Securities Companies Profit Mode Selection

Securities companies are key players in financial markets especially capital markets, and the steady improvement of their profitability has a significant influence on China’s financial industry as well as macroeconomic conditions. XB Securities Co., Ltd.(XB), the only listed comprehensive securities in Shaanxi province, has made considerable contribution for the financial market and real economy of Shaanxi and the western region. However, with the reform of China’s securities industry as well as the impact of global financial crisis, there are serious problems with its profitability. This thesis focuses on XB’s profit model and can be directly referred to enhance its performance in this regard.Firstly, it reviews current research status at home and abroad to find the research breakthrough point. Secondly, it covers the definition of profit model for securities companies, centralized typical models around the world, and characteristics of each model and provides the theoretical basis for following writing. Thirdly, an in-depth analysis is conducted for the main problems of XB’s profit model, which indicates the direction for next step. After constructing AHP model for XB, empirical research is carried out accordingly. Finally, specific recommendations are offered for addressing the problems in XB’s profit model.There are three innovations made from this study:The first is the in-depth analysis of main problems of XB’s profit model from aspects such as changes in China’s securities rules and market environment, XB’s actual situation, investigation and research, and lessons from global financial crisis. They include elements like the difficulties of single profit model in responding to changing environment, hindrance of centralized management system for the effective operation of business departments, and inadequate innovation to the steady enhancement of profitability.The second is constructing XB’s AHP profit model and the empirical research, which suggests that the balanced profit model is its optimal choice.The third is the strategies for rebuilding profit model, including organizational restructuring with balanced development, business management process restructuring centered on business departments; setting up dual client manager system; transformation from brokerage to wealth management and fund to trust in asset management; and single investment to strategic investment in proprietary business.