Chinese Securities Firms Seek Growth, Hampered by Strict Regulations and Closed Financial System
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Chinese securities firms lag behind international counterparts in areas like business scale, product sophistication, and risk control. Firms predominantly generate revenue from brokerage and proprietary trading.
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Strict regulations limit innovation and risk-taking. Firms inclined to "do less" to avoid mistakes. Talented staff leave due to lack of business flexibility.
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Most revenue comes from domestic market, lacking multinational clients. Firms looking to internationalize concurrently with Chinese enterprises expanding overseas.
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US dollar dominance and closed financial system obstacles to building "world-class" institutions. An open, diversified system needed to become a financial powerhouse.
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Mergers seen as shortcut, unable to solve root issues. Different economic systems mean Chinese firms unlikely to resemble Wall Street despite aspirations.