Research On Financial Antitrust In China

Highly efficient and healthy operation of Finance is important for rapid development of economy. Financial monopolistic behavior would undermine the financial market competition mechanism and influence the efficient allocation of financial resources, result in the poor monetary policy transmission mechanism, and harm the interests of consumers, thus affect the efficiency of the financial sector and the overall economic benefit. The set-up and effective implementation of financial antitrust can maintain fair competition of financial market, improve financial efficiency, enhance social welfare, and safeguard the stability of the financial system. Financial antitrust refers to a kind of the financial management system for the purpose of safeguarding the free market competition system of financial market and in the form of legislation against anti-competitive behaviour of financial market.This study researches on China's banking industry as the core of antitrust issues of China's financial industry. China's banking system has carried out a series of reforms, but the four major state-owned commercial banks still hold almost half of banking market share and competition in the banking sector is inadequate. Moreover, global financial mergers and mixed-operation is the trend of finance, so China should establish an effective financial antitrust system as soon as possible.This paper first introduces the related concepts and theories of monopoly and anti-trust, as well as the legislation practice of antitrust laws in others countries. On this basis, it introduces the concept of financial antitrust and analyzes the relationship between financial antitrust and banking franchise value, pointing out that the implementation of financial antitrust policy won't necessarily result in the banks taking risks, increasing the vulnerability of the banking system. Then, the paper analyzes the banking market structure of China and the necessity of financial antitrust of China linking with the United States antitrust practices and the trend of global financial mergers and mixed-operation. At last, it proposes meassures of financial antitrust in China on the basis of refering financial antitrust experiences of other countries...