Internet finance and its potential risks: the case of China

Internet finance is a global phenomenon that further close the digital divide and sidelining of small-medium enterprise (SMEs) equipping for a fourth industrial revolution market. This study reviews the development of Internet finance in China deemed to be the largest Internet finance market in t...

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Main Authors: Tian, Zhongkai, Sheikh Hassan, Ahmad Fahmi
Format: Article
Language:English
Published: Academic Inspired Network 2019
Online Access:http://psasir.upm.edu.my/id/eprint/80302/
http://psasir.upm.edu.my/id/eprint/80302/1/Internet%20finance%20and%20its%20potential%20risks%20the%20case%20of%20China.pdf
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author Tian, Zhongkai
Sheikh Hassan, Ahmad Fahmi
author_facet Tian, Zhongkai
Sheikh Hassan, Ahmad Fahmi
author_sort Tian, Zhongkai
building UPM Institutional Repository
collection Online Access
description Internet finance is a global phenomenon that further close the digital divide and sidelining of small-medium enterprise (SMEs) equipping for a fourth industrial revolution market. This study reviews the development of Internet finance in China deemed to be the largest Internet finance market in the world. The extant of literature and market reports suggest that this overwhelming performance of China Internet financing is due to factors such as financial market gap, popularity of third-party payment and high returns. However, against mthe traditional financing operations, investors in this sector suffer substantial degree of risks due to fraud leading to huge losses. We argue that there needs a concerted effort by government and oversight bodies to improve market disciplines to ensure a healthy development of this alternative financing thereby enhancing the economy development of China and elsewhere where Internet financing is operating.
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spelling upm-803022020-10-21T18:02:39Z http://psasir.upm.edu.my/id/eprint/80302/ Internet finance and its potential risks: the case of China Tian, Zhongkai Sheikh Hassan, Ahmad Fahmi Internet finance is a global phenomenon that further close the digital divide and sidelining of small-medium enterprise (SMEs) equipping for a fourth industrial revolution market. This study reviews the development of Internet finance in China deemed to be the largest Internet finance market in the world. The extant of literature and market reports suggest that this overwhelming performance of China Internet financing is due to factors such as financial market gap, popularity of third-party payment and high returns. However, against mthe traditional financing operations, investors in this sector suffer substantial degree of risks due to fraud leading to huge losses. We argue that there needs a concerted effort by government and oversight bodies to improve market disciplines to ensure a healthy development of this alternative financing thereby enhancing the economy development of China and elsewhere where Internet financing is operating. Academic Inspired Network 2019 Article PeerReviewed text en http://psasir.upm.edu.my/id/eprint/80302/1/Internet%20finance%20and%20its%20potential%20risks%20the%20case%20of%20China.pdf Tian, Zhongkai and Sheikh Hassan, Ahmad Fahmi (2019) Internet finance and its potential risks: the case of China. International Journal of Accounting, Finance and Business, 4 (20). pp. 44-51. ISSN 0128-1844 https://www.researchgate.net/publication/337812413_INTERNET_FINANCE_AND_ITS_POTENTIAL_RISKS_THE_CASE_OF_CHINA
spellingShingle Tian, Zhongkai
Sheikh Hassan, Ahmad Fahmi
Internet finance and its potential risks: the case of China
title Internet finance and its potential risks: the case of China
title_full Internet finance and its potential risks: the case of China
title_fullStr Internet finance and its potential risks: the case of China
title_full_unstemmed Internet finance and its potential risks: the case of China
title_short Internet finance and its potential risks: the case of China
title_sort internet finance and its potential risks: the case of china
url http://psasir.upm.edu.my/id/eprint/80302/
http://psasir.upm.edu.my/id/eprint/80302/
http://psasir.upm.edu.my/id/eprint/80302/1/Internet%20finance%20and%20its%20potential%20risks%20the%20case%20of%20China.pdf