Trans-sectoral products objectively call for more comprehensive functionalities of financial institutions. From the perspective of the current practical situation in China, supervisory organizations take on de facto acquiescence toward the advent and development of financial holding companies. It is recognized that the extensive branch network and long-term special information of customers in the financial institutions provide opportunities for development of trans-sectoral business.
It is observed, therefore, that the development of market demand and requirement of resource sharing have exerted impact on the old, divided supervisory conception that financial institutions be supervised by the issuers of “Certificates of Birth” (permits for operation). In fact, it is not necessary at all to set up hurdles between functional supervision, market entry and development of financial products.