Internet finance may help manufacturing equity financing

On November 5, 2015, at the (Shenzhen) Internet Finance Summit Forum, Professor Lang Xianping, a well-known scholar who had not appeared for a long time, pointed out that "the difficulties in China's manufacturing industry have created a flourishing soil for Internet finance." The second forum was guided by the Shenzhen Municipal Government, hosted by the Shenzhen Municipal Finance Office, the Shenzhen Municipal Commission for the Promotion of International Trade, and the Shenzhen Economic Investigation Bureau, and hosted by Financial Vision. It attracted Xing Zhiqing, Deputy Dean of Peking University HSBC Business School, in the Guihua Hall on the sixth floor of the Shenzhen Convention and Exhibition Center. , Zhou Shiping, chairman of Hongling Venture Capital, Sun Changhong, chairman of Yidian Financial Group, and other experts and scholars, industry celebrities and practitioners, a total of more than 500 people attended, and they discussed the theme of how enterprises can innovate and develop under the supervision of the Internet financial industry.

A hot spot for entrepreneurship and finance

Huang Zhicheng, deputy inspector of Shenzhen Council for the Promotion of International Trade, pointed out that Shenzhen's financial industry is one of Shenzhen's pillar industries. In 2014, Shenzhen's financial industry achieved an added value of 225 billion yuan Yuan, an increase of 12%, accounting for about 14% of the city's GDP, and a tax revenue of 94.6 billion yuan, an increase of about 27%. Core indicators such as total asset size continued to rank among the top three in the country.

Professor Yang Dong, Doctor of Laws from Renmin University of China, believes that Shenzhen, as China's future financial center, is very active in the innovation and development of Internet finance. It has also attracted a large number of entrepreneurs who were originally engaged in private finance and related Internet finance business in the north. Enterprises have registered companies in Shenzhen and Qianhai. Shenzhen gathers financial innovation talents, which can provide a good stage for financial innovation across the country.

The future of equity financing is promising

Lang Xianping said, "The difficulty in obtaining loans and the high interest rate are one of the shackles currently on the necks of Chinese manufacturing enterprises, especially private enterprises. We So much money has been issued, and the banks are running into a shortage of money, so where does the money go? According to my observation, China is neither short of money nor short of money. All this money goes to state-owned enterprises, local governments, and shadows. The bank is there. And the money of state-owned enterprises also goes to the shadow bank. Therefore, the borrowing rate of last resort will be higher and higher, and our manufacturing and other real economies will suffer more, thus accelerating the arrival of stagflation. And Internet finance has reduced The loan threshold of manufacturing enterprises, although the interest rate is higher than that of banks, can solve the urgent needs of enterprises, and it is much safer than loan sharks.” His righteous words that dared to face the facts won applause from the audience.

In the past few years, although China's Internet finance has been in a stage of blowout development, the vast majority of platforms have undertaken some large-scale projects, and many of them are secondary projects that traditional banks are unwilling to undertake , excluding the moral hazard factor of operators, which is also an important reason for the phenomenon of frequent platform closures and escapes caused by the greed and greed of Internet finance. However, in the final analysis, the development of China's small and micro credit investigation and risk control technology has not kept pace with the development of the entire Internet finance. Internet finance is a "double-edged sword". While helping the development of the real economy, it also faces many challenges such as risk control. According to statistics from Li in 2014, among the 1,575 P2P platforms, 275 ran away that year, and 92 in December alone.

On July 18, 2015, the "Basic Law" of the Internet Finance Industry was drafted and formulated by the People's Bank of China in conjunction with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the Ministry of Finance. Guiding Opinions" released to the public. The "Guiding Opinions" clearly pointed out that it is necessary to strengthen the self-discipline of the Internet financial industry, establish a positive image of practitioners serving economic and social development, and create a good atmosphere for honest and standardized development. In order to cooperate with the implementation of regulatory policies, the economic investigation departments have successively carried out comprehensive investigations across the country, and shut down a number of P2P platforms that did not comply with the regulations.

While strengthening supervision, it is also particularly important to strengthen investment and financing education in the P2P industry and enhance the industry's self-discipline awareness. Professor Yang Dong revealed that the regulatory measures for equity crowdfunding by the China Banking Regulatory Commission and the China Securities Regulatory Commission are currently being formulated and will be announced at the end of the year or early next year if it goes well. Stimulated by the US SEC measures, the China Securities Regulatory Commission will increase or relax the financing of small and medium-sized enterprises. With the help of various conditions such as equity platforms, the financing of equity crowdfunding and debt crowdfunding will form a fusion and breakthrough in the future. Under the general principle of financial platform protection as the core, in addition to P2P debt services, services for SMEs can also provide equity services. P2P platforms have accumulated a large amount of data, which will help SMEs to obtain equity financing.