But with the reform of financial system and joining the WTO, that principle must be instead of the Mixed Operating Principle.

The profound consideration of the separated operation between our banking business and securities business;

Separated Operation or Mixed Operation--The Strategic Choose of Financial Operation System for China;

In the financial reform in China, the collaboration between the banks and securities companies is the realistic selection and critical stage for the financial industry of China to transform from separated operation to multioperation.

In the current situation of divided operation, it is necessary for our financial industry to use foreign experience for reference to establish financial holding companies and it is the only way to break through the legal forbidden zone so as to achieve the financial diversified operation.

Commercial banks in China should,on the premise of the resources and regulations given at the present,decide on the best mixed operation pattern,and create objective conditions for a transformation from divided operation system to mixed operation system.

Facing the direct threats and influences on the system of separate operation of our country, resulting from global economy financial integration、liberalization、service diversification and the change of the world financial development pattern, especially after entering into WTO, financial business has confronted with stern challenge.

The author holds that the commercial banks should follow some interim mode for the transition from the separate operation to the universal operation considering the drawbacks of the separate operation and the obstacles in the process toward universal operation.

Considering the weaknesses of the all-round bank system and the current situations in China,the author of the articel raises a model that separate operation of banking industry and stock industry should be carried out from the angle of financial supervision.

Barrel principle and separating operation for finance security;

By analysing the internal and external changes of financial conditions since reform of China s economic system, this paper puts forward the separating operation of financial business doesn t adapt to the tendency of China s finance development.