Research On The Transformation Of Brokerage Business Of Chinese Securities Companies Under The Background Of Internet Finance

In recent years,Internet applications developed rapidly,and penetrate into various industries gradually.As the representative of the Internet finance,third-party payment of financial management,e-banking,P2P network loans,Internet funds,Internet insurance and online securities emerge in large numbers,impact the banking,securities and other traditional financial industry to a great extent.The Internet finance subvert the charging model of traditional securities industry brokerage business,force the diversified development of securities company,reshape the securities company's operating mode,change the securities company's service awareness,accelerate brokerage's camp differentiation,further intensify the industry competition.However,the coin has two sides,as well as the Internet finance.In the process of being challenged,securities brokerage business is also ushered in a new development opportunity.This paper is based on the transformation of securities companies' brokerage business of China in the Internet background,analyzes the development situation of Internet finance,examines the development of securities brokerage business both at domestic and overseas and the impact of Internet finance on the brokerage business of Chinese securities companies.The paper gets two conclusions through case analysis,data analysis and OLS regression verification.Firstly,securities companies increase the numbers and amounts of transaction by reducing the commission,and reduction of the commission is applicable for Z Securities.Secondly,the diversification development of securities companies is truly enhanced the operating performance of securities companies.According to the conclusion,and combined with the Internet development situation of securities company and the situation of Z Securities,this paper puts forward countermeasures and suggestions of securities company's brokerage business transformation strategy.The transformation strategy includes four aspects.First,to subdivide customer groups,provide personalized services and improve customer structure.Second,to optimize the business model and further reduce costs and improve service capabilities.Third,to strengthen cooperation with the Internet company and focus on "long tail customers".Finally,to diversify business scope and weak the market dependence.This paper can provide several business transformation ideas for Z Securities and other securities companies in the transformation.This paper is divided into seven parts,the first chapter is the introduction,mainly introduce the research background and significance,literature review and innovation and shortcomings.The second chapter is the basic theory and development situation of Internet finance,including the concept and definition of Internet finance,the related Internet financial theory and the pattern and characteristics of Internet finance.The third chapter analyzes the development of brokerage business of securities companies,including the development situation of brokerage business of China and Z Securities.The development situation of foreign securities companies including the development situation of US and Asian securities companies.And then analyzes the impact of Internet finance on the brokerage business of China's securities companies.The fourth chapter conducts data analysis and OLS regression analysis based on the size of different clients transactions of Z Securities.This chapter analyzes the commission sensitivity of various types of asset structure customers based on the 2016 customer transactions of Z Securities.At the same time,according to the current commission distribution of Z Securities,combined with the industry average commission level and brokerage business market share and revenue ratio,investigates whether there is room for decline of Z Securities commission.In addition,according to the customer structure and commission distribution,this paper puts forward the idea of segmenting customers.The fifth chapter is the empirical analysis of the performance of securities companies' income structure.According to the annual report of 22 listed securities companies in 2014 and 2015,this paper examines whether the diversification can improve the performance of securities companies and the correlation between the income structure of securities companies and the performance of securities companies.It analyzes whether the diversified operation can improve the performance of securities companies.This paper uses the Herfindahl-Hirschman index(HI)as an indicator of the degree of diversification of income structure,and adopts the economic value-added rate of return(REVA)as an indicator of the performance of securities companies.Chapter Six is a countermeasure for the transformation of Z Securities brokerage business under the background of Internet finance.This chapter puts forward corresponding countermeasures to the transformation of Z Securities brokerage business according to the hypothesis and the current situation of the Internet financial business of securities companies.The last chapter summarizes the securities company's brokerage business transformation strategy and provides the outlook of China's securities industry development.