Research On The Transformation Of HX Securities' Profit Model

Since the beginning of the 21st century,information technology has developed rapidly,and Internet technology has gradually penetrated into all walks of life.The combination of Internet technology and finance has emerged as Internet finance companies such as Internet finance,crowdfunding financing,and P2P network credit.Under the service fee model of Internet finance of nearly free,the traditional securities industry bears the brunt,and the average commission rate of the industry continues to decline.The traditional securities companies with brokerage business as the main profit model have sounded the alarm.How to accelerate the innovation and successfully complete the transformation brought by Internet finance has become an urgent problem that all securities companies need to explore and solve.Based on the rapid development of Internet finance,this paper takes HX Securities as the research object.Firstly,it consults a large number of domestic and foreign related articles through the literature research method,and initially understands the development of the domestic securities industry and its profit composition.Secondly,using the annual report and other information obtained the data such as the income cost of HX Securities' sales department,analyzed the current status of its profit structure,and then analyzed the company's income and expenditure and key financial indicators to find out the key factors affecting the company's profit.The company's solution based on the advanced experience of foreign excellent brokerage profit model transformation and the "19th National Congress"report of the domestic financial market and the impact of Internet finance on the securities industry.Using SWOT analyzes the advantages,disadvantages,opportunities and threats of HX Securities.Finally,according to the goal of HX Securities' profit model transformation,it proposes to improve and create a new profit model.The article concludes that under the background of the growing Internet finance,HX Securities should use the Internet technology innovation brokerage business model to actively leverage the scale advantages of the original brokerage business and coordinate the development of investment banking and asset management to achieve stable and high quality.The operating profit reduce the proportion of brokerage business income and thus reduce the negative impact of the fluctuation of the secondary market conditions on the profitability of securities companies.As a representative of local small and medium-sized brokers,HX Securities has a certain universality in the study of its profit model transformation,and can provide reference suggestions for the transformation of brokers whose brokerage income is the main source of profit.