E-commerce Development Of The China Securities Network Economy Research

Network Economic Era, marked by information and network technology, is exerting influences on each fields of world economy and all walks of life, and Securities Industry has become one of those daring vanguards along with the development of network economy. With Securities Industry being the typical representative of information-intensive industry, it is possible to popularize and utilize latest technology and innovation in Securities Industry, which enables prompt handling and transfer of information, and hereby sets off some significant changes in competitive environment and development pattern of securities market. The combination of securities industry and network economy brings Securities E-Commerce into being, which cannot be neglected among the emerging network economy. Therefore, the paper will start with network economy to probe into the development, problems, and trend of Securities E-Commerce under Network Economy.Chapter I provides some description to Securities E-Commerce. Intimate connection with network, as well as excellent internet adaptability, makes the combination of securities industry and network possible, and hereby forms Securities E-Commerce. Securities E-Commerce is a kind of business pattern, which sets internet as the medium, and adapts IT technology to reorganize the business operation of securities companies to provide comprehensive securities investment service to clients. Securities E-Commerce consists of online securities trading, online securities issuance, online payment, and online information services. Among which, online securities trading is the core. Although Securities E-Commerce has a comparatively short history, it has demonstrated a rapid momentum and a huge development potential. Comparing with traditional securities business, the advantages of Securities E-Commerce are mainly interpreted in five aspects, including information advantage, cost advantages, space and time advantages, expansion advantage, as well as service advantage. Chapter II starts with Network Economy, and depicts the connotation of Network Economy, characteristics of network products, Positive Feedback mechanism under Network Economy, as well as the impact of Network Economy on traditional securities market. Network Economy is the aggregation of all economic activities established on the foundation of network and generated herefrom. Network products comprise network hardware and network software. Apart from embodying the characteristics of material products, network hardware is also equipped with network externality, which behaves as network positive externality in most circumstances. Network software products are mainly the production of information labor, and hence mainly show off as information products with sharing characteristics, variability, knowledge and re-creativeness and effectiveness. Due to their special characteristics, the consumption of network products demonstrates totally different rules from the consumption of traditional products, including lock-in, network externality, auto-expansion of scales, and increasing marginal utility. Therefore, the demand curve of network products comprises of two parts: should the demand quantity go under the critical point, the demand price and quantity will move in the opposite direction;should the demand quantity rank above the critical point, the two variables will move in the same direction. Moreover, increasing marginal returns of network products, which is quite different from the decreasing marginal returns of traditional products, enables the supply curve of network products demonstrates a different shape from the one of traditional products: along with the increment of turnout, the supply price of network product is decreasing. The neo-demand curve and neo-supply curve of network products are bound to grant network economy a new functional law: Positive Feedback Mechanism. Unlike the Negative Feedback Mechanism under traditional economy, Positive Feedback Mechanism fails to enable the demand and supply curve of network product r...