Study On The Legal Issues Of Financial Holding Company Of China

The financial holding company (FHC) created according to 1999 Financial Modernization Act has become one of the main organization forms of the conglomerates coexisting. In order to evade the present regulation, some financial companies and enterprise groups in China have created a certain sum of FHCs or something like this, but the lag of the related laws and rules is becoming the barrier to the practice of the FHC. At present, we should study the principal model of multi-operation business from developed countries, and select the suitable one for China. That will provide theoretical reference to the multi-operation business of China finance in the future. Basing its analysis on the legal and economic theory, the article uses such ways as historical analysis and institutional comparison to make a preliminary normative and positive legal research into FHC, with the hope that it will contributes to the construction and consummation of the related institution. This thesis has three features on research method. First, the paper researched plentiful contents and reference literatures. Second, the paper analyzed large quantity of foreign reference literatures, which elaborated opposite opinions. These opposite opinions helped the author knew the fashion opinions and trends abroad. Lastly, the author proves by example and historical analyzes and antithesis. Combining the reality of China with the practice in the west, the author gives good elaboration on the problem of FHC in China, and presents some shallow views. The article mainly consists of the preface, the main body and the concluding remarks. The preface makes a general introduction to the internal and international backgrounds of the development of FHC, and the points out that studying on the legal issues of FHC is so necessity and urgent. The main body is composed of five chapters: Chapter 1 analyzed the theory of the FHC. First, the author introduced the changes of finance pattern ——from the dispute of separate operations or universal operations to FHC. Second, the author elaborated the reasons of developing FHC in China. Third, the author analyzed the dominant positions and risks of FHC. Chapter 2 introduced anti-trust system of the FHC, analyzed risk of monopolization. With respect to introduction and comparison of legal systems on FHC in America, Japan, and other developed countries, the present paper analyzed the historical development of FHC in the world. The author also introduced the rules and regulations on FHC in anti-trust laws. Chapter 3 studied on firewall system of FHC. First, the chapter analyzed the interest conflict and the disadvantages. Second, the chapter discussed and analyzed from legal angle on firewall system. Chapter 4 introduced the legal supervision on FHC. In this part, the author analyzed the problems of supervision on FHC. Then the author gave some suggestions about supervision on FHC in China. Chapter 5 compared the characteristic of FHC legislation in the world. With respect to comparison and studying on the practice of China, the author gave some suggestionson FHC legislation.