China's Financial Sector By A Separate Operation From Multi System Analysis

Integrated operation has become the mainstream operational institutional arrangement of international financial industry nowadays. China entered WTO at the end of 2001.Prevailing in the world, the institution of integrated operation will certainly influence the developing direction of China's financial reform. In a sense, financial industry's transition from separated operation to integrated operation is a kind of phenomenon of institutional choice and institutional change. This paper studies the inevitability, organizational model and strategic process of integrated operation of China's finance mainly from the angle of new institutional economics. Chapter one simply introduces the theory of institution and institutional change in the frame of new institutional economics, defines the operational institution of modern financial industry and its two types-the institution of separated operation and integrated operation, states theoretical argument of the advantages and disadvantages of separated and integrated operational institution, and points out it is significant to make an institutional analysis of China's finance's transition from separated operation to integrated operation, thus laying the theoretical foundation of the following chapters. Chapter two firstly proves the existing rationality of the separated operational institution in present China, secondly analyses the disequilibrium of current institution of separated operation in China, thirdly states that the integrated operation has institutional advantages under the modern open condition, and finally points out China has had relevant institutional arrangemens of integrated operation, thus drawing a conclusion that it is inevitable for China to put integrated operation of financial industry into practice. Based on the premise of analyzing the relation between organization and institution, chapter three introduces and compares three typical organizational models of integrated operation of financial industry in the world, analyzes the adaptability of three organizational models in China, conies to the conclusion that China should adopt the model of pure financial holding company within near-middle period, and puts forwards the institutional arrangements of developing China's financial holding companies at macroscopical and microscopical aspects. Chapter four regards the gradualness nature of institutional change as theprerequisite of analysis, points out China's finance's transition from separated operation to integrated operation is a gradual process of institutional change from the two aspects of "the wide institutional gap" and institutional change subjects, proves the pace of China's finance's moving towards integrated operation should be accelerated appropriately on basis of "advancing gradually" from the two aspects of necessity and possibility, states the strategic train of thought of China's finance's moving towards integrated operation gradually, and finally puts forwards some proposals of accelerating the process of integrated operation of China's finance.