Research On The Market Structure And Performance Of Chinese Security-industry

The global financial crisis has impact on China's securities industry in 2008 as well as the primary form such as price war, which then is faced with the new development opportunities such as growth enterprise market, stock index futures, international board, etc. currently, some cases are related with the market performance, such as the trade structure in the securities market, various business concentration in the securities market, the market structure analysis on securities industry; the empirical test is one important aspect in the paper, and the suggestions for the promotion of market performance is put forward from the perspective of market structure in accordance with the analysis.The concise market structure of securities industry and the performance theory has been summarized concisely in the paper, in addition, the process of theory development is reviewed, the significance and limitation of the theory is revaluated simply, the reasonability of which is referred into the paper. Having reviewing the evolution process of China's securities market structure, combining current reality of securities industry, the author has applied Panzar-Rosse model and select the industry data from 2006 to 2010 after the equity division reform, which aims to take the specific analysis, furthermore, the author has taken several analysis on the brokerage and investment securities business, make clear the market structure of China's current securities industry, then illustrate the formation reason of the market structure in accordance with the market concentration, barrier access or withdraw, etc.The Panzar-Rosse model, which is widely applied into bank industry at home and aboard, has been introduced into securities industry so as to research on China's securities market structure, and the major thought of the model is discussed, then, the model index of China's securities industry is revised. The setting-out on the market performance of the securities market has taken the entire Retum on equity of the industry as the profit index, the cost management ability of top 20 securities company as the cost index and the rate of entire ratio liability and the asset turnover risk, which has put overall description for the market performance from three aspects, ie. the profit, the cost, the risk.After having researched on the securities market structure and market performance, the author takes empirical test on structure and performance of China's market through the application of thePanel Data Model from 2006 to 2010. finally, the suggestions have been put forward, ie. perfect the market performance through improving the market structure of China's securities.The contribution in the paper. The domestic research on the securities industry mainly focuses on the contrast of Brokers strength from the perspective of topic selection and research, which lacks of the deep research on the market structure; the author not only analyzes the market structure of the entire industry, but also researches on the formation reason of the market structure through the change trend of the concentration of the brokerage and the investment banking; the different ways to promote the market performance has been put forward in terms of different specific business, furthermore, the Panzar-Rosse analysis model has been universally applied in the securities industry.It should be admitted that many similar articles end with the higher-concentration and better-performance without further studies on the empirical analysis, and simple model is applied in a little pieces of article, in addition, the regression is processed only by the least square method. The panel data model has been applied to measure and test the relationship between the market structure and market performance in the paper, and it has strengthened the persuasion and availability, which expects to make relevant departments and personnel better understand the market structure of China's current securities industry, work out measures to promote business efficiency pointing to relevant factors.