Hao: Investors should pay attention to the rationality of return when they invest in Peer-to-peer platform

August 27 Afternoon news, 2014 Internet Conference on August 26-28th at the Beijing National Convention Center. Hao, executive vice president of Pat and loan, said in an interview with Sina Science and technology that investors need to pay attention to the rationality of returns when investing in Peer-to-peer platforms, and that such peer-to-peer platforms may be problematic if the rate of return exceeds 15%.

The following is a transcript of the interview:

Sina technology: You are very welcome to accept Sina Technology interview. Next to talk about Peer-to-peer issues, before there are rumors that Lenovo also want to do internet finance, to do peer-to-peer, what do you think of this?

Hao: First of all, this thing hasn't landed yet, if this is really the case, first, itself is also a good thing, in addition to Lenovo still have some big companies, big institutions, now into the peer-to-peer industry, I think that first of all the industry to be concerned about is a good thing, Because the Peer-to-peer frankly is not as popular as everyone imagined, ordinary people do not know, through these big companies come in I think can promote this.

Second, I have talked about this issue in another media interview, Lenovo 1 billion down is not a moment can be smashed up, I think the possibility of smashing up is relatively small, because although finance is a financial-intensive industry, but Peer-to-peer is a new industry in finance, So it actually takes a long time to accumulate his risk data through Internet technology. 1 billion or 2 billion good, may be able to hit a large advertising market, can hit a better person recruit come in, but really not say because there are 1 billion or 2 billion, can suddenly put this thing to do.

I was very clear about this product, they have done online for nearly 2.5 of the time to prepare this product, but also in a very good platform, he has a large number of traffic, he can be very good products, can suddenly become a more famous products, we should be ordinary mentality to see. As Internet finance becomes more and more hot, believe that the future in addition to Lenovo will have more and more large institutions into this industry, but do not think that there is a big body came in, tomorrow will suddenly come out a star enterprise, I think this is impossible, peer-to-peer or need everyone a long time unknown to do a lot of work.

Sina technology: You still tend to professional people do professional things, right?

Hao: Speaking of professional, this industry is very cruel, no one can be said to be absolutely professional. This is a new thing, we all from the existing knowledge, thinking about a new future, but the Internet people do this thing a little more. Yesterday in the General Assembly I also exchange views with you, as well as the balance treasure This example, the balance treasure itself is a money fund products, he is actually not a monetary Fund, he has the money fund does not have those characteristics, this is a kind of innovative things. So I believe that before we make this product, any person can not be regarded as internet finance or this kind of professionals, but he must have the internet thinking, standing in the experience of the idea of Internet users, and then to transform both the traditional business of some products, let him play a greater value.

Sina Science and Technology: if take the specific product or the specific object to say, also appeared the relatively large amount of the target, how do you think?

Hao: I think so, first of all everyone is good at everyone, men do men, women do women, this area is also the bank to do the bank, Peer-to-peer do things, if the bank did peer-to-peer things, Peer-to-peer did the bank things, this result will not be too good.

Peer-to-peer nature, is to solve some relatively small amount of money loans, more decentralized loans, may be a very wide range of loans, so this time the Internet technology parties to face him is helpful, the bank's cost, network, regulatory policy is difficult to do these things, peer-to-peer can do this thing, But once you do this amount to a huge amount, in fact, you say that the bank will do this, of course, banks do this, and the bank to do this I think more than you have a lot of professional.

At this level, first of all, the bank is a competition, and there is no advantage. Secondly, I think a platform, actually peer-to-peer how to control the risk, it's important to say that it's a relatively small amount of work to distract him from investing or borrowing, so it's very important that if you have a single transaction and a single item transaction that is higher in your platform, There's a problem with this deal and maybe the platform won't be able to afford it, because I don't think that a huge single item is a good peer-to-peer.

Sina technology: For investors, in addition to focus on the high income, there is the risk, for the guarantee of this piece is also very concerned about, I know that pat the loan side has been unsecured mode, and the previous period of time the regulatory layer also proposed to be secured, you feel that the comments or suggestions to guarantee the coming out, What would that mean for a platform that was once secured, and how would that affect them?

Hao: It means that the once killer has to give up now, guarantee this matter theoretically is a kind of psychological demand, you cannot say this kind of psychological demand must be right or certain wrong, go to guarantee is from financial risk control angle to say, once all guaranteed or full guarantee, the risk gathers ability very big, This is certainly not permissible from a regulatory point of view, but in fact, because people have this demand, many of the emerging platforms actually use such a demand to cater to such a demand, to push the business. Because frankly speaking, the financial business is to need a brand support, within a short period of time the new company is no brand, how to use some things in exchange for the support of the brand, security is a way. But in fact, if it is really a guarantee, as a standard of regulation, I believe that we should reconsider this issue. In the short term, probably for many peer-to-peer companies is a very big blow, in the long run, I think we will be more healthy mentality to do this thing, the whole industry is a good thing.

Sina Technology: Now many investors actually have a mentality, their own money but not too dare to vote, because I think this thing is very risky, because after all, the development time is relatively short, for the investment of this piece you have any suggestions, let them reasonable or more insurance to invest?

Hao: In fact, for an emerging thing generally we are stones, I may have a few suggestions:

First, the first time not to invest too much money, a small amount of input, so that even if there is a problem, the loss will not be particularly large.

The second, even a small amount of input can be decentralized, you can understand the choice of two or three platform cast, it can be understood that even on the same platform you do not put your money on a project.

The third, in terms of the nature of finance, is that the nature of finance requires data accumulation to advance the risk, so "data accumulation" light This four words a look, he is a time concept, I suggest you choose the time you can see this enterprise, if the company set up the time has been a little time, at least two years, I think you can put a snack on two, because after all, two years of testing, he doesn't have much of a problem, but if the platform is too new, especially within a year, to be honest, if he's good or not, we don't know what he's exposed to, maybe he's good, maybe he's bad, So I think from the perspective of risk, do not suggest to touch a new platform within a year, you can pay attention to him, but do not mano on the above to do.

Fourth, very important point, you go to see this interest rate, in my experience, now the Peer-to-peer synthesis of his various costs, industry competition in all aspects of the reasons, in fact, now give investors the average interest rate should be between 10 to 15 points, but there are some platforms will be lower, because his brand is very big, 10 points, 8 points, there is no problem, OK, but conversely, if 15 points above or even 20 points above, honestly this inside will have a problem, from the cost of this enterprise to consider, he is very difficult to maintain this thing, if he really do this thing, I believe there are a variety of reasons, but you do not care about him, I suggest 15 points above the careful consideration.

Sina technology: Thank you for your weekly interview. Thank you!