Research On Identification And Supervision Of Systemically Important Security Companies In China

The subprime mortgage crisis and the European debt crisis broke out in succession,and the negative externality of systemically important financial institutions has become the focus of attention.As we all know,due to the characteristics of systemically important financial institutions: large scale,wide association and difficult to replace,systemic risk gather in them.when it is disorderly bankruptcy,will cause severe financial crisis.How to identify systemically important financial institutions,and how to guard against systemic risks,are difficult problems in regulators and academia.At present,the vast majority of scholars and regulators focused on the banking sector,ignored the level of systemic risk in the securities industry.However,with the rapid development of China's securities industry;continued to expand the business scope of securities companies,and position of financial derivatives is increasing,the affection of securities companies' operating conditions to the financial system is becoming more and more obvious,so it is necessary to strengthen the research on Systemically Important Security Companies in china.Firstly,this paper expounded the connotation of systemic risk and systemically important financial institutions,and points out that strengthening the supervision of systemically important financial institutions is an important part of preventing systemic risk.Secondly,through the analysis of the difference of systematic risk between the securities industry and bank,we pointed out that the identification and supervision should be difference.Then,reference the experiences of domestic and foreign regulatory agencies,this paper identified systemically important security companies from four index: scale,relevance,substitution and complexity.Then using the entropy TOPSIS comprehensive evaluation method to evaluate the system importance of securities companies in china.And using the 2013-2015 data to evaluate the system importance of 23 listed securities companies.Finally,according to the results of the evaluation,we use the method of system cluster analysis to classify the securities companies into systemically important securities companies;which may develop into systemically important securities companies and non systemically important securities companies.The empirical results showed that: during the 2013-2015,the system importance of CITIC Securities ranked first,Its four indexes are in front,it's proved that CITIC Securities in the domestic leading position in all aspects,and also it is the only systemically important securities companies in China.And Haitong Securities,Guotai Junan Securities,Huatai Securities,GF Securities,etc.are ranked in the forefront.Moreover,the scale of securities companies is the most important factor which affects the system importance,and the correlation coefficient is as high as 99.35%.