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Present Situation and Problems of the Development of China's Security Industry Nie Qingping, Secretary-general of China's Security Industry Association       Nie Qingping, Secretary-general of China's Security Industry Association gave a lecture titled "Development and Risk Management of Security Companies". His lecture was devided into two parts. In the first part, he made a retrospect to the development process of China's Security Companies. In the second part, he analyzed the problems that security companies were faced with and how to solve them.              By the end of 2002, China has had 126 security companies, with registered capital of 106.2 billion RMB. All over the country, we totally have 2800 security sectors with 120,000 staff. According to incomplete statistics, the 121 security companies over the country had total assets of 570,300,000,000 RMB, liability of 456,000,000,000 RMB and net assets of 1137,000,000,00 RMB.              The development of China's security company has experienced different stages.       Before 1990, the secutirty organizations doing bond transactions were mainly business sectors of trust investment companies.       After 1990 came a development stage for security compamies under the management of limiting stock amount. In this process, the trust industry was reorganized£¬broke off relations with PBC and transform to a share-holding system.       Security Companies with a passage system after year 2000              The overall assets quality of China's security companies are not satisfactory. Paticularly in the follwing four aspects:       1¡¢Scale of total assets is not large enough.       2¡¢Too many low-flowing-rate assets.       3¡¢The scale of self-operated and entrusted assets is too large.       4¡¢The proportion of liability is too high. The situation of diverting customers' margin still exists.              The reasons for the above problem:       1¡¢Industrial and real estate investment       2¡¢T-bonds Repurchasement and over-the-counter short-term loans       3¡¢Failure to draw back the commission of acting as an agent of isssuing enterprise bonds       4¡¢Guarantee Loss       5¡¢Self-operation Loss       6¡¢Loss of Managing money matters for the guests              In addition, Professor Nie analyzed security companies' managing structure, inner-control mechanism, organization form and external environment etc.