China's Commercial Banks To Carry Out Investment Banking Business Strategy Research

In recent years, with the development of the economy, financial globalization has ledto fierce competition of the global financial markets, In order to adapt to the changingsituation, the world banking industry constantly strengthen the adjustment, mergers,restructuring, and financial innovation, making a separate operation and sub-industry existsin name only. For the blurred boundaries between banking, securities and insurancebusiness, the banking industry has began to expand from the traditional deposit and loanbusiness to other non-traditional business areas. With the major development of China’seconomy, the economic structure has undergone major changes. With the improvement ofthe macroeconomic regulation, the securities market have gradually entered thespecification stage of development, in this case, commercial banks need to accelerate thefunctional innovation, and expand the middle of the business which include investments insecurities, insurance and other service functions to adapt to changes in domestic economicdevelopment.Firstly,this thesis from the following describes the need for the development ofcommercial banks to investment banking, participate in international competition, respondto changes in financing patterns,improve operational efficiency and otheraspects.Furthermore,income datas are abstracted from the annual report of severlal globalbanking groups,also to be analysed as the background resources for further understand.Secondly,highlight either advantages and disadvantages on commercial banks ofChina,relating to the area of the institutional network, reputation, financial strength, andeconomies of scope,futher outline the limitation and the way of improving.Finally,this article makes the suggestion on the method of how to avoid financial risk,and how the improvement on organizational structure in terms of commercial banks ofChina should typically be made.Also the steps of how to develop investment bankingservices had been suggested with the process of risk management.