Home » Business, Financial Market, News & Current Affairs, Personal Finance, Society & Culture » Xu Haonan:Current Financial Chaos in China Did Not Just Occurred Overnight

Since the Chinese State Council released an official document on April, 2016, the reorganization of financial industry, especially P2P, get started. The Chinese Financial Ice Age had begin. Such phenomenon is not alarmist. Today man should think beforehand in terms of anything. Chinese present financial development history is still relative short. During recent decades, comparing to the revolution of international finance, Chinese finance has huge difference in either quality or quantity. The other foreign markets started step by step and gradually grew stronger, whereas China started straight without any preparation. Such difference directly resulted in the particularity and individuation of Chinese finance industry, which on the one hand, open and develop under self protection; on the other hand, connect to the international market. However, things never happen the way man imagined. The integrating and connecting process unavoidably result in many problems. So people who work in finance industry should not blame on the slow pace or gradual development of Chinese finance, the country is already flying.

Still remember the many events that happened during the development history of Chinese finance? Every time when a new finance channel opened, it’s always accompany by ups and downs, which would normally last 3-5 years, some even requires 10 years, to slowly get on the right track. The introduction of Stock, Corporation System, Financial Products, Stock Index, Futures and Derivative, etc, had all went through difficulties. So if an newly released merchandise jumped into the market, it’s better to leave it along for the first few years. Man need to observe it carefully and see how others deal with it. Standing outside the circle could help man gain a wider perspective. In the most recent decade, International financial channel project rapidly emerged one after another, which led to the financial chaos we are facing today. The government could even change its’ newly released policy overnight. Still remember the Circuit Breaker at the beginning o 2016, which was as ridiculous as a joke. Furthermore, the deposit of Bank’s Foreign Exchange has opened and closed over and over again in almost a decade, which still haven’t completely open today. The switch to Capital Account and the internationalization of Individual project has slowly turned up. At the turn of the century, in the year of 2000, the allowance of individual exchanging foreign currency was just 1000 dollars per year. Today the limit raised to 50,000 dollars. Moreover, the country is preparing on open unlimited quota as pilot project in six cities. So we need to deal any new things in a patient and professional perspective. We could occasionally follow the crowd, but do be careful not to be drowned within the trend. Do not throw yourself in, nor acting active and cut your only way out.

So the reorganization of Chinese financial industry, which would last for a entire year, covering institutions including bank, all kinds of financial organizations and individuals, is not that simple as you thought it would be. For people who is running an industry in today’s financial market, you have to think about the problem in a larger picture and prepare beforehand. Or you could end up losing everything without knowing what just happened, becoming the sacrifice of policies. The scale and involving participants of this year’s reorganization is beyond any historic level. Maybe in the next few years, people who planned on fish in troubled waters won’t live in peace any more, or even be kicked out of the industry. For people who haven’t step in the industry yet, you need to observe today’s situation with cautious attitude, in order to better prepare yourself for future development and personal planning.

 

Media Contact
Company Name: Jinyitong
Contact Person: Xu Haonan
Email: hegui@vip.163.com
Phone: 4000830855
Country: China
Website: http://www.jytlive.com/JytSpecial/Course/xhn/index.html

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