Intergration Of Finance And Industry Of Central Company In China

Intergration of finance and industry means the intergration including equity, claims, information, and human resources between industrial enterprises and financial enterprises. It is the most important way to help an enterprise realize diversification, branch out and enhance competitive edge. Nowadays, among the world top 500 enterprises,80% of them had the experience of intergration of finance and industry. Obviousely, it is a necessary trend for a corporation that reached to a certain scale. Western countries have reaserched this filed for a long time, while in China, it is only emerged since 1980s. After twenty years' development, we still have not found a maturity pattern to develop intergration of finance and industry. Currently, on the one hand, the economy globaization and international competition are getting more and more intense in the international market. On the other hand, China is experiencing economic transformation, a great number of central companies are making a new wave of intergration of finance and industry. They are ready to participate in international competiton and try to take up the market. This paper aims at combine the the current situation of China, and do some reaserch toward the trend of intergration of finance and industry in central companies. This paper tries to compare the related experiences of different countries, then point out the issues that faced by central companies. More importantly, it hopes to find some countermeasures and to explore the the available patten for central companies in China.This essay includes five parts. First of all, it will introduce the background and aims of writing this essay. The second part illustrates current reaserch toward intergration of finance and industry around world. Next, it introduces the advanced experiences in developed countries, including GE and Temasek holdings. From which, we can gain some useful inspirations that can be used in central companies. The fourth part of this essay will highlight the features of central companies and point out the issues that hinder the experience of intergration of finance and industry. This part will introduce the Baosteel group's case. The last part of this essay will make some suggestions to solve central companies'problems and propose the available pattern of intergration of finance and industry in central companies.