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By Dec. 2005, China has all together 1,381 listed companies in Shanghai and Shenzhen, with a total value of 762.95 billion capital stocks. The total number of investors is 73.36 million and a total amount of RMB3, 166.3 billion deals has been done.China’s securities market is undergoing a profound change. The formerly bundled stock market of China is open towards the world and gradually replaces its financing function and speculating function with investing and financing function. Yet the structure of stock ownership in China is still unreasonable, for example 63% of the market stocks is non-circulating and only 27% is circulating. Now China’s reforming of the stock market is bound to impact the securities market somehow and meanwhile bring some opportunities for investors. With only a history of ten years more, China’s securities industry has many disadvantages compared with that of the developed countries. Firstly, similar operation structure, monotonous operation pattern and want of innovativeness enormously decrease the integral competitiveness of China’s securities industry. Secondly, the structure of securities companies is rather incomplete and their interior risk control system suffers serious unreasonableness. Thirdly, decentralization, small scale, low degree of differentiation, and weak risk-proof ability make China’s securities industry a failure in front of foreign-owned securities companies. Lastly, China’s securities industry is rather disorder in competition. In addition, it lacks complete and effective market supervision system and wants legal communication and coordination system. China is aware of the above weaknesses and is continually adjusting to enhance and enlarge the securities industry. Under this condition, the advantage of merger and restructuring in the industry is self-evident. The status quo of China’s securities market determines that its future development model is bound to be merger and restructuring. As China’s financial market is opened step by step, the merger and restructuring in China’s future securities industry will show the following tendencies: Firstly, mixed operation will become the mainstream. Secondly, merger and restructuring in the industry will become even fiercer as China’s securities companies aim to strengthen and enlarge themselves. Thirdly, foreign merger promotes the restructuring of China’s secretaries market. Finally, the securities market is concentrating gradually. |