatures,it is found that the current analysis of the regulation of the Peer-to-Peer lending industry mostly focuses on the qualitative inquiry stage,such as the investigation of ideas and models,but lacks the evaluation of the effect of the gradually perfect's regulatory policies,and research on investor's behavior in the lending market is also less think of macro factor.Therefore,by studying the behavioral changes of individual investors under the influence of regulatory policies,knowing the effects of regulatory policies and the rational level of investors' perceptions of this policy.The paper uses a combination of theoretical research and empirical research,systematically analyzing the effects of the introduction of Peerto-Peer lending industry regulatory policies on investor behavior.Firstly,through the status quo of the online lending industry and the grouping characteristics of investors,the overall understanding of investor behavior decision-making background and subjective cognition.Secondly,based on the related theories of information asymmetry and behavioral finance,to describe the influence path of regulatory policies on investor's behavioral decision-making,and qualitatively explored the factors that interfere with the rational decision-making of investors and their behavioral feedback.Finally,use the micro-data of the PaiPaiDai.com,two regulatory policies are introduced as the time-node to construct policy variables.According to the modeling of borrowing success rate and default rate,introducing the interaction term between regulatory policy and interest rate,use the Probit model with regression estimation,to discussing the investment willingness,risk preference and rationality of investors affected by regulatory policies.The research and analysis can draw the following conclusions: Firstly,the publish of regulatory policies has reduced investors' willingness to invest,with increasing uncertainty perception,and negative sentiment towards market operations.Secondly,regulatory policies have increased the risk appetite of active investors in the market,some investors with strong risk aversion have withdrawn from the market,and active investors who perceived that the expected risk will increase to ask higher returns.In addition,the regulatory policy slows down the online lending market's actual credit risk,comprehensively analyzing the investor's willingness to invest and the actual risk level of the market,it is found that investors have excessive interpretation of the regulatory policies,and the degree of rationality still needs to be further improved.Finally,there is a time lag in the effectiveness of the regulatory policies in the online lending market,the effect of the policy may be weakened after a period of time.According to the conclusions of this paper,as the perspectives of clear supervision mechanism,docking credit information system,universal financial education and strengthening media responsibility to recommend the healthy development of the P2 P online lending industry.