Research On The Broker System

Securities market of our country is the emerging markets, capital market hasdeveloped in China for only about20years, the development of China’s capitalmarket has made great strides, however. Reform of non-tradable shares is completed,the quality of listed companies is gradually improved, the financing function of thestock market has effectively recovered. A-share market has become one of the world’smarket which has the largest financing scale and which listed companies have mostdiversified industry distribution and the most actively traded markets. The activity inthe stock market attracts more investors to participate in, which provides thedevelopment of the securities brokerage business with a broad market space.However, the development situation of securities brokerage business in our country isstill at a low level state of disorderly competition, business structure of the securitiesbusinesses is similar, competition means basically stuck on price competition.As a trade system, securities broker system is very important in securities market,the perfect and scientific securities broker system can reduce market speculation,decrease the transaction costs and enhance the operational efficiency of securitiesmarket. Securities brokerage business is the main source of securities company’srevenue in China, accounting for half of the securities company profits. In the contextof the increasingly fierce competition in the international and domestic markets,Securities broker system will certainly play a more and more important role, thus itcan be seen, continuing to promote, strengthen the construction of China’s securitiesbroker system has great and far-reaching significance.The object of this study is securities broker system of our country. Firstintroducing the related concepts of the securities broker system, and then throughanalyzing the factors of securities broker system, using the efficient market theory,the new institutional economics such as transaction cost theory, the principal-agenttheory from the theoretical level to explore how to establish securities brokers system;then through making a comparative study on securities broker system in China andabroad; Finally putting forward Suggestions perfecting China’s securities brokersystem.