The Impact Of "Precision Services" On Security Companies

The development of China’s stock market has witnessed three major historic milestones with distinct Chinese characters. The first stage has been an exploration by the government, marked by a series of preparations for the capital market including the first IPO, the establishment of exchanges and the enactment of the Security Law. The second one attempted to find answers for the state-owned enterprises. As the China’s stock market has been designed to be the solution for the national historical burden, enjoying the benefits of enhanced efficiencies while exposed to the risk of destruction from competition, this conflict has not been mitigated until the completion of the non-tradable shares reform, and only since then did the China’s stock market start to play its predetermined role. The third stage is the process of mass investment. In the past ten years’, the China’s stock market has undergone several extreme volatilities almost unparalleled even from a historic and international perspective, giving the Chinese investors a hard time in the ferocity of finance.On the other hand, securities companies as the primary components of stock industry has always existed as a channel service provider, and the value of it depends significantly on its monopoly nature and the overall prosperity of stock market. However, for the time being, this situation has been disrupted by new internet-based market entrants and an imminent transition is inevitable. In the context of such challenges, how to maintain its competency and value and how to build a matching operating mode is the main concern of this paper."Precision Service" has been increasingly applied in every aspect of the business behaviors. Precision in the production assembly line, positioning the potential customers and deploying marketing advertisement are all examples of how modern market-oriented companies are trying to reform and upgrade their service. Security companies, as a financial service provider, are also facing the bottleneck imposed by the traditional channel service, and whether precision service is the solution to their transition and development has become their new concern.In order to find the evidence to address to questions above, this study focuses on one large-scale national security companies S, as well as it’s tentative approach of investment-advisory-based "Moments of Truth" services. By analyzing the difficulties it face, the change in various statistics and the impact on the company, this paper aims to address the topic of whether security companies’ transition from channel service supplier to precision-service-oriented broker is feasible, and to provide a lesson for the development of China’s stock market.