Necessity And Realistic Way For Mixed Operations Of China Finance Industry

The beginning of this thesis retrospects the history of seperated and mixed operations of finance industry in main countries in the world, so as to illustrate that both operations are outcomes of certain historical conditions. Nowadays, mixed operation has been restored in main western countries. As a member of WTO, mixed operation should be necessary for China to fairly compete and internally required by multi-business.However, the history of seperated operation of finance in China is only about ten years. With a faulty financial market and imperfect supervision, financial holding companies would be a natural way for China to transfer to mixed operation. In fact, there have been already various financial holding companies in China's economy.Under an unclear legislation circumstance, various reasons for financial holding companies to make a hurry include to promote their profitability, lower overall cost and diversify operation risks. Proceeds of financial holding companies are also accompanied by many risks, such as the risk transmitting, insufficient risk of the capital, and systematic risks, which are all big hidden troubles of the safety of our financial system. Whereas many enterprises enter financial fields, the thesis explained the risks of combination of enterprise and finance, which has some realistic significance. Effective corporation management structure, internal control mechanism, and outer supervision must be used to keep away internal and external risks of financial holding companies.