Analysis On Asia Securities' Operation & Its Enlightenment

More and more problems in China securities market had obviously emerged Since July 2001. As a result, the performance of securities business was continuously in downturn. This made a direct influence on subsistence and development of security companies. Almost at the same period, the fulfillment of floating commission and involvement in securities business by domestic commercial banks and overseas investment banks resulted in tough competitions in the market. From the year of 2002 on, the aggregate loss of China securities industry appeared. Statistics indicated that the aggregate loss of 114 stock companies was about RMB 14,993,000,000, and then more and more bankrupts of security companies happened because of deregulation. At the end of 2005, there were 26 security companies closed by China Stock Administration. Being one of the important forces of security market, security companies did not fulfill their normal functions, but be one of the important sources of market risks. The reform of share splitting made bull...