Chinese Investment Bank's Merger & Acquisition Business Operation Rearch

Investment Banking is so called Merchant Bank, which is a financial intermediary or bridge between monetary investors and money seekers. that specializes in the securities issues and underwriting, securities brokerage, mergers and acquisitions, project finance, corporate finance, investment management business, not for the deposit and lending operations.In the western developed countries, profits of investment banks' mergers and acquisitions (M & A) business achieve an increasing share, while the secutities issues these basic business just took the proportion of less 10% of all business.M & A business has been voted into the West Banks'core business. In China, Capital market is undergoing dramatic changes recent years. the number and scale of M & A are increasing quickly, while the behavior are all trigged by the listed companies and government, and the number of listed companies are not so large, share of investment banks'M & A business is very small. We can see the potential of China's investment banking M & A business is considerable.In 2007, the financial crisis, which is triggered by the sub-credit loan crisis of the US led the top US investment banks suffering heavy sores. Individual investment banks might disappear, for example, Lehman was bankrupted, Merrill Lynch and Bear Stearns was acquired. A single investment bank's ability to control the risk is weak, which is the main reason that the Federal Reserve and Morgan Stanley will restructure and reform. However, the investment banking business will not disappear, the investment banking business will be revitalized, because people will need help to listed companies, mergers and acquisitions, restructuring, and to offer financial adviser. The investment bank is the inevitable by-products. It has its own earth and environment.This article is based on the reality of China's capital market, through the analysis on the developing process, the status on quo and future and cases study, doing some systemic research on the theory and method of China's investment banks involved in M&A business from these perspective of business theory, Modern finance theory, financial innovation theory and the associated economics and management theory. At last, the article put up with some policy and tactical suggestion, then focus on the essentials and importance to build a Total Safety Management System.The essay is divided into five main parts.The first part is the introduction, including the background,purposes,the significance of the research and the Literature Review. The background is mainly referring to China's capital market and the world economic environment under the international economic crisis in 2007. The second part is the related study of investment bank involved in M&A. The third part is the experience of the overseas investment banks involved in M&A. The fourth part is to analyze a specific case which is related to the chemistry industry, indicating that how the investment bank involved in this kind companies go to realize the M&A contract, finally fulfill the successful M&A business. The fifth part is the purpose of the study, which is giving suggestion to set up a Total Safety Management System to promote China's investment banks involved in M&A business.