Research On The Innovation Strategies Of Securities Brokerage Business In China

At present, the securities brokerage business is the most important income source and profit center of a securities company. However, the securities company mainly providing access services to customers, there are many serious problems in our brokerage business, such as the single profit-generating model,and the homogeneous competitions. Seriously affected by the commission rate and trading volume, the brokerage business development depends on the overall economic climate. Since the global economic crisis in2008, the capital market of our country has been greatly affected.The market activity has contracted sharply, and the brokerage commission rates for the industry continues to drop, and the securities industry continues to decline in profitability. According to the statistics of securities association of china, two exchanges fund turnover in2012is32.28trillion yuan,decreasing10.52trillion compared with the turnover in2011. The annual industry commission rate is0.78‰o, felling3.01percent. The annual net income of buying and selling securities is50.4billion Yuan, felling by more than26%compared with68.9billion Yuan in2011.Therefore, the brokerage industry, with poor ability to resist risks, will be further compressed, which makes the brokerage business innovation more urgent. The securities industry must innovate to enhance the core competitiveness, so as to avoid the impact from the rapidly changing market.Now, the securities industry is in the process of business transformation, and accelerating the pace of business innovation in securities companies. In October2011, the China securities regulatory commission issued the "Business of Securities Companies (Product) Innovation Guidelines (Trial)", which provides the more moderate atmosphere and more motivation for securities company innovative activities, In2012, regulators issue more specific and intensive innovation signal to accelerate the reform of marketization of the securities industry, promote the independent innovation of the industry. The securities industry has encountered the policy changes,and the innovation era has quietly come.This paper firstly analyzes the present development situation of China’s securities brokerage business.The single profit model,the serious homogeneity, and consequences caused by the commission rate decrease and market influence will be elaborated.This paper highlights the severe situation faced by the brokerage business.The securities industry must carry on the innovation and transformation to obtain the relative competitive advantage.Secondly, this paper analyzes the factors of the securities companies, and the internal and external power for innovation and transformation.Then this paper analyzes several typical foreign securities brokerage business modes to offer reference and inspiration to the innovation of the brokerage business in China.Thirdly, according to the situation of the policies and marketing of China securities market, and the experience of typical foreign securities brokerage business models, this paper proposes business innovation strategies for brokerage business from the aspects of business philosophy, business model, marketing strategy and service platform.Finally, according to the business innovation strategies, combined with the present situation of Chongqing securities business department of Hualong Securities Company, this paper puts forward some operation opinions and suggestions on management concept, organizational structure and management mode.As a class C CCC-level securities company, Hualong Securities Company with low ranking still faces such problems as little popularity, late entering Chongqing market, and no regional brand advantage. In order to gain competitive advantages in the Chongqing market, Hualong Securities Company must generate innovation of products and services. This paper aims to put forward the opinions and suggestions of the innovation strategy of Hualong Securities Company business department in Chongqing, thus to further expand the its business and market influence.