Contents

Ⅰ　General Report

1　General Report of 2015 Internet Financial Development／001

　　1.Overall Development Situationof the Internet Finance in 2014／002

　　2.Internet Financing／013

　　3.The Service Mode of Internet Finance／047

　　4.Internet Progress of Traditional Financial Institutions／066

Abstract: The general report is divided into two parts, the first section summarizes the analysis of the 2014 overall development of Chinese internet finance, including the historical opportunity of development of Internet finance, the development of the Internet financial status and business development situation and the Internet financial risk and regulatory policy tendency; The second part of the classification based on Internet financial model, a detailed analysis of the three models of Internet Internet financing, Internet finance services as well as traditional financial institutions, business development, model innovation, risk control and the status of competition in the industry and future trends.In terms of comprehensive, the 2014 Chinese Internet finance continue to maintain healthy and rapid development momentum, the product tends to blur the boundaries further, a steady stream of business innovation, competition doubly intense. With the rapid expansion of the scale and the growing complexity of the risk, the Internet financial regulation need to be strengthen and coordinated in the future.

Keywords: Internet finance;P2P;Public; chipsInternet payment;Risk regulation

Ⅱ　Special Subject

2　Internet Financial Enterprise Valuation Method／079

Abstract: From the perspective of enterprise life cycle theory, this report analyzes the Internet financial enterprise valuation methods, dividing Internet financial enterprises into initial period, introduction period, growth period, mature period, each one of which for different valuation methods. Research and analysis of Internet financial enterprises valuation is helpful to grasp the development prospects of the industry.

Keywords: Financial Enterprise Valuation；Enterprise Life Cycle Theory；Metcalfe’s Law

3　The Extension of Traditional Financial Institutions to the Internet Financial Field／089

Abstract: The Internet is changing the competitive landscape in the field of finance, faced with the challenge from Internet, the traditional financial institutions began to seek change, gradually extends to the Internet financial field. We believe that in the future, the absolute position of bank in the financial system will not to be shaken in China, and Internet finance will be manifested in the form of Internet banks which is specialized in asset securitization.

In this subject, we first analyze and introduce the present situation and the tendency of the development of Internet bank. We believe that the emerging Internet bank has created a new business model, injected fresh blood into the traditional financial sector. But in practical operation, it has also exposed many problems, especially in the fusion with the Internet in depth, there are still some lacks, and need to be further deepened. As the beneficial supplement of the Internet bank, this subject also introduces the exploration and development of non-bank financial institutions in the Internet financial sector, including securities, insurance, funds and the rising financial assets exchange. Through combing, we believe that the future of Internet finance will be in a diversified development trend, and the ease of traditional financial institutions supervision and the following up of Internet financial supervision will be an important link to promote the health and stable development of the Internet finance.

Keywords: Traditional Finance Institutions；Reform；Internet Bank

4　Analysis of Internet Financial Strategy Layout in Traditional Internet Giant／126

Abstract: From the online of Jingdong supply chain finance, to the “Ant Financial” and Tencent Internet financial system, to Alibaba Internet small loans, in 2014, the Internet giant have conducted extensive layout in the financial sector. In 2014, as the period of development in the Internet finance into the fast lane, new model and new emerging enterprises have been emerging.  In essence, the Internet finance is financial activities based on Internet thinking and Internet technology, and is the crossover and integration of Internet and finance. From the perspective of Chinese market development, the Internet financial evolution has two paths: one is from financial institutions, learning to upgrade the Internet technology, to better provide customers with financial services. The second one is Internet companies moving towards the financial sector, with the help of innovative financial model provided by Internet technology. Traditional Internet giants Represented by Jingdong, Tencent, Alibaba and Baidu’s ,have taken the second strategy, fully making use of their respective advantages in the field of the Internet, customers, electronic commerce system, or search advantage, etc., grafting with financial business. Studying their Internet financial development layout is beneficial to understand the Internet enterprise，or to understand the context and thinking of non-financial companies to carry out financial business from the broad sense.

Keywords: JingDong; Tencent; Alibaba; Baidu; E-commerce; Search Engine; Transformation; Giant Co.

5　Analysis of Emerging Internet Financial Enterprises Development／154

Abstract: In 2014, many emerging patterns and firms sprang up in the Internet financial sector, especially in broadening inclusive finance and mining the thinking of long tail economy, which obtained widespread practice, and among the, P2P network borrowing, Internet crowdfunding and O2O finance are the most representative. The development of P2P industry has rich content, the financing scale and platform quantity growing fast, despite the risk events happened, it still won the recognition of users, investors and capital markets; Careful regulatory authorities, provide the market with the space for trial and adjust; With the gradually accelerating pace of financial reform in our country, the P2P development conform to the requirements of the state to establish the multi-level financial system, and is an important complement of financial industry chain, worthy to be payed close attention to in the future. As to the crowdfunding, in 2014, the development of the industry as a whole is relatively quickly, platform number from 43 in January to 122 by the end of November, but most platforms have not find suitable profit mode, or are still in user borrowing development stage. In December 2014, “the Private Equity Crowdfunding Management Measure (trial) ” was released, as the first regulatory approach of the industry. The measures regulated crowdfunding in terms of properties, operations, and other aspects, laying a solid foundation for healthy and orderly development of this industry in the future. O2O industry development thought, that is, online to offline, have profound influence to financial business model, solving the problem of finance into consumption scene.

 Keywords: Peer-to-peer; Crowdfunding; Online To Offline; New Model; Supervision; Financial Risk

6　Internet Financial Transformation Situation Analysis of other Traditional Enterprises／185

Abstract: Compared to traditional financial institutions, Internet finance are more efficient on the realization of various functions, achieving the “financial wide” and “financial deepening”.Through advantages in transaction cost, information cost, and participation cost, Internet finance improved the financial system efficiency of the resource allocation and information production.With the change of the financial function implementation, the structure of the financial system will change, and through a variety of functional effect, Internet finance will have impact on the efficiency of financial system and economic growth.From the theoretical analysis on the Internet finance, in accordance with the logic of “financial innovation diffusion-evolution of financial function-financial function effect”, through both the theoretical analysis and review, this part revealed the theoretical logic of Internet financial development, and provide effective support for the finance theory combined with the actual situation of Internet financial development.

Keywords: “Internet+”；Traditional Enterprise；Transformation

7　The Finance Analysis of the Internet Financial Development／215

Abstract: Compared to traditional financial institutions, Internet finance are more efficient on the realization of various functions, achieving the “financial wide” and “financial deepening”. Through advantages in transaction cost, information cost, and participation cost, Internet finance improved the financial system efficiency of the resource allocation and information production. With the change of the financial function implementation, the structure of the financial system will change, and through a variety of functional effect, Internet finance will have impact on the efficiency of financial system and economic growth. From the theoretical analysis on the Internet finance, in accordance with the logic of “financial innovation diffusion-evolution of financial function-financial function effect”, through both the theoretical analysis and review, this part revealed the theoretical logic of Internet financial development, and provide effective support for the finance theory combined with the actual situation of Internet financial development.

Keywords: Internet Finance; Financial Function; Financial Innovation Diffusion; Functional Effect

8　Study on China’s Internet Financial Drive Mode／245

Abstract: The recent two years of rapid development of all kinds of business mode in China’s Internet finance has attracted wide attention of academia and industry, Internet finance, as a representative of the inclusive finance, has risen to part of the national strategy. This part summarized the current situation development, business mode, and risks of China’s Internet finance, explored the driving factors of China’s Internet financial development based on industrial convergence, new financial intermediaries and financial deepening economics theoretical analysis framework, analyzed China’s Internet financial investment and financing status, and from the perspective of the industrial organization theory, use “market structure-market behavior-market performance” analysis framework (SCP analysis framework) to study the driving factors of China’s Internet financial investment, and finally gave the future development prospects and policy suggestions for China’s Internet finance.

Keywords: Internet Finance; Driving Mode; Industrial Organization Theory; SCP Model

9　Research on the Influence of Money Transfer to the Central Bank’s Monetary Policy Based

　　on the Perspective of Third-party Payment／278

Abstract: The Internet insurance is an important part of the Internet finance, which is inevitable choice for the development of the insurance industry in our country at this stage. The rapid development of the Internet，especially of mobile Internet lay a solid technical foundation for the Internet insurance.The supporting policies contribute to the development of Internet insurance.The real demand for insurance in our country at thisstage is a powerful driving force behind the accelerated development of Internet insurance.

Keywords: Internet Insurance；Network Insurance；Mutual Insurance

10　The Development of Internet Insurance／303

Abstract: Crowdfunding is a very important innovation via internet in recent years all over the world, this article classified different kinds of crowdfunding in China, and probed the necessity to develop Crowdfunding in China. Based on the classification , the article examined the status,characteristic and business model of crowdfunding in China. Reasonable supervision is very important for the continuous development of Crowdfunding, the article compared the crowdfunding-related legislation in European and the USA, at the end, the article put forward the strategic target and suggestion for the crowdfunding in China.

Keywords: Crowdfunding；Regulation and Supervision；Strategic Target；Suggestion

Ⅲ　Case Study

11　Case Analysis of Traditional IT Enterprises’Internet Financial Transformation／329

Abstract: This part carried on brief analysis of the related case of the Internet financial transformation in traditional IT enterprise, from three aspects of bank IT enterprises, securities and funds IT enterprises, and other IT enterprises, trying to explore the main path and mode of traditional IT enterprise to development Internet finance, and to  provide samples for market innovation.Finally, this part also analyses the Internet financial enterprise valuation method, in order to grasp the Internet financial industry development prospects.

Keywords: Traditional IT Enterprise；Internet Finance；Transformation

Ⅳ　International View

12　Analysis of American JOBS Act／366

Abstract: During the first decade of the 21th century, American IPOs market tended to be on the decline with fewer private companies applying to be listed and increasing numbers of listed companies seeking to be unlisted. Experts and scholars attributed the phenomenon to the rising compliance costs associated with being a public company and changes in rules and regulations. The decline in the number of IPOs together with inaccessibility to the financial market for small and medium sized enterprises (SMEs) made these businesses unable to increase employment. To twist the phenomenon, on April 5th 2012, president Obama singed “Jumpstart Our Business Startups Act” into law, intending to promote employment by lowering financing costs for businesses to raise money. The Act relaxes compulsory information disclosure requirement and subsequent compliance burden for EGCs when they are trying to raise money via capital market. The Act removes restrictions that prevented companies seeking a private offering from general solicitation and general advertising. The Act makes cowderfunding legitimate so that small businesses and startups can finance their projects through online funding portal. The Act enhances the threshold of small public offering exemption to reduce financing costs of small businesses. The Act allows SMEs to avoid being a reporting company and assuming relevant costs by increasing the standards of being a public company.

Keywords: IPOs Market; EGCs; General Solicitation and General Advertising; Crowdfunding; Small Company Capital Formation; Reporting Company