Strategy Is Vital to Success

In the past 20 years, the Chinese securities market has greatly changed. Many brokers experienced everything from boom to bust, but GF Securities has managed to grow and remain robust. The secret to sustainable growth is the commitment to compliance and innovation. (In the industry, the GF was a pioneer and leader in many business activities). GF has been definite about corporate strategy. Early in 1995, the management put forward strategic goals toward corporation, conglomeration, internationalization, and standardization, and such goals were achieved along with rapid business growth in the first decade. In 2004, management defined its new goal to be a large, reputable, and highly competitive Chinese investment bank with quality assets and stringent standards. Its objective was to be ranked among the top five investment banks in China in terms of size, profitability, and market capitalization. GF has now basically realized its goals, or is smoothly making its way toward them.

During the implementation of its strategy, GF has accurately seized market opportunities. When many commercial bank-sponsored securities departments still limited themselves in secondary market activities in 1993, the GF Securities management put forward the guidelines to promote investment banking and explore new territories, which allowed a head start in investment banking. When the Chinese stock market slumped in 1996, management immediately adjusted its strategy for overall business expansion. When the stock market soared in 1997, management asked officers and employees to stay alert for sound growth opportunities. In 2000, GF management put forward guidelines for standard practice-based development, which helped the company weather a long bear market from 2001 to 2005.

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