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guan leiming

technical director | java

as capital markets deepen, competition among investment banks becomes increasingly fierce

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wang sheng, party secretary and chairman of china galaxy securities, once wrote that the main challenge for my country to build a first-class investment bank lies in the small scale of the securities industry and the lack of comprehensive capabilities. at present, domestic securities companies are mainly engaged in traditional businesses, and the quality and efficiency of key business operations still need to be improved. in addition, securities companies have relatively homogeneous businesses, low core competitiveness, and slow development of international business, and urgently need to accelerate their global layout.

this is not an obstacle to the development of investment banks, but an inevitable direction for the development of the industry. through mergers and acquisitions, securities firms can focus on their own advantages and create distinctive business segments. the advantages of state-owned enterprises also give their integration acceleration a deeper meaning.

for example, guotai junan securities and haitong securities merged and reorganized to integrate the advantageous resources of shanghai's state-owned financial assets and create a first-class investment bank that matches shanghai's status as an international financial center. this approach can optimize the layout of shanghai's state-owned financial assets, better serve the real economy, and meet the diversified and personalized financial needs of enterprises.

at the same time, the trend of industry integration has also brought new opportunities and challenges to the increasingly fierce competition in investment banks. as regulators' expectations for high-quality investment banks continue to increase, securities firms need to accelerate their development and growth through mergers and acquisitions, and ultimately form strong international competitiveness.

2024-09-14