Industry-Finance Integration to Boost Sound Corporate Development — A Case Study of Haier Group

Abstract

With the advanced development of China’s market economy, the integration of industry and finance has become a mainstream economic development paradigm to achieve remarkable economies of scope and economies of scale. Industry-finance integration refers to the internal combination or integration of industrial capital and financial capital through equity participation, shareholding, holding, personnel appointment and other means to pursue shared development goals and overall benefits in economic operation. It helps enterprises reduce transaction costs, ease financing constraints and optimize resource allocation. In practice, multiple models of industry-finance integration are available, including industrial groups with financial subsidiaries, industrial financial holding groups, and industrial groups holding commercial banks. Industry-finance integration is not only an objective requirement for the efficient allocation of social resources, but also an inevitable path for large-scale enterprises to realize leap-forward growth through the synergy between industry and finance.