A Study On Metrics System And Its Practice For International Competitiveness Of Securities Companies

Economic globalization calls for the gradual abolition of barriers of financial services trade and the implementation of financial services trade liberalization. China's accession to WTO has a tremendous impact on Chinese securities companies. On the one hand, Chinese securities companies can absorb foreign capital, advanced management concepts and experience, enter the international market and enhance their international reputation and status. On the other hand, advantage of Chinese securities companies in the market access no longer exists. Foreign securities companies are bound to squeeze the development space of Chinese securities companies with their strong service concepts, innovative financial technologies and rich market experience. In order to survive, Chinese securities companies must understand and analyze their own international competitiveness correctly and fully, find out weaknesses and put forward the recommendations.Theoretical study on the international competitiveness has a long history, however, the metrics research of the international competitiveness of enterprises starts relatively late. Foreign scholars pay more attention to theoretical research, while domestic scholars introduce the foreign research results mostly. There is not a scientific metrics system for international competitiveness of enterprises.This essay, based on review of relevant literatures home and abroad, such as structure theory, capacity theory, resource theory and thought of WEF and IMD, emploies AHP to establish a more scientific metrics system for international competitiveness of securities companies in two aspects of the current competitiveness and the potential competitiveness. The metrics system of 23 indicators includes 7 parts: operating capacity, service enabler, earning capacity, anti-risk capacity, management structure, R&D capacity and internationalization capacity. Then, I employ the metrics system designed to analyze 5 Chinese securities companies randomly selected and Golaman Sachs and calculate the final score of the international competitiveness of each company. Finally, with comparison between the top foreign securities companies and Chinese securities companies, I get the metrics results and propose policy recommendations.The findings of this essay are as follows:the gap between the top foreign securities companies and Chinese securities companies is comprehensive. The deeper gap is reflected within the core factor of international competitiveness of securities companies-the potential competitiveness, but not within the current competitiveness. We find that analysis results are consistent with the actual situation of of 6 securities companies, which shows that metrics system designed is comprehensive and reasonable. Meanwhile, AHP can not only evaluate the international competitiveness of securities companies, but also identify the specific causes to help securities companies to analyze their own advantages and disadvantages.Suggestions are put forward accordingly:(1) Goingtoscale. Chinese securities companies should broaden the finaning channels, absorb foreign capital and implement M&A and group management. (2) Normalization&Perfection. Chinese securities companies should optimize for pentium in business, management, governance structure and internal organization. (3) Innovation. Chinese securities companies should strengthen the R&D capacity and develop innovative financial derivative products and services to meet requirements of different investors.