Research On Business Structure Transformation And Optimization Of Our Country’s Securities Companies

Since the reform and opening, China’s economy has maintained a high growth rate. As the world’s second largest economy, China in the international economic community has been rising in rankings over the past years. The same is true of China’s securities market. Not only has its market capacity continued expanding, but its market stability has been improved. As with its recent financial reform, for example, its split share structure reform in 2005, securities market has been strongly promoted. Until December 31,2014, China’s securities industry, in a total of 120 securities company, amounted to 4.09 trillion yuan in total assets, with net assets at 920.519 billion yuan, an annual operating income for amounting to 260.284 billion yuan.At present, China’s economy is facing three-period overlay features which are more complex than before. Along with the further opening of China’s financial industry, more and more foreign financial institutions have started participating in the domestic financial marketplace, worsening the industry’s fierce competition. On the other hand, domestic securities have also access to the international market, despite challenges. However, China’s securities companies are featured by its "emerging and transitional" economy, and are plagued with numerous internal problems, such as lack of scientific organizational structure, sub-optimal daily operations and poor ability of risk control. More significant is business structure. There exists a lot of problems in today’s securities companies and in order to better respond to market changes and challenge, they must be solved.The present thesis starts from an introduction to the transformation and optimization of business structure of securities companies. Then it moves to analyze the several developmental stages of securities company’s business structure. Followed is an investigation of the present status quo of China’s securities company’s business structure via statistical data. By a comparative study of the US securities industry and China’s, the disadvantages of the latter are outlined and specified. In conclusion, it proposes what to do next for China’s securities industry.This paper uses stylized facts analysis, comparative analysis, literature research, case studies to carry out the research, combined with real data from Securities Association of China, CITIC Securities, Goldman Sachs and so on, in order to combine studying and thinking, apply knowledge to practice. The present thesis is organized as follows:The first part is to introduce business portfolio theory to set up a theoretical framework for the analysis; the second part is to comb previous researches in restructuring and optimization of securities business structure, in order to gain a deeper understanding; the third part is to summarize the characteristics of the development of China’s securities company’s business structure, then form a statistical description on the present status of it, using US securities industry as a reference object to identify where the gaps are; the fourth part propose micro reform direction of several representative businesses of China’s securities industry, and under the guidance of portfolio theory this paper select Changjiang Securities as the object of case analysis of business structure optimization, in order to get further extension at the micro level; the fifth part are several macro practical recommendations to promote China’s securities company’s business structure. In summary, this paper deeply analyzes the business structure of China’s securities, and then compares with US securities. In conclusion, it makes proposals for optimization of the business structure of Chinese securities.