China's Securities Companies Direct Investment In Business Development,

The China Securities Regulatory Commission (CSRC) has gradually deployed its arrangement for allowing more eligible securities companies to conduct direct investment business in recent years. Once again, more and more securities companies have set up specialized subsidiaries for direct investment. Based on their own advantages, securities companies intend to occupy the market and enter into the capital market, together with private equity (PE) and venture capital (VC). This not only can broaden their brokerage business but also contribute to the development of domestic capital market.With the use of standard and empirical study methods, this thesis has analyzed, introduced and concluded the development of direct investment by securities companies from two aspects of theory and practice. Firstly, this thesis dissertates the necessity and feasibility of conducting direct investment by securities companies after an analysis of its pattern and characteristics; and then, it analyzes the advantages and disadvantages for securities companies carrying out direct investment through a contrast with PE and VC; Then, it presents a detailed analysis of the future development of direct investment, and puts forwards such problems as corruption and interest transfer of PE, inexperience and the lack of regulation and incentive mechanism. This thesis conducts a deep study of these problems and offers some proposals.