Study On The Regulation Efficiency Of China’s Listed Securities Companies Based On DEA

China’s first securities company was founded in the late-1980s. Through nearly 30 years of development, the number of domestic securities companies has reached 125 at the end of 2015. All these securities companies have become important players both in the Chinese stock market and the capital market. The stock market has characteristics of high-risk and high-return. In the market, securities firms play multiple roles, including intermediaries, investors, financiers and information providers, which to some extent, also decides to the necessity of securities companies risk regulatory.Internationally, the risks of securities companies will be mainly divided into two categories: systemic risk and non-systematic risk. The former includes market risk, legal risk and policy risk. The other includes credit risk, liquidity risk and operational risk. Comprehensive analysis of various causes of domestic securities companies’risks, illegal operation is the most fundamental reason which results in six risks. Insider trading, financial fraud, market manipulation, securities fraud and other violations seriously damage the interests of listed companies’shareholders and investors, especially the interests of small investors. Coupled with the transitive of financial risks, it can easily lead to a chain reaction, which causes global and systematic financial crisis. What’s worse, it will bring disaster to the country’s economic life, eventually lead to the country’s economic and political crisis. Thus, the regulation of securities companies has important practical significance. There are some urgent problems which need to be solved by the regulatory agencies, including the Commission. The problems include how to strengthen the supervision of securities companies, effectively maintain the fairness and efficiency of markets, and thus protect the legitimate rights and interests of market participants.China’s current regulatory model of the securities companies includes three aspects:the regulatory body system which takes the Commission as the core; the regulatory regime system which takes the classification system as the core; the risk control index system which takes the net capital as the core. The three systems promote the development of securities markets to some extent. For the regulation of securities companies, the Commission and other departments have been keeping up with the development of the securities market, supplement and change both institutions and indicators according to market change. Outbreak of the stock market downturn in the second half of 2015, as well as the insider scandal of brokerage executives, leads to the doubt of the effectiveness of current securities companies’regulatory mode. The three regulatory systems and the listed securities companies will be taken as the object of the study. Analyzing China’s current implementation of securities companies regulatory model by using the DEA model and working out the Malmquist Productivity Index. It indicates that the current regulatory model improves the level of supervision of brokers effectively, as well as narrows the gap between securities companies of different rating. Otherwise, there are a lot of problems in the local and detail regulation, which needs our regulators to take measures to strengthen supervision.