China's development strategy seminar financial companies

Abstract: In China, the financial companies in the machinery, electronics, automotive, energy, oil and other important industry of large enterprise groups as needed to establish a subsidiary within the group, is the company within the group of financial services by improving efficiency in the use of funds for the enterprise production and business activities to provide financial support to promote the sustainable Development of enterprises as independent subsidiary finance company to obtain a rapid Development, but also faces some problems, the Article from the basic situation of China's financial companies, analyzes its Development advantages and problems, and targeted some of its future Development strategy for specific recommendations.

Keywords: finance companies, Development strategy, the proposed

In our practice, the finance company is a large group company approved by the relevant agencies (now the CBRC, the group established a subsidiary, financial companies set up to help strengthen the Group's internal capital allocation among the members, to meet the intensive intra-group management of capital needs, improve the efficient use of funds with the Group's competitiveness and for the Group's development provides a solid backing, and in promoting the Group's development but also promote their own development.

First, the company's development of China's financial strengths and problems
(An advantage of China's development of financial companies
From the current point of view, the establishment of the enterprise group finance companies, mostly large-scale enterprise groups and the state-owned enterprise groups, such as PetroChina, Sinopec, Baosteel and other large groups, from the sources of funding, business support, in terms of enterprise groups is the most good guardian to their respective business groups backing a strong economic base, the financial development of the company a big advantage.

In our country's financial companies are generally invested by the Group established Group is the absolute controlling shareholder, the company is to grow the current financial period, its development of enterprise groups as the basis, playing to strengthen centralized management of funds to improve capital efficiency and financial cost savings The main function of the specific business development process to obtain the support of enterprise groups, the development of significant advantages, which will be settled from the group center is usually located in the financial companies, but also many members of the business accounts and other financial companies can be seen these Finance companies are the advantages of the existence and development.

(B Finance company problems
1, management concepts and capabilities to be enhanced. China's first financial company was founded in 1987, the development finance company in China has experienced 20 years before, and as early as 1878, the first U.S. financial companies HouseholdFinance stArted in minutes payment period for the business, so financial companies in our late stArt, lack of historical experience. In addition, many of our existing guidance are borrowed from foreign experience, but any experience will take time to digest and localization, at this stage, financial companies face the inevitable need to improve management philosophy, innovation and other issues need to upgrade.

2, the staff structure to be adjusted and improved due to the basic financial company set up by the Group's investment, so the internal staff to work more from the Group Finance DepArtment and other depArtments directly deployed over the finance company through independent external recruitment and selection of staff is limited. Employees of financial companies more from the group, giving play to its strengths are familiar with the Group's business, thus helping to carry out specific operations, but it must be noted that this part of the staff are often non-professional financial personnel, a number of specialized financial services are not familiar with. overall to say, the lack of financial expertise within the company's financial personnel, and professional quality is uneven, the specific financial advisory, financing and leasing business, are carried out may be limited, which is also the financial constraints of a company, whether the staff structure on the professional ability or have yet to be adjusted and improved.

3, a variety of support technology needs to be improved with banks and other financial institutions compared to the professional, financial companies in the financial technology and other aspects to be improved, such as billing, backward, city clearing, settlement and other CUP's settlement means available to limit the use of need to rely on banks for some financial companies for some reason can not make full use of large centralized data processing information systems supporting the business, such as some companies have not implemented ERP (enterprise resource planning and CRM (customer relationship management and other large information systems.

4, the sources of funding to be extended. Financial companies a single source of funding compared to absorb members of the unit types of deposits as the main source, only a few companies to adopt a way of lending, issuance of corporate bonds, little use of external financing, funding sources, often confined within the group, the narrow channels.

Also noted that the financial company's shareholding structure of a single controlling shareholder base is the Holding Company (Holding ratio of more than 80 percent, the equity structure of this single led to the financial group's lack of external oversight, which to some extent reduce their enthusiasm and innovation.

Second, the company's future strategy on financial recommendations
Development of financial companies affected by external factors of macro environment, but also by internal philosophy, the quality of staff and other constraints. Article that in the current environment, the financial company's overall direction of the basic strategy is: one to pay attention to macro- environmental trends, according to the policy changes to adjust mode of operation. Second, we must continue to take root in the enterprise group, according to the development of the Group's business and make business adjustments, insisted that "for the group service" as the core purpose of the operation principle and operating characteristics of the , on this basis to remain independent existence, such as consumer loans, and product development groups to become members of the business investment consultants, etc. Third, we must improve the company's own financial strength, integrated staff structure, focus on key business does not relax, member companies must develop of deposits and loans and other major business, other business with other financial institutions with the handle. Specifically, the following aspects can be refined from the development strategy: Links to free download http://www.hi138.com
First, as the country's financial companies are still at the exploratory trial stage, coupled with the current economic environment is becoming increasingly complicated, ever-changing variety of policy issues, the financial companies in the identification of specific long-term plan, to accurately forecast the economic environment, give full consideration to policy changes may be important, according to group companies and members of the unit's actual needs and to determine the direction of development and other key businesses, and make timely adjustments according to actual situation, to improve the resilience of the changing situation.

Second, financial companies set different conditions according to their direction. For the larger finance companies in terms of its large state-owned enterprises mainly rely on, so in a lot of funds and other resources can support large-scale development of the company can finance companies as the main investment holding a variety of financial subsidiaries development of a variety of financial leasing, securities issuance and underwriting and other services to achieve industry development for medium-sized or small financial company in terms of its limited capital and strength, which should handle a variety of financial services to members of the Group main business, the business professional or the integrated development of the company, not suitable for blind expansion for philosophy behind making progress, lags behind other financial service companies must adjust development ideas, or will be eliminated.

Third, deal with the Group's relationship finance companies rely on enterprise group must serve the group, to maintain their own interests and the interests of the Group in line with the group to achieve common development while maintaining their own financial advantage, to reduce the Group's business administrative intervention to improve the operation of the relative independence can also be considered to attract external funding group to join, balance and control relationship between enterprise groups to achieve the goal of strengthening the external oversight.

Fourth, to uphold the Group services, and improve self-management, pioneering initiative. Finance companies are more familiar than the Bank Group's industry background, business processes, customer and market and other conditions, the financial companies than other financial institutions to better meet the Group's financial services needs. keep the old meet the development requirements of the business group, but also with the Group's operating dynamics of doing business innovation, competitive enterprise groups to meet strategic development requirements of development and do a strong and specialized group of financial backing, such as For large-scale operation, and innovative demanding enterprise groups, are good prospects for its development should be based on funding and financing as the main business for the leading product for the business strategy of the Group, the product should be the main provider of consumer credit and other services related to .

In their own decisions and to forge ahead on GM's finance companies can learn from the experience, adhere to the Group's products in retail credit services, support groups also play the advantages of its financial business, will expand the service to the wholesale financing, car insurance, etc., and will expand to the outside of the Group's business, such as home insurance and mortgage loans.

Fifth, we should adjust the composition of the workforce, improve the professional quality of staff, first, according to the <<Finance Company management approach>> requirements, workforce composition to examine whether the "financial work in the financial or above should not less than the total number of 1 / 3 more than 5 years should not be less than the total number of 2 / 3 "requirements do not meet the requirements to make personnel adjustments or restructuring. Second, the reserves of talent to do related work to "human survival and development relating to the company," as the selection, staff training principles, hiring quality staff and operational capacity to provide targeted follow-up training again, building a professional team of business research, strengthening business innovation ability. Finally, to provide multi-channel development path, from technical, administrative management, advancement opportunities, the implementation of effective incentive mechanism to promote the ability of employees to continuously improve business and service philosophy.

Sixth, the company's overall financial operations to improve financial capability, business innovation, market competitiveness and risk control, etc. In the context of financial globalization, financial planning system financial company as a force to be reckoned, required in this environment, strengthen capacity building in technology to introduce advanced data processing systems, such as the development set of credit, settlement and finance as one of the software to take full advantage of Internet technology and intellectual development of new business employees, new products improve the ability of the development of competition.

Regardless of the choice of development finance company strategies and specific measures, the development must meet the Group's business development, we must achieve its own sustainable development, that group formation and development of win-win situation.

References:
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2, Wu Fang-ming. China Development Finance Company Strategies of [J]. Financial supervision, 2008 (12).

3, Li Wei. Comparative study of domestic and foreign financial companies [J]. Finance magazine, 2006 (5) Links to free download http://www.hi138.com
4, Ge Yue of China Finance Company problems and countermeasures [J]. Business culture (academic version), 2010 (11) Links to free download http://www.hi138.com