China Enterprise Group, The Combination Mode

The Integration of Industrial and Financial Capital (IIFC) is an economic mechanism that industries and financial institution are combined using certain economical methods with economical benefit objective. Nowadays the international large enterprise groups are all doing the Integration of Industrial and Financial Capital research and practice, the most successful enterprise is GE. Since 1980s', with the reforming and opening-up and the development of market economy, Chinese enterprise group developed rapidly, it has already become the important pillar of Chinese economy and main strength of participating in international market competition. Under the background of China's entering WTO, economic globalization and the development of capital market, Chinese enterprise group integration of industrial and financial capital has raised the climax. How to learn advanced experiences and lessons from international large enterprise group, how to seek to Chinese local patterns of the integration of industrial and financial capital, and how to make the enterprise group with international competitiveness are great subjects which we must face to.Standing the point of enterprise group and the actual conditions, the author establish the corresponding microcosmical study system from the angle of the patterns of the Integration of Industrial and Financial Capital. Using the basic researching method of combining the research with case studying and western economics theories as well as collecting classical cases on IIFC, the paper makes a thorough study on the Chinese Integration of Industrial and Financial Capital (CIIFC) , points out the major features and problems, and gives the development direction of CIIFC of Chinese enterprise group.The paper is organized as follows: Chapter 1 addresses the general theories about IIFC, which provides the necessary background knowledge. Chapter 2 introduces international patterns of IIFC. Chapter 3 analyses the reason of CIIFC and the influence of CIIFC on Chinese economy. Chapter 4 studys the patterns of CIIFC including: holding and controlling stock of financial institutions, establishing Finance Company and creating Finance Holding Company. Chapter 5 compares the adaptability and risk of these three patterns, and then points out the development direction of CIIFC of Chinese enterprise group.