| International finance has met great changes in late 1990s. Advanced countries have been successively loosening their regulation of financial institutions; the globalization of finance and collectivization of financial groups have become a trend in the world. As one of the three supports in the financial field, insurance is playing a significant role. A large amount of international insurance holding groups have been established. Insurance in China experienced great innovation at the beginning of twenty-first century, which leads to the establishment of the three state-owned insurance holding groups as well as the two stock-proprietary insurance groups. This organization form has been on the dominant position in Chinese insurance market. The insurance holding groups in China are in the elementary stage. They intercourse more than two financial fields which achieves the situation of " mixed management in group,separate management in subsidiaries".As the mother company in the group, insurance holding company (hereinafter referred to as IHC) is both the capital owner and the capital manager who essentially functions control over subsidiaries.This thesis consists of four chapters. Firstly, it describes the basic concepts and characteristics of IHC; Secondly, it analyzes the risks of IHC; Thirdly, it discusses the target and principles of IHC's capital control; Finally, the thesis discusses how IHCs put controls on the capital of subsidiaries and, in particular, makes a study of the capital control of insurance asset management companies as well as the extension and constriction of insurance capitals. In Chapter One, the thesis firstly introduces the concepts of holding company, finance holding company, IHC, and insurance group, describes the present state of IHCs in China and puts forward that Chinese IHCs will definitely gain greater development; Secondly, this thesis analyzes the operational and financial advantages of Chinese IHCs, namely, intensive management of assets, financial leverage effects, scale economy and scope economy, advantages of risk management, privileges of tax management and so on; Thirdly, it introduces the four organizational models of Chinese IHCs and presents a model of future IHCs; Fourthly, this thesis discusses the basic financial characteristics of IHCs. In Chapter Two, the thesis analyzes the risks of Chinese IHCs. The main risks are: risk of unsolvency, systematic risk, internal control risk, regulatory risk and the common risk similar to that of other financial organizations. Firstly, to keep enough solvency is the guarantee of long-term sustainable development. Risks of unsolvency include deficiency in capital, deficiency in responsibility reserves, high financial leverage and failure of insurance investment. Secondly, systematic risks can be viewed from two perspectives. On one hand, both catastrophic risk and unstability in capital market will result in systematic risks. On the other hand, the invalidation of firewalls between subsidiaries spreads risks in the whole group. Thirdly, regulatory risks include three kinds: breakup risk, related responsibility risk and multinational regulatory risk. Finally, thanks to the complicated internal control in IHCs, the internal control risks are more obvious now, mainly in three aspects: risk of commission, risk of related transaction and risk of counter-interests. In Chapter Three, the thesis concerns with the general analysis of capital control in Chinese IHCs. Firstly, due to the limitation of corporate internal control, capital control is extraordinarily important which considers subsidiaries' proprietorship as its object, interests maximization of stakeholders as its essential target, stock proprietorship as its carrier of control to put all-round influence on subsidiaries business and finance. Secondly, the choice of capital control model is subjected to factors involving industrial related degree, capital relation between the mother company and its subsidiaries as well as the cost of collective control and |
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