The Comparison Of Financial Operating & Supervising Systems Between China & America

The financial industry is the core of one country's economy, for the financial market is the stage of financial actions. As a result, whether the financial market is operating efficiently, safely and healthily forms a significant issue which plays an important role in the development of economy. With the trend of globalization, the trend of financial globalization is more and more obvious, and also the financial competitions among the countries have become more and more vehement, and more financial innovations have come into existence. So it is necessary for the financial industry to find a more economical and safer developing space. The mixed management is an ideal choice. On one hand, it can bring about a large amount of economic efficiency, and on the other hand, it can spread around the risk meeting the financial industry's needs of safety and stability. Many developed countries have changed their systems of financial management into mixed management and mixed supervision by changing their laws. Especially the USA, the Jacket Collar of the international financial system, has past the The Morden Act on Financial Service in November, 1999. And after then, the financial industry of the USA has turned in to a new era of mixed management. With the appearance of the Act, the system of the financial supervising in America has changed a lot, which has changed from the mode of separately trade management and separately trade supervision before reformation to the mode of mixed financial holding rights and the system of "umbrella felt" management plus functional management after the reformation. Since November, 11,, 2001, our country has become a full member of WTO, and we have promised that the Chinese financial market would be entirely opened to the foreign capital until the year 2007. Although several foreign capital which should manage in mode of separately trade management have been limited by Chinese law, most foreign capital banks work in the mixed financial holding modes. The mode of which China is holding now is separately trade management and separately trade supervision, and it has become a brief block for China to develop the financial market, which will probably weaken Chinese financial organizations' competitive abilities in the world's stage. Because the traditional system of management and supervision has seriously blocked the process of Chinese financial development, it is necessary for us to hold on a reformation against the contemporary financial system. This article has minutely discussed the economic background and social environment which brought up the American mode of mixed financial holding company and the system of "umbrella felt" management plus functional management, by studying American laws on financial management. Moreover, this article has also introduced the economic background where Chinese financial market is growing, and Chinese social environment. After that, the author has compared the two systems of the two countries, and then has led to the final conclusion: China can transplant the financial system and law system of the USA, which is to use the power of legislation to guide the reformation of Chinese financial system. And finally the mainland will establish a mode of mixed financial holding company and the system of "umbrella felt" management plus functional management, and as a result, Chinese finance will have a steady and healthy development.