A Study On The Strategy Of China's Securities Firms In Transition Period

After over ten years of flexuous development, the supervision measures of Chinese securities business has got continuous improvement and all involved marketing elements become mature. The capital strength and operating level of domestic security companies have risen notably. However, because of the continuous improvement of standardization and internationalization of Chinese securities business, rapid development of modem information technology, popular online transaction and floating commission system, the competition environment of security companies in China has changed fundamentally. The traditional operating model is facing challenges and the transition seems emergent as well.Based on such a background, this paper is going to point out, through data analysis, the main problems that the security companies in China may face during the transition period: lower concentration; relying brokerage service heavenly; homogenous in providing service. Then, this paper analyzes the internal and external causes which may influent the transition. The external causes are as follows: The outward opening of Chinese capital markets makes our security companies facing challenges from overseas transnational investment banks; the mixed operation trend of financial industry provides banks and insurance business with an opportunity of expanding their fields, and meanwhile, makes domestic security companies face competition from these two industries. The internal causes are as follows: The industry access requirement is at a lower level, which intensifies the competition; the release of floating commission system makes the profit margin of brokerage get further shrinkage; the popular online transaction seriously challenges the traditional operating model. After analyzing the transition status of oversea security companies, the paper presents three typical operating methods of foreign security companies, and discusses the experiences which may helpful to the transition of Chinese security companies. At last, combining the practice of Chinese security companies, this paper establishes the following development strategies: Small- and Medium-Sized security companies should develop toward systematization and specialization; Big-sized security companies should develop toward grouping and internationalization. Besides, some detailed feasible measures are discussed based on the development strategies.