| Internet has been fast integrated into every aspect of our daily life. E-Commercewhich is based on Internet triggers a revolution, in terms of transaction methods, inparticular, in the securities industry.The application of E-Commerce for securities industry was developed almost at thesame time as the Internet development in China, as exemplified by the introduction offinancial-specialised websites in 1996. Securities services companies, i.e. MinfaZhengquan, and Gang-ao Shangzheng, initiated their web-based transaction services.There are currently more than hundred securities services operators providing suchweb-based transaction services since then.The E-commerce in fund sector also has a rapid progress though it has not been longfor the introduction of funds to China. Up to June 2006, 55 out of 57 registered fundshave established their own website (the remained two funds were newly founded inthe year). Web-based transaction of funds has become an important battlefield of fundsales.The development of information technology urges the securities industry to innovatetheir services which will be based on Internet, which includes the innovations ofthinking, technology, instruments, markets, organisation, and surveillance.However, there are a few problems existed in the E-Commerce for financial industry.For instance, the e-settlement system is not matured; the banking industry constrainsE-Commerce for other financial services under the segmentation regulation regime;financial services have bounded understanding of E-Commerce. All these haveconstrained further development and creation of E-Commerce in the financialindustry.This paper mainly analyses the problems with E-Commerce service creation forfinancial services, together with a detailed survey on the financial innovation. inChina. This paper also offers policy suggestion for E-Commerce further developmentand creation, in the perspectives of E-Settlement system construction, Bankingindustry creation and financial innovation. |
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