A New Cost Control Study For The Securities Business Department

During the development of China's securities market in the past few decades,the scale of the capital market continues to grow and the market is maturing gradually.Nowadays,the stock market has become a leading indicator of the economic development and an important component of the national economy.In recent years,the stock market tends to saturate,and the advantages of securities companies' licenses are greatly reduced.The sales departments of securities companies are experiencing a change from the "profiteering era" into the "low profit era".The previous "high cost,high profit" mode has become a barrier for the development of sales department.Moreover,traditionally the major sources of income of sales department are brokerage and self-operated business.The severe competition and the rapid development of Mobile Internet keep reducing the brokerage commissions while the costs are not significantly reduced.At the same time,the brokerage commissions and market prices are highly correlated: brokerage commissions sharply decline during the market downturns as the trading volume decreases,and commissions increase when the market recovers and trading volume increases.After the period of huge movement from the end of 2014 to the second half of 2015,the sales departments face more pressure on transformation.This paper aims to investigate the cost control problem during the establishment and operation of new sales department in currently depressed market condition,basing on the project of establishing an experience center in Jingan,Shanghai(‘Jingan sales department')by the D stock Ltd.Company and providing a case study and theoretical reference for the transformation of sales department in the future.This paper is divided into six chapters: the first chapter introduces the research background,the significance of this topic,and the research framework and innovation;the second chapter demonstrates the project background and current situation,and it reviews the status quo of relevant theories and research results by domestic and international study on project cost control and management;chapter three describes the current situation of cost control during establishment and operation in details;the chapter four analyzes the reasons of cost control problems during the establishment and operation of sales department;chapter five comes up with solutions on cost control,which is employing earned value analysis on cost control during establishment while employing comprehensive budget management on operational cost control;chapter six draws the conclusion,provides recommendations,and points out the limitations of this paper.This paper comes up with the following conclusions: First,the earned value analysis is a good method for project cost control.It can reflect the control of cost both quantitatively and qualitatively,through parameters,index,and graphs.Therefore we can take corresponding actions and achieve better cost control.Second,the establishment of comprehensive budget management will help securities companies on operational management and cost control.But the comprehensive budget management is not fully understood by the stock market,further improvements are still necessary to carry out a comprehensive budget.