On The Establishment And Supervision Of Financial Holding Companies In China

In the wave of financial globalization and innovation,the global financial industry has the tendency of comprehensive operation. Financial holding company comes forth firstly in the United States. In 1998, CITI corp. and Travelers Group established the first financial holding company in the world. As a great innovation of financial comprehensive operation, more and more countries start to think much of the financial holding company. In Europe, United States and Japan, the large-scale financial organization all carry on the comprehensive operation through the mode of financial holding company. In recent years, the Asian countries also surge the wave of financial holding companies. Along with the opening-up of our country's financial industry, the overseas large-scale financial holding companies, which rely on the superiority of comprehensive operation, expedite their layout in our country's financial industry. Because of the limitations on management scope, our country's financial organizations are facing tremendous competition pressure. So the financial holding company is the inevitably choice to impel our country's financial industry to the comprehensive operation. In our country, first domestic financial holding company, the CITIC Holdings Ltd., had officially been established in December 5, 2002.It started the exploration of the practices on setting up the financial holding company in our country. At the present time there are many kinds of financial holding company in our country. At present, however, our country has no laws and regulations on the financial holding company, the financial holding company's supervision and arrangements are still in process to find out, in the practices also appeared some deviations, academic circles have many various understanding on the question. Therefore, under such background, this thesis hopes to provide a clear concept on our country's financial holding company. Chapter One introduced the global financial industry's comprehensive tendency and the several modes of realization. On the basis of different definitions, thesis proposed definition of our country's financial holding companies. Chapter two is the theoretical basis of the thesis. With the Financial Intermediary Theory and Asset Specificity Theory, this sector analyzed the superiority of financial holding company. Third chapter analyzed the instauration of our country's financial holding company, including the choice of finance industry comprehensive realization modes, the financial holding company's type and instauration method. Fourth chapter carried on the analysis of the financial holding company's risk, proposed the main risk of financial holding company. On the basis of chapter four, the fifth chapter put some measures on the supervision of financial holding company. This article takes the angle of the financial holding company's instauration and supervision, the whole paper is founded on the financial intermediary theory. Thus the thesis's logic appears to be clear and structure is also strict. However owing to the limitation of time and knowledge, this thesis hasn't reflected the panorama of financial holding company, which needs further study to develop this thesis.