A Study On The Comprehensive Competitiveness Of China’s Securities Companies Based On The Factor Analysis

With the gradual development of Chinese capital market, the securities industry in our country has gone through a process of being born, being strong and being standard during the past 28 years. The further deepening of reform and opening up as well as the acceleration of economic globalization put the securities industry in a position of unprecedented opportunities and challenges. On the one hand, competitions among domestic securities companies increase rapidly because of the active involvement of some international investment giants; on the other hand, our domestic securities companies get more opportunities in development due to our country’s participation in economic globalization. Therefore, it’s of great value to analyze the competitiveness of the domestic securities companies and the way to enhance its comprehensive competitive power. At present, there exist a series of problems in researches about the securities company competitiveness at home and abroad, such as the imperfections in evaluation index system construction, the lack of dynamic evaluation in the company competitiveness and so on. Based on the theory of economics and management as well as our national conditions, about the comprehensive competitiveness of securities companies, this thesis has built the evaluation index system of it and put forward the strategy of enhancing it after the detailed analysis to the comprehensive competitiveness of domestic securities companies through factor analysis and cluster analysis approaches.Firstly, based on the securities companies’ business characteristics, this thesis has selected 6 indicators, including strength scale, profitability, revenue structure, market capacity, risk management and sustainable development ability, as the first level evaluation index of comprehensive competitiveness of domestic securities companies. Besides, this thesis has finally selected 17 secondary indicators to build the evaluation index system of comprehensive competitiveness of domestic securities companies, such as total assets, net assets, revenues and so on. Secondly, according to the various steps of the factor analysis, four factors have been confirmed which have the effect on the comprehensive competitiveness of domestic securities companies, including scale strength, development ability, profitability and asset management business. Factor analysis can lead to the following conclusions: Firstly, the comprehensive strength of securities trader is not strong in our country and has the problem of polarization. Among those four factors, scale strength is the most influential factor, and other three factors also need improving. Secondly, through the clustering analysis, the sample securities companies are divided into four categories, including strong, less strong, middle or weak. All categories of securities companies present a different advantages and disadvantages. According to that, this thesis puts forward the business sectors which need enhancing for improving the corresponding comprehensive competitiveness.At last, according to the analysis results, the improvement of comprehensive competitiveness of domestic securities companies should focus on two levels, both the external environment and the securities companies themselves. About the external environment, securities market system should be completed, the market mechanism construction should be strengthened, securities laws and regulations should be perfect and companies listed on the request should be strict. About the securities companies themselves, domestic securities companies should strengthen capital scale. They should also realize rapid growth in scale extension through the merger or acquisition matters and participate in international cooperation actively. Besides, in order to improve the comprehensive competitiveness of domestic securities companies, securities companies should increase their intensity of innovation, strengthen their construction of ability and talent management mechanism, and improve their mechanism of risk control.