International Financial Management

Student's Name Course Professor’s Name Date

Financial Innovation

Financial innovation is a process which involves putting in place new financial instruments and new technologies, markets, and institutions all aimed at financial and economic breakthrough (BECK, 2013).

What Role does these Financial Innovations Play?

́Reducing agency costs

́Completing the market

́Facilitating risk sharing,, improving allocative efficiency, and

́Fostering economic growth

China’s Economy and Financial Innovation

́ Effective financial innovation is a leading china's primary focus.

́The coronavirus pandemic gave china an opportunity to improve on their financial technology.

́Banking sector still dominates China’s financial market.

́China’s share of banking financing include entrusted loans, trust loans, bank credit, and banker’s acceptances.

́In inventions venturing in capital markets has been instrumental.

Cont.’

́ China has changed their market structures and thus transformed from centrally planned to modern market economy.

́Modern market economy has increased the demand for persistent financial services.

́Financial innovations are made possible because of improved technology.

́Financial innovations have improved economic efficiency, financial stability, and social equity in china.

Peer to Peer Lending In China

́What is peer to peer lending?

Peer to pear lending is an online lending form allowing investors to work with people and businesses seeking loans directly (Stern et al., 2017).

́In China the idea of P2P was conceived in 2012 and rose very fast in popularity and acceptance

́China P2P has grown rapidly as compared to other countries.

́

GET THE WHOLE PAPER!