Comparison Research On The Current Situation Of The Joint-venture Securities Companies

The first joint-venture securities company, China International Capital Corporation Limited (CICC), was established in1995. Since then, among more than100securities companies, the proportion of joint-venture companies has reached about10%. Under the current market environment, how are the living conditions of the joint-venture securities companies? What are the advantages and disadvantages compared with the domestic-funded securities companies? These issues are discussed in this thesis.9joint-venture securities companies which are subsisted since2009have been listed:EverBright Securities, BOCI Securities Limited, UBS Securities, CICC, Zhong De Securities, Goldman Sachs Gao Hua Securities, Credit Suisse Founder Securities Limited, Fortune Securities and Daiwa SSC Securities. And five domestic-funded securities companies with substantial strength and representativeness are selected to make comparisons, they are:Haitong International Securities, Guosen Securities, China Galaxy Securities, Qilu Securities and Guotai Junan Securities. The capital and industrial structures of these companies are analyzed in this paper, especially the balance sheets, profit statement, and data and risk indexes in cash flow statement. Specifically, the main factors analyzed in the balance sheets are the total assets, asset-liability ratio, pecuniary resources, undistributed profit and return on equity. Focuses in profit statement are operation revenue, operating costs, operation and administration expenses, total profits, income tax expense and retained profits. Net cash flow is generated from cash flow statement. The risk indexes include net capital/assets, net assets/capital, and net assets/liabilities.Above these analysis, it reveals that, in the current market environment, the joint-venture securities companies are not able to play their own advantages, there is potential needs to enhance their business and management. It is shown from the financial indicators that joint-venture securities companies are still lags far behind the domestic-founded companies on competition and anti-riskiness. In the future, the international board may introduce opportunities for joint-venture securities companies will be an opportunity and a challenge.