Research On Policy Effectiveness Of Securities Industry Organization In China Based On SCP Theory

ABSTRACT:Since the birth of the first securities company in 1987, Chinese securities industry has experienced 20 years of ups and downs. With high-risk characteristics of China's stock market, the government policy of industrial organization has evolved into a strict regulatory system, which became a part of the financial regulatory system. There are lots of researches on China's securities industry regulatory issues, but most are focused on qualitative analysis as a whole or on the basis of comparison with Western countries. This paper will be a new perspective-based on SCP theory, combined with the effectiveness of industrial policy theory. A quantitative-based and supplemented by qualitative policy effective evaluation system in China Securities Industry Organization is established, in order to evaluate the Policy effectiveness situation of current Securities Industry Organization in China.This article attempts to expand the study form three research methods, empirical analysis and normative analysis; historical and practical perspective; and qualitative analysis and quantitative analysis. Some research results are obtained:first, with SCP analytical paradigm, we conduct a comprehensive study of industrial organization of China Securities, and find a few practical problems related to the current securities industry in China, such as the overall lower market concentration, intense price competition, lower internal performance, etc; second, from the perspective of policy object, we conducted a thorough study based on control policies of Chinese securities market structure and market behavior as well as their influence mechanism; third, with re-analysis of SCP paradigm of industrial organization policy to establish the effectiveness of the securities index system, we came to the conclusion that China securities industry organization policy and optimization of the securities industry organization itself does not match in many aspects. Therefore, the current policy effectiveness in China's securities industry organizations is obvious. The last part of the article proposes some suggestions for improvement of China securities industry organization policy.