The Research On The Double-level Strategic Alliances Of China's Securities Companies

China's sustained economic growth, especially its double-digit growth in the past five years, has enabled China to become the fourth largest economy in the world at the end of 2006, in terms of total economic output. In 2007, China's GDP reached 24.95 trillion RMB, foreign exchange reserves also ranked first in the world with 1.53 trillion USD; China became a major force impacting the world economy. Relevant research study indicated that China's economic growth will continue for a longer period of time. The 17th CPC National Congress' requirement of quadrupling the GNP per capita in 2020 compared to 2000 has set a higher demand for the entire capital markets and securities markets. Currently, major developed countries in the world all have well adapted and matching stock markets and capital markets, as well as matching securities industry groups and securities firms that are in line with the requirements of developing national economy. The continued development of high-performance economy in China has provided an extremely broad operational space to securities firms and capital markets in the future. Furthermore, the development trend and evolution of the international securities industry, as well as high degree of concern on China's markets, have resulted in higher requirements on the development of China's securities companies.Based on the context of the current environment, this paper is a study on the future development of China's securities companies. According to the development and trends of the international securities industry and specific conditions of China's securities companies, this paper first discusses China securities companies' functions and future development goals; followed by examining the current status of securities companies in China and pointing out gaps and barriers to the development, as well as competitors' threat both internally and externally. Through comparative analysis of the existing development path of China's securities companies, the paper concludes, which is also the key point, that at current stage, with China's securities companies as the core, China should concentrate on forming double-level strategic alliances involving domestic and foreign financial institutions. More details of its definition, characteristics, structure and other related analysis have been included in the paper. This paper also includes topics on the motivation of China securities companies' double-level strategic alliance; the advantage of current conditions and the favorable external environment, it also stresses that it is the right time for such development.Based on this concept and combining strategic alliances related theory, this paper carries out a detailed analysis and elaborates on steps of building the doule-level strategic alliances in China's securities companies. The first is the study on the selection of partners. The paper establishes optional models for vague assessment. The second step is the formation of the first level strategic alliances. The paper argues that China should set up the financial holding companies with Chinese securities companies dominating the field as the first-level strategic alliances' main form. Then the study analyzes such type of financial holding companies. On the basis of the first level strategic alliances, the paper proposes formation of international joint-venture financial companies as the main form of the second level strategic alliances and gives a comprehensive description of this double-level strategic alliances and its corresponding path of formation. At last, the paper discusses in an extra chapter the risk prevention and relevant policies for the double-level strategic alliances of securities companies in China.As a result of the highly practical research content, in order to test conclusions, this paper has used methods such as statistical survey analysis and case studies related to the empirical test. By reviewing of the statistical result and a comparative analysis of the cases, good empirical and test results were effectively obtained for the main conclusions of this paper.In addition, the paper gives an analysis of the impact of the 2008 global financial crisis starting from 2007 on the international securities industry and on the result involved in the study of the double-level strategic alliances of securities companies in China.