Research On The Impact Of Income Structure On Profitability Of Citic Securities

At present our country's securities industry has a certain scale,capital market has been formed,and the securities company,as important participants,plays an irreplaceable role.Although it gets some good grades,the securities company also reflects lack of the profit ability and the problem that it depends on the weather.According to the datas of Securities Association of China in 2016,among many securities traders,although Citic Securities experienced the development of " carp s jumps over the dragon gate ",the problem that profit ability of Citic Securities is insufficient is the most obvious.Therefore,studying the Citic Securities' income structure makes some sense to the influence of profit ability.In addition to filling the research gap that Citic Securities have in this field,enriching the research datas of the securities traders,it can also put forward the corresponding suggestions for the further development of Citic Securities from the perspective of business income,and provide reference for the same type of the integrated securities traders.Based on asset portfolio,scope economy and financial innovation theory,this paper uses the method of normative analysis and empirical analysis to analyze the impact of Citic Securities business income and business income structureoptimization on its profitability.Using the datas of the 48 th quarterly report of Citic Securities from 2006 to 2017,the ADF test proves that the data is stable.After testing autocorrelation and multicollinearity,a logarithmic regression model is established to prove by experiments the impact of business income proportion on ROE and ROA.The research results show that business income structure of Citic Securities is relatively balanced,but it remains to be continue to optimize.The proportion of business transaction income has less effect on the profitability,the proportion of underwriting business income has positive influence on the profitability and the proportion of interest related business income and asset management business income has more obviously negative impact on profitability.Therefore,this article suggests that business transactions of Citic Securities should seek the transformation of development.While maintaining the steady of underwriting business income,the risks of interest related business income and asset management business income should be controled and the cost control should be strengthened sequentially according to the situation internal and external environment.