Study Of China's Financial Holding Company System

The financial management system in China was strongly determined by China's unique social economic and financial environment. Under the environment, financial divided management has been the base, but at the same time the management system has already headed for the financial holding company system that will represent the orientation of the future financial management system in China. The financial holding company is the integration of financing company and holding company and it is the combination of risk and benefit. It's a hot topic of the financial theory study and practice to regulate, protect and accelerate the development of financial holding companies in China. This dissertation tries to comprehensively explore China's financial holding company in the angle of institution. The study is done in macro-, meso- and micro-dimensions and aims to find both universal principles and operationally feasible policy suggestions in the area of preventing and reducing financial risks, improving and promoting financial efficiency.Due to the fact that China's financial holding company system is still in its growth and undeveloped, this dissertation sets those countries like the U. S., Japan and the U. K. as reference models that all have developed and comprehensive financial holding company system which will definitely serve as useful reference for China's case through comparative studies. Positive methods are also used in the chapters to confirm the reality that there are already more than a hundred holding companies or quasi holding companies active in China. The reality is thoroughly analyzed in order to find out the causal relations of the factors concerned in the establishment of China's holding company system and the universal principles and inherent logic regarding the holding companies. Historical analysis is also done to illustrate the development of China's holding company system and to prove that holding company system is the historical necessity through instances of both the developed model countries and China's case. The financial holding company is a new organizational institution under the financial mixed management system. The dissertation makes institutional analysis based upon the social economic and financial circumstances defining China's market transformation. This perspective is significant in two ways. One is that it is good to give guidance for the government to reorient the role of holding companies. The second is that it is good to urge the holding companies to improve institutional innovation to better the holding company system in China.The opening chapter expounds the concept of a financial holding company. Basic connotation is given in this part on the basis of the integration of various definitions and it is further discussed by giving its basic characters and types. Financial holding company is the combination of risk and benefit. The other achievement of this chapter is the analysis of the micro-benefit of financial holding company and the macro-benefit of China's financial company. The risk of the financial holding company is particular besides the common financial risk it shares with other financial institutions.Chapter two answers the question of why the financial holding company is the major management model in China's financial mixed management system. Based on the distinguishing of the concepts of financial divided management and mixed management, this part proves that holding company system is the historical necessity through the historical analysis of institutional change of the financial management. Comparative studies of the financial holding company system of developed model countries are made to further show the historical process from the divided to mixed system and the establishment of the financial holding companies in these countries. This strongly suggests that in the establishment of China's mixed system there is still a long way to go, but financial holding company system in the mixed management system is for sure a historical necessity. The questi...