Technology Trends in China’s Capital Markets

by Hua Zhang, October 24, 2014
Industry Trends
Asia-Pacific

Abstract

IT spending in China’s capital markets is growing, but slowly. Deregulation and new business areas provide opportunities for both financial institutions and technology vendors.

Regulation will greatly affect China’s capital markets. The regulatory trends are openness, new products, and more business from overseas. Growth at proprietary trading firms and asset management firms, new system requirements (such as support for derivatives), and internationalization are leading more domestic financial institutions to adopt systems from foreign vendors.

In the report Technology Trends in China’s Capital Markets, Celent examines the market size, regulation, IT spending trends, and the vendor landscape.

One area of potential investment is cloud computing.

“There are some cloud-based and BPO applications in the securities industry, such as the services offered by Shanghai Stock Exchange. Such services are useful for securities companies in areas like trading and investment analysis,” says Hua Zhang, an analyst with Celent’s Asian Financial Services Group and author of the report. “Though cloud-based applications are acceptable for institutions, there are some barriers. For example, the data center should be located in China.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned subsidiary of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

Market Size

3

Regulation

4

IT Spending Trends

6

 

Proprietary Trading and Asset Management

6

 

Business Systems

6

 

Cross-Market

6

 

Centralization

6

Competitive Landscape

7

Conclusion

8

 

Customer Segmentation

8

 

Cloud Applications

8

 

Local Partnership for Foreign Vendors

8

Leveraging Celent’s Expertise

9

 

Support for Financial Institutions

9

 

Support for Vendors

9

Related Celent Research

10

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