Chinese Financial Holding Company Business Model

In recent decades, there are very great changes in the international financial field. One of the changes is that mixed financial operation has taken the place of divided financial operation again. Financial holding company (FHC) got rapid and great development as a very important mixed financial operation way.Current financial system in China can be described as divided operation and divided regulation. The financial circumstance isn't mature enough and the accompanied laws and regulations are not perfect. Facing the current and on-going fierce competition, financial holding company is a good tool used by our financial institutions to meet the requirement of mixed operation and risk-control. On one hand, it's owned subordinate companies' specific operation obey the divided regulations. On the other hand, it can reach the target of risk diversification and economy of scale when it takes the advantage of associated companies' specific business. It will be the model that China's large scaled financial institutions use because it complies with not only the national conditions but also the age requirement.Financial holding company has sorts of advantages. The exertion of these advantages depends on the financial holding company's actual operation. FHC should focus it's efforts on the satisfaction of it's customers. The way of the satisfaction is based on the R&D of it's financial product. The key of it's success depends on the holistic sales while the satisfaction benefits from the conformity of the institutions' business. The cross-selling is very different from the divided individual selling and reflects the great advantage of FHC. FHC says goodbye to the old mode of singular field service-product and aims to meet it's clients' multi financial demands. FHC set up it's famous brand by way of diversified product and the cross-selling. It is also an important tool to enhance FHC's operation performance. But risks also accompany with FHC. Pay attention to the risks' germination and take actions to lessen them can help us to operate FHC smoothly.This article wants to help us find the appropriate choice of our financial industry after my analysing the evolvement of national and international financial system. I just summarize China's financial institution's development model after comparing different mixed operation mode. Overseas proved operation cases and our status in quo are used for setting up our FHC's operation mode. This article wants to give some reference or useful information to the determiner or practicer. If it can be put into practice, that would be appreciated.