Download pdf
Comparison of Investment Banking Models in the US and China
- 1 University of Glasgow
* Author to whom correspondence should be addressed.
Abstract
Investment banks in the United States first emerged in the early 19th century, with a focus on securities underwriting. Compared with other countries, the United States investment banks were established earlier, and after the subprime crisis, the United States investment banks, through their own exposure to business problems, improved so that they have a more perfect regulatory system and a more advanced business model. As a result, in the process of developing its own business, China's investment banks should take the essence and discard the dross in order to find a suitable development direction for themselves, gaining recognition in the capital market construction and promoting the further improvement of China's international status. This paper uses literature analysis and comparative analysis to explore the differences between the operating models of investment banks in China and the US, and to provide insights and suggestions for the development of Chinese investment banks. The study finds that investment banks in China should expand the attribution model, thereby increasing the concentration of capital. At the same time, the proportion of securities brokerage business should be adjusted and the leverage ratio in the industry should be strictly controlled to avoid excessive internal consumption.
Keywords
investment banks, development models, comparison between the US and China, subprime crisis, financial intermediation
[1]. Yang Jie. A comparative study of investment banking in China and the United States [D]. 2015.
[2]. Zhang Ruohao. Research on Investment Banking in the United States and Implications for China [D]. 2005.
[3]. Cui Jian, Sun Bihan. A study on the adjustment of investment banking business in the United States after the subprime mortgage crisis [A]. Contemporary Economic Research, 1005 -2674( 2019) 06 -105-08.
[4]. Ma Hongxia, Sun Guohua. Analysis of the US investment banking crisis and its transformation [A]. International Banking, 2009: 43~51.
[5]. Zhou Lingling. A study on the changes of investment banks in the United States since the 1970s [D]. 2011.
[6]. Zhao Chuanmin. Changes in the Regulatory System of Investment Banks in the United States and Implications for China [D]. 2013.
[7]. Ying Zhan Yu. A political economy analysis of the evolution of the regulatory regime of investment banks in the United States [J]. International Economic Review, 2015 (5): 111-132.
[8]. Hai Yang.The Asian Infrastructure Investment Bank and Status-Seeking: China’s Foray into Global Economic Governance[M].Fudan University and Springer Science+Business Media Singapore，2016.
[9]. Hong Yu.Motivation behind China’s‘One Belt, One Road’ Initiatives and Establishment of the Asian Infrastructure Investment Bank[J].the Asian Infrastructure Investment Bank, Journal of Contemporary China, 26:105,353-368.
[10]. Jonathan R. Strand，Eduardo M. Flores ，Michael W. Trevathan.China’s Leadership in Global Economic Governance and the Creation of the Asian Infrastructure Investment Bank[M].2014.
Cite this article
Wang,W. (2023). Comparison of Investment Banking Models in the US and China. Advances in Economics, Management and Political Sciences,12,89-94.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Volume title: Proceedings of the 2nd International Conference on Business and Policy Studies
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).