China's financial China's financial industry to adopt dynamic trade cooperation

China's financial China's financial industry to adopt dynamic trade cooperation ExplorationSource : Chinese papers Download Center [07-08-03 11:48:00] Author : Chen Qinghua Chen Jing-kun Editor : studa20 the reality of China's current requirements for the financial industry must implement separate operation. However, as China's financial sector to gradually adjust the structure of the capital market and the continuous deepening, "industry-operation and separate management" policy measures, in reality they restrict China's financial sector's further development.In today's world of financial securities and integration trends in the pattern of development, the complete separation of capital and currency markets, it will only seriously hampering our development of the financial sector, stifle our young insurance industry and the securities industry, is not conducive to China's state-owned enterprise reform deepens, China's market is not conducive to the positive economic foster and healthy development. To change the current dilemma, we must separate operation under the framework of the model, and actively explore cooperation in the sectors effective way.One, the market competition has forced banks and non-bank financial institutions for cooperationCurrently, due to industry-bound operating system, the traditional banking business relative shrinking, while China's banking industry is still the traditional deposit and lending business mainly intermediate business has not yet become the main bank profits. Meanwhile, many foreign banks is the original implementation of the mixed business and foreign banks operating mainly concentrated in the low-risk, low-cost, high-profit business and intermediate business on the Exchange. China's "Chinese foreign financial institutions Management Ordinance," also allow foreign banks to engage in foreign currency investment business, so many foreign banks operating in China will continue to implement mixed business, which formed a foreign banks in China's mixed business with the Chinese-funded banks operating in the sub-industry pattern. The competitiveness of differences as follows : mixed business customers to provide more comprehensive services; Mixed Management will strengthen the currency market and capital market linkages between various financial businesses for effective combinations, thus greatly reducing costs. As can operate RMB business of foreign banks in China, domestic banks face the pressure of competition will gradually increase, coupled with foreign banks relative domestic financial institutions, with its economies of scale and diversified business advantage, which is more domestic financial institutions can not match.China's banking industry to the fierce competition in the market to achieve a continuation of living space, will require financial innovation, bold exploration industry. During China's banking industry, not only with a capital accumulation, increased deposits, domestic banks bring back a new profit growth. Domestic banks and other financial institutions in the co-agents, mutual services were expanded business volume, particularly middle income this one. Meanwhile, domestic banks can also cooperate in the process of brokerages and insurance companies to share information resources, and this makes China's banking, securities and insurance sectors, such as financial services sectors are increasingly interdependent relations. This shows that the industry accelerate the development of our cooperation is to enhance competitiveness of the financial industry's internal requirements.2, and the capital market to promote the development of the financial industryIn recent years, the positive domestic economic restructuring and industrial upgrading, the state economy further reduced, the private economy, the private economy has been developing rapidly. These economic entities relatively small size, flexible operations, the financial operations increasingly focused on direct investment and financing, coupled with domestic economic development of emerging high-tech trend, the high-risk nature also needs risk investment, and not a traditional bank loans. The industrial and economic growth and transformation, to make China's capital market in a relatively short period of time has been extraordinary development, as well as the domestic banking business utility of the proposed new requirements. Meanwhile, a number of original rely on bank loans to solve long-term funding needs of the quality enterprises have begun to turn to capital markets for financing, the bank's liabilities size, capital structure and customer structure which has undergone major changes. Therefore, China's banking industry urgently with the relevant requirements of the financial institutions industry. In addition, banks, insurance companies and other institutional investors are stable and norms of the market is to promote the development of the capital market a significant force. These institutional investors without the participation of retail investors rely on the support of the capital market is not a very good development prospects.Third, the development of financial globalization of the industry trend to accelerate the process of cooperationFinancial conform to the trend of globalization, the WTO accession of China's financial market will eventually be fully opened, in order to meet financial increasingly fierce competition and the new situation of China's financial industry must deepen the reform and trade cooperation continuously explore new avenues.Hours business with financial institutions in China's international competitiveness improvement there is a certain contradiction, the specific performance of the two aspects : ① separate operation, limit our financial development of new products and new business initiatives; ② separate operation of China's restrictions on the formation of financial institutions mergers and acquisitions, and financial innovation and cross-sectoral the merger is to improve our international competitiveness of financial institutions, an important magic weapon.China's financial sector since the opening, not to mention to the international market with developed Western financial institutions compete, in our own land and foreign financial institutions to take advantage of new financial instruments to provide a full range of services, and financial institutions in China because of industries operating separately, the apparent lack of superiority . Because these new financial products are banking, securities and insurance industry cross-integration is the result of three hybrid products industry. For example, China's banks to open in addition to the savings income from the new source of profits, in addition to the table for business innovation, and more importantly the conduct of business lists, and lists more business with the securities industry, the insurance industry related to derivative products. For example : insurance securitization is based on different types of insurance, with stocks, bonds, derivatives and other financial instruments business with the Securities will combine the business process; Asset securitization has many financial institutions need to provide supporting financial services. In a separate operation under the conditions it is very difficult to do, we have to adjust in this regard, we can improve our financial industry's international competitiveness.Since the 20th century, since the 1990s, the international financial industry mergers and acquisitions surged, after another wave of cross-industry mergers, mainly because of the global financial industry competitive advantages of scale recognition. Through mergers and acquisitions, the international banking industry more and more involved in the securities, insurance and mutual fund management, including the National Bank of Paris Peregrine Securities part of the company's acquisition of assets of Asia began involving the capital market; Travelers Group merged with the formation of Citigroup, its operations generally involve commercial banks, investment silver Bank and the insurance industry and other fields. Again in December 1998, Deutsche Bank acquired Bankers Trust Company, primarily to expand the size of the market occupied, the complementary strengths, achieve synergies. In China's largest banks, only the Bank of China in the international market higher, but with big international banks compared, it is still rather large gap. In order to improve China's banking industry's international competitiveness, and it is inevitable to expand the scope of business and industry follow the path of acquisition, but separate operation of our system of cross-industry mergers and acquisitions.Separate operation in the framework of the WTO trade in services easily cause friction. China's accession to the WTO, if it still insists on separate operation, service trade friction is not immune. For example, entering the country most of the foreign banks in their home countries is being implemented in mixed operations, in this context, China will face a dilemma : If they in China enjoy "national treatment" -- not to engage in securities, insurance and trust services, in accordance with the principle of reciprocity. domestic banks in their countries can not run the business, it will not be with the other countries of banks in the country to unfair competition, China's banking industry's international competitiveness will be greatly weakened. If we allow foreign banks operating in China's securities, insurance and trust services, so as to domestic banks is not fair. Foreign banks in such circumstances would enjoy a "super-national treatment", which will affect China's banking industry's international competitiveness. Therefore, we must actively create conditions to promote China's financial industry trade cooperation.4, the financial industry practice in the industry to accelerate the development of cooperationSince the second half of 1999, the management of the financial sector gradually introduced to the market a series of deepening and deregulation as the keynote of reform measures. For example : insurance funds (total assets of 5%) and three types of enterprises can directly or indirectly invest in stocks; Securities companies from the bank loan market based on net assets of a certain percentage of funds lending, stock-secured loans, but also can directly listing and financing. Early in 2000, the central bank and the SFC will allow qualified securities companies to self-shares and securities investment fund certificates as collateral for loans to commercial banks. In 2001, the China Insurance Regulatory Commission also approved four other safe companies bought securities and securities funds rate from the end of 1999 the total assets of 5% to 10%. Whether it is an insurance funds or other forms of capital into the money market, brokerage or other non-bank financial institutions to enter the currency markets, all indicate industry tremendous prospects for development.In recent years, China's financial sector resources reorganization and mergers and acquisitions occur first entered the China Everbright Group Shenyin Wanguo Securities, formed in the banking, securities, insurance and asset management as its pillar industries Financial Group; Industrial and Commercial Bank of China after the acquisition of Union Bank of Hong Kong Ltd., the China Construction Bank and China Life Insurance Company reached an all-round cooperation agreement and the newly established Chinese financial assets management companies. These resources reorganization and mergers and acquisitions process of China's financial industry in the sub-industry operating under the framework of cooperation between industry provides a large number of practical basis, but also help improve China's financial institutions corporate governance structure.5, the existing laws and regulations for the financial industry have the spaceIn 1995, "Commercial Bank Law" stipulates that commercial banks can operate, "the issuance of financial bonds" and "agency", "agent banks, underwriting government bonds", "the sale of government bonds," such as business, which in itself is business investment banking business. In August 1999, the central bank issued rules allowing qualified broker, the fund management companies to enter the interbank market, engaged in lending and bond repurchase operations; In October 1999, China Securities Regulatory Commission and China Insurance Regulatory Commission also agreed to the insurance fund into the stock market. Early in 2000, the central bank and the SFC also allow qualified securities companies to self-shares and securities investment fund certificates as collateral for loans to commercial banks; In October 2000 issued an "open fund management Interim Procedures" stipulates that commercial banks can open-end fund trading, investment - the administration and management, increase revenues and enhance competitiveness. In 2001, the China Securities Regulatory Commission allowed commercial banks launch fund management companies, commercial banks involved in the operations of the Fund, this is a silver certification needs, but also promote cooperation in the financial sector's rapid development