Investment Banks To Study The Function Of Positioning In China

As the soul of the capital market, investing bank uses the activity of fictitious capital to adapt the economic structure ,and to establish the modem enterprise system under the macro-screen of economic transformation economic-adapting and state-owned enterprise-reforming in china. The low efficiency of state-owned enterprise has been the major problem for china economy. Meanwhile , state-owned economic structure is not suitable, state-owned economic rate is too high, and technologic level is too low. The argument on the efficiency of state-owned enterprise is one of the focuses of the economic theories and the center of policy-making. Various measures have been taken to improve the efficiency of state-owned enterprises which have achieved some effect to some extent. However, generally speaking, the gap between the real effect and the expected objects is still large, so where is the pin point of the problem? It is that we have not captured the key problem although we have been valuably exploring and reforming the efficiency of state-owned enterprises on various levels and from different aspects. State-owned economic structure is still twist. State-owned economic rate is still high, and technology level is still low. A Chinese economy has a great scale , but there are lots of bubble elements. State-owned economic structure is not suitable, the state-owned enterprise system has a too low efficiency, and resources wastes very much. How to solve the problem? The fictitious capital can do it. The fictitious capital has three main functions . Firstly , it can transfer the money from whom has it more than needed to whom needed it. Secondly, it can redistribute the risk that can not be voided from the reality capital. Established the former two functions, the fictitious capital can affect and remake the reality capital. The third function is the most important one. Merger & acquisition on the capital market guiding by the investing bank adapts the economic structure , and establishes the modem enterprise system, and solves the problem of low efficiency of state-owned enterprise and the high rate of the state-owned economy. The problem has not been completely solved because the stable and effective enterprise governance structure based on market has not been established for state -owned enterprises during the period of the planned economy system and economic transformation. The fictitious capital can adapt the reality capital through merger & acquisition. The fictitious capital can improve the level of the capital market. The latter will provide good environment for state-owned enterprises reforms. It does not deny other factors which may influence enterprise efficiency and economic structure to some extent Thus other subordinate factors should be neglected when grasping the primary topic of the fictitious capital adapting the reality capital in the practice of reforming china state-owned enterprises. 21 century is coming, and Chinese economy needs improved, investing bank needs developed. Most important of all, investing bank has to design new financial tools to need the economy development. Especially, investing bank creates the exchangeable bond which different from convertible bond, to remake those State-owned enterprises which issue stocks.