Macro-Finance Salon (No. 66) and Fintech Open Classes (No. 7): Fintech Reshapes Rules and Investment Hotspots

On the evening of June 7, Macro-Finance Salon (No. 66) and Fintech Open Classes (No. 7) was held at Room 509 in Mingde Main Building of RUC. Guo Yuhang, the founder and the Co-CEO of Dianrong.com, was invited as the guest speaker and delivered a keynote speech on “Fintech Reshapes Rules and Investment Hotspots”. Starting from his entrepreneurial experience in Internet finance, Guo Yuhang pointed out that four keys must be concerned: investigation of the red line boundary, credit enhancement guarantee, balanced recruitment and appropriate equity distribution. In his view, innovation has always challenged regulation, while regulation determines how far Fintech can go. Fintech entrepreneurs should learn from the past experiences and lessons, and communicate with regulators in an active, effective and equal manner in order to better capture the legal space and policy direction. At the same time, if they want to obtain sufficient funds to support the company operation, they should seek opportunities actively to raise voice by delivering speech, doing theoretical research, publishing books, joining associations. In this way, they can constantly promote their companies, services and models, clarify misunderstanding of the public and remove doubts of potential investors. In the rise of Fintech, Guo Yuhang pointed out that Fintech has entered a period of high-speed development globally. Other economies including India and Singapore are not lagging behind China in terms of financial infrastructure and system construction. However, the developed traditional financial and banking system monopolies financial resources, and its regulators are conservative to Fintech, which weakens Hong Kong's status as a financial center. Chinese outstanding Fintech start-ups are emerging. On the "Global Fintech 50"issued by KPMG , the proportion of Chinese companies is second to the United States. The first generation of Fintech entrepreneurs are still positioned to provide instrumental support to improve traditional financial background service, while the new generation of large Internet companies are technology-oriented, and actively participate in the battle for financial license. The trend that talents in the traditional high-end financial institutions are flowing to Fintech industry has begun to emerge. When talking about the reshaping of rules by Fintech, Guo Yuhang thought that Fintech makes finance more inclusive. Traditional financial institutions like Goldman Sachs and Citi Bank have gradually moved closer toward a technology company. Big data finance, block chain, artificial intelligence and regulatory compliance have become four hot spots in Fintech. The big data finance is improving the credit reporting system. The block chain helps to build a regional light settlement system among financial institutions. Artificial intelligence like machine learning plays its role in anti-financial fraud. The application of technology enhances regulatory capacity, which makes behaviors difficult to capture in the economic and financial gray areas traceable. In financial and technological investment, Guo Yuhang analyzed the P2P platform, online navigation, Internet consumer finance, B2B supply chain finance, Internet securities, Internet insurance, electronic money, block chain technology, automated investment, and cross-border investment. He believed that there are many Internet finance and Fintech entrepreneur models, but not everyone has the investment opportunity and investment value. In the future, compliance, verticalization, mixing and internationalization may have investment opportunity. At the same time, Fintech investment faces the risk of compliance, supervision and moral hazard of the founders. Compared with the United States, China's credit reporting system is not perfect. Fintech can discover people who lack adequate financial service but have good credit. Thus, China's Fintech companies are easy to gain higher valuation than the US technology companies. From the statistics, listed companies do prefer Fintech companies. Finally, he introduced the Xinghe Hongsheng Fintech specialized funds. He said he hoped to improve the efficiency of finance through the world's cutting-edge technology in order to make financial more inclusive and the society better.

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