Current Situation Of China Securities E-commerce Development And Analysis

The rapid development of information technology, changing the traditional mode of distribution, transaction and settlement in securities, has already sparked a revolution of financial assets and payment flows, which formed the basis of the new high-tech electronic automated trading and developed traditional transactions toward on-line transactions gradually. In China, network securities brokers had threatened the survival of traditional ones as it in the United States. The network economy as a new way of securities transactions, on one hand, challenges the thinking and lifestyles of securities brokers; on the other hand, provides a kind of new historic opportunity.E-commerce refers to the use of electronic communications as a means of carrying on the economic value of promotional products and services, purchase and settlement. While Securities E-commerce (SEC) is a business concept rather than technical, referring to the investors using online transaction software to search and trade stock pr, funds and other financial information provided by securities brokerages publishing in the internet. The core of it is the reasonable use of IT resources, reducing the cost of trade and accelerating the speed of information transfer. Thereby, SEC owns more advantages than traditional securities.Because of relatively rapid development of securities in U.S. and Korean, the editor choose Charles Schwab, E*trade company, Merrill Lynch, Daewoo securities, JiaoBao securities and Kiwoom.com as representative and research in background, success cause and so on. Based on the above typical case analysis, there are two models and experience concluded: Merrill Lynch mode and Charles Schwab mode.Combination with successful case, the paper makes research on development of SEC in China. First beginning is in the end of 1996, after a year, internet trade remained in a wait-and-see, but until 1998 really started. Since 2001, SEC has accelerated the pace of development. Currently, there are 45 enterprises approved by the SFC.Domestic securities develop rapidly, especially the China Galaxy Securities Company Limited. At present, it has successfully launched the"Neptune","Twin", and"Uranus"three different characteristics of the online securities trading system, for a variety of options to customers."Neptune"system is fast, convenient and highlights the"small, fast, flexible"characteristics."Twin"system is stable, reliable and powerful."Uranus"is a new generation of online client services and concentrates many actual experience of China Galaxy Securities Company. And www.chinastock.com.cn has developed into amulti-dimension interaction financial websites with securities business center, on-line expert advisory services, mobile securities and community services.Meanwhile the paper also introduces Bright securities and Guoxin securities. In fact, some problems exist in the process of the development of e-business in the domestic securities, such as web factors- network speed, online transfer of funds, lack of individuality, information security, online brokerage license and regulatory issues. A reasonable solution to the above problem will have a important impact on the development. Then the paper makes eights recommendations to the reality. Strengthen market network and internet structure, launch relative law to ensure online securities transactions safe, speed and efficiency, introduce the insurance mechanism to protect investors. At the same time, the securities brokerages should convert their operational concept to making the customers needs as center, provide personalized information and establish CRM to meet the needs of different levels clients.The paper, from the basic concept of Securities E-commerce business, picks up The United States, South Korea as representation and analyzes the business model and successful experience rationally from them. Most important, in view of the domestic actual situation, it discusses great deal of aspects about China Galaxy Securities Company Limited, including development, technical support, application model all related ones. Meanwhile, the paper also discusses the problems of securities e-commerce in domestic deeply and gives some feasible suggestions and solutions for reference.SEC is a kind of forth goers in China financial electronic commerce, for it equips with knowledge, relative advantage of capital concentration, plus the most receptive younger group. Therefore the quantity and quality of groups are best, and there are not delivery, storage and custody issues, so without the restriction of circulation bottleneck.All these factors together with the low-cost advantage decide the enormous potential development. The author believes, with the rapid development of IT and policies further supporting, SEC will become the most successful e-commerce model in China.