Study Of Chinese Securities Companies

Since the first security firm was set up in Shenzhen special zone in 1987, the Chinese security industry already has history about 21 years. The last two decades has seen the fast development in the history. Such a big country as China really needs a sound and healthy capital market to allocate the resource efficiently to activate the economy development. But even till now, most of our enterprise is constraint to indirect financing market and feel difficult to apply the loan from banks. Although it's helpful for the government to keep powerful control on the economy, it also takes the economy efficiency and financial innovation as price.As the improvement of risk control system, the deregulation is going to take place step by step. The financial disintermediation is the ongoing trend, and the security firms are expected to take a more important role in capital market. After 3 years' period of comprehensive treatment of the security industry, the following 2 years' bull market help the security firms get recovered and strengthened. The supervision department's policy becomes clearer and the reconstruction of the industry is expected to happen. Who will be the winner in the following campaign, what factors still block the development of security firms.This paper is focused on several issues which are critical to the development of security firms. An in-depth analysis is conducted and corresponding suggestions are issued. At final part, a performance appraisal is conducted on the listed security firms by applying factor analysis approach which is targeting to find out the critical factors to the performance and suggestions are provided.