Research On The Direct Investment’s Development Of Securities’ Companies In China

In the steady growth of China’s economic prosperity and development and capital market environment, the development of China’s securities industry welcomes the development opportunity. In the development of the waves, the traditional brokerage and Investment banking business of securities have made a great breakthrough, while actively develop innovative businesses. Direct investment of securities business is one of the company’s innovative businesses, is also an important buyer of the business. Direct investment business is to invest the companies which are not listed on the equity market, to realize gains by the means of next listing or transferring of shares to exit.In September 2007, CITIC Securities and China International Capital Corporation Limited approved the qualification of direct investment business in gold frame, to set up a wholly-owned subsidiary in the form of direct investment and direct investment business carried out, which marks the start of China’s direct investment business, securities company official gate opening. Subsequently, many securities have made applications to carry out direct investment business, and active preparations for direct investment business. Securities carry out the direct investment business with natural advantages, which are not only finding ways to project resources, and professional, financial and brand advantages, but also provide "one-stop" integrated value-added services for the development of enterprises. As early as 80 years in the 20th century, International investment bank involved the direct investment business. Direct investment business has become a major world-renowned investment bank business and an important source of profit for the buyer. Goldman Sachs, Morgan Stanley, Merrill Lynch and other major international investment banks carry out IPO underwriting business, while operating in direct investment activities and other buyer services, the implementation of two-way expansion, from which to obtain substantial benefits. At present, China’s securities companies are still based on brokerage, underwriting and proprietary trading business as profit model, which highly depend on the market conditions. Direct investment business is a new kind of buyer’s business and an important extension of the business of the seller, not only to increase profit revenue, opening up new profit channels, but also help change the structure of securities firms operating profits of traditional single status, the process of promoting the different operations, stabilizing performance of the capital market volatility. It is an important and far-reaching practical significance for the development of China’s securities industry. Direct investment of securities business is a new area of business companies and securities companies carry out the business at the exploratory phase of the operation. This article researches the development mode and direction of securities’direct investment, by business organization, mode of operation and exiting methods and other aspects of systematic and in-depth research. The article explores direct investment business, learning the successful model of direct investment development in intemational investment banking business, combined with the reality of China’s securities’ direct investment business.