1. At present, there is some confusion about the concept of "investment bank" in China. The mainstream recognition should be that "domestic securities firms" equals "foreign securities companies", and China's "investment bank" corresponds to the concept of "investment bank department" abroad.
2. The investment bank mentioned by China refers to the investment banking department under the securities company, which is responsible for equity financing (IPO, M&A, refinancing, etc.). ) business. Some brokers will also bring bond financing business into the investment banking department, while some large brokers will take bond issuance and underwriting of investment banks and bond trading in the secondary market as fixed income departments.
3. classification: a, SA, VP, d, ED, MD.
In addition to A (analyst), SA (associate professor), VP (vice president), D (director), ED (executive director) and MD (management), the standards for ranking domestic investment banks and even other fields in the financial industry are as follows.
4. Functional classification: contracting, undertaking and underwriting.
Taking, doing and selling basically summarize the contents of investment banks and are also the most frequently mentioned functional concepts in investment banks. Simply put, the contractor is responsible for expanding resources and obtaining business; The undertaker is responsible for actually completing a series of investment banking work such as due diligence, standardized counseling, material manufacturing and even continuous supervision, and is the person who actually works; Underwriters are responsible for issuance, including IPO, initial public offering of enterprises and refinancing, including additional issuance, rights issue, convertible bonds and supporting financing. Of course, they may also directly connect with customers and be responsible for the secondary market business. In practical work, the functions of signing and undertaking are undertaken by the front-office business department of an investment bank, but generally speaking, senior employees who are relatively experienced and have resources will be responsible for signing contracts, while junior employees and new employees will mainly undertake them. Underwriting is generally undertaken by the Capital Markets Department (ECM) of an investment bank and belongs to the middle and back office department. The quality control departments of investment banks, such as the core, quality control and risk control, also belong to the middle and back office, which is equivalent to the internal audit department, and are generally held by experienced employees or people with backgrounds such as exchanges, auditing and law.