Profit Model Of China’s Securities Companies

Securities companies as an important part of China’s securities market, the pace of development, the living conditions directly affect the establishment and development of securities market. Very alarming since the founding of the China’s securities market, securities companies, the assets have been expanding, but its profit model situation has not changed much, still highly correlated with the secondary market, with a high degree of instability. This article think the root cause of the problem lies in China’s securities companies profit model has been used to "channel" profit model.Firstly, to analyze the course of development of China’s securities companies, the profit model of their experience, come to China’s securities market securities company has been in use since the establishment of a "channel" profit model. Followed by combination of the results of transformation of China’s securities companies in the subprime mortgage crisis profit model, which selected three different types of securities companies, CITIC Securities on behalf of all securities companies, China International Capital Corporation as the representative of a boutique securities companies and competition in Dongguan Securities companies, draw on our existing three different types of securities the company’s profit model is essentially the same kind of profit model, the traditional "channel" profit model, the existence of business innovation capability poor, poor governance structure, a series of running inefficient organizational structure, the large fluctuations, income and revenue structure over concentration. Finally, by drawing on the U.S. investment bank’s profit model, summed up the failure of its profit model, combined with China’s securities companies and external environment in which to put forward the basic idea of the profit model of the innovation of China’s securities companies: organizational innovation, management innovation and product innovation, changing the traditional channel of China’s securities companies’ profit model. Organizational structure and management innovation which Financial Group Holdings of securities companies can take to achieve Financial Group Holdings profit model; boutique securities firms can take product innovation to achieve the strategic alliance profit model; competitive securities companies can take product innovation to achieve regional development type profit model.