In the WTO negotiations, we have promised that: first, securities institutions can directly engage in B-share trading without the intermediary of China; Second, foreign securities institutions can set up representatives in China and become special members of China Stock Exchange. Third, it is allowed to set up Sino-foreign joint venture fund management companies to engage in domestic securities investment fund business. At the beginning, the other party's shareholding does not exceed 33%, and after three years, the maximum shareholding does not exceed 49%; Fourth, Chinese-foreign joint venture securities companies with minority shares are allowed to set up, with a maximum shareholding of 49%, and can engage in other businesses except the secondary market of A shares. The complete opening of China's securities industry is an inevitable trend of development, but judging from its commitments, it adheres to the principle of gradual progress. Nevertheless, competition still has a great influence on domestic securities companies.
By the end of 2000, there were 10 1 professional securities companies in China. For a long time, China's securities companies have a single business type and similar structure, and have not formed their own business characteristics. The business competition between securities companies is extremely fierce, and it stays in the disorderly and low-level competition stage. With China's entry into WTO, foreign securities companies began to pay attention to China's capital market. After international investment banks and all-inclusive financial department stores seize China, sole proprietorship or joint venture will bring scientific management concepts! Advanced technical means, all-round business innovation and efficient and high-quality service. At present, the competitive strength of domestic securities companies is not enough to compete with foreign securities firms. WTO is a passport to integrate into the global economy. After China's entry into WTO, the pace of marketization and internationalization has been accelerated. In the future, domestic enterprises should rely on their own strength to conquer the world, rather than relying on the amount of government or seeking government protection. It is conceivable that after China's entry into WTO, China's securities companies will face fierce competition.
Second, the comparative analysis of Chinese and foreign securities companies
After China's entry into WTO, China's securities companies will eventually compete with foreign first-class securities companies. Only by carefully looking for the gap and knowing ourselves, can we calmly deal with foreign capital when it enters. Here, the author tries to compare and analyze China's securities companies with foreign mature securities companies.
1. Scale comparison. An important aspect of a company's competitiveness is its scale. The biggest gap between Chinese and foreign securities companies should be the scale, and the "bottleneck" faced by the development of China securities companies is also headed by the small scale. Small scale will inevitably lead to insufficient anti-risk ability, weak ability to open up new business, unable to open up the international market, let alone compete with foreign giants.
By the end of 2000, only 22 securities companies in China10/kloc-0 had registered capital exceeding10 billion yuan. Even the Galaxy Securities Company, which has the strongest capital strength in China, has a converted capital of only $550 million. In the same period, the top 10 investment banks in the United States had a capital scale of over $3 billion to nearly $20 billion. Too little capital makes the foundation for domestic securities companies to expand their capital weak. In terms of asset scale, the gap between Chinese and foreign securities companies is even greater. By the end of 2000, the total assets of China Securities Company were about $69.5 billion, while those of Morgan Stanley, Merrill Lynch and Goldman Sachs were $426.8 billion, $407.2 billion and $289.8 billion respectively. Although the data are not completely comparable due to the differences in accounting standards between Chinese and American securities companies, the gap in asset size between Chinese and foreign securities companies can also be seen. The scale of capital and assets is too small, which makes it difficult for Chinese securities companies to achieve scale effect in their operations, and their ability to resist risks is low, which also limits their ability to explore the international market and resist international competition.
2. Systematic comparison. Although the rapid development of foreign securities companies is closely related to many factors, mature and effective institutional arrangements play a key role. Standardized corporate governance structure, efficient organizational structure, rigorous financial management system, scientific human resource management and strict risk management control system provide reliable guarantee for the development of foreign government companies.
Take American investment banks as an example and compare the securities company system in China (see table 1). The equity structure of American investment banks is diversified and decentralized, and the equity liquidity is strong. Shareholders can express their evaluation of the company's operating performance by buying and selling shares, and participate in corporate governance through low-cost external supervision. Judging from the composition of the board of directors, Chinese and foreign directors account for a relatively large proportion, which makes the board of directors have certain independence. Various committees under the board of directors assist the board in management decision-making and supervision, which helps to strengthen checks and balances and constraints on managers. American investment banks often adopt different organizational structures according to their own development strategies, their respective scales and obligations, and adjust with the development of technology and market environment to maximize organizational efficiency. In order to effectively motivate managers, American investment banks have adopted multi-level and diversified incentives, including short-term incentives such as high salary, high bonus and good welfare, and widely used various financial instruments such as stock options to strengthen medium-and long-term incentives, effectively linking employees with corporate interests, which is conducive to improving corporate governance performance.
Table 1 Comparison of Securities Company Systems between China and America
American Investment Bank, China Securities Company
Equity characteristics
Scattered, diversified, highly concentrated or excessively dispersed.
Poor fluidity
corporate governance
The independence of the board of directors is strong, the independence of external directors is poor, and the proportion of external directors is poor.
Major cases are low
Supervision and restraint rely on the board of directors and its committees to set up a board of supervisors, but it is often shaped.
Trade union meetings and sound information disclosure are nominal and have internal control.
System and Market Merger and Acquisition Phenomenon
External mechanism, etc
The organizational structure is flat and the efficiency is low.
Incentive mechanism, incentive means are multi-level and diverse, and incentive methods are single and diverse.
, pay attention to the combination of long-term incentives and short-term incentives.
On the other hand, China's securities companies have exposed many disadvantages in the construction of just over ten years, mainly as follows:
(1) The shareholding structure arrangement is unreasonable. Either the concentration of ownership is too high or the ownership structure is too scattered, which is not conducive to the formation of an effective corporate governance structure; The number of shareholders is small and the nature of shareholders is single. Most shareholders are state-owned legal entities, and the absence of state-owned assets owners makes it difficult for securities companies to form a standardized and healthy corporate governance structure. At the same time, due to the fact that all securities companies in China are publicly listed, the equity liquidity is poor, so shareholders can't use the indirect supervision and restraint method of "voting with their feet" and can only directly participate in corporate governance, which undoubtedly increases the cost of shareholders' participation in corporate governance.
(2) The corporate governance structure is not standardized. Although there is a complete set of board of supervisors, board of supervisors and management in the organizational structure of China's securities companies, there are great differences and arbitrariness in the organizational setup and the definition of their relationship, and there is no effective mechanism for mutual restraint and coordinated operation among the board of directors, board of supervisors and management. In the organizational structure of the company, there are also some defects such as excessive centralization, insufficient flexibility, numerous management levels and low operation efficiency. The management decision-making power is mainly controlled by the company's senior managers, lacking perfect decision-making mechanism and standardized operating procedures, and the phenomenon of insider control is serious. In addition, China's securities companies have not yet established a flexible and effective incentive system similar to that of the United States, and most of them use short-term incentives such as wages and bonuses, which cannot organically combine the interests of managers with the long-term interests of the company, which is not conducive to the long-term development of the company.
3. Business comparison. The main characteristics of foreign securities companies' business are wide business scope, strong adaptability and outstanding innovation ability. Its main business includes securities underwriting, securities trading, mergers and acquisitions, fund management, project financing, financial engineering and financial consulting. , involving all fields of finance, covering the whole country and even the whole world. The result of business diversification is that the sources of income are scattered and the ability to resist risks is improved. Its strong R&D strength and outstanding business innovation ability have also prompted financial innovations to emerge in an endless stream, which not only meets the diversified needs of customers for investment and wealth management, but also increases the source of profits.
While the business is diversified, the specialization of management is another prominent feature of foreign securities companies. On the one hand, in order to expand the business scope and enhance the service ability, large foreign securities firms vigorously carry out mergers and acquisitions at home and abroad, on the other hand, they also sell some non-core assets, and the key business areas are still very prominent. For example, Merrill Lynch and Goldman Sachs have their own business advantages and specialties. Especially for small-scale securities companies, in the competition with large-scale "financial department stores", we should highlight our own advantages in professional development and take the road of characteristic management. In recent years, the rapid development of discount brokerage companies in the United States has benefited from focusing on one professional field and selling highly specialized bundled products.
Then analyze the operating conditions of China's securities companies (see Table 2). Although the business scope approved by China's securities companies is very wide, the business currently carried out generally consists of the following five parts: securities brokerage business; Investment banking business, including regime underwriting business and financial consulting business; Securities proprietary business; Asset management business; Other businesses, including real estate investment and equity investment. As can be seen from the business structure, the business structure of China's securities companies basically revolves around the original business of securities, and the number of business varieties is quite different from that of foreign securities companies. At present, the income of domestic comprehensive securities firms mainly comes from three traditional businesses: brokerage business, regime underwriting business and self-operated business, among which brokerage income accounts for 35%, self-operated income accounts for 29%, interest income accounts for 6%, other income accounts for 30%, and other income mainly comes from underwriting and asset management business in the primary market (Tian, 1999). This income structure intensifies the dependence of securities companies on the secondary market. Once the market is depressed or the commission system is marketized, the overall operating conditions of brokers will be greatly affected. The downturn of 200 1 stock market has put many securities companies in trouble. Due to the lack of research strength, technical level and innovation ability, China's securities companies are unable to provide customers with all-round financial services, and their businesses are similar, which is not conducive to their own business expansion and long-term development, and they are more passive in responding to the challenges of foreign securities firms.
Table 2 Comparison of Chinese and Foreign Securities Companies
Foreign securities companies and Chinese securities companies
Business structure securities underwriting, brokerage business, self-operated securities underwriting! Brokerage business, self-management
Mainly engaged in business, asset management, mergers and acquisitions, asset management and
Restructuring consultants, derivatives, private restructuring consultants
Issuance and fund management
Other business venture capital, customer consultation, real estate investment, customer consultation,
Project financing, leasing business and fund management
Securities custody and mortgage
Business income, diversified income sources and relatively concentrated income.
Every company has no obvious income structure, and the income structure of every company is the same.
trait
Outstanding R&D innovation ability, backward adaptation R&D ability and innovative business.
New shortcomings of strong and continuous business innovation
Third, the development ideas of China Securities Company
1, capital increase and share expansion, merger and reorganization, Sino-foreign joint venture and listing are the mainstream directions for the development of China's securities companies in the future. On October 23rd, 2006, China Securities Regulatory Commission issued the Notice on Issues Concerning Capital Increase and Share Expansion of Securities Companies 165438, which cancelled the original preconditions for capital increase and share expansion of securities companies and gave them the initiative. At the same time, the audit procedure is simplified, and the behavior of securities companies to increase capital and shares is more standardized, transparent and market-oriented. This is bound to be a new wave of capital increase and share expansion. With the high development of China's capital market and the increasing competitive pressure after China's entry into WTO, static capital increase can no longer meet the needs of the future development of securities companies. The clear statement of the government's financial supervision department indicates that there is no obstacle for financial enterprises to issue and list in theory. Therefore, if the conditions are met, securities companies should actively seek listing and use the capital market to strengthen their strength. This is also an effective way to shorten the gap between Chinese and foreign securities companies in scale and strength as soon as possible and enhance their international competitiveness. In the "Measures for the Administration of Securities" issued on June 5438+ 10, 2002, there was a new major breakthrough in financial policy. First, set up branches, government business departments and securities service departments in securities companies; The second is to allow comprehensive securities companies to set up subsidiaries specializing in a certain securities business; Third, domestic securities companies can apply for the establishment, equity participation and acquisition of overseas securities companies; The fourth is to allow the establishment of Sino-foreign joint venture securities companies in China. All this means that the establishment of large-scale securities holding groups in China will have laws to follow, and the reorganization and integration of securities companies will also begin. With a good policy foundation and catering to the development trend of mixed operation of financial industry, China's securities companies are expected to build their own "super aircraft carrier", form a financial group with mixed operation of various financial businesses under a multi-level legal person system, and realize scale operation. With the opening of the securities industry, international financial institutions such as Merrill Lynch, Morgan Stanley, salomon brothers, Smith Barney and Dafu Securities began to cooperate with relevant partners in China. Domestic brokers such as Haitong Securities, Shen Yin Wanguo Securities, Guotai Junan Securities, Cai Xiang Securities, Galaxy Securities and Guangfa Securities are also actively contacting foreign brokers, and many of them have reached substantive cooperation agreements. In the process of international cooperation, domestic securities companies can not only learn from the scientific management concepts of foreign securities firms, but also improve corporate governance, innovate business and cultivate talents with their experience and strength, and also make use of their international ranking advantages to quickly enhance their industry image and shape their ranking advantages. It should be said that the joint venture between Chinese and foreign securities firms is beneficial to complement each other's advantages and achieve a win-win situation, and it is also an effective way for China's securities companies to expand their scale.
2. Management innovation is the basis for China securities companies to improve their competitiveness. In the final analysis, the competition of modern enterprises is the competition of management. Management innovation and perfecting the corporate governance structure of China's securities companies are the basis for the development of China's securities companies. The basic starting point of management innovation is to improve production efficiency and reduce business risks, which involves many aspects of securities companies' business activities.
(1) Clarify the company's development strategy. China's securities companies should learn from foreign advanced management concepts and gradually establish the management idea of "system first". Establish efficient and standardized enterprises with scientific system. It is necessary to define the company's positioning, find the right direction, determine the strategic development ideas that guide the overall situation, and specify clear management objectives accordingly, and decompose the business indicators and responsibilities layer by layer and implement them concretely.
(2) Reform the organization. According to the requirements of modern enterprise system, it is necessary to clarify the relationship among shareholders' meeting, board of directors, board of supervisors and managers of securities companies, and supervise and restrict each other. The independent director system of securities companies can be established, and various professional committees such as audit Committee and remuneration Committee can be set up under the board of directors to help the board of directors give full play to its functions. The establishment of organizational structure should pay attention to efficiency and coordination among departments, change to a flat organizational structure of banks, reduce intermediate levels, appropriately delegate business decision-making power, realize simple and efficient management, and give timely feedback and rapid response to external demand and market changes.
(3) Establish a scientific incentive and restraint mechanism. Scientific and reasonable incentive mechanism should adopt different incentive schemes according to employees' position level, service years and work characteristics. As far as incentives are concerned, material incentives and spiritual incentives should be used together, and short-term incentives should be combined with long-term incentives. In order to realize the sustainable development of the company, we should pay attention to guiding the long-term behavior of employees, especially the company's senior managers and technical core personnel. The stock option system can organically combine incentives and constraints, and the rise and fall of companies are closely related to the growth of individuals, forming a virtuous circle of mutual promotion.
3. Cultivating core competitiveness is an inevitable choice for state-owned enterprises in China. The core competitiveness of an enterprise refers to the unique core competence that supports its sustainable competitive advantage. Core competitiveness is manifested in core products, core technologies and core competence. Products come from technology, and technology comes from ability. As far as securities companies are concerned, their core competitiveness lies in their business ability. For China's securities companies, we should start from the following aspects to cultivate competitiveness:
(1) has reasonable positioning and outstanding features. Although government companies in China must constantly strengthen their business innovation and development capabilities, diversification does not exclude specialization. Large and comprehensive, small and refined can all be successful models for the development of securities companies, and the key lies in how to make strategic choices in combination with their own strength. At present, it is more important to create your own characteristics. In the process of strategic adjustment, we should correctly judge our own advantages and disadvantages, adjust our investment in different fields accordingly, highlight our own business characteristics and establish our own business brand.
(2) Business innovation and market development. Innovation is the fundamental way to cultivate core competitiveness. The securities market itself is the frontier of financial innovation. In the future, securities companies should gradually transform into financial engineers, capital operators, corporate partners and strategic investors. China government companies should actively develop new businesses such as derivative products, asset securitization, project financing, venture capital and online business. Only in accordance with international practices and China's national conditions, dare to innovate according to market demand, constantly open up business areas and provide differentiated and personalized services to customers, can we win in the competition.
(3) Vigorously develop research strength. At present, all securities companies basically have their own research departments and pay more and more attention to them, but their research departments have not played their due role, and their research level is limited, and their research results are also out of touch with business development. In the future, almost all commercial fields must be intervened by powerful research forces to develop smoothly. Brand research will also play an irreplaceable role in business development. Therefore, the cultivation of core competitiveness must be realized by vigorously developing research strength. The research department will become a strategic department, and the research report providing investment advice to investors should adhere to the purpose of independence and impartiality and form the authority in the industry; The development and research that provides scientific research support for the company's various businesses should focus on the transformation of results and truly become a strong support for business departments.
(4) Develop international business in a timely manner. For domestic securities companies, the main battlefield of competition with international securities companies will be the China market for a long time to come. However, with the overall improvement of the level of opening to the outside world after China's entry into WTO and the development of China's capital market, the requirements for internationalization are becoming more and more urgent. Domestic securities companies have accumulated necessary experience by competing with foreign securities firms at home, paving the way for going abroad and participating in international competition. Conditional to seize the opportunity, vigorously develop international business, such as domestic enterprises overseas listing counseling and sponsorship, international project financing, foreign currency capital management, international market research, analysis and consulting, etc., actively enter the international market, familiar with international market rules, cultivate talents familiar with overseas markets, and prepare for direct participation in international market competition in the future.