Study On Forming Financial Holding Group In Henan Province

Finance is the core of modern economy. Developing financial industry has great significance in optimizing resource allocation, speeding up the upgrading of industrial structure adjustment, promoting economic growth mode transformation, improving the level of investment and financing, enhancing the economic vitality and other aspects.In recent years, the financial industry in Henan Province has made considerable progress and has supported the rapid economic growth of the provice. However, the over development level of local financial industry of the province is still relatively behind, mainly focus on:the financial institutions'resources are decentralized and their scales are small, the innovation ability of financial industry is not strong, there is lack of financial leading enterprises, the industry competitiveness of the existing institutions is weak. In order to settle above problems, promote the integration of financial resources, play a synergistic effect and strengthen local financial institutions' comptetitiveness, it is a feasible way to set up a local Financial holding group.Setting up local financial holding group in Henan Province has been included in the agenda and put into practice. Henan Provincial Government in 2007 enacted the "the plan of construction of a regional financial center in Zhengzhou" proposed to "build Henan Province Investment Group","building a financial holding group whicn makes capitial opearation as the core, Henan emergin leading industries and infrastructure as investment and financing priorities, and combines the industrial capital and the financial capital, and making the financial holding group to be a investment and financing platform on which the government can contral macroeconomic and guide optimal allocation of resources."Henan Investment Group in October 2007 has been formally established, that is Henan Provincial Government's investment and financing platform. In the Henan provincial government approval of the investment group and the overall mission responsibility, explicitly includes" investmenting the securities, trust, insurance, banking, funds and other financial institutions, integrating local financial assets." Currently. Henan Investment Group has holding Kaifeng commercial bank, Central China Securities Corporation and Zhongyuan Trust, shares of Zhengzhou Commercial Bank,is leading building Central China Insurance Company, which has shown the prototype of financial holding.It is also the enterprise group which grasp the most financial recourses in Henen Province and most likely form financial holding group.Henan Investment Group now has cleared the development strategic, positioning and strategic focus,subsidiary management, organizational and other specific measures,and has made the unified strategy arrangement of holding financial institutions,at the same time,has cleared the focus of development adjustments, keeping try to do its best to build Henan local financial holding group.In this paper, through the deeply analysis of foreign financial mixed operation, related theories,practice operating pattern, the economic development of Henan and the financial recourses,firstly the advantages and disadvantages of combining local financial resources and building financial holding group on the basis of Henan Investment Group have been deeply analyzed;secondly the development strategies and adjustment priorities of Henan Investment Group and its holding bank, security company,trust company and insurance company have been discussed.