Samsung will create a financial corporation in China

Samsung will create a financial corporation in China

In order to increase the effectiveness of managing the capital of its subsidiary enterprises and outsourcer support, Sumsung Electronics is going to open the bank in China, which presumably will ...

Till now, a single company hasn`t tried to create a financial institution on the continent China for  the support of the eastern Korean industrial capital.

Financial corporation is a financial organization, which allows companies, that are located on the territory of the China, to take control over the capital of subsidiary and associated companies, which makes the financial management and services more effective. Apart from that, subsidiary firms have rights to make deposits and obtain credits. 

Chinese banking regulations commission issued a permit to creation of the corporation. China financial regulators report that Samsung Group and Samsung Electronics approached CBRS with a request to issue a permit to create   China Samsung Finance Corporation. Operational documents of the new corporation can be approved till the end of the year.

However opportunities of the financial corporation are limited by its business group, corporation can operate as a bank, by floating the deposits of sub-companies and providing them with loans.

For conglomerate it is much easier to create a financial corporation in China, then in Korea, where authorities have limited the possibility to combine the industrial and financial capitals.  

By the end of 2014, according to the Chinese financial authorities, number of Chinese financial corporations, which are managed by firms, reached 174 pc.

As Samsung company planned to build a semiconductor manufacturing plant in Xian for $5,98 bln, it would be profitable to create a corporation on the territory of China.

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