The Research Of Evolution Strategy Of Domestic Small-medium Securities Company

Chinese securities business is a youthful and active industry. Duringabove 20 years, it went through the periods of first-found, nonstandard, manysecurities companies bankrupt, and fast canonical development, experiencedhundred-years phylogeny of foreign securities markets. It is proved thatsmall-medium securities company is the basis of development of Chinesesecurities market. According to three criterions: registered capital, retainedcapital and ability of payoff, there are 89 small-medium securities companies ofall 112 at present. Strategy study of small-medium securities company isvacant all through, and this is disadvantageous for Chinese securities industry.The administration of small-medium securities company is affected bymacro-economics, acts, policy, operation variety, the contract of securitiesmarket, competitors and so on. Chinese economy is high-speed developing,people's property is growing rapidly, and the desire of investment is increasing.These above bring many opportunities to the capital market. On 2006 Jan 1st,new 'companies act' and 'securities act' brought into effect. It means the legalbasis to the management of securities enterprise has changed. The change oflegal circumstance leads to the change of policy. Supervise and administerstandards, whose corn was retained capital, radically changed managementsolutions of securities company. Securities companies became normative.From 2003, variety innovation of Chinese capital market has been speedup.So that the operation innovation of securities market became faster, and theinnovative securities companies will get the chance to show itself. Since 2005,reform of non-tradable shares has been favorably accomplished in Chinesesecurities market. All-tradable structure will be shaped, and securitiescompanies will be deeply affected by the structure of capital market. Thecompetition among securities companies will became more acutely. At thesame time, banks, foreign finance organizations, assets managementcompanies and other finance organizations were coveting the securitiesmarket for a long time. Securities company will be faced with the adverseconditions such as buyers' market, inequality to upriver supplier, otherinvestable products contest the customers and so on. Taking one with another,the management environment of securities company has became morecomplex, so that the adaptable company will get opportunity to develop rapidly,and the slow ones may be ruined.At present, major operations of small-medium securities companies are focus on the brokage and consultation. And the latter servers the former. Small-medium securities companies are confronted the competition with large-scale securities companies, commercial banks, foreign securities service organizations, data and software/hardware suppliers and customers in the operation of brokage and consultation. To aim at different competitors and negotiants, small-medium securities companies should find various solutions, exert its own advantage, to survive and develop.According to the market orientation and competitive advantage of small-medium securities companies, using the theory of company evolution and competitive strategy, there are six solutions of development strategy to adapt various company: district develop oriented strategy, characteristic service oriented strategy, opportunity oriented strategy, follow oriented strategy, combine oriented strategy, adhere oriented strategy.Each strategy has its advantage and disadvantage, so the foreground, risk and countermeasure of the strategy are different. District develop oriented strategy requires the company has stable district market. Characteristic service oriented strategy requires the company has the experience or ability to form individual trait, Opportunity oriented strategy requires the company is aware of the direction of policy and market. Follow oriented strategy requires the company can discern the transformation of market and follow it in time. Combine oriented strategy requires the company have better capability to communicate and cooperate. Adhere oriented strategy requires the company has better ability to negotiate and harmonize with the parent company. The capabilities of securities company determines the choice of strategy. And as the strategy is different, the securities company will show its advantage and risk at one time. It requires the company to solve all aspects of problems. This will be discussed at the end of the article.For the sake of scientific and precise discuss, it used case-analysis technique, compare-study technique and so on during the research process.