Internet financing in China: Challenges and ways forward

Internet financing is a new financial instrument in China, especially play a critical role in supporting SMEs and entrepreneurial development in China. Since 2013, China government enacted new regulation and policy to actively support private capital to enter into financial sector. Internet companies take an active role in this new field combining their competence in e-commerce and social network domain. However, there is unpredicted challenges for internet financing as it is still not supervised and regulated by central government. This paper will introduce the latest development of internet financing in China and its diversified formats. Institutional impact to internet financing is as well analyzed in order to interpret challenges and future development trends.