Continued Viability Of The Economics Of Securities Companies

The paper studies an important topic that attracts more and more attention of officials, bankers and economists: as an important financial immediate, how stock and security companies in China increase their maintainable operation and development ability to meet the more and more needs toward the industry?We describe some facts about the historical data about stock and security companies and we calculate the scale and profits of China and we compare Chinese level and foreign developed level in the two kinds of indicators that represent the operational efficiency of stock and security companies.The result of the research can make the following conclusions:In the first, we think China's industry of stock and security is in a important new period of development. But we also find the percentage of total income of stock and security companies is larger in the traditional business of broker and lower in the new kind of owner business of sales and buying securities and stocks.In the second, in order to solve the problem of small scale of stock and security companies, we provide the four ways that can be followed: (1) We should increase the amount of capital and require a higher entrance level; (2) We can consummate the financial immediate for the industry of stock and security. (3) By A&M, we will get more and advanced experts from many Chinese and foreign companies. to lower the risk from real and nominal economic events.In the third, we indicate three important ways to increase the level of diversity of financial business kinds of products and service. (1) We should make the assets into kinds of securities. (2) We should deeply open the door of program finance. (3) We should strengthen our power of stock and security companies to prepare for the diversity of financial business kinds of products and service.In the end, we should stress an important conclusion that in the time we cannot directly and simply say which is more suitable for Chinese financial reality among the pure business system and complex business system that is the future developing direction.