Chinese Investment Bank, Venture Capital Business Development

Domestic investment banks (DIB) embraced the most flourishing time in 2006 after years of development, but hide beneath the optimistic situation surface is the concerned worry about the further potential development of DIB .The main factors which restrain the subsisting and development of DIB are the income resource of high risk, low profit and business structure of traditionally single and high-degree analogous. At the same time, along with the china stock market open to the world, almost all of international investment bank tycoons have been speeding their china business strategy steps. Facing the survival challenge, it is urgent for DIB to take financial creation and business income diversification strategy. According to the situation, this article take a comparison analysis of the income business structures between china and foreign investment banks, and select the VC as the more feasible financial creation technique of practical development in china to analyze and research in order to provide the solution train of thought for DIB's business diversification strategy.First of all, this article approximately discusses the current development state, existing latent defaults and the market competition situation of DIB in order to lead the topic selection ideas. Second, the author takes a comparison analyzing of the Sino-foreign investment banking business structures and sources of income, raising the point of view which thinks that the bottlenecks restraining the development of china investment banks are concentrated income resource and single business types. Based on the clearing of the obstacle, this article further discusses the significance of taking VC business for china investment banks., putting the emphasis on the vital sense of the business diversification strategy for DIB to take VC business, pointing out that the VC is important contents for china investment banks to take the business diversification strategy, reviewing domestic VC development history and current development state, making it clear the advantage and importance of DIB in VC field.Further more, this article analyzes and researches the role assignment and important effects of DIB in VC field business from several aspects. These aspects include the research of organization form location for DIB to take VC business, the operation forms location research ,the effects of DIB to the VC companies in the procedures of participating in VC business , and , the risks prevention mechanism.The last part of this article is the conclusion and policy advices proposal. In this part, the author illustrates that it is the very time for DIB to take VC business, but there still exists some policy bottlenecks, and thereby give rise to related focalizing policy proposals.