Transformation Of China's Financial System And The System Restraint

Since the seventies of the 20th century, with the rapid development of globalfinancial technique and financial innovation, the tide of financial system reformation atthe center of financial liberalization has watered down into the entire world. To be morecompetitive in the global competition and to fit the virtual needs, Western countries,represented by U.S.A., Britain and Japan, successively carried on the liberalizationreform to the national banking system. One of main resorts is to give up theDivisional-Operation system. And then ,the global Mixed-Operation became the trend.Under this circumstance, especially with the China's entry into the WTO, China'sfinancial industry will be totally immersed into the global financial market. It raised acritical topic China's financial reformation needs to face: how to create a scheme offinancial operation and supervise that can facilitate China's participation in globalcompetition under current global evolutional trend and current status? Starting from theresearch on the systematic evolution and theoretic background of financial managementsystem, focusing on analysis on the system restraint and the trend of Mixed-Operationof China's financial industry, the article figures out appropriate ways and methods thatfits well into China's current status and discusses the evolution and meanings to theFinancial Holding Company. This dissertation is divided into three parts. The one is analysis and description onevolution and background international financial development of 20th-centry. In thebeginning, based on the theory division of labor of new classical economics, Thisdissertation reveal the inherent law and trend of the evolution in division of labor offinancial industry, through conducting analyzing the problems of financial developmentfrom an overall perspective; second, This dissertation discover the advantages of Mixed-Operation through applying the theory of asset specificity and modern portfoliotheory, which provides sound arguments to the evolution in division of labor andreformation of system of China's financial industry; Finally, This dissertation justifiesthe theory of the evolution in division of labor of financial industry through reviewingthe history of the transformation of financial system happened in China and westerncountries. The second part focuses on describing current China's mixed-operation, especiallythe development of the Financial Holding Company. At first, the paper conduct acomplete analysis on the forms and supervise of the China's current mixed-operation;then the paper identifies the development stage and problems of the Financial HoldingCompany through a case study on CITIC, which is the first Financial Holding Companyin China;finally, based on the analysis on current status of China's mixed-operationmodel,the paper states the system restraint to the further development and conductedpossible problems of complete consolidation nowadays in China . In the third part, the paper constructs the foundation of mixed-operation andproposes supervise model in China. In the beginning, the paper analyzes approaches tomixed-operation fits China's current status, and figured out the critical criteria todevelop the mixed-operation healthily, such as creating a system condition formixed-operation, improving the financial regulation environment; then, the article statesthat the Financial Holding Company would be the solution to mixed-operation incurrent stage in accordance with China's financial regulation situation and analyzes theregulation setting of developing FHC pattern. Finally, based on factors of China currentfinancial market and through the research on success experience of western countriesand China's current supervise status, the article makes proposals on reformation ofChina's financial regulation scheme and tentatively provides a framework of China'sfuture centralized regulation.This dissertation makes a deep research on the separation and consolidation offinancial industry, based on the theory division of labor of new classical economics...