The Mixed Operation Regulators Of Financial Companies In China Legal System

With 20 years development, financial companies of enterprise groups in China have gradually grown into a force that cannot be ignored in non-bank financial organizations in China. As a special entity in financial market of China, financial companies are playing a crucial role in the process of combination of industrial capital and financial capital. They are also contributing a lot to financial market innovations and industrial developments. Financial market of China is facing severe challenges both internally and externally with being involved in several significant historical events, such as Asian financial crisis and joining WTO. Thus, the regulation of financial companies Mixed regulatory strategy, regulatory issues such as the object gradually.The existing legal regulation system is acting weakly to China's financial companies of enterprise groups, and just choosing the regulation fit to banking industry instead of establishing a professional legal regulation. Meanwhile, the relevant regulation requires to be publiced through the normalized documents and legal notices. Regarding the weakness of systematic and professional regulation, especially the increasing mixed business of the financial companies, the legal regulation did not provide the relevant provisions. Finance companies of enterprises groups are usually set up by large-scaled group companies. In China, most of the companies who have set up a finance company are state-owned key companies. State-owned key companies in China are considered to be an important pillar of national economy. Therefore, the service a finance company provides to his parent company can indirectly affect the development of the national economy. In this sense, the supervision of finance companies is indispensable and the position of the administration should be supportive and cautious. In regards of the mixed operation, we are still lack of experience in this field. That is actually why we insist on separate operation of the business. In brief, finance companies with mixed operation should be paid close attention, and the legislation in this field is principal.Through introducing the supervision and legislation to the mixed business of the financial company of enterprise group; analyzing the current situation of supervision and legislation; and combining the nature of financial company of enterprise group, direction of functions, future development and various factors, this article is to make recommendations to the establishment of the supervision and legislation to the mixed business of the financial company of enterprise group.