Binding

Basic definitions

the Combination, which combined with industrial capital and financial capital, refers to both equity relationship as a link, carried out through equity participation, controlling and personnel involved in other forms of combination . From the carrier two kinds of capital (industrial capital, financial capital) point of view, industrial capital generally refers to industrial and commercial enterprises and other non-financial institutions with capital and physical capital and currency controls; financial capital generally refers to banking, insurance, securities, trust, funds and other financial institutions with virtual money and capital and control.

Industrial and Financial Capital industrial capital to a certain extent, to seek business diversification, capital virtualization, so as to enhance the grade of a trend of capital operation. Capital links between industrial capital and financial capital, credit contact, asset securitization (stocks, bonds, mortgages or securities of real assets), and the resulting combination of human capital, information sharing, etc. combined.

From a global perspective, the amalgamation can be divided into "the yield to melt" and "melting to yield a" two forms. From the production to financial, industrial capital subsidiary, the part of capital from industry to financial institutions, to create a strong financial center; and from the financial to production, financial assets conscious control industrial capital, rather than purely shares, to obtain an average in return, the long-term financing to production will vote or industry giant into a giant industry.

In our country, due to the policy banks can not invest in industrial, bank capital and industrial capital within a difficult combination, so my country's large conglomerates the Combination of development can not be along "by the financial and production "the path of development, but mainly" by the production and financing. " Therefore, at this stage, my country's the Combination more engaged in financial services as industry groups, namely "financial investment industry."

Related Categories

1, broadly refers to the combination of the Combination between industrial capital and financial capital with financial enterprises or businesses through various forms of equity and integration of business cooperation and interaction.

2, the amalgamation refers to the industrial and financial sectors permeate through equity mutual relations and achieve mutual conversion of industrial capital and financial capital of direct integration.

3, the Combination refers to industrial and commercial enterprises and financial enterprises to keep supply and demand in terms of capital, equity, and other personnel a stable and close ties to achieve mutual integration, with the total length of purpose. Our combination of industry and finance reform began in the mid-1980s the banking system of the 20th century.

4, the amalgamation refers to the contact and collaboration industry and the financial industry, so that mutual penetration in the capital, capital and personnel, reciprocal access to areas of activity each other, and ultimately the formation of economic phenomena industry and finance entities and trend. Industrial and Financial Capital of the market economy develops to a certain stage of the inevitable product.

5, the amalgamation refers to the relationship between the industrial sector and the financial sector capital combined with each other. This relationship has a combination of different ways in different historical periods or different market conditions.

moral hazard

"the Combination" This is quite fashionable development path, to be valued by more and more enterprises and be put into practice. Recalling its domestic policy has changed several times in the history of the development, regulatory authorities, banned from the Asian financial crisis a few years ago to acquiesce, to explicitly support the current regulatory authorities, encouraged by the state industrial capital and financial capital combined with the gradual policy environment loose.

However, in actual operation, many companies in the absence of a clear policy support is still in exploration equity participation, investment, strategic investment and other forms of cooperation with banks and other financial companies, and ultimately "scarred . "

As for the implementation of the Combination of business sense, from the practice of economic development of the markets of developed countries shows that industrial capital and financial capital, there must be a process of integration, which is the objective requirements of social resources to achieve the most efficient allocation of . This fusion, the macro policy is conducive to optimizing the country's financial regulatory effect, micro-level is conducive to the rapid flow of industrial capital, improve the efficiency of capital allocation.

led financial capital is generally started by the bank's capital, by the penetration of financial capital to industrial capital, control of industrial capital with bank capital, both fusion growth. The dominant mode is the industrial capital's industrial capital, the part of capital from industry to financial institutions, to create a strong financial center.

In some Japan, South Korea and other Asian countries, the early financial holding group are basically industrial capital to support the core, mainly some type of family business groups in the process of rapid development, on the one hand to address the financing needs of their own development industry, we must also find a way out for their own accumulated in the industry a lot of money, and in order to facilitate financial transactions of their own, and gradually built up to the family business as the core, to industrial capital take control of the financial holding group.

Although the domestic regulators for the Combination does not have a clear policy, but the amalgamation has been seen as "cultivate large enterprise groups with international competitiveness" and "the only way, We must learn the lesson. "

Many companies engaged in the Combination adventurous, but also because it contains moral hazard. Financial infectious, a problem will affect a large area, and it comes to depositors, policy holders, holders of these securities a wide range of people, and therefore a problem of financial institutions, governments tend to lend a helping hand, but purely commercial and industrial enterprises the problem is that no one save of. This is moral hazard. That is to say, because I was the Combination, so I can take risks, and finally the state will save me.

In 2002, the State Council clearly encourage qualified state-owned enterprises to implement the separation of major, secondary industry restructuring, SASAC issued a series of documents. But the authorities for the central enterprises the main industry and the specific content of non-core business is not clearly defined, separation of major state-owned enterprise reform is not clear financial industry must separate core assets.

Further, the SAC expressed support for advancing the Combination central rate. SASAC for the central enterprises to invest in financial institutions, the attitude of some changes, the SASAC leaders pointed out that the cultivation of large enterprise groups with international competitiveness, we must fully understand the importance and necessity of the Combination.

In the meeting of heads of central enterprises, the SASAC for the first time explicitly support December 23, 2010, means that the current implementation of "the Combination" conditions are ripe. In short, the SASAC and other industry authorities under the control of risks stressed that the premise of the central enterprises to carry out the Combination, be encouraged, the overall attitude of the Equity Investment.

risk prevention and control

domestic financial industry development level, less financial products, financial talent shortage, the central enterprises rush to enter the financial industry can only have certain advantages in terms of size, but it is difficult a breakthrough in profitability. In addition, the Combination is also hidden market risk, industry risk, risks related transactions.

Therefore, the state suggested that prevention and control of the central rate of the Combination risk, first of all, to penetrate awareness of risk management in the Group's culture; secondly, to improve corporate governance, to build risk management platform; again, strengthen productivity financial internal control mechanism combination; and finally, the rational development of the combination strategy.