Research About The Mode Selection Of China's Financial Holding Conglomerates

In the 2000s, China joined in the WTO, according to an agreement with the World Trade Organization, China would entirely open the market to foreign financial institutions. So once the full liberalization of the financial sectors in China was achieved, China's financial institutions, particularly banks would be one of the industries being shock. In view of this, in response to the upcoming competition, China's financial sectors had accelerated the commercialization and the group transformation with the government sector's support and guidance since 2005. Until 2009, China's five largest state-owned banks had achieved the listed, and the number of A-share listed companies in China's financial institutions reached 38, covering banking, securities, insurance, trust, investment and other key financial areas of the large enterprises. At the same time under the strong auspices of the relevant departments, a large number of diversified financial conglomerates with a mixed operation appeared.Today, China's accession to WTO has been almost ten years, foreign financial institutions in China have been developing, but we can also see the development of Chinese financial companies is more rapid, they are not only maintained competitive advantages in the financial fields, and begin to actively participate in international competition. It is a good development momentum for China's financial industry. However, on the surface, for this competitive advantage, we often link to their monopoly positions in the history and the great support from the government, the competitiveness of its own compared to the foreign great financial conglomerates is still not clear. Particularly financial enterprise groups through the financial holding company to achieve a mixed operation, their mixed operation really achieved the desired results? Their group is truly durable competitive advantage? Whether different development models to establish the various types of financial conglomerate has economies of scale and scope of the economy? Whether China's financial enterprise groups is selected right with China's actual conditions? These need to be summed up with the answer in theory.In 2008, China promulgated the "financial sector development and reform of the' Eleventh Five-Year 'plan" which had clearly put forward to encourage financial institutions to establish financial holding companies, to promote capital flow in different markets, to improve the allocation efficiency of the financial market as a whole. This makes the study of financial conglomerates very practical significant.The purpose of this study is to use the DEA model to analyze operating efficiency of a sample of the Chinese financial conglomerates, and then use the improved DuPont analysis system to compare their operating results, which reveals the emergence stage of the operation of financial conglomerates' effects, especially whether China's existing development has reached the expected goal comparing several models, and the choice of model of development proposals for domestic financial institutions, finally we attempt to provide theoretical support for innovation.