Internet+Securities:a Contest Of Technology Transformation

As the big data, cloud computing and other technology gradually become the mainstream trend, derivative from the Internet as the core of the business system, information technology makes financial everywhere. In the communication without limit of the Internet world, it is hoped that, in the form of open, equality, cooperation and sharing, scene reconstruction can satisfy the need of diversification of financial services, achieve pratt & financial financial services, Internet financial along come into being. Because of the birth of the Internet financial, Chinese traditional financial industry has a huge impact, including payment, financing services, money, securities and funds, etc. As one of the mainstay of traditional financial industry, the application of Internet technology began in 1997, Huarong Trust Company Zhanjiang business department launched a multimedia public information online trading systems. Before 2012, the application of Internet technology limited to apply to traditional offline business online, with no qualitative breakthrough. With Alibaba and Tianhong Asset launched "The balance of the treasure", and in about only one year it become Chinese largest IMF, suddenly the Internet financial became the focus. Not only derived a series of new business model, the Internet financial also bring huge impact to the traditional financial industry, at the same time, more profound and thorough financial Internet change began.Internet financial impact to the traditional securities industry can be divided into two aspects:on the one hand, from the Internet enterprise to extend brokerage business; On the other hand, from the traditional brokerage surface using new technologies to reform itself. Based on the development of Chinese securities industry as well as the policies and regulations, this paper will called it Internet Securities, and it is defined as the technology reform contest that fight for the market share. First of all, based on the contest theory, explains some phenomenon, such as why the small and medium-sized securities join the competition first with homogeneous business. Then analyzed along with the rise of "long tail" and "winner-take-all" market’s influence, reveals the basic laws of development of the Internet securities. Finally analyzes the development of technological reform contest, and try to predict the future development path of Chinese internet securities industry and put forward some meaningful policy suggestions.It draws five conclusions:(1) due to the "winner-take-all", a large number of traditional securities and Internet companies participate in the contest, make the application of Internet technology in securities industry gets rapid development, accelerate the development of Chinese Internet securities industry; (2) the research based on the contest theory, with increasing number of companies involved in the contest, the industry will gradually close to the saturation. Winner-take-all markets, however, enterprise overconfidence in their own ability will attract too many competitors enter, resulting in total loss of social welfare. If the most inefficient companies withdrew from the contest, it can bring additional output of other industries; (3) Small and medium sized securities on the overall transformation of the internet securities firm is stronger than the willingness of large securities. Because small and medium sized securities outlet less mechanism more flexible, more rapid decision-making and rapid action, more likely to seize the strategic opportunity; (4) for small and medium-sized securities transformation of pure internet securities, choose to cooperate with internet companies at an early stage, compete for market share. However, due to the same effort, the price war will not produce any change; (5) When technical inputs by Contest participants can not increase the likelihood of winning, some Internet securities is likely to take the non-technical competitive strategy, it will cause a great waste of social resources.Finally, this paper puts forward two policy recommendations:the first is that regulators should encourage the development of the Internet securities under the premise of gradual opening of the limitation of free competition, to maximize the market force; The second is by setting reasonable access threshold and risk control system to ensure the healthy development of the industry.