Within The Financial Holding Company In China Related Transactions Risk Control

Since the 1990s, financial innovation and financial deregulation has become a global trend. The United States, Britain, Japan, and other major developed countries have to abandon the operation of the financial strict requirements to allow financial institutions in the banking, securities, insurance, trust and other financial business with mixed operations. At the same time, China's financial industry has been operating at the industry in the framework of development. Of course, different financial structures must be placed on their evaluation of the economic environment in China and the international trend that runs counter to the practice of at least a certain period of time in the development of China's financial industry has played a positive role. But now, the drawbacks of this approach have been exposed, the implementation of the requirements of mixed business and now mixed business trends already apparent. "11th Five-Year" plan has been clearly put forward: "guiding the comprehensive management of the financial industry and the development of financial holding companies" as the "11th Five-Year Plan" period of financial reform and development of the 10 strategic priority. But with the end of the protection period the WTO, foreign financial holding companies on China's financial industry will inevitably impact, and the financial holding company own shortcomings, China's financial holding companies is also faced with great risks, the financial holding company risk-control studies have become a pressing demand. People's Bank of China "issued by the China Financial Stability Report" pointed out that in the comprehensive management of the financial group, a subsidiary of the risk of the transaction through very easily transmitted to the group of companies in other industries, leading to the risk of cross- industry and inter-market transfer. Therefore, the control is the prevention of financial transactions related industry consolidated operating risk the core issue. This paper is based on the above background, the financial holding company for the object, its internal transactions with the associated risks arising from the risk factors and control measures and other issues were discussed.