P2P Industry Calls For The Establishment Of A Qualified Investor System

"I think the core work of promoting Internet finance is to establish a qualified investor system, which is in line with industry regulation and on the other hand is the responsibility and obligation of the platform."

On the parallel forum of "the 2014 China Internet finance innovation and Development Forum" hosted by the daily economic news daily in September 27th, CEO Shen Lei, a financial manager, said so.

To establish a qualified investor system, we first need to establish an investor protection mechanism.

Wu Xianyong CEO believes that there are some problems in the Internet financial investor group, such as small scale investors, low specialization and large number of retail investors. There are few institutional investors.

In addition, investor protection mechanism has not yet been established, investors lack self-protection awareness, and the establishment of a qualified investor system is a long way to go.

The industry predicts that in the future, with the establishment of investor protection mechanism, Internet banking will enter the era of specialization, but the arrival of this day will take some time, because the maturity and professionalism of investors will take time.

When Internet finance has mushroomed like mushrooming, the risk behind it has become increasingly prominent.

September 2013 is the "high jump" period of the P2P platform, which has made many investors shudder.

Since the beginning of this year, more P2P platforms have been launched, and many investors have lost everything.

In the process of safeguarding the rights of investors, investors often encounter many puzzles due to asymmetric information, imperfect laws and regulations and unsound maintenance mechanism.

Therefore, how to protect the rights and interests of investors has become a topic of common concern in the industry.

Shen Lei said that there were basically two characteristics of the various platforms that had problems in 2013: first, the motives were impure; some companies made platforms for self financing fraud; such cases were more "running"; two, some people who did not know finance forced to engage in the industry, and once they got out of control, they often ran away.

"There are several reasons for the breakup or failure of the platform capital chain. One is the moral hazard of the platform. When a company or a boss set up a platform, what is the original intention of the platform to alleviate the financing difficulties of the SMEs? Or is it a" running road "? Second is the credit checking ability of the platform. The third is the IT technology of the platform. If the IT technology is not strong, the investors' capital safety will be faced with great risks; the last one is the unsound laws and regulations.

Li Yonggang, Qianhai's ideal financial executive, said CEO.

By 2014, the P2P industry "run" situation has eased, but the new platform "run" incident still happens. It is urgent to protect the interests of investors.

When it comes to protecting investors, one of the problems that we have to talk about is the wind control mode adopted by the platform.

According to the daily economic news reporter, there are mainly two types of wind control modes in the whole P2P industry: the first is the risk guarantee model; the second is the cooperation with traditional financial institutions, that is, the mode of risk shifting.

The former is to control risk by risk pricing. The latter is to control the more professional risk control of traditional finance to the platform itself.

Ren Hongwen, general manager of the people's livelihood easy loan, believes that to protect investors, we cannot get away from the system construction. If there is no system, it is possible to get out of control. "The risk control of the people's livelihood is easy to be handed over to the head office. We have no authority to decide whether the products are on our platform."

Li Yonggang also talked about investor protection from the perspective of government and platform.

He believes that the government should strengthen the supervision of the P2P platform, the relevant regulatory policies should be issued as soon as possible, and professional training for P2P practitioners should be carried out. First, the platform should improve its own IT technology, and at the same time, we should improve the risk protection system.

Speaking of investor protection, Shen Lei suggested that in the extreme circumstances, a legal aid fund could be set up. When the rights and interests of investors were damaged, the company would allocate part of its funds to help investors to pursue their rights, so as to safeguard their rights.

Shen Lei also pointed out that it is far from enough for some platforms to disclose only the qualifications of registration, business teams, employees, and the ability of cooperative guarantee institutions to control risks.

"An excellent internet financial platform also needs to disclose strict admission mechanism, the amount of project management, independent risk management and risk guarantee system.

In this respect, the financial side will be more confident.

Strengthening investor education

"I think the core point of Internet finance is to establish a qualified investor system, which is in line with industry regulation, and on the other hand, it is the responsibility and obligation of the platform itself."

Shen Lei said that the platform is not afraid of investors becoming more rational and professional, on the contrary, in this process, the platform can become a mentor for investors.

In order to establish a qualified investor system, we need to strengthen investor education.

Yang Yong, CEO of Bao point network, believes that investment clients need certain investment knowledge and risk awareness. They need to have a certain screening ability and a real value investment mentality.

"The platform should remind investors of the risk of entering the market, and at the same time, we should disclose the information of the borrower and the borrower's assessment report as thoroughly as possible, so that investors can understand the proposed investment projects comprehensively and systematically, and accurately grasp the investment risks. This is also consistent with China's regulations on the disclosure of Internet financial information."

Li Rui, chairman of the credit bureau, said.

It shows that investor education is a long way to go. The platform advocates users to enhance their sense of self-protection through diversified investments.

Wei Wei, deputy general manager of micro gold mutual aid network, believes that users are determined to invest, first of all need to understand the platform itself. Secondly, we should know about the investment business. In addition to understanding the reliability of the project, we need to understand the sustainability of the project, that is, to see its market prospects.

"For many projects, we must understand its operation cost and market situation. If the platform is not profitable, we need to constantly pay for it, then it will not last long."

Insiders also believe that investors are becoming more rational, and many investors are highly professional.

Liu Yao, our loan vice president, said that the background data of you and me show that investors are concentrated in the age of 33, mostly in men. Many people invest in P2P accounts for only about 30%, and the other 70% are invested in bank deposits or steady funds.

Wu Xianyong said that now China has entered the era of "big money management", but at present, the user scale of the P2P industry is obviously not compatible with the future development of the industry, so investors are the focus of future competition.

Therefore, it is particularly important to analyze customer needs and understand the characteristics of investors.

Wu Xianyong said that China's P2P industry investors are generally unprofessional.

"From the experience of foreign countries, the development of P2P industry in the US is very standardized. Although the start is not the earliest, many investors are institutional investors.

On the contrary, the main reason is that domestic investors are basically zero. This is because the regulatory policy of the whole industry is not yet in place. For institutions, it is necessary to have enough courage to invest in this field. On the other hand, the risk control of the whole P2P industry has not yet been recognized by most institutions. Many VC firms want to enter this industry, but the overall risk is high.

In addition, whether the P2P industry can move towards specialization needs to see the platform itself screening investors.

Liu Yao said that in order to screen rational investors, it is suggested that the customer service team should communicate with investors more frequently, and also hope that investors will first invest in small amounts of water and then increase investment so that the operation can gradually become rational and professional.