Research On Risk Prevention Of Industrial Capital Financial Holding Company In China

Since the 1990 s,with the acceleration of the process of financial integration,the trend of financial industry from separate operation to mixed operation has become increasingly obvious.Financial holding company as the carrier of mixed operation in the financial industry has developed rapidly in China in recent years.Many financial institutions,industrial groups and local governments have established financial holding companies to manage their financial assets.The financial holding company has the advantages of economies of scale,synergies.But its complex organizational structure and the intrinsic relevance of financial business between subsidiaries are more likely to occur related transactions,resulting in the risk of transmission,and the risk caused by it is greater than that of traditional financial institutions.There are many types of financial holding companies,this paper only studies the industrial capital financial holding company.Industrial capital financial holding company is helpful to promote the combination of industry and finance,and realize the coordinated development of industry and finance.But compared with other types of financial holding company,its risk is more complex,and it is also vulnerable to industrial risk contagion.This paper mainly studies the risk of industrial capital type financial holding company and its countermeasures.Through the research of this paper,this paper tries to provide some suggestions for other industrial capital financial holding companies in China to prevent risks.In order to study the risks and countermeasures of industrial capital financial holding company,this paper selects Minmetals Capital as the typical representative of industrial capital financial holding company for case study.Firstly,this paper comprehensively analyzes the basic situation,risk management status and problems of Minmetals Capital,and uses Z "-Score model to evaluate its financial situation in the past five years.On this basis,this paper comprehensively analyzes the risks of Minmetals Capital from three aspects: general risks,business risks of important financial subsidiaries and special risks of Minmetals Capital.General risks are basic risks,including market risk,credit risk,liquidity risk and policy risk.In the aspect of business risks of important financial subsidiaries,it focuses on the analysis of the major risks of trust business,futures business and securities business.As for Minmetals Capital special risks,this paper analyzes of its existence of parent company industrial risks,conflicts of interest,related transactions,risk transfer and capital double counting and other special risks in detail.On the basis of risk analysis,this paper puts forward the corresponding risk prevention measures from the perspective of Minmetals Capital as a whole and important financial subsidiaries.Minmetals Capital avoid risks mainly from two aspects of improving internal control measures as well as the governance ability.Internal control measures include the construction of firewall system,improvement of the risk assessment system and cultivation of risk control personnel.Improving the governance level includes optimizing the ownership structure,improving the risk management institutions,and strengthening the control of subsidiaries.