The Choice Between Separate Operations And Mixed Operations In Chinese Financial Sector

The passage of American Financial Services Modernization Act indicates that America has already entered to the age of mixed operations. Before that, some countries, like Britain and Japan, which mainly carry out separate operations have also taken reforms to turn to mixed operations. As a result, mixed operations have become the new worldwide trend. China is one of the few countries that implement separate operations. Although separate operations accord with Chinese current conditions, they don't accommodate with international tide. With the integration of the world economy, with the internationalization of financial industry, with further reforms of Chinese economic framework and with the greater challenge after china's entry to the WTO, China should follow the world trend and prompt the financial industry, such as banking, security and insurance, to operate in phase. This problem has become a focus in academic fields. The paper begins with the introduction of the basic knowledge of the operation model. Then retrospect and analyze the history of American and western advanced countries' operation model. After that, probe into Chinese operation model and analyze it's current problem. Finally bring forward the resolutions.The paper includes four chapters.The first chapter introduces the operation model. At first, the chapter introduces the conception, characteristic and basic theory of two different operation models—mixed operations and separate operations. Then analyze their advantages and disadvantages in terms of risk and efficiency. At last come to a conclusion: take risks into consideration, when the financial development is at the elementary stage ,owing to the immature conditions and the imperfect mechanism of anti-risk, it is safer to carry out separate operations. When financial industry develops to a advanced stage and the ability to control the risk increases greatly, it is wiser to implement mixed operations, because implementing mixed operations is good to realize scale economy and scope economy which lead to greater efficiency, and can avoid the risks resulting from single business. Thus allowing for the risk and efficiency, the operation model should be in line with the development of finance.The second chapter introduces the evolution of different countries' operation models and analyzes the reasons why they all finally choose mixed operations. Based on the above analysis, we can conclude that mixed operations are the world trend. The last sector summarize that the choice of operation model should accord with the law of financial industry's development should match with the ability of financial venture's defence and dissolution.The third chapter retrospects the evolution of Chinese operation model in financial sector and tries to find out the suitable operation model. The evolution of Chinese operation model can be divided into three stages, namely, primitive mixed operations stage, stricter separate operations stage, elementary cooperation of B&S stage. China's accession to the WTO has great influence on Chinese finance and the development of operation model in financial sector. Thus the fourth sector mainly analyzes the influence taken by China's entry to the WTO and find out the new operation model.The fourth chapter is the paper's emphasis. Based on the above analysis, this chapter concludes that mixed operations are China's inevitable choice. After rethinking Chinese existing conditions and analyzing the barriers for implementing mixed operations, the chapter set forth a "step by step" reform project. The project divides into three steps. The fist step is trying best to improve financial market and law to make full preparation for worldwide competition. This step is to lay a solid environmental foundation. The second step is prompting the mixture of financial businesses. This step is to lay a solid practical foundation. The third step is building new mixed operations model. When every conditions improve, China can build mixed financial conglomerate to adapt to the internat...