The Research Of Chinese Investment Bank Involve In M&A

Investment bank is a financial intermediary that specialize in the securities underwriting, securities brokerage, mergers and acquisitions, project finance, corporate finance, investment management business, not for the deposit and lending operations.In the western developed countries, profits of investment banks’mergers and acquisitions(M&A)business achieve an increasing share.M&A business has been voted into the West Bank’s core business. In China, capital market is undergoing dramatic changes recent years, the number of M&A has increased. However, share of investment banks’M&A business is very small. We can see that the potential of Chinese investment banking M&A business is considerable.The financial crisis, which is triggered by the sub-credit loan crisis of U.S. led the top U.S. investment banks suffering heavy sores, individual investment banks might disappear, for example, Lehman was bankrupted, Merrill Lynch and Bear Stearns was acquired. A single investment bank’s ability to control the risk is weak, which is the main reason that the Federal Reserve and Morgan Stanley will restructure and reform. However, the investment banking business will not disappear, the investment banking business will be revitalized, because people still need help to listed companies, mergers and acquisitions, restructuring, and to offer financial adviser.This essay is based on the reality of Chinese capital market, studying on the theory and method of Chinese investment banks involved in M&A business through business theory, modern finance theory, financial innovation theory and the associated economics and management theory. This essay is divided into five mam parts.The first part is the introduction, including the background, purposes, significance of the research and the literature review. The second part is the related study of investment bank involved in M&A. Overseas investment bank’s M&A business are characterized by strong earnings, highly concentrated market, high-end grasp systems, as well as mature customer service. The fourth part is the reality and problem of investment banks involved in M&A in China. The fifth part is the purpose of the study, which is giving suggestion to promote Chinese investment banks involved in M&A business.