Study On Wealth Management Transformation Of Securities Brokerage Business In China

With the recent developments of our securities market, securities com-panies’ competition became increasingly fierce, the Commission rates hadexperienced a sharply downturn. The brokerage business came into the"low-profit era", securities companies relying on the traditional channel bro-kerage business model had fallen into a dilemma, are going to witness trans-formations. During the period of7to8May2012, the China Securities Reg-ulatory Commission held a securities industry innovation conference, meet-ing to discuss securities companies’ innovation and development of ideas andmeasures of reform, innovation has become the main theme of the securitiesindustry. In the current economic situations, reform and innovation are theinevitable trend of the development of the securities industry. The essence isserving the real economy, meeting customers’ needs, enhancing the corecompetitiveness of the securities industry, developing intermediary function of capital market, achieving the sustainable development of the industry.The national "Twelfth Five-Year" plan, aims to "achieve residential in-come growth and economic development, increase productivity and remu-neration of labor". Predictably, the income of Chinese residents will acceler-ate the pace of growth in the "Twelfth Five-Year Plan" period, residentswealth management demand will rise. Customers are no longer satisfied withthe original stock and bond trading services, but need a one-stop financialmanagement service. Securities companies take price competition means toexpand market share, which will only lead to declining overall Commissionlevel of the industry, the Commission war without considering the transfor-mation of the diverse needs of customers and service mode is not a lastingcompetition mode. Therefore, in the background of sustainable developmentof securities industry, in order to meet the diversified needs of customers, themode of operation of securities brokerage business must be changed from thetraditional channel trading services to wealth management.This paper is divided into seven chapters. The first chapter is introduc-tion, background, purpose and significance of the paper, proposes the re-search ideas and methods of this paper. The second chapter reviews the de-velopment of wealth management theory, mainly introducing foreign wealthmanagement theories and the domestic wealth management. The third chap- ter introduces problems and present situation of the domestic securities bro-kerage business, mainly analyzing the current situation of securities broker-age business, identifying the problems, analyzing the causes, putting forwardthe solution. Analysis of the fourth chapter is about the difficulty in domesticsecurities brokerage business transformation of wealth management, mainlyanalyzing the existing talent structure, exterior competition, organizationstructure. The fifth chapter, including the mature market economy investmentbanking and wealth management, mainly introduces American, Canadian se-curities company and Taiwan province of China Securities Companies wealthmanagement mode. The sixth chapter of case analysis, mainly analyzing theShanghai securities as a case, covering wealth management transformation ofbrokerage business. The seventh chapter, summarizing the main study con-clusions, further consideration of the drawbacks.The paper studies the basic theory of Western wealth management,combining the domestic securities industry wealth management transfor-mation of ideas, analyzing the present situation of domestic securities bro-kerage business development and the existing problems, putting forward thedevelopment of the domestic securities brokerage business transformation ofwealth management direction. At the same time, learning from the successfulexperience of foreign investment banking and wealth management mode, us- ing SWOT analysis of Shanghai securities wealth management operations ofthe internal and external advantages and disadvantages of comprehensiveanalysis, putting forward countermeasures of Shanghai securities in thewealth management business, includes the construction of the system fromthe aspects of service system, process re-engineering, marketing team, dis-tribution network, product system. In order to helping Shanghai securities inthe period of an important strategic opportunity for the financial development,speeding up the Shanghai securities’ brokerage business innovation andtransformation is important.