Research on the Preventive Strategy of Credit Risk in On-Line Auction Market

Along with the swift development of on-line auction, credit problem has become a focus attracting increasing attention of people. Information flow, capital flow and logistics exist in both traditional business transaction and on-line auction. Only when all of the above three factors finish backflow, could it be regarded as the completion of transaction. Therefore, carrying out strict supervision on the three factors could thoroughly solve the credit problems in on-line auction. Therefore, the following will analyze the credit mechanism in on-line auction from three aspects of transaction rule, credit index and payment tool. It´s believed that, if only such three sections are perfected, could we realize the objective of establishing perfect credit mechanism very soon. Surely, the on-line auction will develop in a healthy, orderly and rapid way under perfect mechanism. Finally, the thesis put forward the relevant preventive strategy of credit risk