Study Of Operation And Management Pattern Of Guangdong Finance Financial Holding Company

As a financial innovation of organizational system in the wave of financial liberalization, financial holding company comes out in the process of transfer from separated business to combined businesses. It is characterized by the combination of combined businesses from parent company and separated businesses from its subsidiary companies.Financial holding company owns the advantages of economy of scale and of economy of scope. By optimizing the internal resources in financial holding company, it could realize the target of increasing total profits and reducing total risks as well as exerting synergistic effect. While developed countries are facilitating the development of establishing Financial Holding Companies, it boosts the course of global capital flow and financial integration which by a long way upgrades these countries' financial efficiency. Predictably, the pattern of financial holding company is a trend to the prospective development path of China's financial institution. Nowadays, both national and local financial holding companies in China have emerged.Based on the theory of banking, marketing and management of enterprises, this paper is devoted to applying the methodology of both normative study and empirical study to elaborating on the history of the development of Financial Holding Company from which some experiences have been drawn. Other than that, this paper puts forwards some advices on how Guangdong Finance Financial Holding Company select their own operational management pattern, analyzes how to develop its combined businesses and conducts synergistic effect, make itself grow bigger and stronger and make contribution for Guangdong's perspective of establishing itself into a powerful Financial province.This paper is organized as follows. Section one outlines the background, significance, structure and methodology, comes up with the necessity of establishing Financial Holding Company in Guangdong. In section two, a literature review from home and abroad is presented, and their essence of operational management pattern from the review is provided as the theoretical support for the practice of financial holding company, the operational advantages and risks is also analyzed in this section. Section three brings forward the motive of establishing Guangdong Finance Financial Holding Company and problems such as the distemperedness of state-owned property right and corporation governance structure. Section four demonstrates the various operation patterns of overseas financial holding companies, by analysis and comparison, the essential experience of establishing Financial Holding Company is summarized for the practice in Guangdong; meanwhile, a brief introduction of our country's practice of establishing Financial Holding Companies is referred for Guangdong Finance Financial Holding Company's practice as well. Section five brings up explorative ideas on how to establish Guangdong Finance Financial Holding Company. By taking Guangdong Finance and Investment (Holding) Corp. Ltd. as the based institution in realizing the target of establishing a Financial Holding Company, the paper concludes with analyzing the feasibility and the selection of operational management pattern, exploring ways and means through which resource integration, synergistic effect and the establishment of risk prevention system could be achieved.