The Construction And Implement Of Internal Control System For China Dragon Securities Company

The positive operation of the stock market is important to the safety of the national economy. The standard stock market is advantageous to guard against the risk, to promote the market development, to give full play to various functions of stock market and even to protect the legal benefits of the numerous investors. As the axis of the stock market, the securities company's standard operation and healthy development are extensively concerned by the society. The risks have been occurred constantly in securities companies in our country in recent years. Some securities companies were canceled, closed, or taken-over by CHINA SECRITIES REGULATORY COMMISSION because of the faulty internal control issue, which leads to the loss of control in the management or huge business losses in the company and even affects the steady development of our national security market. Therefore, internal control System for securities companies has become a valuable issue to be researched and resolved in theoretical and practical areas. This paper analyzes the current development status of internal control for the securities companies in our country through introducing the theory of internal control, and discusses on how to form and improve the internal control and also suggests on the construction and implement of internal control system for according to the demands in Guidance for securities companies' internal control, from the point of view of management and securities company itself, as well as the actual developing status of.This paper includes five parts. One is about the analysis on theories. Firstly, it describes the arising and developing status of the internal control, and then analyzes the characteristics of high risk and points out the importance of tightening internal control in securities companies.Chapter Two describes the developing process of securities companies' internal control in our country and the norms and demands for it, and also introduces the main contents briefly in Guidance for securities companies' internal control. It comments on current internal control status in China's securities companies, and reveals the main problems and weak links which exist in internal control for securities companies' in our country.Chapter Three introduces the general situation of China Dragon Securities Company briefly, and makes a conclusion that it is an inevitable choice to construct the internal control system for China Dragon Securities Company according to the summaries of the achievements and the problems in the aspect of the internal control.Chapter Four, as the key part, brings forth new ideas. This part analyzes the goals of constructing the system and the main factors which should be considered, and gives suggestions on the construction of internal control system for China Dragon Securities Company on the basis of the spirit of Guidance for securities companies' internal control. It suggests we formulate firm managing policies and operating process by forming complete organization structures to in view of the risks in various managing activities, adopt scientific ways to ensure the legal business and avoid adventures to improve the efficiency. It describes the system's structure from five aspects: the controller, the object of control, the ways of control, the process of control and the feedback of information.Chapter Five is also the key part. On the basis of Chapter Four, it deals with specific practices of internal control system according to China Dragon Securities Company's four main business models including brokerage, investment banking, proprietary business, asset management and risk points. Lastly, it gives views and suggestions on the focal links in the process of realizing and improving of the system.