On The Risk And Precaution Countermeasure In Chinese Financial Holding Company

In the world today, economic globalization trend is increasingly underline. With the rapid development of finance globalization trends and the growing of financial innovation, the finance holding company, as a kind of new economic organization form, develops vigorously in the whole world. Single financial competitiveness of enterprises was inadequate, and an integrated management of financial enterprises in a dominant position in the competition. At the end of 20th century, under the pressure of the international situation, the implementation of the national system of separate operation realized that only the reform of the traditional financial management system will not suffer the misfortune of being out of international markets. Comprehensive management is the development trend in China, and the financial holding company is the optional model for comprehensive management. How to reform and how to find a balance between the "security" and "efficiency", the country of separate operation are facing tremendous challenges.Financial holding company served as one kind of organizational forms of enterprises shows systematic shift from divided to mixed management. The generation and development of the finance holding company is the result of global finance development. At present, in our country there exist a lot of finance holding companies which is in multiple forms, but there is no legislation of finance holding company. With large-scale, the finance holding company has high risk. It adopts the group-holding organization type and structure by the form of parent company and subsidiary company, and plays a decisive role to development of national economy. Financial holding companies bring not only much interest for companies, but also a lot of risk. The risk of finance holding company plays an important role to financial security and stability. Although lack of legislation on finance holding company, the research of the establishment of finance holding company risk prevention legal system is objective demand of maintaining financial security of our country.The article mainly consists of the preface, the main body and the concluding remarks, of which the preface makes a general introduction to the internal and international backgrounds of the development of financial holding company, and then points out that the legal study on financial holding company is important and urgent.The main body comprises three parts. Chapter one primarily discusses the basic legal issues of the financial holding company. It analyses the concept of the holding companies, the kinds of holding companies and analyses the concept, types and characteristics of the financial holding companies, briefly introduce the concrete development course and reasons of financial holding companies of the developed countries. Then it carries the concept of separated-operation and mixed operation, then analyses the development of theories about financial mixed-operation, and probes into the reason of financial mixed operation finally. It explores the organizational system of the financial holding company. Finally, it discusses the development status of our country's financial holding companies.Chapter two focuses on special risk produce by financial holding companies. It contains the risk of market entry and exit, the risk of regulatory regime, the risk of double counting of capital, the external conflict of interest risks, internal risks associated with transactions, the internal conflicts of interest risk, the risk of monopoly.Chapter three is the focus of this article. On the basis of risk analysis for financial holding companies, the chapter puts forward a number of ideas to perfect the legal mechanism of risk prevention about financial holding companies from internal perspective and external perspective.To sum up, nowadays, China's financial industry adopts the system of separate operation. To a certain extent, the emergence of financial holding companies overcomes the shortcomings of the system of separate operation. It will bring some new special risk because of the complex structure of the financial holding company. In order to promote the healthy development of financial holding companies and to ensure the overall stability of the financial industry, these effective measures can be implemented on these particular risks.