| Since China’s formal implementation of risk control indicator system which is based on capital regulation in the year of 2006,the overall development trend of the securities industry is good.As a result,there is no significant systemic risk events occurred.The indicator system plays an important role to build the multi-level capital market,to promote the long-term stable development of capital market.At present,China’s securities industry is at a critical period of reform and transformation.The main business activities transfer from traditional ones to innovation ones.In order to accumulatethe development of the securities industry as well as to consolidate the comprehensive risk management foundation,CSRC revised the risk control indicator system in June 2016 comprehensively.This paper focuses on the potential impacts on the management and financial decision-makings of listed securities firms with the revision of the risk control indicator system as the starting point.It aims to reveal the major areas of risk management of securities firms with the development characteristics of China’s securities industry,and to provide theoretical and practical basis for the securities firms to accumulate the development steadily under the premise of risk control.First of all,in order to construct the theoretical framework for the subject,the paper reviews the main contents and historical evolution of the risk control indicator system of domestic and foreign securities firms as well as reveals the relationship between Basel Capital Agreements and risk control indicator system of financial institutions which securities firms are included.Secondly,this paper elaborates the main amendments of risk control indicator system.This paper initially identifies the key areas of the impact of the management and financial decisions of listed securities firms by recalculating the core risk indicator which is based on the ABC Securities Company’s operating and financial data ended at June30~thh 2016 in accordance with the calculation rules before and after the amendments of the risk control indicator system.This paper chooses 16 listed securities firms as the research objects to reveal the potential impacts of the new risk control indicator system on the management and financial decisions of the securities firms by researching the aspects of business structure,principal activities,capital structures and liquidity risk managements.This paper also measures the four core indicators in order to discuss their roles to restrain the business scale,to balance the structure of the business,to optimize the capital structure and to prevent the liquidity risks.The paper draws the following conclusions within the scope of research objects.In the aspect of operation,the new indicator system effectively restricts the scale of the business through the risk coverage indicator,guides the securities firms to balance the business structure,as well as to put forward more comprehensive regulatory demands for the innovation business such as assets management business and margin financing business.In the aspect of financial management,the new indicator system guides the securities firms to establish a balanced net capital replenishment mechanism by dividing net capital into core capital and supplementary capital.The new indicator system is conducive for securities firms to optimize the capital structure and build a long and short-term liquidity risk control system by introducing newly added indicators such as LCR and NSFR.Finally,this paper proposes suggestions to improve the indicator system,including introducing counter-cyclical adjustment mechanism,building comprehensive risk control regulation system which includes all the subsidiaries,exploring the application of internal model approach. |
