Non-bank finance refers to financial institutions other than banks. The three pillars of the traditional financial industry are banking, insurance and brokerage. Because China's financial system is dominated by banks, banks are listed separately, and the rest are collectively referred to as non-bank finance. In this way, the scope of non-bank finance includes financial institutions such as insurance, brokers, trust companies, futures companies, financial leasing companies and emerging Internet finance companies.

First, the difference between non-bank finance and banks: The core difference between non-bank finance and banks lies in the form of credit business. Both banks and non-bank finance can raise funds by issuing stocks and bonds; But for credit business, only banks can absorb public deposits as a source of funds. Non-bank finance can only raise funds by providing insurance services (insurance companies), accepting credit entrustment (trust companies) and raising fund shares (asset management companies), which causes the credit creation ability of non-bank finance to be much lower than that of banks.

Second, the division of non-bank finance.

1. Insurance: The so-and-so insurance company we usually talk about is actually the concept of a group. Insurance groups can also be subdivided into: property insurance companies, companies that provide protection for property safety, such as Ping An Property Insurance and Sunshine Property Insurance. Life insurance companies, companies that provide protection for personal health and accidental injuries, such as China Life Insurance and AIA. Health insurance company, providing all kinds of medical insurance, such as Kunlun Health and PICC Health. Endowment insurance companies are mainly responsible for enterprise annuities, occupational annuities and individual and group endowment insurance businesses, such as Taiping Pension and Yangtze Pension. Reinsurance companies, such as China Reinsurance, provide protection for insurance companies.

2. Brokers: Brokers in a broad sense are not only securities companies, but also buyers and sellers in the large asset management market. The sellers are mainly securities companies. Securities companies not only provide stock account opening services. Stock account opening belongs to the business scope of brokerage companies abroad. The functions of China's securities companies are more like those of foreign investment banks. Their main businesses are securities underwriting, reorganization and merger, and IPO listing of enterprises, and they are the parties that provide resources integration services. The buyers are mainly asset management companies.

3. Fund companies, brokerage asset management companies, insurance asset management companies and bank financing subsidiaries are the four major buyers in China's capital market, which are arranged in reverse order according to the amount of funds; Familiar fund companies can only be regarded as younger brothers here. Through investment, asset management companies inject liquidity into China's financial market, maintain the normal operation of the entire large asset management market, and realize the preservation and appreciation of investors' wealth, which is the party that provides financial support.

Third, in addition, non-bank finance also includes financial institutions such as trust companies, futures companies, financial leasing companies and emerging Internet finance companies. No matter what kind of non-bank financial institution, it is an indispensable part of China's financial institution system, an important supplement to the banking industry, and one of the key signs to measure the maturity of China's financial institution system.