Research on the Competitive Strategy of China's Investment Banking Industry

Author: Huang Ling
Publisher:
Publish Date: 2006-05-01
Features: ig">This book establishes its research approach based on Porter's Five Forces Model. It conducts a specific study of competitive strategy under the specific conditions of internationalization of the securities market, examining competitive strategy through the research path of strategic entry barriers. This research is grounded in the level of epistemology or technology, demonstrating and exploring how modern investment banks can effectively externalize market competitive advantages by constructing strategic entry barriers. The book systematically elaborates on the profound connotations of the scale strategy, cost strategy, and market demand strategy of China's investment banking industry under open conditions. The research findings hold significant theoretical and practical value for the implementation of specific competitive strategy steps in the current stage of domestic investment banking and the formulation of relevant industrial policies by regulatory authorities. The book empirically examines the industrial performance of China's investment banking industry: market structure, industry scale, and overall market return rates have a strong explanatory power for the profit rates of China's investment banking industry. In terms of relative impact levels, the influence of concentration is greater than that of market returns, while the influence of scale is opposite to that of concentration and market returns. Cross-sectional analysis based on economies of scale indicates that there is no significant relationship between the economic scale and performance of China's investment banking industry. Overall, China's investment banking industry operates within a narrow scope and has a single business connotation, overly relying on the traditional three major businesses in terms of revenue composition and failing to fully leverage the advantages of business scope economies.