What are the specific businesses of investment banking for securities companies?

The business of international investment banking includes: corporate finance, mergers and acquisitions, financial advisory and other businesses. Investment banking is the main financial intermediary in the capital market.

In China, investment banking business mainly includes: securities underwriting, securities trading, mergers and acquisitions, fund management, project financing, venture capital, securitization of credit assets.

1, securities underwriting

Securities underwriting is the most fundamental and basic business activities of investment banks. The terms of reference of the investment bank's underwriting are very wide, including bonds issued by the central government, local governments and governmental organizations of the country, stocks and bonds issued by enterprises, securities issued by foreign governments and companies in the country and the world, and securities issued by international financial institutions.

2, brokerage transactions

Investment banks play a triple role as market makers, brokers and traders in the secondary market. As a market maker, after the end of the underwriting of securities, investment banks are obliged to create a more liquid secondary market for the securities and maintain the stability of the market price. As a broker-dealer, the investment bank acts as an agent on behalf of the buyer or seller and trades at the price proposed by the client.

3, private issuance

Securities issuance method is divided into two kinds of public and private issuance, the front of the securities underwriting is actually a public issuance. Private placement, also known as private offering, is that the issuer does not sell the securities to the public, but only to a limited number of institutional investors, such as insurance companies, **** with the fund.

4, mergers and acquisitions

Corporate mergers and acquisitions have become the most important part of the business of modern investment banks in addition to securities underwriting and brokerage business. Investment banks can participate in corporate mergers and acquisitions in a variety of ways.

5, project financing

Project financing is a specific economic unit or project planning and arranging a basket of technical means of financing, the borrower can rely only on the economic unit of the cash flow and income as a source of repayment, and the economic unit of the assets as a guarantee for borrowing.

6, asset securities

Asset securitization refers to the issuance of securities through an investment bank to a company's certain assets as a guarantee, is a very different from the traditional bond financing is a new type of financing. The company that carries out the conversion of the assets is called the sponsor of the asset security.

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What are the risk points of investment banking:

1, underwriting risk

Investment banks to help people sell their stocks, catch the market situation is not good or the underlying stock is too bad, did not sell, then you have to pay out of your own pocket to buy it.

2, sponsorship risk

Investment banks have to verify that their clients are not legally compliant, there is no counterfeiting, which is called sponsorship.

If unfortunately the verification is not meticulous, missed some of the counterfeiting company did not find, the consequences will be more serious.

3, compliance risk

Compliance risk is very diverse, the most common, such as the project team through mergers and acquisitions and reorganization to engage in insider trading, to help people on behalf of the shareholding, and so on a variety of illegal things.