Investment Banking Innovation And Economic Development In China

In market economy society, industry and products are produced according to the demand of the market, and are developed continuously in meeting the market needs. The investment banking is the product of the development of joint-stock company system at particular stage. As an intermediary of fund users and fund suppliers, investment bank participate in almost every aspect of the financial market. Its most obvious characteristic is the diversification of role. It is not only an investment intermediary but also an organizational investor. It is not only a broker, but also a dealer. It is not only a funds absorber, but also a funds user. In share publishing market, investment bank can help enterprises or other organizations which are shortage of funds to raise capital. It also can help enterprises to look for investment opportunity for their plenty of funds. In trading market, investment bank can help enterprises which are shortage of funds to sell any kind of marketable securities and also can help enterprises make use of their available funds to buy marketable securities. Investment bank not only participates in consultation of organization restructuring and merger, but also participates in helping enterprises to set up business and to invest. It can be said that investment bank gathers functions of bank, broker and other financial service provider. It is an organization that the business is diversified and synthesized. Its functions cannot be substituted by the other financial institutions in the modern financial system. Investment bank can usually carries out the separation of funds ownership and funds usage right with lowest cost. It acts as an intermediary for funds supply and demand, constructs the stock market, improves the resource relocation, encourages merger and acquisition, promotes property concentration and realizes scale-economy and so forth. Investment banking is an important link that builds the modern financial system. It pushes forward the development of national economy. It is the soul of the capital market.Hence, how to develop the Chinese investment banking, to make use of capital market and investment bank to serve the adjustment of Chinese economic structureand economic development, especially to resolve the state-owned enterprises' reform, to handle problem assets, to establish property ownership system, and to develop private enterprises, become a important topic with theories and practicing meaning.This text first studies the definition, history and current status of investment banking in western developed countries, and then studies the mutual effect and relationship between the international investment banking and the economic development. It can be seen that investment bank had evolved from the traditional business of stock underwriting to all capital market business and becomes most effective and influential financial institution after over more than 100 years development. Through the historical evolution process of international investment banking, it can be concluded that investment bank is the soul of the financial market. It pushes forward the economic development as a financial innovator. Moreover, under the environment of global economic integration, investment banking will have a good and glorious future in 21st century.Secondly, this text discusses the position and function of investment banking in the economic system, and points out that financial market is the core of economic system. Investment bank participates in almost all kind of financial market. It is a fresh troop in financial market and a pioneer of financial innovator. In short, the main products are financial consultation and financial intelligence. Its function cannot be substituted in modern market economy and financial system. It becomes the important power of economic development. Investment bank has important function in the funds medium, relocation of resources, improvement of property structure, promotion of technique and industry upgrading. This text also discusses the relationship between the investment banking...