A Study On The Development Mode Of Financial Holding Company In China

Since the 1990s, with the strengthening of the tendency towards the financial liberalization and the financial integration, more and more countries gave up the system of segregation of financial business and carried up the system of integration of different businesses in the finance sector. As an effective pattern of integration of different businesses in the finance sector, financial holding company has much operational risk including the double counting of capital in cash, the conflicts of interest and so on. But it has the obvious advantage of economics of scale, economies of scope and synergy effects. Therefore, in US and UK, more and more financial organs crave in setting up finance Holding companies which have their countries characteristic. At present, Chinese financial industry implements the system of segregation of financial business, the financial industry in the word moves towards the system of integration of different businesses in the finance sector by the system of segregation of financial business, the foreign financial holding companies unceasingly enter into the Chinese domestic market. Under such a background, in order to win at the competition with the foreign financial groups, many financial organs in China begin to construct the development mode of the financial holding company in the way of stock transformation, businesses remises and so on. Inspecting the development state of the financial holding company in China, we can found, the financial holding company in China has two problems including the aspect of building internal systems and the aspect of external environment.In order to solve these problems and explore the development mode of financial holding company which suits Chinese national condition, this paper, first, discusses the theory about financial holding company, defines the concept of financial holding company and then outlines the advantage of financial holding company and the risk of financial holding company. Secondly, on the basis of analyzing the experience of United States and Britain in the development of financial holding company, this paper summed up the general law of financial holding company's development. Thirdly, the paper expounds the status of Chinese financial holding company's development. Finally, this paper analyzes the advantage and risk between different modes of financial holding company, explores Chinese national condition, points out that the pure financial holding company is the target mode of Chinese financial holding companies and gives some advices about the construction and improvement on the target mode of Chinese financial holding company.