Analysis Of Investment Banking Business Developed By Chinese Commercial Banks

From the perspective of developing trend of world bank industry and business competition situation among national commercial banks, Chinese commercial banks should adopt mixed administration, set up financial share-holding corporations and devote major efforts to developing investment banking business. Commercial banks should have complete strategies, tactics and channels in order to develop investment banking business. Currently, it is a better choice for Chinese commercial banks to play a leading role to set up financial share-holding corporations.The development of market-oriented investment banking business products by commercial banks should be guided by the theory of financial project. Commercial banks should devote major efforts to developing the products of opening up and pricing on-hand gold goods, trading in futures and options. The most important role of commercial banks in the gold market is market merchant. The scale of individual banking money-managing products develops very quickly, at the same time there are many existing problems. The most important of which is the mismatching between the earnings and risk of many products.Through researching on a case of gold option trading business of Bank of China, the thesis analyzes in - detail the existing problems of investment banking business of commercial banks, and points out the confusion of pricing on its products.Commercial banks' involvement in investment banking business is doomed to be risky. The monitoring institutions and commercial banks should evaluate and control different risks from their corresponding perspectives. The VAR method is the main one which should be adopted by commercial banks in order to control market risk. While the monitoring institutions should focus on the prevention of risk infection.