Research On The Supervisory System Of Related Party Transactions In Financial Holding Companies In China

With the rapid rise of the financial industry and the loosening of government supervision,China's financial services have gradually diversified.And the banking,securities,and insurance businesses have infiltrated each other,resulting in a large variety of financial holding companies that have achieved some development in practice.At the group level,this financial holding company's operating method that has achieved comprehensive operations can save a lot of costs and increase profits for the company.But at the same time,in order to maximize the interests of the group,financial holding companies may conduct a large number of related transactions for this purpose.The related party transactions are generally regarded as a profit transfer tool between group companies to reduce taxes,increase revenue and tap profits.The forms of related party transactions include: on the one hand,the subsidiaries provide loans and promises to the holding company or other subsidiaries in the group;on the other hand,mutual guarantees and investments between the groups occur.If a large number of opaque and improper connected transactions occur in a financial holding company,it will lead to a large number of risks,and because most of them involve multiple financial institutions at the same time,once risk transfer occurs,this will have a very negative effect on the stability of the entire financial market Threat.For this reason,it is necessary to strengthen the supervision of related party transactions of financial holding companies.Nowadays,it is still a “separate business operation and separate industry supervision” regulatory system in China.China cannot effectively supervise the related-party transactions of financial holding companies.At the same time,there are no specific laws and regulations to properly regulate them.In this context,it is very urgent and necessary to propose regulatory countermeasures based on the research on the risks of related party transactions of financial holding companies,with reference to effective international experience,and the combination of China's actual conditions.This article first defines the related concepts of financial holding companies,connected transactions of financial holding companies,etc.,and then analyzes the advantages and risks of connected transactions of financial holdingcompanies.Secondly,based on the case where Baoneng passed the bridge company to circumvent the regulations,and on the basis of drawing on the international regulatory experience of the European Union and the United States,it proposed regulatory measures for related transactions of financial holding companies in China to promote the continued and healthy development of financial holding companies Development and maintaining financial stability.