The Impact Of Joint Venture Seburittes Companies On The Performance Of China’s Securities Market

The main form of China’s securities market opening to the outside world is the establishment of joint venture securities companies by Chinese and foreign financial institutions to participate in market competition.In the early development of joint venture securities companies,joint venture securities companies were in a weak position in the competition with domestic securities companies due to the limitation in the business scope and unclear business strategy.In recent years,the number and market share of joint venture securities companies have shown an increasing trend.In2018,China’s opening up to the outside world has reached a new stage.The domestic and international environment requires China’s securities service industry to further expand its opening up.And the SFC has introduced new regulations to allow foreign financial institutions to hold joint venture securities companies and further expand the business scope of joint venture securities companies.It is necessary to study the impact of joint venture securities companies on the degree of market competition in China’s securities service industry in the past ten years.Foreign capital has participated in the whole process from initial establishment and rapid development to reform and adjustment of China’s securities market since its entry into China’s securities market 23 years ago,which exerts a profound impact onthe development of China’s securities industry.However,no empirical research has been made to confirm the impact brought by joint-venture securities companies on the cost efficiency,market structure and industrial structure of China’s securities industry.No scholars have ever conducted in-depth studies on relevant issues in the past,which makes it necessary to study the influence of joint-venture securities companies on the market competition level in China’s securities service industry in the past decade.This paper focuses on conducting empirical research of the influence brought by joint-venture securities companies on market competition level in China’s securities industry,and analyzing both development and hidden problems of China’s joint-venture securities companies.In this paper,the impact of joint venture securities companies on the performance of China’s securities industry is studied through time series data.Firstly,the time series data is carried out stationarity test,cointegration test and Granger causality test and then regression analysis.The empirical results show that: First,the total return on assets is used as an indicator to measure the profitability of the securities industry and to measure the share of the joint venture securities company’s entry level index of the joint venture securities company(the ratio of the total assets of the joint venture securities company to the assets of the securities industry securities company)and There is a significant positive correlation between the total return on assets and the number of institutions of the joint venture securities company(the ratio of the number of legal entities of the joint venture securities company to the total number of legal entities in the securities industry).Second,the management cost rate as a measure of the operating costs indicators of the securities industry has a significant negative correlation with the entry level indicators of the joint venture securities companies.Third,there is no significant relationship between the performance index of the securities industry and the actual GDP growth rate as an indicator of macroeconomic performance.There is a significant positive correlation between the performance indicators of the securities industry and the capital level of the securities industry.The main conclusions of this paper are as follows: First,with the increase of theentry degree of the joint venture securities company,the operating cost of China’s securities industry decreases;secondly,with the entry degree of the joint venture securities company,the profitability of China’s securities industry increases;thirdly,the capital level has has a positive impact on the performance of China’s securities industry,and the macroeconomic performance doesn’t have a significant impact on the performance of the securities industry.According to relevant research conclusions,this paper offers corresponding policy suggestions for regulators,joint-venture securities companies and domestic securities companies.Policy suggestions made in this paper for regulators are as follows: strengthen the regulatory system,promote market-based development in securities industry and actively introduce foreign investment.Policy suggestions made in this paper for domestic securities companies are as follows: foster talents,strengthen weak links,emphasize science and technology,enhance oversight,and promote innovation.Policy suggestions made in this paper for joint-venture securities companies are as follows: expand the proportion of foreign shares,expand the scope of business,focus on brokerage business,and develop potential markets.