Research On The Development Strategy Of Haitong Securities Company

China's capital market has become one of the most important components of China's socialist financial market since its establishment nearly 30 years ago,and in line with the implementation of the national strategy,it has greatly helped the real enterprises to carry out transformation and upgradation,and assisted them to carry out industrial and product restructuration.In the meantime,China's securities companies have developed and expanded to larger scale,with their operation and professional financial services greatly improved.However,compared to the world's top securities companies,China's securities companies have shorter time to operate and develop,and the securities industry has also experienced a large-scale operating crisis.On the other hand,authority places strict regulation on the capital to control system risks so creative methods to operate and expand the scope of business are not permitted until recent years.Therefore,China's securities companies can hardly carry out innovative business,the proportion of new business income remains low level,and their business structures and types are quite simple.In this situation,many securities companies choose to develop by replicate others,leading to results that the profitability models of different companies are similar,the products and services provided by each securities company can be replaced easily with those of other securities companies,and malicious low-cost competition sometimes happens in the industry.Nowadays,with Internet technology and information technology applied to transform models of management and operation,China's securities companies improve efficiency and quality in both aspects so that customers can easily utilize the platforms and systems provided by securities companies to sign up financial accounts,make transactions and asset allocation,and learn about news and so on,while the proportion of fees charged by securities companies in traditional business is declining sharply.With the abolition of the limit on foreign-funded shares of securities companies in China,foreign securities companies will enter Chinese market with mature business models and rich service experience.The increasingnumber of domestic securities companies and their outlets,the market orientation,and the more and more fierce competition in securities industry will largely reduce the charging standards of the traditional business,thus compressing the profit margin and increasing the difficulty to the operation of securities companies.The Chinese government has strongly encouraged the development of capital markets by issuing various policies and regulations and taking various positive measures to guide the development of the capital market.With the improvement of the basic system and operation mechanism,China's stock market will undergo dramatic changes.For example,the introduction of SSE STAR MARKET and the registration system,the future reform of the Shenzhen SE GEM registration system and the implementation of the relevant policies of NEEQ.It has brought unprecedented growth opportunities for the investment banking business of securities companies.The reforms of stock options,margin trading,transfer and financing,and full circulation of H-shares have also enriched the business types,increased the income,and broadened the space for the growth in securities industry.In front of the competitive external environment and potential development opportunities,securities companies must formulate and implement a certain development strategy in order to seek survival and development space under the competition pressure.By using PEST analysis method,Porter's five-forces model and other methods,the author analyzes and studies the development environment of Haitong securities company in detail,uses SWOT analysis method to figure out the internal advantages and disadvantages,external opportunities and threats of Haitong securities company,and concludes that Haitong Securities Company should choose the ST strategy,which is to adopt the diversified development strategy,to take advantages of the company's group and leading status in isnternationalized business,to actively create and provide differentiated innovative financial products,to provide differentiated professional services to customers,and to obtain and strengthen the company's competitive edge by improving the level of financial services.This strategy can help Haitong securities company attract and cultivate a group of loyal customers,so as to establish the company's irreplaceable core competitiveness.