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Understanding the Order Book: Analyzing Market Liquidity

by
Bochen LIU

In this article, Bochen LIU (Queen’s Smith School of Business, BCom 2023–2027; ESSEC BBA Exchange Program, Fall 2025) explains the concept of the order book, how it functions in financial markets, and the insights it provides to traders.

What is an order book?

For anyone engaging in financial markets, understanding the order book is essential. The order book is a dynamic record of buy and sell orders for a given asset, reflecting the interaction between supply and demand in real time. Whether trading stocks, currencies, or digital assets, the order book allows market participants to visualize liquidity, identify potential price movements, and make informed decisions.

An order book lists all outstanding buy and sell limit orders for an asset, showing both the prices at which traders are willing to transact and the quantities they wish to trade. It provides a clear picture of market depth and the relative interest of buyers and sellers at different price levels. Unlike a simple price chart, the order book reveals where liquidity is concentrated and where potential support or resistance may occur, making it an indispensable tool for understanding short-term market dynamics.

How an order book functions

The order book is typically divided into two sections: the buy side (bid side) and the sell side (ask side). The buy side shows the highest prices buyers are willing to pay, while the sell side reflects the lowest prices sellers are willing to accept. Orders are listed by price and aggregated volume, and the book is continuously updated as trades are executed and new orders enter the market.

The difference between the best bid and best ask is known as the bid-ask spread, a key indicator of market liquidity. By monitoring changes in the spread and the distribution of orders, traders can gain insights into market sentiment and anticipate short-term price movements.

In practice, the organization of the order book allows traders to understand not just current prices but also the pressure from buyers and sellers at different levels. For example, a concentration of large buy orders may act as a support level, while clusters of sell orders can indicate resistance. The order book therefore acts as a living map of market intentions and is often used together with charts and other data sources.

Order book representation

The structure of the order book is often visualized through trading platforms that display the distribution of buy and sell orders at different price levels. A typical representation includes two columns: bids on the left and asks on the right. Each row shows the price level and the cumulative quantity available at that level.

Figure 1. Example of an order book (buy and sell parts presented side by side).
Example of an order book with buy and sell parts presented side by side
Source: screenshot from a trading platform.

Figure 1 presents one of the most common visual formats of the order book, in which bid orders are shown on the left and ask orders on the right. This side-by-side structure allows traders to compare the quantities available at different price levels and to identify the best bid and best ask immediately. It also makes the bid-ask spread visible, which is a key indicator of market liquidity and transaction cost.

Modern electronic trading platforms such as NASDAQ TotalView or cryptocurrency exchanges provide graphical representations of the order book. These interfaces often include a “depth chart,” where the cumulative buy and sell volumes are plotted against price levels. Such visualizations allow traders to quickly observe supply and demand imbalances.

Figure 2. Example of an order book (depth chart representation).
Example of an order book with a depth chart representation
Source: screenshot from a trading platform.

Figure 2 shows the order book in a format that combines tabular bid-ask information with a depth chart. The green area represents cumulative buy-side liquidity, while the red area represents cumulative sell-side liquidity. This representation helps traders visualize how orders are distributed across price levels and where supply-demand imbalances may emerge in the market.

Evolution of the order book

The order book constantly evolves as new orders arrive, existing orders are cancelled, and trades are executed. Two main types of orders influence this evolution: limit orders and market orders.

Limit orders add liquidity to the market by specifying both a price and quantity at which a trader is willing to buy or sell. When a trader places a buy limit order below the current market price or a sell limit order above it, the order enters the order book and waits to be matched.

Market orders, in contrast, remove liquidity. A market buy order immediately matches with the lowest available sell orders, while a market sell order matches with the highest available buy orders. As these trades execute, they reduce the quantities available in the order book and may shift the best bid and ask prices.

The interaction between incoming limit orders and market orders continuously reshapes the order book and drives short-term price movements.

Order priority rules

Electronic markets generally follow two key priority rules when matching orders: price priority and time priority.

Price priority means that orders offering better prices are executed first. For example, among buy orders, the highest bid has priority, while among sell orders the lowest ask has priority.

If multiple orders are placed at the same price level, time priority applies. The order that was submitted earlier will be executed before later orders. This rule encourages traders to submit orders quickly if they want to secure execution.

These priority mechanisms ensure fairness and transparency in electronic trading systems.

Price impact and transaction prices

The execution of orders can influence market prices, a phenomenon known as price impact. When large market orders consume multiple levels of liquidity in the order book, the transaction price may move significantly.

For example, if a large buy market order exceeds the quantity available at the best ask price, the trade will continue matching with higher ask prices. This process pushes the transaction price upward and illustrates how large orders can move markets.

Transaction prices and traded volumes therefore provide important information about market activity. High trading volumes often indicate strong participation and may reinforce price trends.

Liquidity characteristics of the order book

The order book provides several indicators that help measure market liquidity.

Bid-ask spread is the difference between the best bid and best ask price. A narrow spread typically indicates a liquid market with low transaction costs.

Market depth refers to the total quantity of buy and sell orders available at different price levels. A deep order book allows large trades to be executed without significantly affecting prices.

Market breadth describes how widely orders are distributed across price levels. A broad distribution indicates active participation from many traders.

Figure 3. Example of an order book (used to assess liquidity).
Example of an order book used to assess liquidity
Source: screenshot from a trading platform.

Figure 3 provides a mobile-style visualization of the order book, showing the best bid, the best ask, and the quantities available on both sides of the market. It is particularly useful for illustrating liquidity measures such as bid-ask spread, visible depth, and market breadth. By comparing the quoted quantities at different prices, traders can better evaluate the strength of buying and selling pressure.

Resilience measures how quickly the order book replenishes after large trades remove liquidity. A resilient market quickly attracts new orders and stabilizes prices.

These liquidity measures help traders evaluate the quality and stability of a market.

Why should I be interested in this post?

For ESSEC students interested in business and finance, understanding the order book is fundamental to analyzing financial markets and trading behavior. It provides practical insight into how prices are formed, how liquidity affects execution, and how real-time data informs strategic decisions.

Mastering order book analysis strengthens financial reasoning, improves understanding of market microstructure, and supports more informed investment or trading strategies. This knowledge is directly relevant for careers in finance, trading, investment analysis, and quantitative research.

Related posts on the SimTrade blog

   ▶ Federico DE ROSSI Understanding the Order Book: How It Impacts Trading

   ▶ Jayna MELWANI The impact of market orders on market liquidity

   ▶ Lokendra RATHORE Good-til-Cancelled (GTC) order and Immediate-or-Cancel (IOC) order

   ▶ Clara PINTO High-frequency trading and limit orders

Useful resources

SimTrade course — Trade orders

SimTrade course — Market making

SimTrade simulation — Market orders

SimTrade simulation — Limit orders

About the author

The article was written in April 2026 by Bochen LIU (Queen’s Smith School of Business, BCom 2023–2027; ESSEC BBA Exchange Program, Fall 2025).

   ▶ Discover all posts by Bochen LIU

My Internship Experience as a Marketing Intern at XING QI Educational Institution

by
Bochen LIU

In this article, Bochen LIU (Queen’s Smith School of Business, BCom 2023–2027; ESSEC BBA Exchange Program, Fall 2025) shares his professional experience as a Marketing Intern at XING QI Educational Institution in Beijing, China.

About the company

XING QI is a private educational institution based in Beijing, China, specializing in after-school programs and supplemental learning for primary and secondary school students. Operating in a highly competitive market, the institution focuses on attracting students, improving enrolment, and maintaining high-quality educational services.

I worked within the marketing team, which was responsible for managing digital campaigns, promoting institutional events, analyzing marketing performance, and supporting student recruitment initiatives. The department ensured that promotional strategies reached potential students effectively and that marketing resources were allocated efficiently to support enrollment growth.

My internship

During my studies at ESSEC Business School, I joined XING QI Educational Institution as a Marketing Intern from 2021 to 2022. This experience provided hands-on exposure to digital marketing, campaign management, and event organization, offering insight into how strategic marketing decisions influence organizational growth.

The internship allowed me to observe how marketing activities are planned, executed, and evaluated, and how data-driven adjustments can improve performance and business outcomes.

My missions

I managed online promotions and social media campaigns, contributing to a 35% increase in inquiries and a conversion rate of approximately 20% into enrollments. By redesigning advertising materials and conducting A/B testing, I helped improve campaign return on investment by about 18%, ensuring marketing resources were used efficiently.

In addition to digital campaigns, I supported campus events that attracted over 300 students and generated more than 50 new registrations. Organizing these events required coordination with team members, preparation of promotional materials, and direct engagement with students and parents. These activities demonstrated how marketing strategies directly influence customer behavior and institutional growth.

Required skills and knowledge

This internship required both technical marketing competencies and interpersonal communication skills. I used digital advertising tools, analytics platforms, and performance tracking methods to monitor campaign effectiveness and optimize promotional strategies. Applying marketing principles helped ensure campaigns were targeted and efficient.

Collaboration and communication were equally important, as I worked closely with the marketing team to coordinate campaigns, collect feedback, and refine event planning processes. Critical thinking and problem-solving were necessary when analyzing performance data and proposing improvements.

What I learned

This internship deepened my understanding of how marketing contributes to organizational growth. I learned the importance of continuously measuring campaign performance, understanding target audiences, and applying data insights to improve outcomes.

I also developed project management and coordination skills by working with multiple stakeholders during campaigns and events. These experiences strengthened my ability to organize tasks, manage timelines, and support team objectives effectively.

Furthermore, the internship highlighted the connection between marketing and finance. Digital campaigns and events generate revenue and influence institutional profitability, while evaluating campaign performance involves metrics similar to ROI calculations. My prior exposure to financial concepts through SimTrade helped me interpret marketing data quantitatively and understand how business decisions are assessed in terms of returns.

Business and financial concepts related to my internship

I present below three business and financial concepts related to my internship: marketing return on investment (ROI), conversion rate analysis, and data-driven strategic decision-making.

Marketing return on investment (ROI)

Marketing return on investment (ROI) measures the effectiveness of promotional spending relative to the results generated. By redesigning advertising materials and testing campaign variations, I contributed to improving ROI by increasing the efficiency of marketing expenditures and maximizing enrollment outcomes.

Conversion rate

Conversion rate analysis evaluates how effectively inquiries or leads are transformed into actual customers. Tracking inquiry growth and enrollment conversion rates allowed the marketing team to assess campaign performance and refine targeting strategies, demonstrating how quantitative metrics guide operational improvements.

Data-driven strategic decision-making

Data-driven strategic decision-making involves using performance metrics and analytical insights to guide organizational actions. Through analyzing campaign results and event outcomes, I observed how marketing data supports planning, resource allocation, and long-term institutional growth strategies.

Why should I be interested in this post?

This post provides insight into how marketing internships contribute to business performance and strategic development. Students interested in finance, business strategy, or management can understand how campaign analytics, performance metrics, and event coordination influence revenue generation and organizational growth.

The experience illustrates how analytical thinking, data interpretation, and structured planning are transferable skills valuable across marketing, finance, and broader business careers.

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   ▶ Guylan ABBOU My Personal Experience in Marketing, and How It Links to Finance

   ▶ Fatimata KANE My internship experience as a marketing intern at Amazon

   ▶ Ines ILLES MEJIAS My professional experience as a marketing assistant at Auris Gestion

Useful resources

Beijing Weiqi Association official website

Kotler, P., & Keller, K. L. (2016) Marketing Management, 15th Edition, Pearson.

Farris, P. W., Bendle, N. T., Pfeifer, P. E., & Reibstein, D. J. (2010) Marketing Metrics: The Definitive Guide to Measuring Marketing Performance, Pearson.

About the author

The article was written in February 2026 by Bochen LIU (Queen’s Smith School of Business, BCom 2023–2027; ESSEC BBA Exchange Program, Fall 2025).

   ▶ Discover all posts by Bochen LIU

My Internship Experience as an Accounting Intern at Municipal Road and Bridge Building Materials Group

by
Bochen LIU

In this article, Bochen LIU (Queen’s Smith School of Business, BCom 2023–2027; ESSEC BBA Exchange Program, Fall 2025) shares his professional experience as an Accounting Intern at Municipal Road and Bridge Building Materials Group in Beijing, China.

About the company

Municipal Road and Bridge Building Materials Group is a Beijing-based state-owned enterprise specializing in the production of asphalt mixtures, high-strength concrete, fiber-reinforced concrete, and other construction materials used in municipal infrastructure projects.

The company operates within the broader Beijing Municipal Road & Bridge system, a large infrastructure group formed through state-owned restructuring and joint investment by municipal entities. The broader group has registered capital exceeding RMB 2.2 billion, total assets around RMB 39 billion, more than 110 subsidiaries, and over 16,000 employees, reflecting the large operational scale of the infrastructure network in which the materials business operates.

As part of this infrastructure supply chain, the materials division supports road construction, bridge engineering, and urban maintenance projects by providing standardized building materials and technical support for municipal contractors.

Logo of Municipal Road and Bridge Building Materials Group.
Logo of Municipal Road and Bridge Building Materials Group
Source: the company.

I worked in the accounting department, which handled transaction recording, supplier invoice verification, project expense tracking, and preparation of monthly internal financial summaries to ensure operational data was accurately reflected in the accounting system and compliant with national regulations.

My internship

During the summer of 2022, I joined Municipal Road and Bridge Building Materials Group as an Accounting Intern. This experience provided hands-on exposure to corporate accounting practices, financial reporting processes, and internal workflow management, helping bridge the gap between academic learning and real-world financial operations.

The internship allowed me to understand how accounting systems function in practice and how accurate financial information supports management decisions and organizational efficiency.

My missions

My primary responsibility was preparing monthly debit and credit financial reports. This required collecting, verifying, and consolidating financial data from multiple departments, ensuring all entries were accurate and compliant with national accounting standards. Through this process, I became familiar with journal entries, reconciliation procedures, and the role of accurate reporting in corporate governance.

In addition to reporting tasks, I collaborated with senior accountants in reviewing financial records and identifying potential discrepancies. By participating in discussions and assisting with verification processes, I supported the team’s application of accounting principles and contributed to improving data reliability within the accounting workflow.

Required skills and knowledge

This internship required both technical and interpersonal competencies. On the technical side, I applied accounting principles, financial data verification methods, and report preparation techniques to present financial information clearly and accurately. I also learned how to structure reports so that they were informative, reliable, and useful for managerial review.

Soft skills were equally important. Communication and teamwork were necessary when coordinating with accountants and other departments, while attention to detail ensured data accuracy. These skills helped me contribute effectively to the accounting team and maintain smooth financial processes.

What I learned

This internship gave me a practical understanding of corporate accounting and financial reporting. Corporate accounting focuses on recording and verifying daily transactions, classifying expenses, and maintaining accurate internal financial data. Financial reporting, in contrast, involves summarizing this accounting information into structured monthly reports used by managers to monitor costs and evaluate project performance. Through my work checking invoices, reconciling entries, and helping prepare monthly summaries, I saw how accurate accounting records form the foundation for reliable financial reports and how errors at the transaction level can directly affect managerial decisions.

I also learned how structured reporting supports decision-making. By helping prepare monthly financial summaries, I saw how standardized reports allow managers to track project costs, compare spending across periods, and identify budget deviations. The experience also strengthened my collaboration skills, as I regularly coordinated with procurement and project teams to confirm invoice details and transaction information before the reports were finalized.

Additionally, the internship reinforced my interest in finance by connecting accounting practices with broader financial concepts. My prior exposure to financial markets through SimTrade helped me interpret accounting data in a strategic context and understand how corporate accounting interacts with financial decision-making.

Financial and business concepts related to my internship

I present below three financial and business concepts related to my internship: financial reporting accuracy, internal control and reconciliation, and corporate governance through accounting information.

Financial reporting accuracy

Financial reporting accuracy is fundamental in corporate accounting. Preparing monthly debit and credit reports required ensuring that all entries were properly recorded and verified. Accurate financial reports provide management with reliable information for monitoring performance, planning operations, and making strategic decisions.

Internal control and reconciliation

Internal control and reconciliation processes help prevent errors and detect discrepancies in financial records. By reviewing data with senior accountants and checking financial entries, I observed how structured verification procedures maintain data integrity and reduce operational risk within accounting systems.

Corporate governance

Corporate governance relies on transparent and reliable accounting information. Well-prepared financial reports allow organizations to comply with regulations, demonstrate accountability, and support informed decision-making. My work on monthly reporting illustrated how accounting functions contribute directly to organizational stability and managerial oversight.

Why should I be interested in this post?

This post provides insight into how corporate accounting operates within a large infrastructure-related enterprise. Students interested in accounting, corporate finance, or financial analysis can understand how financial reporting, verification procedures, and structured accounting systems support organizational decision-making.

The experience demonstrates how early internships can strengthen both technical accounting knowledge and professional skills, forming a solid foundation for careers in finance and business.

Related posts on the SimTrade blog

   ▶ All posts about Professional experiences

   ▶ Alexandre VERLET Classic brain teasers from real-life interviews

   ▶ Samia DARMELLAH My experience as an accounting assistant at Dafinity

   ▶ Alessandro MARRAS My professional experience as a financial and accounting assistant at Professional Services

Useful resources

Municipal Road and Bridge Building Materials Group official website

Anthony, R. N., and Govindarajan, V. (2007) Management Control Systems, 12th edition, McGraw-Hill.

Horngren, C. T., Datar, S. M., and Rajan, M. (2015) Cost Accounting: A Managerial Emphasis, 15th edition. Pearson.

Drury, C. (2018) Management and Cost Accounting, 10th edition, Cengage Learning EMEA.

About the author

The article was written in February 2026 by Bochen LIU (Queen’s Smith School of Business, BCom 2023–2027; ESSEC BBA Exchange Program, Fall 2025).

   ▶ Discover all posts by Bochen LIU

My Internship Experience as an Investment Intern at Kylin Hall Capital

by
Bochen LIU

In this article, Bochen LIU (Queen’s Smith School of Business, BCom 2023–2027; ESSEC BBA Exchange Program, Fall 2025) shares his professional experience as an Investment Intern at Kylin Hall Capital.

About the company

Kylin Hall Capital is a Beijing-based venture capital firm investing in early- to growth-stage technology companies in China. The firm focuses on sectors such as advanced manufacturing, clean technology, and deep-tech innovation, targeting startups with strong technological differentiation and scalable business models.

Founded to support innovation-driven companies in China’s rapidly evolving technology ecosystem, the firm operates in a venture capital market characterized by intense competition and high selectivity. Venture investors typically review a large number of potential opportunities each year while only investing in a small fraction of them. Investment decisions, therefore, rely on rigorous screening, structured due diligence, and detailed market analysis.

Kylin Hall Capital evaluates companies based on factors such as market size, technological feasibility, competitive positioning, and long-term growth potential. Its investment process involves industry research, expert interviews, competitor benchmarking, and preparation of analytical reports used by partners to assess opportunities and risks before allocating capital.

Logo of Kylin Hall Capital.
Logo of Kylin Hall Capital
Source: the company.

I worked within the investment research and analysis function, supporting the firm’s deal evaluation process. The team conducted market research, synthesized expert insights, benchmarked competitors, and prepared structured investment reports for partners. This role ensured that investment decisions were supported by reliable information, clear documentation, and consistent analytical reasoning.

My internship

As a third-year student at Queen’s Smith School of Business and an exchange student at ESSEC Business School, I joined Kylin Hall Capital as an Investment Intern in Beijing during 2024–2025. This experience gave me hands-on exposure to investment analysis, market research, and strategic decision-making within a venture capital environment.

Through this internship, I gained firsthand insight into how early-stage investment decisions are grounded in research, critical thinking, and strategic judgment. Investment analysis is not only about numerical evaluation but also about synthesizing diverse information into concise, actionable guidance for decision-makers.

My missions

My missions included summarizing expert interviews, authoring initiation reports, producing investment recommendation reports, and conducting sector research to support the firm’s investment pipeline.

I conducted and summarized expert interviews across multiple technology sectors, identifying market trends, adoption challenges, and competitive dynamics. These summaries created structured knowledge resources supporting ongoing investment analysis.

I authored an initiation report on NL-Tech, in which I analyzed the company’s target market size, customer segments, and revenue model using industry reports, public financial information, and competitor benchmarking tables. I compared NL-Tech’s product positioning, pricing logic, and technological features with key competitors and summarized the findings in a structured memo including market maps, competitor matrices, and a synthesis of expert interview insights. This report provided partners with a clear overview of the company’s market environment, differentiation, and potential strategic risks before moving forward in the evaluation process.

I also prepared an investment recommendation analysis for SAI GAN Technology, examining its business model, technological capabilities, and commercial scalability. I reviewed available company materials, analyzed its competitive advantages and operational challenges, and structured the results into a recommendation note outlining strengths, risks, and potential growth scenarios. The document translated research findings into a concise decision-support format used internally to facilitate discussion among partners regarding the firm’s investment positioning and next steps.

In addition, I researched the nuclear fusion sector, analyzing technological progress, regulatory developments, and competitive landscapes. This work helped identify long-term strategic opportunities and informed the firm’s understanding of emerging investment themes.

Required skills and knowledge

This internship required strong technical and analytical capabilities. I used Excel, data visualization tools, market research methodologies, and professional report-writing techniques to analyze complex information. I also learned how to structure investment memos, synthesize findings clearly, and present insights in formats suitable for senior partners.

Soft skills were equally important. Critical thinking was necessary to interpret incomplete or evolving information. Time management ensured deadlines were met, while effective communication allowed me to translate complex analysis into concise recommendations and collaborate efficiently with team members.

What I learned

This experience provided a realistic understanding of how venture capital investment analysis operates in practice.

I learned the importance of structured research and synthesis. Investment decisions rely on combining quantitative metrics with qualitative insights and presenting them in a concise and actionable manner.

I also understood how investment recommendations function as decision-making tools. Reports guide capital allocation, risk assessment, and strategic prioritization, bridging analytical work and actual investment actions.

Additionally, I gained confidence in professional reporting and data presentation. I developed workflows for summarizing interviews, benchmarking competitors, and organizing projections, enabling the team to focus on strategic discussions rather than raw data processing.

Overall, this internship strengthened my interest in venture capital and investment strategy and provided a foundation for future roles in investment analysis, corporate strategy, or portfolio management.

Financial concepts related to my internship

I present below three financial concepts related to my internship: market and competitor analysis, investment recommendation frameworks, and strategic opportunity identification.

Market and competitor analysis

Market and competitor analysis is fundamental to venture capital investment evaluation. When preparing initiation and recommendation reports, I benchmarked companies within sectors such as NL-Tech, identifying differentiating product features, strategic positioning, and competitive advantages. These analyses informed the firm’s prioritization of investment opportunities.

Investment recommendations

Investment recommendations follow structured evaluation frameworks combining market potential, financial projections, scalability, and risk assessment. I learned to evaluate indicators such as projected revenue growth, technological scalability, and exit potential, integrating these elements into cohesive recommendations supporting partner-level decisions.

Strategic opportunity identification

Strategic opportunity identification involves analyzing emerging industries to anticipate future growth areas. While researching nuclear fusion technologies, I examined technological breakthroughs, regulatory trends, and industry gaps. This process illustrates how venture capital firms align investment strategies with long-term innovation and market evolution.

Why should I be interested in this post?

This post provides insight into how venture capital firms evaluate investment opportunities and transform research into actionable decisions. Students interested in investment management, venture capital, or corporate strategy can understand how structured research, analytical reasoning, and professional reporting support real-world investment processes.

The experience also highlights foundational skills such as structured thinking, communication, and strategic analysis, which are essential for careers in finance, consulting, and investment-related fields.

Related posts on the SimTrade blog

   ▶ All posts about Professional experiences

   ▶ Classic brain teasers from real-life interviews

Useful resources

Anthony, R. N., & Govindarajan, V. (2007). Management Control Systems (12th ed.). McGraw-Hill.

Horngren, C. T., Datar, S. M., & Rajan, M. (2015). Cost Accounting: A Managerial Emphasis (15th ed.). Pearson.

Drury, C. (2018). Management and Cost Accounting (10th ed.).

About the author

The article was written in February 2026 by Bochen LIU (Queen’s Smith School of Business, BCom 2023–2027; ESSEC BBA Exchange Program, Fall 2025).

   ▶ Discover all posts by Bochen LIU

My Internship Experience at the Agricultural Bank of China (ABC)

by
Bochen LIU

In this article, Bochen LIU (Queen’s Smith School of Business, BCom 2023–2027; ESSEC BBA Exchange Program, Fall 2025) shares his professional experience as a Financial Intern at the Agricultural Bank of China.

About the company

The Agricultural Bank of China is one of China’s “Big Four” commercial banks, serving hundreds of millions of customers across retail, corporate, and rural banking segments. With thousands of branches nationwide, ABC plays a major role in financing agricultural development, supporting SMEs, and delivering a wide range of financial services, including deposits, loans, wealth management products, and payment solutions.

Operating at this scale requires robust internal processes such as standardized reporting, regulatory compliance, risk management, and precise handling of customer information. The finance and operations teams ensure that front-line activities align with corporate strategy and risk guidelines, making accuracy and efficiency essential qualities in daily operations.

Logo of the Agricultural Bank of China.
Logo of Agricultural Bank of China
Source: the company.

I worked within the branch environment responsible for financial reporting, operational risk checks, client data processing, and financial product monitoring. This unit coordinated information from multiple departments to prepare performance reports, verify customer records for compliance purposes, and support analysis of retail and corporate banking products. Its role was to ensure that operational data remained accurate, standardized, and available for supervisors, thereby supporting internal control, risk monitoring, and informed managerial decision-making across the branch.

My internship

As a student from Queen’s Smith School of Business participating in the ESSEC BBA Exchange Program, I had the opportunity to join the Agricultural Bank of China as a Financial Intern in Beijing from 2023 to 2024. This experience exposed me to financial operations, reporting workflows, client data management, and retail product analysis within one of China’s largest state-owned commercial banks.

This internship allowed me to witness firsthand how financial operations are supported by structured information flows. Financial reporting and client data processing are not merely administrative tasks; they form the backbone of internal control systems, enabling managers to make timely and informed decisions across the bank’s branches and business units.

My missions

My missions ranged from streamlining weekly management reporting—reducing turnaround time and improving decision-making efficiency—to processing large volumes of client records for daily risk assessment, and analyzing a variety of financial products across retail and corporate banking.

A core responsibility of my role was assisting with weekly management reporting for the branch. I collected financial and operational data from multiple departments, standardized the format, verified accuracy, and prepared consolidated reports for supervisors. By automating portions of the Excel templates and cleaning data more efficiently, I helped reduce the report turnaround time by approximately 20%. This improvement enabled managers to make decisions more quickly and with clearer visibility on the branch’s performance trends.

I also supported the bank’s daily operational risk assessment by processing and verifying large volumes of client records. This included reviewing transaction histories, updating customer information, and ensuring that all files met regulatory and internal compliance requirements. Handling hundreds of records demanded accuracy, confidentiality, and discipline, as small errors could lead to compliance discrepancies or delays during internal audits.

In addition to reporting and operations, I conducted research on over ten retail and corporate financial products, including personal loans, SME credit lines, savings instruments, and investment-linked products. By comparing product structures, pricing, and customer segments, I gained insight into how banks differentiate offerings and balance profitability with client needs.

Required skills and knowledge

This internship required both technical and interpersonal skills. On the technical side, I worked extensively with Excel to automate report templates, validate performance indicators, and clean datasets efficiently. I strengthened my understanding of banking products, compliance procedures, and risk management systems.

Equally important were soft skills such as attention to detail, time management, communication, and reliability. Weekly reporting deadlines demanded discipline, while client data processing required precision and structured thinking to avoid compliance-related issues. Through these responsibilities, I developed habits that are essential for a career in finance.

What I learned

This experience provided me with a realistic understanding of operational finance inside a major commercial bank. First, I learned the importance of accuracy. Whether preparing reports or updating client files, even small inconsistencies could affect decision-making or regulatory compliance. This taught me to double-check all figures and maintain clear documentation.

Second, I discovered how reporting frameworks support managerial decision-making. Weekly performance reports acted as diagnostic control systems that helped managers assess branch performance, track deviations, and prioritize resources.

Third, I gained confidence in data processing and product analysis. Working through real client files and financial products strengthened my understanding of commercial banking operations and the financial mechanisms supporting customer services. Finally, this experience enhanced my interest in finance and provided a solid foundation for future roles in financial analysis, banking, or corporate finance.

Financial concepts related to my internship

I present below three financial concepts related to my internship: management reporting, operational risk assessment, and financial product analysis. These concepts illustrate the connection between my daily tasks and broader financial management practices.

Management reporting

Management reporting is a core component of internal management control. At ABC, weekly reports enabled supervisors to track metrics such as loan growth, customer acquisition, overdue accounts, and product sales. By optimizing reporting workflows, I contributed to more efficient decision-making and improved information flow within the branch.

Operational risk assessment

Operational risk includes failures in processes, systems, or human error. My work processing client data reflected how banks mitigate this risk through documentation checks, standardized records, and compliance verification. Understanding operational risk is essential for evaluating the stability and effectiveness of financial institutions.

Financial product analysis

Financial product analysis involves comparing product structures, pricing mechanisms, customer segments, and risk-return characteristics. Researching retail and corporate banking products helped me understand how banks refine pricing strategies, innovate offerings, and position themselves competitively while respecting regulatory constraints.

Why should I be interested in this post?

This post provides a realistic view of a financial internship inside a major commercial bank. Students interested in banking, corporate finance, or financial analysis can gain insight into the operational foundation supporting financial institutions.

The experience highlights the value of structured reporting, data accuracy, and understanding financial products—skills that form the backbone of careers in finance, analytics, and investment management.

Related posts on the SimTrade blog

   ▶ All posts about Professional experiences

   ▶ Alexandre VERLET Classic brain teasers from real-life interviews

Useful resources

Agricultural Bank of China official website

Anthony, R. N., & Govindarajan, V. (2007) Management Control Systems (12th ed.). McGraw-Hill.

Horngren, C. T., Datar, S. M., & Rajan, M. (2015) Cost Accounting: A Managerial Emphasis (15th ed.). Pearson.

Drury, C. (2018) Management and Cost Accounting (10th ed.).

About the author

The article was written in February 2026 by Bochen LIU (Queen’s Smith School of Business, BCom 2023–2027; ESSEC BBA Exchange Program, Fall 2025).

   ▶ Discover all posts by Bochen LIU