Accession To The Wto Transition Period After The End Of The Financial Mixed Operation With The China Securities Industry,

â… BackgroundThe current regulation in China does not allow one entity to operate multiple financial services simultaneously. After China's entry to WTO, there have been significant changes in China's financial industry structure. Local financial institutions have to face severe competition from foreign counterparts, who have begun to enjoy national treatment provided by GATS. In addition, local financial institutions are also struggling with internal challenges arising from the transition from planned economy to market economy. As a result, to cope with the various market challenges, the current separation of financial services may ultimately break down, and transform to a new system that allows multiple services by one service provider. However, many problems need to be solved in the transition period, such as how to qualify an institution to operate multiple services, how to deal with the constraints faced by financial institution to operate multiple services, business model issues, the likelihood of financial crisis caused by new mixed business model, and supervisory challenges.And these problems are gaining more importance and urgency today, when the WTO grace period is approaching to the end. In particular, China's security industry, which has become an important component in China's finance industry after 20 some years of development, has been unprofitable and depressive in recent years. Therefore, how to lead China's security industry out of the impasse through business model reforms and removal of the constraints to multiple services has become a topic with much significance nowadays.â…¡Main contents...