On March 26^th, Wang Yan, the president of China Merchants Securities talked about the development plan in the interview with Security Times.

Wang Yan said “China capital market has moved into a spot for rapid development, and we must be well prepared so as to keep up with the high space of development. Currently, our strategic goal is to build the best investment bank in China. The goal urges that our core business indicators should rank in top 3 in the industry and capability of product R&D and services must be improved to narrow the gap between the world-class investment banks and us.”

To achieve this goal, Wang Yan proposed three development strategies: transition, internationalization and innovation.

In his view, transition refers to transformation and development in service pattern and profit model, including client structure adjustment. Service pattern after transition should emphasize the key role of wealth management in private client business while profit model transition is taken from traditional securities retail branches to integrated business department, from single profit model (brokerage service) to diversifying profit model (combination of brokerage, non-brokerage and capital agent). As to adjustment to client structure, China Merchants Securities not only pays attention to consolidating traditional advantage by providing better services to small and medium-sized enterprises, but also strengthen the capacity of serving large and medium-sized enterprises.

Innovation is encouraged for development. Wang Yan believed that innovation involves several aspects: innovation in products, services, operation, systems and supervision. Innovation in securities industry cannot achieved without innovation in capital market, cultivation of market, innovation in systems and mechanism as well as supervision. Innovation is a systematic program: only with the collaboration of different links, can we create a positive and interactive environment. He said: “At present, some securities companies actively involved in innovation in intellectual property while some imitate others’ experience. We encourage original innovation and strive to impel and lead innovation in securities industry. In fact, high-level capacity of R&D and original innovation should be one of the basic characteristics of the best investment bank.”

Wang Yan pointed out that besides transition and innovation, China Merchants Securities focuses on cross-border development, and Hong Kong market will be the breaking through point to realize internationalization.

According to Wang Yan, the best investment bank in China cannot be the top in mainland only; it must be competitive compared with world-class investment banks in Hong Kong and overseas markets. Only in this way, can a bank be called the international first-class investment bank with Chinese characteristics, which can meet the various financial demands for clients at home and abroad. Therefore, the best investment bank in China must be competitive in both domestic and overseas market.

“We will take Hong Kong company as a fully functioning business platform to create a world-class investment bank, sales and product R&D”. China Merchants Securities aims to make Hong Kong company more competitive, ascending from the third echelon to the second echelon through three years’ endeavor.

Wang Yan explained that China Merchants Securities (Hong Kong) will be taken as the test bed for innovation to develop new business such as leverage finance and structured finance so as to gather experience in innovation. The business development in Hong Kong helps train the personnel for product innovation and business expansion in mainland China.