An Inquiry In Business Extension And Development Strategies Of Securities Company In China

Securities company, also named "securities trader", can be divided into two categories in China: One is commission house, which can take securities brokerage business only. The other is called synthetic securities company, which can involve in securities issue and underwriting, securities brokerage, securities self-run and other businesses. In the past decade, securities company, as an important part of the financial system, is the organizer and participator of security market of great importance.In this passage, I briefly discussed the development of the securities company's businesses, and take Cities Securities and Hongyuan Securities as examples, analyzed the general payoff status and profit constitution of securities companies in China. That is the payoff of securities company highly depend on the secondary market, the fluctuation in secondary market and the payoff of securities company have highly positive correlation coefficient, the core of the original profit mainly consists of the brokerage revenue (including commission revenue and interest discrepancy revenue), securities issue and underwriting, securities self-run, assets management business, then we can conclude: The payoff model at present lacks of core ability to compete, so progress must be made.Nowadays, many securities constitution in China come from western developed counties, so it has great reference value to study the securities companies in mature market in order to successfully translate the domestic securities companies' development model. While, at present, the securities market in America is the biggest leading market all over the world, and also is relatively mature, so they can be of great reference value to translate domestic securities companies' management model. Take Merrill Lynch model, Goldman Sarchs model, Charles Schwab model for examples, I analyzed their characteristics and meanings for our translation respectively.In the more than ten years of Chinese securities company's development, its payoff model is a means of "channel" model in general, this kind of model makes the businesses of our securities companies evidently homogeneity, makes it scarcity of dividing the work between companies, leads to the hostile competence between companies always happen. Due to the original model cannot withstand, securities companies in China must pursue to business extension and innovation. In this passage, I analyzed the necessity and possibility of doing so, and point out that only securities companies in China begin to extent their business and innovation, can they survive, and then, I discussed how to make specific process to innovate in securities business, brokerage business and assets management business.About how to make securities companies in China become bigger and stronger, I discussed the development strategies of securities companies in China, and got aconclusion that companies must begin to re-construct and annex in the basis of market, in order to make securities business centralized, and take translating and innovation of business positively, at the same time establish modern company system and consummate the structure of juridical person of company.