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A strategic readjustment for enterprises in making investment in financial market

Sep 01,2014

By Chen Daofu 

Date: 2004/12/28

Abstract:  

In 2004, the De-Long case, the reform of financial institutions and the massive entry of foreign financial organizations into China have made China's enterprises pay more attention to strategic perspective in making investment in financial sector. Besides, more private capital is entering urban commercial banks and rural credit cooperatives with strong regional characters; foreign capital is strengthening the joint relationships with the industrial conglomerates; the government and supervising agencies are playing important roles in getting enterprise investment in financial sector. It is an inevitable trend for industries to make investment in financial sector along with economic development. The risks in financial sector are getting less, even though the risks cannot be neglected. Therefore we should base on controlling financial risks to encourage the combination of industries with finance.