Research On The Transformation Of Securities Brokerage Business Of China

By 2018,the Chinese economy has gone through the 40 th anniversary of the reform and opening up journey.In this process,the securities industry has grown from scratch,to the development of the capital market,to the rapid development of the economy,to the promotion of enterprise value,to the continuous optimization of industrial structure,to the provision of sustainable financing for high-quality enterprises in the process of growth,and to the promotion and improvement of capital market construction,all have significant and positive effects.In the rapid development process of reform and opening up for several decades,we have seen that the relatively new sunrise industry of the securities industry has grown rapidly,after twists and turns of difficulties and challenges,there are quiet a few securities companies been through bankruptcy and liquidation which has been reorganized and merged with the securities market bull-bear conversion process,The hardships of business development are accompanied by this industry.Compared with asset management business,financial advisory business and securities underwriting sponsorship business,investment consulting business and self-investment business,the traditional pillar business which is the brokerage business,it’s income and its total share in the securities industry continued to decline significantly.Commission rates,the main source of brokerage profits,have continued to slide to near or below the brokerage cost line.Especially in the current situation of declining macro-economic growth rate and long-term sluggish securities market,the business model once faced with unsustainable survival risks and formidable challenges.For the survival and development of the industry,we need to think about how to meet the challenges and transform the development.In regulatory policy changes and the continuous change of the pattern of competition in the industry environment,Internet have been deeply into involved in our lives and work,securities brokerage industry development must take the initiative to adjust transformation,according to their own strength,for competitive positioning,adapt the industry changes,to the professional characteristic development,meets customer demand,reflects the value of professional services.Based on the analysis of the development status and research background of the securities industry,this paper studies the business classification and income structure of securities companies through data search and analysis,analyzes the profit model of brokerage business and the influence of competitive environment,and thinks about the problems and challenges in the development of brokerage business.In the situation of the integration of Internet technology and securities industry development and financial opening competition,the paper analyzes the evolution trend of brokerage commission rate,the change of business outlet channels,the impact of account supervision policies,the impact of classified supervision policies of securities companies,and the impact of Internet technology penetration.The transformation of brokerage business operation needs to establish a customer-oriented professional service and organizational management system to meet customer needs,change the traditional single offline marketing service model and commission income structure,use Internet technology to promote the development of brokerage business,integrate offline and online service functions,and promote the functional transformation of the business department.Securities brokerage business in China has been gradually reflect on business alienation and diversification trend,the comprehensive competitive power of securities brokerage business to the wealth management center model transformation,through diversified portfolio,from investment advisers to provide sectional consulting products service,help customers to attain the goal of asset management and value-added,improve overall profitability.Small and medium-sized securities firms need to transform to the direction of differentiation,use geographical advantages to improve customer stickiness and satisfaction,or use Internet tools to meet the needs of different levels of customers,to achieve sustainable development.