An Analysis Of The Business Of Investment Bank Of CSF & RCS

The securities market is an extremely important part of socialist market economic system, and even it is the important sign of developed degree of modern market economy, while the intermediary is an indispensable component of any ripe securities market. It is necessary to develop our own modern securities management organization if our country wants to cultivate ripe capital market. Why? It is not merely because developed countries all did like this, the more important thing is we must accelerate the development of direct financing in the course of deepening economy reform especially SOE reform. At present, the SOE reform of our country has already entered key stage. The extensive, trans-regional, inter-trade even internationalized fund flow and assets rearrangement or resources readjustment and disposition are critical steps of enterprise's system reform, and they will determine the success or failure of the reform. The market-based enterprises reform, such as corporate restructure, merge and acquisitive and grouping, depends on security market offering support and service to enterprises in multi-aspect. The business of investment bank of securities trader involves the issue of the securities, offering service of planning, financial consulting and financing for enterprises' annexation and purchase, and it concerns every aspect of enterprises development and market construction.The development of some securities firms who have important status in the securities market intermediary of our country is unsatisfactory, and the running isn't standard, too. The securities market of our country is still in the elementary stage, and the marketing of securities regulatory system needs some time, and the securities firm's operating mechanism is in transformation period, but it is no use to strengthen and simply duplicate some old operating models. With the aggravation of the market competition, under the getting normalized trade competition pattern, the lucrative space will shrink day by day if utilizing non-marketing competitive method. Because of the rigidity of the cost and the marketing of the salary, the securities firm's brokerage can't gain any profit. The self-operation business is limited by market and influenced by securities firm's investment ability, so its income lacks the stability. With reform of management system, bail income from interest difference will return to the bank, and the securities firms are unable to count on the income for a long time. To this reality, the securities firms must effectively switch the mode of gaining profit through business innovation. The business of investment bank has enormous developing and innovating space, and it is the developing direction of securities firms.Business innovation is a lifeline of the business of investment bank, the securities firms must go out the mode of single underwriting business while doing a good job in basic business of investment bank, developing in the pluralistic direction. But the securities firms must pay attention to: The business of investment bank nearly contains all business of capital market. In view of the current situation of securities firms of our country, it is unrealistic to realize the innovation and development of all business in a short period of time. We must carry out the business of investment bank with particular emphasis in different periods according to the process of development of securities market of our country. Business innovation is no doubt important, but the business innovation of investment bank with purpose, clear location and corresponding to reality of is the most important.Combining to reality, I think that the business of investment bank of the securities firms of our country should innovate actively on merger products which will support enterprises to transform, project financing, assets securitization, to realize the diversification of the business function. Through the analysis of this case of CITIC Securities, I demarcate the innovative business of investment bank into four develop...