The Analysis of Market Concentration Rate and Transformation of Business Model in Investment Banking Business

Abstract

Investment Banking Business has the features of high homogeneity and standardization because of capital-intensive and high demand. It has the obvious features of economies of scale industries. This has been proved by the development and the theory researches in the West countries in the past century. Through the development of Investment Banking Business in our country in recent 20 years, the number of securities is increasing and the scale is enlarging. This article analyzes the business scale of Investment Banking Business by suing Market Concentration Rate index, and points out that it is not desirable to increase brokerage scale and economic benefit by merely depending on enlarging the numbers of sales departments. The essential is to transform the business models of Investment Banking Business.