Research On China's Securities Industry Concentration And Business Differentiation

Along with the development of China's capital market,securities industry facing reform and opening up is also booming.After more than 30 years of development and practice,China's securities market has grown from scratch,and after the completion of the share-trading reform,it has ushered in a new round of rapid development,n recent years,although the concentration of China's securities industry has shown an upward trend,it is generally lower,which is unable to optimize the allocation of capital.Moreover,various brokers generally aim to build a comprehensive securities company,which leads to serious competition in the homogenization of the securities industry.Under this background,it is of practical significance to explore the reasons for the low concentration of securities industry and the low degree of business differentiation in China at present,and to find out the countermeasures to improve the concentration of securities industry and the degree of business differentiation.Firstly,this paper analyzes the concentration of China's securities industry from the perspective of macro-data total assets.According to the Japanese scholar's division of Asian market structure,it is concluded that China's securities industry is a low-concentration industry.Then,from the microscopic point of view,select a more representative underwriting business,brokerage business,securities investment consulting business measurement concentration.By comparison,it is found that the concentration of brokerage business is relatively low due to the homogenization competition and the impact of the Internet;while the concentration of underwriting business and investment consulting business is on the rise,mainly due to the nature of the business.Secondly,this paper analyzes the impact of China's securities industry concentration on the differentiation of securities companies' business.Overall,the overall concentration of the securities industry is generally low,leading to serious competition in the homogenization of the securities industry.However,the concentration of the industry has further increased and the Matthew effect is obvious.The advantages of head brokers are gradually becoming obvious,and small and medium-sized brokers must occupy specific markets through differentiation strategies.Many brokers have also realized the importance of differentiated operations,which is significantly higher than the industry average in one of the two businesses.After that,the analysis of Founder Securities Brokerage Business,Cinda Securities Regional Equity Market Business and Debon Securities Asset-Back Securitization Business concluded that the implementation of product differentiation strategy by securities firms is crucial to the company's development.Based on the above,China's securities companies should accelerate the pace of business differentiation from the following aspects and promote the steady development of China's securities companies.First,optimize resources to improve the market concentration of the securities industry;second,keep up with the pace of capital market reform,and strengthen the function of serving the real economy;third,accelerate the strategic differentiation of the industry and promote the development of differentiated industries;Fourth,accelerate international Business development;Fifth,securities companies should pay attention to personnel training;sixth,according to changes in the situation,develop a differentiated business competition strategy.