Expanding Investment Bank Activities To Promote Economic Development Of Guangxi

Investment banks act as financial intermediaries in the capital markets, which play the irreplaceable role in the modern economy market and financial system. Investment banks take part in capital markets disposition by flexible form and work as bridges between fund-raisers and investors in capital market. The major function of investment bank displays four aspects: structure stock market, medium supply and demand of fund, promote industry concentrates and optimize resources disposition.Modern investment banks not only continue their traditional activities, such as underwriting of securities, commissions and self-management activity, but also open many new activities: Merger & Acquisition, Venture Capital, Securitization, Project-financing Loan, Advisory Service, and so on. Investment banks are seeking the new profit field, while their activities develop toward to the way of diversification and specialization.The implementation of China's Great Western Development Strategy, the establishment of the CAFTA , the CAEXPO settlement in Nanning as well as development and opening up of the Beibu Gulf Economic Zone in Guangxi provide the unprecedented opportunity to economic development of Guangxi. How investment bank seizes the opportunities and expand activities to promote economic development of Guangxi, which act as the role of capital market?This article analyzes the present executive situation of investment bank activities, seeks the reason about restricting the development of Guangxi investment bank activities, and unifies the actual situation of Guangxi, to propose that Guangxi investment bank want to obtain the considerable development, which not only need the Guangxi government and the supervision and manage department provide the policy support and the essential development condition for structuring a good external environment, but also need the investment bank depend on its virtual rating to expand its activities step by step.