Shanghai, January 18- Numerous Chinese domestic comprehensive holdings groups are actively starting their layout in diversified industries and finance and investment with the sustained and rapid development of domestic economy and the gradual relaxed financial regulation, according to a recent research from Deloitte.
Deloitte yesterday issued a white paper about Chinese domestic comprehensive holdings groups’ financial and investment business, pointing out their strategic problems and also giving several corresponding solutions: they can realize “1 + 1 + 1 > 3” breakthroughs with a brand new business model integrating “production”, “finance” and “investment”.
“Both industrial capital and financial capital hope to find new sources of growth through business diversification and to expand larger strategic development space with the aid of finance capital and business combination’s synergistic effect,” Duan Lei, Associate Director of Consulting, Deloitte China, pointed out that the current beneficial external market conditions include the structural transformation of Chinese economy, the country’s guidance and support towards strategic emerging industries, the market-oriented reform of financial industry and the lower requirements for industry access as well as the rapid development of financial innovation and fintech, etc.
The white paper shows that large-scale central enterprises and state-owned industrial groups are both adhering to their main business and exploring financial business and diversified industries so as to strive for greater business development, which is much similar to the status quo of the private holdings groups.
At the same time, with a new round of SOE and state-owned asset reform, dozens of state-owned capital investment operation platforms have sprung up, playing a special role in promoting regional financial development. While large financial institutions have grasped the opportunity of much more relaxed regulation of financial mixed operation, gradually formed a comprehensive financial business pattern, further reversed to the real economy and actively entered into the related or unrelated diversified industrial fields.
Comprehensive holdings groups have various business forms but the same business logic behind. Zhi Baocai, Partner of Consulting, Deloitte China, noted that the same/ similar mode is adhering to a core business and adding diversified business as a supplement.
Almost all the successful comprehensive holdings groups both from home and abroad are following the business logic. Creating a brand new business model integrating “production”, “finance” and “investment” is a road to success, which can realize “1 + 1 + 1 > 3” breakthroughs, according to the research from Deloitte.
Zhi reveals that the next five to ten years will continue to be a good time window for Chinese enterprises to carry out comprehensive management and layout, and to develop financial and investment business.