| The meaning of this essay: Finance Company of corporation stemmed from the combination of Chinese economic system reform and financial system reform. After more than a decade time of development, Finance company has been one of the major kinds in non-bank finance institutions. Due to the economic and financial globalization and China's access to the WTO (world Trade Organization), multi-corporations and foreign financial institutions have brought fierce competition to Chinese Finance companies. So it is a crucial issue for Chinese Finance companies to find how the Finance companies can offer more financial service and function to promote the operations of the corporation and themselves. The major content of this essay: The first part is concentrated on the introduction of theoretic basis and history of Chinese Finance company of corporation, as well as its development since 1980's accompanied with policy changes. Using relevant data, the author analyzes the operation of the industry of Finance company and the existent problems. As a result of the enaction of (it will be called after-mentioned) in 2004 which will have deep impact on Finance Company industry, the development of Finance Companies will enter into a new age. In the second part, Bodie and Merton's functional perspective is cited. Being one kind of financial institution, Finance Company's development and change can also be analyzed using the functional perspective. At the beginning of this part, the author analyzes financial functions of American Finance Company. Then Chinese Finance Company's defects will be analyzed from the prospective of the financial demand resulting from Chinese corporations' growing in scale and internationally. Based on the changes about function positioning and business scope in the < Administration Principles of 2004 >, the author analyzes the possible basic financial functions of Chinese Finance Companies and gets the conclusion that Chinese Finance Companies should reinforce financial innovations. In the third part, it is put forward that changes in the outside environment will bring chances of promoting financial innovation to Chinese Finance Companies. Because of the deepening of Chinese financial system reform, economic globalization and China's entry into WTO, Chinese Finance Companies are facing fierce competition from multi-corporations, their finance companies, and all kinds of native financial institutions especially the challenge from banks. To offer various financial services, Chinese Finance Companies can take their three advantages and advance financial innovation. The business scope is rearranged in the < Administration Principles of 2004 >, So Chinese Finance Companies' financial innovation will have a legal basis. The author thinks that Chinese Finance Companies should concentrate on the fields of buyer's credit, consumer credit, investment banking, finance lease and so on. In the end of the essay, based on above-mentioned analysis, the direction of development of Chinese Finance Companies is also researched. At first, the trend of western Finance Companies is analyzed, which can be learned from by Chinese Finance Companies. Besides the narration about native experts' opinions, the author also proposes her own opinion. During the development of Chinese Finance Company, its feature of serving the corporation is maintained, which is the major difference from common financial institutions. Based on the functional perspective, this conclusion is reached: Chinese Finance Companies won't be socializes in a short period of time, and neither will them be separated from their corporations. In the long term, the direction of the reform of Chinese Finance Company is to highlight Finance Company as an industryfinancial institution. The major viewpoint of this essay: 1.In the development of long term, American Finance Companies have completely possessed six essential financial functions through choosing bus... |
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