Setting up securities companies: opportunity over

There are now 55 operational securities companies, and some 50 others are waiting for operation licences from the State Securities Commission (SSC). However, experts have said that the golden time to establish securities companies is passed.

The director of a newly set up securities company said that most of the companies set up late last year were still having difficulty making profit. The right time for setting up securities companies was five or six years ago, when the stock market began operating. The companies established at that ‘golden time’ have been able to make fat profit.

Of the five sectors securities companies are allowed to operate in, brokerage services and self-business (companies make securities investment themselves) can bring the biggest profit. The companies set up in the very first period of the stock market, including SSI, BSC, BVSC, VCBS and ACBS, can attract many clients thanks to their 5-6 years of experience.

As for self-business, big money fell into the hands of these securities companies when share prices increased many fold over the prices at which the companies bought shares.

Meanwhile, opportunities to make profit from securities investment deals have not come for newly set up companies. Share prices were very high at the time the companies were set up but have been falling since March, leaving no money for these companies, some of which have even incurred losses from their investment deals.

The director of a securities company said that in the long term, the stock market would further develop, but that history would not repeat itself: share prices will not increase as dramatically as last year, and securities companies will not have the opportunity to get super profit.

Though many securities companies will be set up in the time to come, experts still believe that there will not be an excess of securities companies as people have said, as small companies that cannot meet the demands of clients will be forced to close.

In fact, room is always available for companies which can provide high-quality services. Recently, securities companies have been overloaded due to the sharply increasing number of clients. Many new clients have been refused service by big companies, prompting them to approach newly set companies.

Source: VNE