Research On Brokerage Business Innovation Of Hualong Securities

For years brokerage business which is the core business of security companies in china and the income rate always holds the first place, is the most important profit resource. However, with the liberalization of the commission rate in2002, the rate in security business gradually falls. Meantime the slumping second stock market pushes more pressure on brokerage business in recent years and the traditional brokerage is facing unprecedented difficulties.Although securities began to seek transformation from the cancellation of commission rate, brokerage business meets the substantial transforming opportunity until appearance of margin in2010and innovation trend in2012. The credit securities transactions developed fast which bring the increase of the income rate. The innovation business such as assets management and investment bank also provide opportunities to brokerage business. Innovation is injecting energy to brokerage and giving hope to the new round of development for securities.Firstly, this paper analyzed the history situation of domestic security market and the opportunities and challenges of brokerage, explained the necessity of innovation and transformation.Secondly, it analyst the development situation of innovation business in domestic securities companies and drew a picture about innovation trend. Innovation offers opportunities and challenges for brokerage. Securities business is transforming from only brokerage business to comprehensive financial service provider. In future, the income rate of traditional brokerage business will continually fall; financial products will gradually become diversified; the rate of credit securities transactions will grow rapidly; diversified, profound and effective service is the essential method in competition; the development of mini-business department and open account online will effect the old market layout and regional securities companies will meet more pressure; the innovative marketing strategy can get use to new market environment.Lastly, based on the transformation of Hualong Securities Company, the paper analyzed and researched its competition environment, internal resources and external surrounding with SWOT model. On this basis, we discussed a serial of strategies and suggestions, including the emphasis fields of brokerage, the exam about innovative business, and the brand building of treasure management, substance and methods innovation about customer service. performance appraisal system, risk control and Legality.Hualong Securities Company, As a regional securities company in Gansu province, is ranked in the middle and its brokerage business is always the most important income resource. This paper is aimed to propose several practical strategy and suggestions to adapt to business development and promote its transformation based on researching the new thought and trend in the innovation background.