A Research On The Restructuring Of Security Industry In China Under SCP Structure

During the years between 1999 and 2003, a large scale of restructuring was took place in security industry of China. Compared with some developed countries in the world, we can draw the conclusion that restructuring are the key process for security industry to improve its industry structure and increase its market concentration rate, resulting in making the industry more stable and more efficient.The paper mainly takes research on three fundamental aspects on the restructuring of securities industry in China, including market structure, restructuring model and restructuring performance.In the research of market structure, it respectively analyze the underwriting market and broking market concentration based on the conception of market concentration.In the choice of restructuring model, reviewing the practice of the restructuring of China and international security markets and the difference, then respectively from two aspects which is large-scale and medium-scale security companies to explore the restructuring model of security industry in China, and then analyzed the specific ways of restructuring.In the research of performance, the paper takes analysis from both the whole industry and the single company merger incidents which respectively using of the data of time series of the security industry from years 2002 to years 2007 and the data of cross-sectional of 106 firms in years 2007, the primary method is incident analysis method by which to calculate cumulative abnormal return, and then analyze the relationship between market structure and the performance of security industry in China. The conclusion is that they are consistent with a mixture of the conspiracy-effective structure hypothesis, the stock market trend is the major external factors to determine the performance of brokers, market concentration and the operating efficiency of firms is the main internal factors to impact brokerage performance.