Study On Legal Supervision Of Investment Bank In China

Investment Bank plays an extremely important role, as a non-bank financialintermediary organization in modern capital market. Due to the characteristics of itsbreadth business, the role of diversity, the high risk involved in business, and thecharacteristics of involving many stakeholders’ interests, it decide that we must builda sound legal supervision system. In our country the investment Banks still load theroles of establishing securities market and promoting the innovation of the modernenterprise system, developing the market financing system and optimizing theallocation of resources, so as to the mission of promoting the strategic adjustment ofthe economic structure.In China, the institutions engaged in investment banking business are too many,in addition to the securities companies, commercial bank, trust and investmentcompanies, assets management companies and so on, are also related to investmentbanking business, but in our country special investment banking institutions are few.Because of securities, bank, trust, insurance and supervised are administeredseparately, the characteristics of our country to investment banking regulatory andlegislative are also respectively, viewing our practice called investment bank usuallyrefers to the securities company, so this paper investment bank supervision refers to asecurities firm and its investment banking regulation.We can say that an investment bank is one of the top form of capital marketintermediary service agencies, financial innovation is its remarkable characteristic, theawareness of financial risks is its the emphasis of supervision, however the financialindustry has extremely high risk of infectious and rapid expansionary, financial capital globalization today, innovation service and the product of the changes with each newday, the blind spot of the supervision on the market can always be founded. Moreinternational investment Banks regulation system and foreign mature investmentbanking market have developed some rules and the successful experience to ourcountry’s legal system for the supervision of the investment bank. Perfecting our legalsupervision system is not only the need of improving the investment bank guardagainst the ability of the risk, protect the stock market in the investors, especiallysmall and medium-sized investors interests, but also it can contribute to the order ofour country securities market and stable financial market, improve the internalstructure of the investment bank, real development and expansion, to go into theinternational, and participate in the international investment Banks the requirementsof market competition.