Research On The Development Of Our Country’s Finance Companies Of Business Group

Finance companies are the certain outcome of business groups’expansion, and they are also one of the supporting policies of our country’s "big business, big groups" strategy. Since the establishment of the first finance company of business group in1987, over25years of development, finance companies have become an important part of our country’s modern financial system. The ultimate purpose of establishing finance companies is to provide service for business groups, and its development has played an irreplaceable role in promoting the expansions of our nation’s business groups. Right now, our country is in a critical period of strategic opportunities, and the world is in a recovery period after the financial crisis, with the continuous developing of business groups, their demands about finance companies’service functions are getting more and more strict, and finance companies’short comings of outdated service and operational models are becoming more and more obvious. Our country’s finance companies of business group have already entered the bottleneck period. Facing competitions from large international businesses and various financial institutions, how to find the good interaction between businesses and finance, how to achieve mutual development and how to make better use of finance companies of business group, have all become major issues facing our country’s finance company industry. To strengthen the studies of finance companies of business group will not only have an influence on our country’s large business groups, but also affect the constructing and optimizing of our nation’s modern financial system.This article first briefly introduce the basic concept and features of finance companies to give the readers a preliminary understanding of the institution. On that basis, the article then presents the current situation of our country’s finance company industry through a series of data and indicators. And then, by introducing successful empirical modes of foreign advanced finance companies, the article points out several problems in our country’s finance companies: the imperfection of the market, the over-strict regulations, the relative monotonousness of the products, and the complexity of the relation of both competition and cooperation. Finally, the article has proposed relevant advice and measures to tackle the above issues with consideration of our nation’s current status and the writer’s knowledge.