Economie Growth, Financial Restructuring, and Prospects of Securities Companies
Since the beginning of the twenty-first century, China has seen rapid economic growth: Gross domestic product (GDP) per capita increased from USD 949 in 2000 to USD 5,000 in 2011, while residents' disposable income also ballooned proportionally. During this time, drastic changes have struck China's financial structure with increasingly active financial investments, markedly improved market openness, and greater demands for diverse financial services, securities, and portfolios. The Chinese capital market and the securities industry are therefore looking at a new era of historic changes and major opportunities. As the main provider of financial services in the capital market, Chinese securities firms have heralded a new phase of growth.
But how does a securities company succeed when competing for these opportunities? To grip the future, securities firms must have the following three abilities:
1. Understand Chinese economic trends
2. Comprehend the evolution of Chinese financial structure
3. Possess a core competitive edge
UNDERSTANDING THE ECONOMIC TRENDS OF CHINA FROM A SECURITIES FIRM'S PERSPECTIVE
In terms of China's economic prospects, a securities company should focus on two specific issues:
1. The general trends of China's economic growth: contribution of investment, spending, and import and export to economic growth
2. Changes of GDP and disposable incomes per capita: proportions and system of national income distribution and shifts of income streams in particular
Changes in these factors usually give rise to changes and upgrades in financial demands, which are expected to result in major shakeups in the financial structure.