China's Securities Industry Concentration And Industry Performance Analysis

With the socialist market economy system further improving, china'scapital market has undergone considerable development. After thirty years'exploration and practice, our securities market from zero to the basiccompletion, which same way the western developed economies has spent ahundred years. Securities companies as an intermediary, accompanied by thestock market developed steadily growing, but compare with foreign investmentbanks, still have a long way to go.According to modern industrial organization theory, that the marketstructure of a industry decide the market behavior by enterprises, andenterprises behaviors decide the market performance, this is the classic SCPparadigm. The market structure is the starting and important point forindustrial organizations research, and market concentration is the most basicand important factor of market structure, embodied market competitive andmonopoly levels, serious effect on market behavior and performance. Thispaper analysis of the China's securities industry concentration and performance.This paper select our securities company's data from 1999 to 2009. First,this paper by the scale, business and sales department three aspects to analysisour securities industry concentration, and compare with international capitalmarkets, analysis of securities industry performance from return on total assetsand return on equity.Then, eliminate multicollinearity of concentrationindicators by the principal component analysis, add return on the Shanghaicomposite index and total assets of securities companies as control variables,and regression analysis with return on equity. Finally, got this paper's studyconclusions and give corresponding proposals.The main conclusions of this paper are: Although the concentration ofChina's securities industry has increased, but compared with foreign countries,still at a low level, is a low concentrate and oligarchy monopoly form ofmarket structure; Now, our securities industry's performance is mainlyinfluenced by the stock market, industry concentration is a little on it; Oursecurities industry concentration is need to be enhanced, but should avoid "toobig to fail" as foreign.