Hang Seng Electronics: Why no one robbed the market

In the financial software industry, where there is no high technology threshold, why can Hang Seng electronics occupy more than 90% per cent of the fund's trading software for more than 10 years? Wen |CBN reporter Albert Chan | Wang Longjin earlier this year, Fang Hanlin became the general manager of Hang Seng Electronics (600570), a software company with a market capitalisation of more than billions of dollars.　　12 years ago, Fang Hanlin, who had just graduated from Zhejiang University, wrote the first fund trading software system for the company, which for the most part had been the company's market share of more than 90% of the company's software trading system. Hang Seng Electronics is now a big player in the financial software industry. According to official data, the Hang Seng Electronics occupies the securities and futures industry trading system 47%, banking platform 80%, fund investment Management system 92% of the market share.　　Fang Hanlin led the Fund division is the company's internal performance is the most outstanding. Financial software is not an industry with a high technology threshold, "there is even no initiative to innovate." "One of the fund's IT executives said to the first financial weekly.　　But this is also a high profit margin of the industry, according to the first half of the earnings of the Hang Seng Electronics, its software business operating profit rate of 99.61%. No competitor is willing to let Hang Seng comfortably monopolize the market.　　In the early days, Sunyard and other local financial software companies, such as Xin-Li and Xin-jin, have been the competitors of Hang Seng in many projects, and now the expensive European and American software giant SunGard has noticed the market. But Fang Hanlin still seems confident that the benefits of the Fund's field will remain. "This is a market where there are a couple of close rivals but they are not living well; Hang Seng has long wanted to know what to do is the latter.　　"Fang Hanlin said. Hang Seng Electronics The only failed attempt occurred at the beginning of the company's creation. At the beginning of 1995, the 8 engineers of the new software were not satisfied with the company's equity incentive system, so the joint venture 500,000 rented the top 30-square-metre open-air shed in a commercial building in Hangzhou and set up the Hang Seng electronics.　　5 months later, the company went through a life-and-death test. The main thrust of the new company was the popular Treasury bond futures trading system. However, when the product research and development is completed, the Treasury bond futures are halted by the regulatory authorities because of excessive speculation. The Hang Seng Electronics faces not only the inability to continue sales, but also the fact that the contracts and receivables that have been signed cannot be recovered. At the most difficult time, the company had only 20,000 liquidity.　　On the second day of a moratorium on Treasury bonds, Hang Seng Electronics began developing securities trading software. Although the Shanghai and Shenzhen Two exchanges were all established 5 years ago, but China's securities trading is still depressed, the electronic trading is not widespread, investors use pens to fill out the offer, entrusted to the securities company salesman; if the salesman has more business, the transaction time will be delayed. The pursuit of popular failure of the Hang Seng Electronics this time will hope to put in?　　To。 The judgment was successful.　　With the development of the securities industry, Hang Seng Electronic securities trading software has gained more than half of the market share. PartiesWhen Hanlin joined the company in 1997, Hang Seng Electronics was preparing to invest more in another small market, the fund. The Hang Seng Electronics competitor's Gold Card provides a trading system for the only closed-fund company at the time.　　In 1998, a total of 5 funds appeared in the market, and the trading software provided by the certificate was still an adapted version previously provided to the Securities Business Department. Initially, Hang Seng Electronics also took out its own "adaptation version." But management quickly realized that the special operation of the fund industry would bring good market prospects.　　So Fang Hanlin began his first important job in Hang Seng Electronics: To write a new set of fund trading system software. Compared with the competitor's adaptation version, this trading system can better meet the requirements of the Fund for position ratio, transaction efficiency and data generation.　　Therefore, the official version has won the newly established Fund's welcome, the early development, the Hang Seng Electronic Fund division business has almost 100% of the market share. A higher market share means that Hang Seng electronics can offer higher prices to customers, but this offer is often accompanied by complaints from fund companies. The director of a medium-sized fund company said: "The fund company and the Hang Seng who can not be separated from, and customers complain a few words, Hang Seng make some concessions, the two sides will be peaceful again." "We usually don't want to replace any software we use." This involves not only the capital cost, software convergence, but also the user's usage habits.　　"The head of the securities department, a shanghai-based fund company, told the first financial weekly. Unlike the larger banking model, fund companies have long tended to outsource their data and servers to hardware and software providers such as Hang Seng Electronics or other more powerful service providers, a model that saves money for both human and financial costs and makes it much more costly to replace software providers.　　Subject to this, some of the larger software vendors are temporarily unable to access the market segment of financial software. For big companies, too small a market is an important factor in their reluctance to enter.　　2009, the entire stock Exchange software market size is 365 million, and the fund is only 160 million.　　Guangzhou Gold Card Technology is the most worthy of the Hang Seng Electronics competitors, in Guangzhou and Shenzhen and other southern cities brokerage and other financial institutions have a higher market share. In August 2006, the Shanghai Composite Index had just begun to climb slowly from 998, and no one could have expected a 6,124-point bull market following it. Gold Certificate technology is ready to invest in software research and development of 78.31 million yuan change.　　Among them, 37.92 million yuan will be appended to the original software development base project, for the construction of Gold Certificate Technology building. "Our main business is in the securities." Fund business we entered earlier, but due to the intermediary company strategy, market share or Hang Seng do more, we will actively seek this opportunity.　　"Gold Card Science and Technology board Secretary Yang Deren to the first financial weekly," said. "This way in and out, the strength of the contrast is sentLife has changed. We are certainly not going to let rivals like them get ahead. "Fang Hanlin said.　　Gold Card technology has not been able to expand its market share in the ensuing bull markets-Hang Seng instead took advantage of the Gold card technology, now holds 5 million stock card technology shares of the Hang Seng Electronics is its fifth largest shareholder, but also the largest institutional shareholder. According to the annual report, Hang Seng Electronics also owns Cathay, Huaan and other institutions or funds equity or investment.　　In the view of the outside world, these shareholding relations are part of the Hang Seng electronic maintain market relations stability factor. For the less powerful rivals, the Hang Seng Research and development team of more than 500 people have made it possible to demand the development process to make their trading software more stable. The Hang Seng electronic software development management platform is divided into four parts, each part is divided into more detailed parts, respectively, a dedicated team and engineers are responsible. Under the pipelined nature of the operation, each engineer is responsible for only one part of the operation.　　This allows the overall software product to maintain stability, not because of the level of the engineer's differences in product performance ups and downs. "Nobody wants to run into problems.　　Stability is more important than price, "one fund source said. Markets are also changing, and some big fund companies have started to build their own servers.　　Foreign companies like SunGard are also competing in the Chinese market, with the Hang Seng electronic "every new situation, add a new patch" software model, the foreign software has a complete system platform and trading mode alternative-if there is a new demand, only to be in the platform to set some parameters to be appropriate to meet the new operating requirements.　　Fang Hanlin is more worried about another problem-the company's existing business is nearing saturation, but the company's board has given him the job of getting market capitalisation bigger. Fang Hanlin said the Hang Seng Electronics is trying to face retail investors.　　This area already has the big wisdom and flush such strong opponents, but the side thinks the company and the broker's cooperation aspect has the superiority. "We're going to learn about Bloomberg mode, to do integrated data delivery, to package trading systems, data systems and hardware systems," he said.