Impact Analysis of Internet Finance on Securities Industry in China

【Abstract】The prosperity and development of the Internet financial industry has greatly affected traditional securities industry in China. On the one hand， it has effectively transformed the value realization of the securities industry; on the other hand， it has triggered the channel reform of financial management and securities brokerage， which has advantages and disadvantages for China’s securities industry.

【Key words】Internet finance; securities industry; impact analysis

【作者簡介】秦浩然（1996.08-），男，河北邯鄲人，北京工商大學嘉華學院在讀本科生，研究方向：金融學。

1. It has transformed the value realization of the securities industry

Internet finance has the characteristics of non-authenticity. It can speed up the creation of the securities industry through Internet finance. Due to the development of Internet finance and the application of technologies such as big data， the transaction subject and transaction structure have become more democratic， which will lead to dramatic changes the realization of the cost of securities industry. The development of Internet technology has made information dissemination faster and spread more widely. In the traditional securities industry， information is originally pyramidal， which means that there is an asymmetry between individuals and industries. But in Internet finance， information is transformed into a flat model， which means that effectiveness and democracy are strengthened， and the scope of securities industry services can be further expanded.

2. It has transformed the channels of securities brokerage and wealth management

With the continuous development of Internet technology and the impact on society， the impact of traditional securities brokerage and wealth management is growing. First of all， Internet finance enables customers to open accounts online and purchase securities products online， thus avoiding the hassle of customers’ journey and reducing many cumbersome procedures. Second， Internet finance can realize the characteristics of virtual office sales， reduce a large amount of human and resource expenditures， and increase the income of Internet securities. As traditional securities brokerage and wealth management business is affected， commissions and market share are further reduced， so the integration of Internet finance and securities will be further deepened. To a large extent， the deepening of convergence has had a huge impact on traditional securities brokerage and wealth management.Securities companies will achieve tremendous changes under such an impact in order to seek a better survival.

3. It has weakened the function of financial intermediation in the securities industry

The financial intermediary role of securities institutions is mainly media capital and media information. These two roles are inseparable from the collection and processing of information， which is a major advantage of Internet finance. The organic combination of Internet finance and the securities industry can promote the flow of information， thereby further weakening the role of securities institutions in the traditional model. However， resource allocation and the speed of information flow have made great progress.

4. It has exacerbated competition among the securities industry

In the traditional securities industry， due to various constraints， the threshold of securities business is relatively high， and the competitive industry is relatively small. However， the development of Internet finance has led to an increase in its channels and a reduction in costs， which will have a major impact on the market landscape. The increase in Internet financial income will greatly reduce the business volume of the securities industry. Capital， the growth of e-commerce and off-site account opening will lead to further price wars， and the competition between the securities industry will inevitably increase.

5. Conclusions

The development of Internet finance plays a crucial role in the securities industry. Only by adapting to the growth period can we promote the progress of the securities industry. In order to improve the income and capability level of the securities industry， securities companies should gradually improve the industry development， relevant business level and market environment， and promote their entry into the heyday of sustained and rapid development.