First of all, by definition, investment bank is the product of the development of securities and joint-stock company system to a specific stage; A securities company refers to a limited liability company or a joint stock limited company with independent legal personality, which is established with the approval of the the State Council securities regulatory authority in accordance with the provisions of the Company Law and the Securities Law and specializes in securities business.
Secondly, in terms of business, investment banks are non-bank financial institutions mainly engaged in securities issuance, underwriting, trading, enterprise restructuring, mergers and acquisitions, investment analysis, venture capital, project financing and other businesses, and are the main financial intermediaries in the capital market. Securities companies are legal entities specializing in securities trading, which are divided into securities management companies and securities registration companies. In a narrow sense, a securities company refers to a securities business company, which is an institution that specializes in securities business after being approved by the competent authority and obtaining a business license from the relevant administrative department for industry and commerce.
Other business differences between them are as follows:
(1). Securities companies may not provide financing or guarantee for their shareholders and their affiliates, but investment banks may provide financing and related guarantee services.
(2) A securities company must engage in securities brokerage business, securities underwriting business, securities proprietary business and securities asset management business separately, and shall not mix them. Investment banks can operate securities asset management business together with bank-side securities business.