Financial Holding Company Regulated By The Laws Of Research

Currently, international financial markets switch to the pattern of mixed management.The diversity of business of financial improved the competences of foreign finance, in thefinancial markets. It is the last year for us to protect the finance trades, the financial market ofchina will fully open to the foreign capital after 2007,by then, a large number of patterns ofmixed management must be brought into our country by foreign banking and financialinstitutions. This requires us to step up the financial reform and accomplish the transportationfrom the separated management to the mixed management as soon as possible. In order todeal with the international competitions, there have already popped up a large number offinance holding companies with much diversity which touches upon all kinds of financialtrades, even upon industrial and commercial entities. Finance holding companies are "a swordwith double blades", though the diversity of its business enhanced the competence of financialconstitution, and brought the attractive profits, they also brought the great risk to the financialmarkets. It is not a long time since the financial market were established in China, and themarket would also be open to the world fully, there is legislation aimed at financialproprietary company ;we are still lacking of experience of transnational supervising. Itrequests a higher demand for the financial supervisor and it becomes necessary concerns forlaw-makers, which is urgent to solve, to know how to reduce the financial risk, how tosupervise the financial holding companies, bow to carry on the positive ness of financialholding companies, and how to stabilize the financial system. By researching on those financeholding companies, presenting in China, this text summarizes their legal characters andproves the practical meanings of their existence. According to the present financialsupervision in China, We must choose suitable methods and principles of supervision onfinance holding companies. We ensure the high quality of the finance holding companies byunifying the rules of the company's entrance and leaving. This text mainly discusses capitaladequacy, information revelation, linked transactions, internal control system and so on,suggests the supervisor to supervise the f finance holding companies stricter through theseaspects. Finally, laws concerning finance holding companies were established, imposing...