Research On The Model Of Chinese Security Companies’ Direct Investment Business Based On Supply Chain

Chinese security companies try to find the high-quality growing companies notlisted, invest in those companies with capital self-owned or raised and aim at profitsby selling those companies’ stock when they are listed or merged, which is calledChinese security companies’ direct investment business. In the business the securitycompanies could also get payment from intermediary service for capital besides thedirect investment. The supply chain finance is the finance service that revolves roundthe core companies, manages the capital flow and logistics in upstream anddownstream, small and medium companies, turns uncontrolled risk of a singlecompany into controlled risk of whole supply chain companies, and minimize the riskby getting many kinds of comprehensive information.The research methods in the paper are qualitative analysis and analytic hierarchyprocess. The paper analyses the theories and facts related to security companies’direct investment business, clarifies the relationship between parties in a securitycompanies’ direct investment project and establish the model of security companies’direct investment business based on the theory of supply chain finance. Firstly, thepaper analyses the problems currently faced by security companies when doingdirect investment business, summarizes the theory of supply chain finance, anddescribes the current situation of Chinese security companies’ direct investmentbusiness. Secondly, the paper makes analysis of motives of establishing the model ofsecurity companies’ direct investment business based on the theory of supply chainfinance. The motives are from problems faced by security companies when they try todevelop the direct investment business, growing companies when they try to growmore, China’s securities regulatory commission and other Chinese government whenthey superintend, public investors when they invest in Chinese securities market.Thirdly, the paper gives the model of security companies’ direct investment businessbased on the theory of supply chain finance, and analyses the professional servicesprovided by security companies in the new model and the application of “1+N”marketing pattern. Finally, conclusion, inspiration, deficiency and direction for thefurther research are provided.