Research On The Integration And Development Of The Securities Industry And Equity Crowdfunding Industry

With the continuous development of Internet technology and the continuous improvement of the demand for financial innovation, the internet finance industry has been developing rapidly in recent years. The traditional financial industry, which has been tremendously affected by the internet finance, has to optimize and upgrade urgently to adapt to the new market. Therefore the appearance of the Equity-based Crowd-funding seems to be a way out for the traditional securities industry. Currently, the integration of the securities industry and the Equity-based Crowd-funding has been promoted in policy; however, the research of the integration is still in a primary stage theoretically. As the theoretical system has not been formed, the integration is incompatible with the development of "inclusive finance" and the establishment of a multi-level Capital markets. In this paper, the convergence of the securities industry and the Equity-based Crowd-funding will be discussed theoretical. The object of the discussion is not only to guide the development of two industrial optimization practice and to enrich the basic theory of the convergence, but also to promote the development of integration of the two sectors in terms of counterplan making.This essay starts from the perspective of industrial integration and discusses the pathway to solve the bottlenecks on the integration in favor of optimization and innovation of the financial sector. First of all, the author refers to large amounts of literature, which helps to in-depth understand the industry convergence theory and the current situation of securities industry and Equity-based Crowd-funding. In the theoretical study of industrial integration, this paper introduces concepts, evolution method and integration approach related to industrial integration and proposes that its economic effects mainly lies in three aspects, that is the cost savings effect, effects of competition and cooperation and innovation effects. Secondly, the paper analyses the status quo in the securities industry and the Equity-based Crowd-funding, pointing out that in the current state the securities industry has several problems, for instance the existence of only one profit model, the instability of the profit and the fierce competition in the financial modes. Also the process of Equity-based Crowd-funding cannot get rid of the issues of moral hazard and inappropriate management after funding. The presence of these problems makes the securities industry and the Equity-based Crowd-funding have the urge to optimize and upgrade, which is also the cause of the underlying causes of the securities industry and the Equity-based Crowd-funding convergence. In addition, this paper presents two fundamental causes of the financial industry integration is the demand for optimization and upgrading of financial industry and the external reason including technical progress, catalyze of innovation and the relaxed controls from the government. Under the motivation of the industrial integration, this paper explores the three modes of the integration, which is extended integration, penetrating integration and recombined integration. On this basis, the development counterplans for promoting integration of the securities industry and the Equity-based Crowd-funding have been studied on the views of Securities Company, Equity-based Crowd-funding company, government attitude and building atmosphere of integrity. The assay also helps to achieve the convergence and promote the optimization and upgrading.