Introduction to Investment Bank Positions
They constitute the largest number of professionals within the investment banking industry. This is the phenomenon in most of the major financial centers in the world. The securities sales professionals at institutional stock-broking firms manage extraordinary complex relationships between two organizations. There are two main types of securities salesperson: 1) Institutional sales, mostly employed by major investment bank at their institutional sales division, servicing major fund management firms .2) Individual sales, employed by retail stock-broking firms serving active retail clients or high net-worth individuals.
在投资银行领域，证券销售员(经纪员)占投资银行从业人员的绝大多数，全球各大金融中心均是如此。证券销售员主要分两类：1)机构证券销售员，主要受雇于各大投资银行的机构销售部(institutional sales division)，为主要的资金管理公司和其他种类的机构服务。他们需要处理雇主机构与机构投资者之间复杂的关系。2)个人证券销售员，主要受雇于证券经纪公司的零售部(retail stock-broking firm)，为活跃的散户投资者或者高端的私人客户(high net-worth)服务。
The services provided by securities salespersons include the provision of timely information such as investment research, the upcoming underwriting calendar as well as interpretation of material corporate developments. While some might argue that given the advent of technology and electronic delivery, the role of securities salesperson has been marginalized. China Securities Regulatory Commission (CSRC), working with other authorities, including the People’s bank of China (PBOC) and the State Administration of Foreign Exchange (SAFE), promulgated the Qualified Foreign Institutional Investors scheme (QFII), Which had been in force from December 1, 2002. Four categories of foreign institutions, namely Fund management company, Securities company, Insurance company and Commercial Bank have to meet stringent criteria before they may apply to be QFII. Approved QFIIs are allowed to invest in securities (excluding B shares), treasuries, convertible bonds and corporate bonds listed in China’s stock exchanges and other financial instruments as approved by CSRC.
Prior to the QFII scheme, foreign institutional investors have been focusing on the H shares, Red chips and B shares markets for a China play. Institutional salespersons primarily service their clients out from Hong Kong. As part of their value added services, many of them (institutional salespeople) are organizing field trips, taking clients to visit company management and view production facilities of B shares and H shares companies in China. It may take a while for QFIIs to seriously consider investing in the A shares market given the high valuation and quality of the respective companies, but it is clear that global securities firms would need to hire and develop more professionals who have the knowledge and skill-set to engage the China market.
Furthermore, in a marketplace like China’s capital market, where information barriers exist and efficiency is much to be desired, the role of securities salespeople will be crucial in adding value to the fund managers’ investment process. The key is how to be efficient, differentiated and have the ability to “pool” resources for your clients.