Finance Company: Research On Mode Of The Amalgamation Of Industry And Finance Inside Chinese Enterprise Groups

The theoretical analysis about the Chinese pattern selection of the industry and finance's combination have great practical significance in the process of developing the industry and finance's combination in china. Currently, there is short of systematical research on the theory of industry and finance's combination, however, We should combine producing with financing, which is of vital operation significance to build internationally cometitive enterprises and consequently the economy.In practice, the amalgamation has various implement modalities and carriers. The endogenetic finance company which is set up inside enterprise group and is controled by leading industrial capital is one of implement modalities. As a implement carrier, finance companies have been found and adopted by international enterprise groups generally. However, Chinese financial constraints limited our countries' finance companies development that not only resulted its quantity was few but also made its capital resource was 1ack and business simplified. Finance company can not effect on industry development deeply. 2004 new Policy for Chinese finance company was executive. It opened the door for setting up foreign sole ownership finance company in China. Undoubtedly, this will stimulate multinational corporations financial service come into China since its industry penetrating. Whether Chinese enterprises or its internal finance companies have to con front with flinty challenge. So the study on the prime implement route of amalgamation of industry and finance inside our enierprise groups and finance companies' business mode has very realistic meaning.In the article, firstly, based on the theory, it analyses the amalgamation strategye's generation reason, the positive and negative effect it can bring, then point out that the success and failure lie in the balance between the industry and finance structure. This stretety need to be realized in practice, so enterprise need to choose an optimiz. Secondly, using decision-making tree method and simple empirical analysis to compare extenal holding finance and internal setting routes, it finds out that the endogenetic finance company is Chinese groups' most rational choice in current phase. The gap brtween GE capital and Haire Finance company can be regard as the gep between Chinese finance company and the Foreign, the case analysis gives a realize dreference for finding out the problems in Chinese finance company. Finally, it tables a practical propose on these problems,then points out there is big zone to exploit in the new management Policy.The article bases on New Institutional Economic and enterprise management theory, stands on leading industry. Adopting criterion research method principally and combination simply empirical secondarily, it divides several implement route clearly and creates the glossary-endogenetic finance company originally. The purpose of this article is creating an effective finance company business mode to guide practice work when entrepreneurs do the strategical lay-out.