Research On The Wealth Management Business Of The Securities Business Department

With the deepening of reform and opening up and expanding of capital market, the security industry has been flourishing. By the end of 1999, there were only 83 security companies with total assets of 304.17 billion yuan in China. By the end of 2014, the amount of security companies has reached 120,whose total asset reach 4.09 trillion yuan,more than tenfold of 1,999. The Profitability of security companies has also been significantly improved. In 2014 only one of 120 security companies lost and the rest were all profitable. The Chinese A stock market became the world’s second largest security market,whose total value reached 37.11 trillion yuan in 2014.Benefiting from scientific and technological progress and innovation of business development, the securities industry is large but not strong, which is suffering unprecedented challenges. The rapid development of banking, insurance, funds, third-party financial and other financial institutions, continue to seize the security business and erode profit margins of security companies. In the sub-sector management model, commercial banks and other institutions can not directly obtain licenses of securities. But to break the monopoly of the brokerage license will be irresistible trend. In the future, if the licenses of securities are issued to banks and other institutions, the license monopoly era will end and security companies have to compete depending on their own strength and brand effect. The security brokerage business, which is security companies’ traditional and main business,will be impacted seriously. The security brokerage business is a kind of operation which helps clients to trade security provided by the security business department. In the providing of this service, security companies only charge fees as the intermediary of trade.Currently, the main profit of security companies comes from the traditional brokerage business. Providing high value-added products and services derived from traditional brokerage business is the only way of getting out of trouble towards the blue ocean from the red sea.The Wealth management business, combination of security companies’ traditional business and innovation, is one of main directions in the restructuring of security companies. For security companies and customers, the appropriate wealth management business provided to appropriate customers, can bring a "win-win" situation. Securitycompanies offer a full range of financial services which meet the requirements of customers for one-stop financial services. Security companies have received commission income, with deepened customer relationships, increased customer retention, and raised market share. Customers have had the security of assets and value added with completed aim of money management in life, improved quality of life, and increased enjoyment of life.Global stock brokerage fees decreased year by year, and competition in the brokerage business becamemore and more fierce. The wealth management business has become main revenue of advanced international security companies in the word. Withthe rise of internet banking, the competition among domestic security companies will become white-hot and the brokerage business income will decline further, almost reaching industry bottom line.The experience of advanced international security companies should be referenced in order to promotethe development of China’s wealth management business.This paper researches wealth management theory, compares internationally advanced wealth management models, and discusses cases of the security business department, and provides information and materials for our wealth management business research.