The purpose of this thesis is to analyze the development of financial holdings companies in china. As china joined WTO, it gradually has to open its domestic financial market. As a result, for financial holdings companies in china to compete with large foreign financial groups, their business modal has to change. We will discuss how chinese local financial holdings were reacting towards the presence of large foreign financial groups and the outcome of this reaction , taking all factors that account. This thesis will also explore and compare the strengths and weaknesses as well as advantages and disadvantages between local chinese companies and large foreign companies.