China's Investment Banks Involved In Mergers And Acquisitions Of Theoretical And Empirical Research

Investment bank is a kind of financial intermediate agency in modern capital market specializing in such businesses as security issuing and underwriting, security managing, corporation merger, project financing, corporation financial transition conducting, and investment management, etc.The history of western economics, taken from a longitudinal view, is in fact a process of western investment from have-not to have, and strengthening to the soul and core of capital market. Corporation merger has already been the core business of modern investment bank. Compared with western developed countries. China's investment market has only a ten-odd years' time of development, which is still in a low and preliminary stage. China's security market stays in a unfavorable state, and China's investment bank is not yet mature. There are few can be called investment bank in real meaning. In China now, most investment banks like Security Corporation, trust investment corporation, investment (counseling), or finance corporation are set up according to administrative order. These financial institutions, no matter in business scopes, operation range, or risk-proof, are not matched with the real needs, and have a long distance with globalization, legalization, and normalization. On the other hand, currently, China's investment banks mostly take part in security issuing and underwriting, but few in corporation merger business. In addition, there are related limits from government policies such as several times suspending and stop of state-owned stock, and delayed publicizing of policies. Moreover, there are such key problems and difficult points as state-owned corporation's strategic reorganization, reform of state-owned enterprise's property right." But in the capital market, LBO, MBO, and go public through buying a shell have already become the main method of China's corporation merger, property right reform, and strengthening corporation's core competitiveness strength.So, this paper, at first redefine the concept of China's investment bank and corporation merger, then point out in future the orientation and way of China's investment bank and its corporation merger by studying the state-of-the-art and the history of the western investment bank and the same situation of China's investment banks and corporations. On this basis, the paper makes analysis and empirical researches to the typical merger cases of China's investment banks and corporations, and at the same time, it studies such important theoretical and empirical issues like low China's investment banks involve in corporation merger plans, especially how it involves in China's state-owned enterprises' reform of proper rights, go public through buying a shell, LBO, and MBO by studying related policies, laws, and regulations of investment bank's taking part in corporation merger, and combining advanced western merger theory of investment banks and corporations.