The case examines how China’s leading discussion forum for retail investing, East Money Information Corporation (EM) transformed into one of China’s leading retail brokers. It provides a detailed overview of the Chinese securities industry and its competitive environment and describes the various stages of innovation EM experienced as it progressed through three major capital market cycles. The latest trends, and potential growth areas for the industry and EM in particular, are also introduced.
After working through the case students will
- Understand the securities industry in China and be able to identify its key drivers of change
- Understand how a social media platform can leverage its core competence to transform into a profitable enterprise in a traditional industry
- Understand how new technology companies can compete with traditional players in a highly competitive and regulated industry.
- Understand the economics of the brokerage industry and develop strategies to responds to industry trends including the decreasing trading commissions