On December 1, New Financier Union’s Annual Gala was held in Shanghai with the theme of “Reform-Driven China.” Attendees include Deputy Director of Development Research Centre of the State Council – Liu Shijin, People’s Bank of China Finance Research Institute Internet Finance Research Center Secretary General – Wu Xuchuan, Head of China Asset Securitization Research Institute – Lin Hua, China Soft Capital Group Chairman Wang Guangyu and other authorities and luminaries in finance. Mr. Wang Guangyu pointed out that compared with other countries, China’s finance sector as a percentage of the economy is overly large. “There’re nearly 3,000 listed companies on A-Shares, since 2014, there’re only 40-50 companies in finance but their total profits have exceeded all the other 2,000 companies.” He thinks the finance industry should not take for granted higher profits, monopolies, and cherry-picking investments. The new financial ecosystem should involve more private finance and realize the full value of finance. In terms of internet finance development under the current regulatory environment, Mr. Wang Guangyu shared that, the past few years for internet finance were like fire and ice, either everyone rushed into it in the good times or everyone avoided it in the bad times. He thinks that internet finance is entering a boldly developing environment, and that it is a legitimate business behavior in which we can create value for society, so we must have faith and courage. He highly welcomes the idea of “embracing regulations,” and thinks one shouldn’t feel so passive when being regulated. Today’s regulations are lagging in some ways and overly stringent, and there is room for negotiations. In addition, Mr. Wang Guangyu gave a few suggestions on financial regulations. He pointed out that traditional regulations are qualitative and quantitative, a few areas should be strengthened: first, all players should disclose sufficient information, the State should diligently build rating systems and keep it open. Second, everyone is responsible, the market must enforce better investor education. Only when investors have the intelligence, financial sense and legal sense, business can continue. Internet finance is not a monster, it can be used to lower financing costs and grow business. We should recognize the benefits of internet finance in order for the industry to have a better future.