Research On The Development Countermeasure Of Margin Trading Business For Sales Department X,Huatai Securities.Ltd

The margin trading is a new business been introduced to the securities market in China recently, it's a milestone in financial reform history. It likes a double-edged sword, on one hand, it has perfected the basic system frame of securities trading, brought diversified trading methods to the investors; accelerated the transformation of securities company business model; on the other hand, it must increase the market volatility, cause loss even the credit risk because of its leverage. The emergence of margin trading has broken the existing competitive landscape in securities industry, it's a new challenge for securities companies who can seize the opportunity to grab market share so as to improve competitiveness.This paper is base on a sales department of Huatai securities for research object, and do research on its margin trading business. Huatai securities is one of the top domestic securities company, the company has got the pilot project qualifications of margin trading since June 2010. Sales department X locates in the first-tier cities in the center of CBD, which has first-rate client resources and business ability. In this paper, firsthand data has gained through on-the-spot investigation. After multiple comparison and demonstration, it's a keep-pushing and important business for department X. However, this business has entered a bottleneck period, due to the mutation of market environment and relatively saturation of the existing customers. This paper then analyzes the present situation and the reasons, using SWOT law, through analyzing four aspects of elements on strengths, weaknesses, opportunities and threats, the results reveal if department X want to gain a breakthrough progress in margin trading business, the first thing is business model innovation, to further standardize and optimize the business processes, make different work focus in different stages and combining resources, the second is do a good job of investor education and service, improve customer satisfaction, so as to push for a healthy, steady and sustainable development of this business, the last one is to strictly control the risk. With this said, expecting sales department X to obtain a bigger development.