Chinese Securities Companies ― An Analysis of Economic Growth, Financial Structure Transformation, and Future Development

At the turn of this century, China’s capital market entered a new era. Since then, the continuously fast growth and rising income levels in China have led to significant change in the market’s financial structure. Increasingly active financial investments that are becoming more market-oriented and individual demand for financial services have brought about increasing need for diversity, securitization and portfolio management services. Meanwhile, securities companies in China, as the major providers of financial services in the capital market, are going through a period of significant opportunity. Taking account of the broad space for development and increasingly tough competition, Chinese securities companies face challenges in areas such as functional position, organizational structure, profit model, risk management and control, talent structure, core competitiveness and international vision.

The book will discuss:

• Solid capital power accompanying a fluent and efficient mechanism of capital formation and complementary factors
• Matchless core competitiveness based on outstanding innovative ability in human resources
• Rigorous risk management and control mechanisms and the ability to cope with risks efficiently
• Broad international vision combined with top-ranking international ability

It is necessary for the future development of Chinese securities companies to take example from and absorb the experience and lessons of international investment banks (securities companies) in mature markets. The hundred-year history of international investment banks’ development represents the whole world history of modern finance, with its basic characteristics of spectacularity, secretiveness, fluctuation and unpredictability. The question we must ask is how will Chinese securities companies find their position in this history, intertwined as it is with both fog and sunshine?

WU XIAOQIU is renowned as an expert on Chinese finance and securities and is one of the most influential authorities on the field of capital markets in China's economic circle. He holds several positions at the Finance and Securities Institute of Renmin University of China, including Director and Professor of Finance. Professor Wu is also a member of the ninth Issuance Examination Committee of the China Securities Regulatory Commission. His research focuses on macroeconomics, financial reform, and capital markets.