The Profit Research Of Cinda Security Company Collection Asset Management Plan Named ’Xianjinbao’

Shanghai Composite Index experienced an unilateral down about21.68percentin2011, China’s stock market once again suffered a big bear market. In this marketenvironment, securities companies, customers trading commissions of brokeragebusiness as the main business income, are being seriously challenged, the net profit ofsecurities companies in financial indicators which earlier disclosure in the2011Annual Report were up sharply, some companies even losses. In respect of the currentmacro-economic perspective, that the country is facing economic restructuring willinevitably lead to an economic slowdown, while the new session of the "twosessions" put forward macroeconomic growth in2012will remain at7.9%, M2money supply will remain at14percent, these indicators are harbingering that thecoming year will not lead to the kind of the big bull market is similar to the situationin2007, the trading of the securities market is still bearish. For future trends, how thesecurities companies to seek new outlets in this weak market environment and how tobreakthrough securities brokerage business income bottlenecks, it will determinewhether securities companies in the winter stock market still stand. In order to solvethis problem, the securities companies are focusing on customer deposits margin ofthis large stock of capital, to seek a new breakthrough.Based on the above backgrounds, the author considers the brokerage financialproducts currently on the market, take ‘’Xianjinbao’ of Cinda as an example, focuseson the important impact of its introduction of the various Cinda securities and the entire securities industry. In this paper, four aspects were described. Firstly, in theintroduction, which mainly elaborates the research background, significance andresearch methods are proposed in this article. Secondly, the author focuses on thecontents of design principles, investment strategies of ‘Xianjinbao’, in order tohighlight the design concept and unique financial innovation mode of ‘Xianjinbao’products, meanwhile, the profits from the products show a reducing trend that highmanagement fee, a higher proportion of performance pay, simple product design, thelack of follow-up value-added services as well as investment in a narrow range, theannualized rate of return floating large problem. Thirdly, the author through thevaluation methods, cost and revenue allocation analysis combined with ‘Xianjinbao’-pilot phase and full extension phase of the overall data in two different stages,through comparative analysis and quantitative analysis, finds the influences on thelevel of profitability of the company and the future profitability of space outlook.Finally, through the analysis of the previous sections, the appropriaterecommendations are given for improvement. The author believes that themanagement fee and profit performance pay sensitivity analysis are adjusted in orderto achieve profit maximization namely: the future direction, can also graduallyexpand the scope of investment in the principles of risk control to a correspondingincrease in revenue and guarantee the stability of the income.This article gets the final conclusion by above four chapters: the introductionof’Xianjinbao’ products has a profound impact and significance to the launch of thebrokerage cash value-added product development services and brokerages financialproduct innovation. First, it will help improve the efficiency of client funds, enhancethe level of brokerage customer accounts revenue of idle funds. Secondly, it isconducive to enhance the exploration of the deep level of customer service,proactively protect customer resources, improve securities companies customer service levels, enhance the competitiveness of the industry. Thirdly, it is conducive toattract customers with the intention of demand for investment securities early to enterthe securities market, in time to capture investment opportunities, and growth of thecapital market. Finally,‘Xianjinbao’ products have aroused widespread concern in theindustry since its inception. The industry expected, brokerages launch such cashmanagement products, both to make an inventory of idle trillion customer margin, butalso greatly expand the scale of the brokerage asset management and add morebenefits for investors, it has multiple purposes. The introduction of ‘Xianjinbao’products make the original prop store clients’ deposits in commercial banks becomebetter investment approach and obtain higher interest rates than the current interestrates. More importantly, the product make the management power of securitybusiness take back to their own hands, further increase the right to speak on themarket, make the emergence of new growth point of the brokerage profit model.