By Xia Bin　

Date: 2004/08/31

Abstract:

Emerging of financial stock-holding groups in China is not without reasons; by now there have been "sheep lost" cases. The responsible agencies must make supervision policies within a given time; the three supervision agencies plus the People's Bank must work out their differences to reach agreement to carry out their roles in supervision and management. In operation, the balance between the firewall and cooperation should be properly handled with; in terms of setting up the firewall, the main principle is to form a tight restriction, to rely on the legitimate supervision agencies and to focus on risk-aversion; the policies should be made discriminative to different categorizes in the business to assure the effectiveness of the institution; the money depositors and small investors are the major groups to be protected. To answer the challenge from the Western financial groups coming into China, an anti-monopoly law should be made soon.