Of Securities Companies Operating In China Based On System Dynamics Simulation Study

In modern market economy, security market has already become the indispensable component of the modern financial system. As China made a formal accession to WTO, our security industry gradually realized the implementation of opening-up policy, and thus made our domestic financial market much more closely related/connected to the global financial market. The security companies are intermediary organs which play an important role in the security market. Our security companies are always confronted with relatively higher risks under turbulence of international financial environment. How to cope with the increasingly complicated internal and external environments, how to organize the operating management and how to stand out in competitions, these are all the issues that the managers of the security companies must take into account.In view of the operation characteristics and complexity of the security companies, conventional approaches can hardly build models in this regard. This paper offers effective solutions to cope with this problem by taking advantage of simulation technique, it divides the operation system of a security company into subsystems, including securities proprietary business, securities underwriting, securities dealer, human resource, tax, financing, fixed assets, profits, cash flows etc. By analyzing the interaction of every subsystem, the paper figures out the influences that all the subsystems exert on the entire operation system of the security companies. Modeling and simulation of the operation are made through the way of utilizing system dynamic research tool and its modeling software Vensim which is based on the idea of system engineering. Such kind of simulation will help to show you the internal characteristics and state of development of the operation system in a security company.The computer simulation model is capable of carrying out dynamic simulation of the security companies'operation systems in order to offer reasonable references to those business decision makers of the security companies. With effective inspections of the models are carried out on the basis of the operation data of the sample enterprise HR, the paper also simulates the performance of the company within a certain period in the future. The simulation contents include balance sheet, income statement, cash flow statement, status of human resources, general situation of fixed assets, dynamic changes of commission charge income and status changes of securities proprietary business etc.By adapting the research approach which combines quality and quantity, the innovation of this paper lies in its dynamic simulation of the security companies'operations and its reasonable policy advices for the companies'decision makers.