The Research Of MS Securities Product Innovation

With the establishment of Shanghai and Shenzhen Stock Exchange, securities industry of our country has gone through 20 years. After three years of comprehensive renovation and development period since 2008, securities industry has now entered a period of stability. However, results of statistics show that the main business of China’s securities companies is channel service, and three traditional business of securities brokerage, underwriting sponsor and securities dealing account for about 80% of total revenue by 2012, while the commission of agents dealing in brokerage business accounted for more than 60%. Due to homogeneity operations of business and product, outstanding competition issues of low level, innovation ability of securities companies and professional service level is obviously insufficient, and the breadth and depth of services cannot meet investment and financing needs of diversified real economy. Securities companies are at a disadvantage in business model competition due to deficits of investment and financing. And in other areas of traditional business, commercial banks, trust companies and other financial institutions, rely on the advantages of channels, customers and business model, have penetrated into the securities industry and reduced existing and development space of securities industry.The eleven measures presented at securities innovation conference in 2012 have relaxed restrictions of regulatory supervision on securities companies, and lend their support to policy and regulatory environment. Securities companies have explored innovative development actively, and made certain achievements in innovation of ideas, products and systems, and so on, which making the securities industry into a new era of innovation-driven.In this paper, comprehensive exposition about product innovation and development trends of domestic securities companies is given, based on financial innovation theory, transaction cost theory and value chain theory. Overseas successful experience and implications for domestic securities industry are analyzed. It indicates that the building of integrated service platform is the basis for securities companies to carry out other business, and technological innovation is the premise and guarantee of product innovation, and asset management and investment banking is the driving force of business innovation. In addition, problems emerging in the process of MS securities product innovation are summarized through in-depth analysis of existing products and services of MS securities companies, and then problem causes and solution of product innovation process of MS securities are discussed. The main works and innovations are as follows:First, the status of MS securities products innovation are analyzed. Firstly the achievements of MS securities product innovation are summarized. Secondly problems existing in the process of MS securities product innovation, namely many limits to securities laws and regulations, insufficient market operation ability of products, products innovative capacity, innovation team building of products, insufficient new technologies application of MS securities, are revealed. Finally problem causes of product innovation process of MS securities, namely imperfect securities industry policies and regulations, imperfect financial supervision mechanism, imperfect architecture of innovation management, insufficient Innovation professionals and backward risk control ability, are revealed.Second, problems solution and safeguards of product innovation process of MS securities are summarized. Firstly solution of problems existing in the process of MS securities product innovation are revealed, namely imitation innovation focusing on product innovation process, extension of development and application of Internet technology, improvement of management framework of product innovation process, training of high-quality innovative talents, Improvement of risk control of product innovation process. Secondly the safeguards of product innovation process of MS securities are summarized, namely improvement of related policies and regulations of securities industry and improvement of system and regulations of regulatory approval.