Internet Finance Wants To Change The Life Of China'S Financial System?

This is the speech delivered by Chen Long, vice president of Cheung Kong business school, on the ant finance sharing day.

What I am talking about today is not the product itself. It is mainly about the logic of the future of Internet finance, because finance is essential, and it can help us understand the future.

First, the future that is understood from China's economic and financial systems.

From a macro perspective, how can we see the future of Internet Finance? Let's start with a book called Das Kapital in twenty-first Century, which just started in China. This book has been sought after by economists all over the world. Everyone is talking about this book.

Why do people say Das Kapital? Because every country and every economic system has a capital theory. The so-called capital theory is how capital and labor can be effectively combined to promote economic growth.

In this process, the sharing of capital and laborers is not fair. Efficiency and fairness are problems faced by every economy. Therefore, every country has capital theory.

Marx would say that capitalists and laborers are not good. Workers will rise one day and bury the capitalists.

Piketty (remarks: author of the twenty-first Century Das Kapital) also felt that the capitalists and the old owners were not doing well, so they had to impose heavy taxes on the capitalists.

I wrote an article entitled "how to write capital in twenty-first Century". I talked about how China's capital should be written, because every country has a capital theory.

If we talk about China's Das Kapital, we can say that after the founding of the people's Republic of China, in the first 30 years of the planned economy, the core of the planned economy is the nationalization of capital. In order to fulfill its goal of pursuing the development of heavy industry, capital is basically nationalized, and the private property rights of enterprises have been abolished on the policy of property rights, and the market has been abolished in the market policy.

By lowering the prices of various factors of production, all resources should be tilted to the development of heavy industry.

In terms of macro policies, interest rate control, exchange rate control, interest rate reduction, financing costs of enterprises are reduced, and all resources are tilted to the development of heavy industry. This is the history of China's first 30 years.

Later appeared.

The economy, our welfare is very low. China is a country with a very large difference between urban and rural areas.

It is difficult for financial consumers to find investment and financing products.

There was no bank in China, because the financial system was a cash machine for China's national policy. Even though there was a commercial bank, until now, China's commercial banks are very much like the taste of policy banks.

If we want to see the future of finance, we need to know where the big picture is. China's economic growth will certainly need financial growth to support it, and finance is just like the blood of a market economy.

After China's eighteen largest, in the future, it is necessary to release productivity and improve productivity, and finance must develop greatly.

But the current situation is a financial system with a tilt of resources. It will not change very quickly. Why? If the policy of resource tilt is cancelled, for example, China's financial liberalization and interest rate liberalization will happen very quickly, state-owned enterprises will not be able to bear it.

This inclination will always exist for a long time.

Why should I raise this issue? This is what we care about today. In this era, new technology brings great promise to financial consumer services.

Financial consumers include small and medium-sized enterprises, including the individual financial consumers here. Because of the resource tilt relationship, the original investment and financing products are very few. Because of the new technology and the Internet, there is a very big prospect, and the current financial system does not meet this prospect.

Let's talk about the macro.

This picture tells us where the future of finance lies. This picture is about the proportion of GDP consumed by China and the United States. China is getting lower and higher, and the United States is getting higher and higher. In the past 20 years, China and the US economy are interdependent economies. The United States is a very large consumer country, and can even be said to be over consuming, and China is a very large producer country, supporting its consumption.