On The Development Of Financial Holding Company In China

During the first half of 20 centuries, the strict divided management of financial industry was mainstream all over the whole world. But since the " Big Bang" financial reform in 1986 UK, such divided management policy became flexible, the Financial Holding Company (abbr. FHC) which is seemed as the transition from divided management to mixed management develops rapidly. For example, according to the statistic of US Federal Reserve Board (abbr. FRB) on SEP.10 2004, there were six hundred and forty-eight Groups were judged as FHC and resisted in FRB. The development only cost teens years. There also formed some FHCs such as CITIC Group, China Everbright Group and Ping An Group etc. in China which proves the China's common pace with world trend of financial development. Meanwhile they also generated some problem during the past year. So it is not difficult to understand why the writer's analysis focus on why and how to develop FHC in China. The way how to analyze the problems is as follow: At first this paper explicates the concept of FHC and the situation of FHC in the whole world, especially in China and researches the framework of FHC by analyzing two typical FHC which are CITI Group and CITIC Group; The next part is on the necessity of developing the FHC in China which is decided by the FHC's internal and external benefits; The next part focuses on the risk of developing FHC in China and it is inevitable to neglect such risk.; and the next part concerns how to develop the FHC in China. It includes how to form and perfect FHC in China and control risk internally; the last part analyses how to supervise the FHC to reduce the risk generated by FHC externally and systemically...