Research On Relevant Issues Of Group Finance Companies

In Chinese financial system, financial companies of enterprise groups is a kind of special non-banking institutions and a special arrangements for the financial system, it is also an important measure to promote the reform and development of large state-owned enterprise groups. Financial companies have showed a strong ability to adapt to market survival during the past 20 years. The growth history of the finance companies to some extent can represent the combination of domestic finance and industry; it is a miniature of the development of enterprise groups and financial industry.This paper firstly introduced the set-up background and development of finance companies of enterprise groups based on basic theory; secondly, analyzed the feasibility of its existence and role; thirdly, key to Guodian financial company under China Guodian Corporation as an example, researched on the company's current financial status and the problems; fourthly, this paper descript the difference between financial companies and settlement centre, also the financial company's dominant position by comparison method; finally, this paper pointed out the direction and recommendations for future development of financial companies.