Volume Up, China's Online Transaction

This June witnessed China's online securities transactions account for 4.63 percent of total securities trading volume, an increase of 1.63 percent over that in the beginning of the year. A total of 2.71 million investors opened account on Internet, taking up 8.46 percent of the total investors, up 2.26 percent as compared with the beginning of this year.

China's online transactions are showing a tendency on the increase, said Zhou Xiaochuan, chairman of China Securities Regulatory Committee (CIRC) at the ongoing "China Securities Online Business Symposium".

Zhou said that online transactions would exert substantial influence on securities companies. Shortcomings of traditional transactions lie in its high cost, low profit and limited customer resources. By contrast, online transaction becomes more and more popular, its advantages tending to be more and more obvious. As proportion of young and well-educated investors is increasing, they will use Internet to conduct transitions. In addition, development of information technology will help securities companies set up a complete internal control system and improve their management concepts.

Development of information technology will also have great impact on securities transaction accounting bodies. As to transaction mode, many securities institutions are discussing to extend trading time and hope to solicit for more clients. Regarding services, online information disclosure will make securities market more open and fair.

With regard to whether IT companies will be allowed to set foot into securities field, Zhou said that CIRC is considering to encourage IT companies to apply for license. But, IT companies must meet some requirements. First, they should have enough capital and in addition, those companies should have senior management staff with transaction experience. The entry of IT companies will open up a new vista for China's securities industry.

As regards the problem of different data standard adopted by Shanghai and Shenzhen stock exchanges, Zhou said that unifying data standard is very important, it is also a trend. To solve such problems requires joint efforts of relevant units.



By PD Online Staff Member Li Yan


People's Daily Online --- http://english.peopledaily.com.cn/