Brokerage Commission price Dark War: Big brokers follow the small and medium-sized brokers to reduce prices

"Not that the Commission is a bad thing, but only by lowering the Commission to spell customers, market, the first damage is the market, followed by the brokerage itself."　　May 26, in the "wealth Taishan" Securities brokerage service brand seminar, Li, deputy director of Qilu Securities Institute said. A shares of about 200 billion of the daily turnover, enough to make brokerage Commission price war.　　And the fierce degree of brokerage Commission price war has also aroused the concern of China Securities Industry Association, last week it will convene a brokerage business in charge of the vice president of the meeting, one of the topics discussed is Commission war.　　Under the active attack of small and medium brokerages, the first echelon of five brokerages who have set up high market concentration in the brokerage business field have to face the reality of the market share decline after entering the first quarter of 2009.　　CICC's research data show that the overall market share of the five first-tier brokerages of Guotai, Galaxy Securities, Cathay Securities, Haitong Securities and Huatai Securities declined from 26.17% in 2008 to 24.36% in the quarter of this year. Small and medium-sized brokers: Commission for the market in the first quarter of 2009 as if the inflection point, brokers generally said, although the brokerage business area surface calm, in fact, is the undercurrent surging.　　The most intuitive change is the accelerating decline in the overall brokerage Commission level. This reporter to have data comparable to the 7 listed securities companies (in addition to Southwest Securities, Pacific Securities related data comb found that the national Gold securities to 0.096% of the lowest commission rate, followed by the state securities, the Yangtze River Securities, Citic Securities (parent company statement), Haitong Securities, National Yuan Securities, Hongyuan Securities,　　The Northeast securities ranked highest in 0.18% commission rates. Into the first quarter of 2009, the 7 listed securities companies in the stock base rate of all declines.　　Among them, the largest decline in the national securities, the decline of 21.25%, followed by Citic Securities (parent company statement), the decline of 18.1%; next for the macro-source securities, Haitong Securities, northeast Securities and the Yangtze River Securities, the lowest decline in national gold securities, only 0.16%, still occupy the lowest commission rate listed brokerage position.　　Extrapolating from the above figures, the decline in brokerage commission rates in the first quarter of 2009 showed that small and medium-sized brokerages had adopted a policy of exchanging commissions for markets and that the strategy had proved to be very effective. The performance of National Gold securities, which has been adopting a low Commission strategy, is fairly representative. CICC's research report shows that as of the end of the quarter of 2009, the National Gold brokerage business market share of the lowest, only 0.69%, but the chain growth reached 28.6%, in the listed brokerages ranked first.　　In addition, the increase in market share growth in the first quarter of the obvious decline in the rate of the North-east Securities (growth 13.9%), National Securities (growth 12.8%) and the Yangtze River Securities (growth of 10.4%). Guotai analysis showed that the commission rate of 2008 listed securities companies decreased from 0.152% to 0.142%, down 6.6%, slightly below the industry performance. In 2009, however, commission rates continued to fall by 10% in the 1 quarter from 2008, falling BeyondExpected。 "Price war is the simplest, direct and effective means."　　"Shanghai on a new type of securities brokerage Business department head said frankly."　　Big brokerage: Following the domestic helper in a small and medium-sized brokerage group, the accession of Citic Securities appears particularly abrupt.　　In the first quarter of 2009, Citic Securities (the parent company) won two "second" in listed brokerages: The second lowest commission rate, after the National Gold securities, and the second largest, the quarterly commission fell 18.1%, second only to a 21.25% decline in the national securities. According to the data, the path of CITIC Securities is largely the path that its current rivals have explored-changing the market with commissions often but with seemingly poor results.　　Citic Securities, the parent company, had a market share of 2.44% in the first quarter of 2009, with a modest 2.4% per cent decline in the first quarter of this year, according to CICC's research report, which compared with 2.5% of the year in 2008. In response to the above performance, Guotai analyst static that small and medium-sized brokers to use market warming, broker norms and the opportunity to set up the opening of the time to actively price war, institutional transactions accounted for the decline and so should be the main reason for the aforementioned phenomenon. 1 "Large-scale brokerage business outlets concentrated in large and medium-sized cities, after the entry of small and medium-sized brokerages often hit the price of the market, the former market share impact."　　"A regional brokerage business director of brokerage said to reporters. "A sharp reduction in commission is not surprising, the key is to see the original commission base number." Some brokerages have always pursued the policy of high domestic helpers, but now a dozen price war, it found that the customer system is loose, only rely on the emergency to reduce domestic helpers to deal with. "Wanguo Securities brokerage business Director said.　　His brokerage is down 20% to 30% compared to the 2007 Commission level. From Guotai, Wanguo, Securities, Oriental Securities and other large brokers interviewed admitted that the first quarter of these companies have cut their commissions to deal with market volatility. "The current price factor has become the first factor of competition, we still insist on not playing price war, but also must follow the market, if our commission level and market gap is too large, customers will certainly abandon us." "said a former brokerage person. [Page] What's the bottom line? According to the reporter survey found that the entire Securities Industry standard Commission level of about 0.1% to 0.12%. Less than 100,000 yuan of funds, some large brokerages such as China Merchants Securities, Everbright Securities, such as commission rate is relatively high, in the 0.25%-0.3% range, close to the market cap; several brokerages with higher market share, such as Galaxy Securities, Wanguo, Guotai, Citic Investment and so on, the commission rate is basically in 0.12%-0.16　　% of the range; the market Commission is consistent with the GF securities, credit Securities, Haitong Securities, Oriental Securities and other major brokerages, and the Great Wall securities, capital securities, such as individual small brokerage commission rate is lower. In addition, the same securities company different sales commissions are inconsistent, geographical, customer positioning and other factors leading to domestic helpersThe gold rate elasticity is big.　　In the face of such commission war, what is the bottom line of the brokerage? The fixed costs to be deducted from brokerage commissions are transaction handling fees and regulatory fees. For the SSE, the handling fee and the regulation fee are about 0.014% of the transaction amount, the handling fee is 0.01425% for Shenzhen, and the regulatory fee is 0.0045%, the total is 0.01875%.　　If coupled with the securities brokerage personnel, fixed assets depreciation, as well as sales department rental, system maintenance, brokerage costs should be higher. "For our company, the cost is about 0.03% of the turnover." "The head of a large brokerage business headquarters said. He explained that two out of 10,000 of the turnover was spent on the regulatory floor and the remaining one out of 10,000 supported day-to-day operations. Another local broker surveyed said the cost was slightly higher than the former and was in a 0.03%-0.04% range.　　and a brokerage analyst and reporters that, taking into account the operating costs, the choice of brokerage to institutional investors to provide the rate (0.05%-0.08%) is more appropriate level. On this basis, the current 0.1%-0.12% industry standard Commission rate seems to have room for downward adjustment.　　But most of the brokers surveyed insisted that the current trend of domestic workers could not be sustained. "It doesn't make sense to compare commission degrees alone." When the daily average turnover of the stock is only about 50 billion yuan, some brokers can not survive the 0.2% Commission, if the daily average turnover to 300 billion yuan, 0.1% of the Commission can also make the broker very moist. "A person in the industry roughly calculations said.　　It is generally believed that once daily stock turnover is maintained at around 50 billion-80 billion, brokerage business will close to break-even point. New attempt: To foster the brokerage business brand "domestic brokerages rely too much on brokerage." In this case, the securities companies should be proactive, to provide value-added services rather than a price war to win customers, through services to master the pricing power of commission. "Li said," The current industry in the real mastery of technology, financial analysis is often the ability of the background service personnel, because the former background can not achieve benign interaction, it is difficult to timely and effectively the conventional Channel services and investment research results into securities brokerage services products. "Now the contention, to provide investors or channel, is still homogeneous competition, which is leading to price fluctuations in the cause." In fact, the securities companies should work hard to understand what kind of services are investors interested in, where can reflect the value. This will also have an impact on the Commission price.　　"The head of a brokerage business, an innovative brokerage, thinks.　　According to the reporter survey, guotai in May this year, trying to find through the professional market research institutions to the entire Brokerage Industry Commission status, each brokerage commission strategy, different customers on the Commission sensitivity and what kind of service can weaken the customer's reliance on commission price reduction. "Where is the value of the service?" Now the general problem for brokers is to provide a lot of services, but customers do not really need. What investors are facing is information.Degree, information explosion situation, how to quickly find what he wants? We should take the time to save time for our customers, which is value.　　explained the above person. In addition, there are already several securities companies in the market have launched their own brokerage business brand. such as Guo Xin Securities "Golden Sunshine" securities account, China Merchants Securities "Zhiyuan Financial", Huatai Securities "Zijin VIP financial", the German state securities "wealth Shang", Great Wall Securities also launched the "Wealth of the Great Wall" securities account. The latest brokerage service brand is the "wealth Taishan" launched by Qilu Securities. This business brand attempts to obtain the Commission pricing power of the high-end private customer base in the industry by offering differentiated and high value-added securities brokerage services, aiming at maximizing the input and output of the unit outlets.　　This may represent the future development model of the brokerage business. "Play the brokerage business brand, the purpose is to integrate services, as a product to recommend to customers." This product how finally for the customer approval, need, also requires the broker to have the corresponding resources and ability to support the commitment to customers. "A brokerage senior to this comment said.