A Study On Development Of Securities Brokerage System In China

Securities broker system is a very important trade system of securities market in developed countries. It helps to reduce speculation, reduce the trade expenses and improve the operation efficiency of the securities market. Today, with the standardization and development of the securities market in our country and the keen international competition, securities broker system will play a more important role in our country's securities market, so strengthening securities broker system construction of our country has urgent realistic meanings at present. The trade cost theory and the market efficiency theory are the economics foundation on which securities broker system is based. The theory of principal agent is the economic theoretical foundation from which securities broker system is evolved. Based on the theory of principal agent, this paper gives a detailed analysis to the relationship between investors and brokers, establishes a game theory model, and draws a conclusion that besides strengthening the supervision and management of brokers, the comparative business achievements targets for brokers check should be paid more attention to. Through carrying on comparative analysis to the systems of securities broker among different countries and regions such as U.S.A., Singapore, Hong Kong etc., we find that they all have strict legislation control, strict market entering system, tight behavior rules and perfect risk control measures. At the same time they are different in many aspects, such as the authority of agency of customer's account and commission system, the securities broker's type, qualification management of securities brokers etc.Securities broker system of our country is still a mode for corporate security broker. Securities broker system law and regulation, management organization and function construction are imperfect; the current operation mode is backward and difficult to meet the development of network economy and securities market; besides, there are many defects in securities broker's incentive mechanism, the management system of securities brokers and risk pre-control. All the above are restricting the construction of the securities market and development of the securities business of our country, and have reduced our competitiveness in the international securities market.To establish and perfect the individual broker system, we should concern as many aspects as follows: individual securities brokers' legal statuses, qualifications management system for registration, code of conducts and professional behaviors, commission system, the improvement of their professional abilities. By strengthen the management of entering system and the establishment of self-management system of securities business; we can perfect the structure and function of self-management organization. In the future, securities brokerage mode will transfer from the traditional types to that of network broker and securities broker, we should set up the risk control mechanism and management system of securities brokers and rigorous financial system, expand the scope of business and establish the systematic and perfect risk preventive and control system.