The Research Of Securities Brokerage Model Innovation

For the past 20 years, Chinese capital market has made significant achievement and it has been playing an increasingly important role in Chinese economy. As an important part of capital market, the securities industry will be more developed and mature as well. With furious commission competition among brokers and low performing market, traditional brokerage business channel income has been declining year by year. It is imminent for the brokerage business model, as one of the most important operations of securities companies, to upgrade and to adapt. Innovation of brokerage business can enhance the competitiveness of securities companies and provide diversified products and high quality services for customers, promoting the sustained and healthy development of the capital market.Hengtai securities Limited by Share Ltd is a broker that grew up together with the development of Chinese capital market. Through prudent operation and continuous innovation, it has become a comprehensive securities company that has scale and competitive advantage in China. Studying brokerage business innovation of Hengtai securities can help Chinese securities companies follow current market situation and provide reference for their business model upgrade.This paper firstly introduces the research background and summarizes the research situation in both China and overseas. It then analyzes the market situation and market trends of Chinese and American securities business. It further uses the SWOT model to analyze the present situation of Hengtai securities brokerage and briefly describes the current achievements of its brokerage innovation. Based on these analyses, this paper demonstrates the necessity of Hengtai securities brokerage business innovation and analyzes the limiting factors of its brokerage business innovation. Finally, this paper gives the recommendations for the innovation model of Hengtai securities brokerage business.The paper believes the securities brokerage business innovation should be based on the compliance of industry trends and industry capability. Securities companies could sustain their development by using its resources to meet customers’comprehensive demand for financial services. Therefore, this paper gives recommendations on promoting wealth management model, innovating the governance structure of brokerage business, emphasizing Internet marketing, vigorously developing the capital intermediary business and so on.