Financial institutions to provide financial services and consulting firms for their clients.

Financial institutions generally by the authority of the government financial laws and
regulations. The types of financial institutions are as follows: Commercial Banks, Credit
Unions, Stock Brokerage Firms, Asset Management Firms, Insurance Companies,
Finance Companies, Building Societies and Retailers.

In china:

1. Central bank, such as the People's Bank of China.

The formation of a government agency responsible for controlling the nation's money
supply, credit conditions, regulation of the financial system, especially the commercial
banks and other depository institutions. A central bank is the country's highest monetary
and financial regulatory agencies, the dominant position in the world's financial system.

The function of central bank:

Central bank functions are macro-control, to protect the financial security and stability,
financial services regulating the money supply, stabilize the currency plays an important
role. The central bank is "the bank's bank," which central depository bank reserves, and
their loans, act as a "lender of last resort." It is the makers and implementers of national
monetary policy, government intervention in the economy is also a tool; while for the
state to provide financial services, treasury agent, agency issuance of government bonds
to raise funds for the government; government representatives from international
financial organizations and international financial activity. The fundamental difference
between business operations and other financial institutions by the central bank engaged
in that, the central bank engaged in the business not for profit, but for the realization of
the country's macroeconomic goals, which is located by the central bank status and nature
decided. The main business of the central bank is: currency, central reserve, loans,
rediscount, securities, gold and foreign exchange accounting section, for the financing of
commercial banks and other financial institutions in clearing and funds transfer business,
etc.
2. Securities company:

Securities Company is specialized in the sale of securities of corporate enterprises.

Into securities companies and securities registration company. Narrow Securities
means securities company, after institutional approval of the competent authority and
the relevant Administration for Industry and obtain a business license specialized in
securities business. It has a membership stock exchange, may issue underwriting,
proprietary trading or proprietary trading in securities and acting. Ordinary investors
to invest in securities by a securities firm to be carried out.

The function of securities company:

From securities companies function can be divided into securities broker, securities
dealer and underwriter of securities 1. Securities brokers: Agents sale of securities
and securities institutions accept investors commissioned by buying and selling
securities on behalf of, and receive certain formalities That commission fees and
securities dealers .2: self-trading securities agency securities, which are funded,
directly into the exchange for their stock trading 3. underwriters: to help underwrite
the issuer or form consignment agency securities available for sale in fact, many
securities companies are run these three businesses. States in accordance with current
practice, the member companies can be found in the stock exchange market from
proprietary trading, but mainly devoted to the proprietary trading of securities
companies very few. Securities Registration Company is focused on securities
registration and transfer agency services. It is an indispensable part of securities
trading, and both an administrative nature. It shall be the competent authorities for
examination and approval before the establishment.

3. Insurance Companies
Insurance is a contract individuals or entities to receive financial protection
against loss or reimbursement from the insurance company. The insurance
company is a business, not a form of compensation in the loss, damage, injury,
treatment, or difficulties in exchange for premium payments generated when
providing coverage. Companies calculate losses and expenses identified risks
occurring paid to determine the amount of premium.
The function of insurance companies:

(1) the transfer of risk: Buy insurance is to transfer out their own risk, and institutions
for risk is to the insurance company. Insurance companies to accept risk transfer
because insurable risk or there is a pattern. Research by chance to find its inevitability
risks, risk control, the development of the law, to provide insurance coverage for
many people at risk concerns.

(2) the loss of shared equally: Transfer risk is not really leave the casualty
policyholders, but the insurer all financial aid to compensate for the economic
calamity damaged insured losses, for solve problems. Insurers collect premiums and
payments in the form of reparations, the dispersion of the minority huge losses to a
large number of insured persons, so that individuals bear the loss, the loss of the
majority of people can afford to become, and this is actually the loss of shared equally
to have the same risk of policyholders. Therefore, the loss of function of the insurance
only shared equally, without reducing the loss of function.

(3) the implementation of compensation: Loss-sharing is a prerequisite and

implementation of the compensation, the implementation of compensation is assessed
loss purposes. The compensation range mainly in the following aspects: First, insured
property losses due to disasters suffered; Second, because the insured disasters make
his body suffered casualties or insurance expires should the settlement of insurance;
Third, casualty policyholders because according to the law on others financial
compensation payable; Fourth, the insured because the other party does not fulfill the
economic losses suffered by the contract; all the costs of five after the casualty, the
insured subject matter insured due to rescue occurred.

(4) mortgages and investment income: Insurance Law clearly states: "cash value
without loss clause", although the customer signed a contract with the insurance
company, but the customer is entitled to suspend the contract and obtain the surrender
amount. Insurance contract also provides for the application of the 90% premium
refund loan customers as a shortage of funds. If you urgently need money, and
sometimes less than the financing, mortgage insurance can be an insurance company,
to obtain the corresponding amount of loans from the insurance company.

4. Foreign Financial Institutions

It means that the foreign financial institutions to invest in China established in the
financial services branches and wholly foreign-owned financial institution with
Chinese legal person status, the joint venture financial institutions. Foreign financial
institutions have been established in China, foreign banks, foreign financial
companies and foreign insurance companies. Foreign financial institutions to apply
for the establishment of foreign financial institutions, total assets is required to
achieve a certain scale, in their countries subject to strict financial regulation and set
up representative offices in China for more than two years. The establishment of
foreign-funded financial institution shall apply the relevant laws and regulations,
reported to the national financial authorities for approval.

The function of Foreign Financial Institutions:

The introduction of foreign financial institutions is an important way of utilizing

foreign capital. The greatest feature is its foreign financial institutions to attract
foreign investment far exceeds the size of its capital and working capital. As the
introduction of foreign intermediaries in the issuance of debt certificates or absorb
more foreign currency deposits of foreign investment into our country will, and to
provide funding to our country enterprises through loans, direct investment or indirect
investment, etc., in order to broaden the country attract foreign investment channels
for Chinese enterprises in production and operation and development of the necessary
financial support to promote local economic development played a useful role.