| The Bill of Financial Services Modernization Act in 1999, which allows financial institutions broaden their line of business, symbolized the begging of mixed operation system adopted by American government and even the whole world. On the one hand, since our China has joined WTO, we start to open several financial trades and services to other countries and the foreign financial institutions do make great influences on ours. On the other hand, along with the rising of our living standard and the sense of investment, simple financial products can no more meet of demand of some citizens. Faced with the double pressures from inside and outside, our financial institutions begin to try new road, which stands for comprehensive management model in financial field. In 2002, the government permitted three big companies to be the first series of experimental unit, and they are Ping An group, CITIC Group Corporation and China Everbright Group. In the same period, some large scales of commercial banks also give up the traditional operation mode and begin to transfer to comprehensive operation mode. Financial holding company one of the main pattern of comprehensive operation modes, which allows financial institutions to set up several subsidiaries to operate different business such as security business, insurance business, bank business and so on.There are two main operation modes of financial holding company, and we call the Pure type and the Business type. Each of the mode refers to several typical companies in our country. The radical differences of these two modes lie in that, if the company belongs to the Pure type, the parent company merely undertake the management and investment work of the whole group and he don’t need to operate some specific business. However, in the Business type, the parent company not only need to undertake the management word for the group, he also need to do his own business at the same time.I have read and learn some relevant researches of financial holding company and find out that they mostly focus on the operating performance and risk problems of financial holding company, but they rarely make any detailed comparison between the two different operating modes, the Pure type and Business type. In that case, I made my mind to write a paper mainly about the differences of the two modes. In order to make it straight and detailed, I adopted the research method combined with case analysis method and comparative study method. Also, based on the angle of efficiency and risk, I analyse the different operating performance of each mode in details, try to make an assessment in every aspect. Finally, I should pick up one of the modes to make a recommend to other financial institutions which plan to try to be a financial holding company.This article mainly talks about these three topics:firstly, what are the types of current business mode of financial holding company in our country? Does it have any great example? How well do those companies operate? How about the problems? Secondly, how do the pure type and business type differ from each other? Which type is superior to the other? At last, which kind of type is more proper to our financial market? what is the reason?The innovation of this paper may lie in:Firstly, starting from the difference between the two business models, I combine both case analysis and comparative study to directly reflect the difference between the two from the perspective of efficiency and risk, which means it presents certain novelty in the angle of the selection. Secondly, I choose the Bank of communications as a representative of the Operating Holding Companies to carry out a case study, which means it presents certain novelty in the case of the selection.Chapter 1 is the introduction, mainly introduces the research background and significance of this thesis, outlines the research mentality and the frame. And then present the starting point of this article and possible innovation as well as insufficiency.Chapter 2 is the related theory and literature review. In the theory parts, i present the efficiency of financial holding company related to the synergistic effect theory and asset specificity theory, also introduced the theory of risk, such as conflict of interest, moral hazard and risk transfer theory. In the literature review, I sort relevant research results at home and abroad, and then put my starting points and possible innovations forward.Chapter 3 is about the current situation of the development of financial holding company in China, mainly from two aspects:the path selection of the status and the operating status.Chapter 4 is case introduction and brief case analysis. Introduce Ping’an group and the Bank of Communications, respectively from the enterprise development process and the holding mode aspects.Chapter 5 is the core of this paper, mainly from the efficiency and risk aspect to analyse the different manifestations of the two business models.Chapter 6 is the conclusion and suggestion. In most aspects, I think, the performances of pure mode are better than the business mode, and combined with the analysis of the development of China’s financial market, I finally recommend the pure mode to be the most suitable models in our country. |
PDF Full Text Request