The Effect of Location on the Profitability Structure
Based on their registered addresses, listed securities companies were classified by province (see Table 4.2) and by east, central, and west region (see Tables 4.3, 4.4, and 4.5 and Figure 4.7). The results show the east having the most listed securities companies with seven (41.18 percent), followed by the central region with six (35.29 percent), and the west with the fewest at four (23.53 percent).
As shown in Tables 4.3,4.4, and 4.5 and Figure 4.7, the total revenue of securities traders in the eastern region is markedly higher than those in the central and western regions. Specifically, the revenue of the eastern region is three times the combined revenue of the central and western regions. The business structures of securities traders in the east are also more balanced
TABLE 4.2 List of Publicly Listed Securities Companies by Province
|
Number |
Province |
Short Name of Company |
|
1 |
Shanghai |
Haitong Securities, Everbright Securities |
|
2 |
Chongqing |
Southwest Securities |
|
3 |
Yunnan Province |
Pacific Securities |
|
4 |
Xinjiang Uyghur Autonomous Region |
Hong Yuan Securities |
|
5 |
Sichuan Province |
Sinolink Securities |
|
6 |
Shanxi Province |
Shanxi Securities |
|
7 |
Jiangsu Province |
Huatai Securities |
|
8 |
Jilin Province |
Northeast Securities |
|
9 |
Hunan Province |
Founder Securities |
|
10 |
Hubei Province |
Changjiang Securities |
|
11 |
Guangxi Zhuang Autonomous Region |
Sealand Securities |
|
12 |
Guangdong Province |
CITIC Securities, GF Securities, Merchants Securities |
|
13 |
Fujian Province |
Industrial Securities |
|
14 |
Anhui Province |
Guoyuan Securities |
Source: 2010 Annual Report of Publicly Listed Securities Companies.
TABLE 4.3 Geographical Distribution of Sampled Companies
|
Region |
Short Name of Companies |
Number of Companies |
Percentage of the Total Number of Publicly Listed Securities Companies |
|
East |
Haitong Securities, Everbright Securities, CITIC Securities, GF Securities, Merchants Securities, Industrial Securities, Huatai Securities |
7 |
41.18% |
|
Central |
Changjiang Securities, Northeast Securities, Sealand Securities, Guoyuan Securities, Founder Securities, Shanxi Securities |
6 |
35.29% |
|
West |
Southwest Securities, Pacific Securities, Hong Yuan Securities, Sinolink Securities |
4 |
23.53% |
Note: The categorization into the east, central, and west is based on the definition set by the Seventh Five-Year Plan passed at the fourth session of the sixth People's National Congress. East refers to Beijing, Shanghai, Tianjin, Guangdong, Zhejiang, Fujian, Jiangsu, Shandong, Liaoning, Hebei, and Hainan. Central refers to Hubei, Anhui, Henan, Shanxi, Hunan, Guangxi, Jiangxi, Jilin, Inner Mongolia, and Heilongjiang. West refers to Sichuan Yunan, Xinjiang, Shaanxi, Guizhou, Chongqing, Qinghai, Ningxia, Gansu, and Tibet. At the fifth session of the eighth National People's Congress in 1997, Chongqing was elevated to a municipality directly under the central government and included into the western region, raising the number of provincial regions in the west to 10.
Source: 2010 Annual Report of Publicly Listed Securities Companies.
TABLE 4.4 Total Revenues in Different Regions (2007-2010 and Quarters 1-3 of 2011) (CNY in millions)
|
Year |
East |
Central |
West |
|
2007 |
79,985 |
15,433 |
7,011 |
|
2008 |
40,941 |
7,368 |
2,715 |
|
2009 |
58,868 |
12,197 |
7,223 |
|
2010 |
70,959 |
11,725 |
7,561 |
|
Quarters 1-3 of 2011 |
34,625 |
6,240 |
4,057 |
TABLE 4.5 Revenue Structures in Different Regions (2007-2010 and Quarters 1-3 of 2011
FIGURE 4.7 Percentage Revenue Structures in Different Regions (Quarters 1-3 of 2011)
Source: Wind Information Co.
and rational, in comparison to their counterparts in the central and western regions.
