The Route Choice Of Financial Holding Companies In China

The argument has lasted for many years that the financial institute should carry out divided operation or mixed operation. In fact,the choice of divided operation or mixed operation is up to the given environment. Recently,the western developed countries declare that their financial institute carries out mixed operation instead of divided operation in succession by setting up the organizational structure of Financial Holding Companies (FHC). Nowadays,there are a lot of nonstandard FHC in China. Under the actual financial system,these FHC have great potential financial risks. Moreover,with our country entering WTO,the competition in financial institute will be more drastic and the step of opening financial institute will be faster. So,it's very important to study the route choice of FHC in China because it is need for facing competition of international financial institute,for quickening the financial innovation and for defending and settling the financial risks in our country.The origin of FHC is studied firstly. Through comparing the domestic FHC with foreign FHC,the article analyzes the present situation and the developing trend of Chinese FHC. Then,the article interprets the demand of FHC in China from the viewpoint of macroeconomics,microeconomics and the present situation of financial institute in China. On the above analysis in theory,the article puts forward the practical choice and the objective choice of FHC in China. Pure FHC is the practical choice and operating FHC is the objective choice. The article emphasizes on the structure of property right,the structure of organization and the financial supervision of pure FHC. With the developing of Chinese capital market,the financial institute will liberalize,internationalize,collectivize and synthesize. And Chinese FHC will turn to operating FHC. The innovations of the article are as follows. Firstly,the organically innovation of pure FHC is studied. Secondly,the financial supervision system of pure FHC is studied. Thirdly,with example of state-owned bank,its system innovation of property right is discussed.