Research On The Optimization Of The Profit Model Of Securities Companies

Economic development is the lifeblood of a country,and the securities industry plays an important role in our financial system.The healthy development of securities companies is related to the growth of China's economy.After more than two decades of development,the securities industry has reached a considerable scale in terms of the number of listed companies,the amount of financing,and the number of investors.China's capital market has played an important role in China's economic development in terms of financing and optimizing the allocation of resources.At present,the domestic securities industry still relies heavily on commission income from traditional brokerage services.However,with the implementation of the one-person multi-family policy,the market competition is becoming increasingly fierce,and the commission rate is getting lower and lower.With the "commission war" of the past few years drawing to a close,the industry transformation has reached a new crossroads and needs to find a new direction of transformation.The decline in commission income has become an established fact.Therefore,the promotion of the traditional brokerage business transformation has become an important task for various brokerage firms.Century Securities is also actively looking for a brand new profit model for its brokerage business.The establishment of more and more other securities companies' outlets has led to the weakening of Century Securities' regional competitive advantage,and the era of merely relying on brokerage commission income and regional advantages to promote profit growth has disappeared.How to ensure the company's continued profitability is a thorny issue.Based on the above reasons,the paper selects the latest annual report data of Century Securities Corporation and the official website data released by the Securities Industry Association and the data of the National Bureau of Statistics,and analyzes the industry environment of China's securities market.PEST analysis method and SWOT analysis method were used to comprehensively analyze the internal and external environment of Century Securities.The study found that the existence of profitability model of Century Securities relied heavily on brokerage business,lack of financial innovation capabilities,insufficient development of service models,and insufficient capital strength.Then,based on these issues and the company's status,the following profit model optimization directions are derived:1)Transform traditional brokerage business and provide wealth management services.The “chain” operation mode can be adopted to reduce operations and speed up the development of online brokerage business to reduce operating costs.Provide wealth management services to transform wealth management;2)Strengthen the construction of talents and increase investment in R&D.The establishment of a secondary department specializing in research work will tilt the company's resources to the research department and be managed by senior management personnel with high investment ability and experience so that the investment research capability of the department can be rapidly improved;3)Increase investment in asset management business to design products needed by the market.Build your own brand,build your star product,expand your company's influence,and lay the foundation for future financial innovation;4)To build a diversified financial service system,closely follow the development trend of Internet finance,and actively promote Internet services.In keeping with the development trend of Internet finance,it actively promotes Internet services,provides mobile online services such as mobile phone APPs,and transforms securities outlets into financial integrated service platforms.