Capital Markets Technology Vendors in China
Abstract
Although the IT market for China’s securities industry is highly concentrated, there are still many opportunities, such as QDII, margin trading, stock index futures, introducing brokerage, futures CTA, futures funds, and QFII.
In a new report, Capital Markets Technology Vendors in China, Celent examines trends in regulatory dynamics, market trends, products’ features, and vendors’ abilities in China’s securities industry.
The market data sector in China is fragmented. Major vendors include Wind Financial Information, Bloomberg, Reuters, Shihua Financial Information, and Qianlong. The market for business-related systems such as portfolio management, trading systems, valuation and risk management systems, and wealth management systems is highly concentrated, led by Hundsun Technologies, Shenzhen Kingdom Technology, and SunGard. Hundsun has the largest market share with 47% of the trading system market, 54% of management systems, and 43% of the stock index futures systems market. Shenzhen Kingdom comes in second.
“For foreign vendors that are planning to enter China’s securities industry, a key focus should be securities companies that are more actively involved in new businesses,” says Hua Zhang, Analyst with Celent’s Asian Financial Services group and author of the report. “This is because a large portion of the market for mature systems is saturated. Some examples of such new businesses are trading systems and valuation systems.”