Research On Chinese Securities Market Structure

The concept of market structure arises from the theory of industrial organization; it embodies the extent of competition and monopoly in the market. Professor Mason and Bain constituted an analysis framework called 'SCP framework', which means the market structure decides the behavior of the enterprises in the market, while the latter decides the effect in all aspects of the market operation. So securities market structure is closely related to the efficiency of the securities company. Nowadays there are still too many Chinese securities companies, which have small scale and lacks operation feature. So the extent of differentiation and specialization is lower, and most of the securities companies are lack of nuclear competitive ability. But after the entrance into the WTO, facing the great compact from the foreign huge securities companies, our domestic securities market structure must have a thorough adjustment to improve the competitive ability of Chinese securities companies. The adjustment includes two levels: one is of the macro, which is the adjustment of the whole securities field structure; the other is micro, which is the adjustment of the internal business structure of the individual securities companies.