Research On The Transformation Strategy Of Galaxy Securities Brokerage

After 20 years development, the Chinese securities industry is still unable to get rid of traditional mode of brokerage business. The main business relies on earning the commissions by providing trading platforms to the clients. Traditional securities brokerage business is in poor management. It not only has high cost without competitiveness, but also has some disadvantages such as over-reliance of the policy. On one hand, there is a great change in both the internal and external environment in recent years of the securities industry. And also it brings the challenges to this industry. First of all, finance industry has unbalanced development. The average annual growth rate of banking, insurance, fiduciary is increasing. However, the securities industry excessively depends on the brokerage business and the industry cycle has a significant influence on the securities industry, the development of securities industry has bottlenecks. Secondly, a floating commission system came through since 2002 has undoubtedly a huge impact to our original brokerage business mode. In 2003, it has come into a new period that lots of people opened accounts online directly. Then there is a big decreasing of commission and the brokerage business income dropped obviously. So the traditional brokerage business transformations need to be considered. What’s more, the expectations to break industry barriers have become a great challenge of the securities industry. Internet which has advanced technology and huge customer resources is developing so fast and is involved in securities business. Other industries such as commercial banks and insurance companies have also started to step into this area and these industries have extensive business network and customer resources. The fierce competition will bring more challenge to securities industry. Once the trade barriers break, the securities industry will have to make a change. Finally, as China is growing up and is much more opened to the world, with the commitment to the WTO, our securities market is becoming much more international which will be expected increasing intensely. With the policy published after 2014 to make Shanghai and Hong Kong communicate more in securities market, China make a big step to gain an international securities market in the world. On the other hand, the development of the securities industry has an unprecedented historical opportunity. First of all, social financing is developing rapidly, over the past decades; social financing is the force of the national economy development. And it was transferred from indirect financing to direct financing. Social financing becomes the main investment and financing. Secondly, the national entrepreneurship, innovation of economy under the new implementation of the multiple systems will lead to the development of the securities industry and it faces a major opportunity. After the correct allocation of the resources, industry revenues will increase quickly, trading volumes will be swelling and there will be a rapid growth of the customers.This paper takes the leader of China Galaxy Securities as a typical representative to analysis the environment industry, the challenges and opportunities. It clarifies the different situations and the research direction China Galaxy Securities has, and tells how to take measures to build up the security market as the reference to other security companies.