China Investment Bank Model

Investment bank plays an important role in western developed capital markets in regards of establishing security markets, satisfying capital demands, optimizing resource allocations as well as enhancing industry concentrations in ways that are incomparable by any other financial institutions. Facing the competition of foreign investment banks after the opening up of China's banking industry and the current domestic requirements of reconstructing the security market, deepening the reforming of state-owned enterprises and setting up modelrn enterprises systems, the development of the investment bank in China is confronting with unprecedented challenges with the fact that its development still stays at a low level. Therefore, it is of theoretical and practical guiding significance in seeking and analyzing developing models of investment banks in line with China's current situation.Through the analysis and comparison of the experience of overseas investment banks' development, given the current situation of the investment bank industry in China, this paper comes to three developing models of Independent Developing, Attaching to the Universal, and relational organized within the Financial Holding. In particular, this paper discusses the way of our country's four Assets Management Corporations (AMCs) turning into the financial holding investment bank in regards of the possibility, necessity and advantages, gives operational suggestions, and believes the above way a relatively good choice in China's investment bank development. In all, this paper puts forward the view that, looking in the long term, the financial holding model will be the leading style, given the fact that China is still in the transitional economic period and the development of investment bank inevitably goes with the nature of transition. Presently, it is of most importance to display the advantages of each developing model without blindly sticking to one certain model. Proper choices and adjustments are also required according to the practice so as to find the best way to realize the modernization of our country's investment bank industry.