Author(s)

Zebin Jin

Corresponding Author

Zebin Jin

ABSTRACT

The objective of this research is to explore the risk management methods of China's financial industry under the Internet economy. In this study, Internet financial products can be divided into three categories according to financing methods, issuing subjects and platform functions based on a large number of literatures combined with China's national conditions. That is, balance, P2P and crowd funding; financial institutions and non-financial institutions; information services and publishing asset management. Then the risks of Internet financial products were divided into four types: return volatility risk, liquidity risk, policy and institutional risk, and security risk. In this research, by studying the volatility of the yield of 10,000 shares per day from December 26, 2016 to December 15, 2018 of Yu'E Bao, it was found that balance financial products with stable returns still had the risk of fluctuation of returns. Based on the above analysis, in this research, preventive measures for Internet finance industry from the aspects of financial product quality and service, government, and investors were put forward, which had certain reference significance for future risk management of this industry

KEYWORDS

Risk; Management; Financial industry; Internet economy; Yu'E Bao