Research On Global Resource Allocation And Network Location Of China’s Commercial Banks

With the continuous enhancement of overall national strength and integrationinto the world economy, China’s economy has been increasingly globalized andopened up to the outside world. At the same time, the accelerated “going global” ofChina’s enterprises and individuals and RMB internationalization have raised newrequirements on the internationalization of China’s commercial banks. The outline ofChina’s12thFive-year Plan explicitly calls for “gradually developing China’s largemultinational companies and financial institutions and improving theirinternationalized operation capability”, and points out that “going global” of thebanking industry has become an important part of China’s opening up strategy.China’s commercial banks, particularly large commercial banks, should assist inimplementation of the national strategy, adhere to the principle of “market-oriented,customer-centered”, and strike a balance between market opportunities, globalizationcapability, global business expansion needs and market competition pressure. Theyshould progressively, actively and prudently promote distribution of internationalizedlocation in line with local conditions, quicken the pace of internationalized operationand continuously enhance global service capability and competitiveness.This paper, divided into seven chapters, analyzes and examines the distributionof internationalized location of commercial banks theoretically and empirically.Chapter1Introduction reveals the topic selection background and significanceof the paper, gives an overview of related references at home and abroad, determinesthe research ideas, framework and contents and points out the innovations anddeficiencies of this paper.Chapter2structures a basic theoretical analysis framework of this paper. Itanalyzes the related theories involved in the distribution of internationalized locationof commercial banks, such as international direct investment theory, multinationalbanking operation theory, cross-border acquisition theory, theory on subsidiaries ofmultinational companies, and financial geography theory, and provides theoreticalbases for further studying the distribution of internationalized location of commercialbanks.Chapter3analyzes the route evolution of the distribution of internationalizedlocation of such multinational banks as HKSB, Citibank and standard Chartered Bank,summarizes some experience and inspiration in terms of development history, internal motivation, distribution mode and globalized management system, which are worthyof being referred to by China’s commercial banks in distribution of internationalizedlocation.Chapters4-7study and analyze the distribution of internationalized location ofChina’s commercial banks using the basic analysis framework of international directinvestment theory. Among them, Chapter4examines the history, status quo,characteristics, issues and difficulties related to the distribution of internationalizedlocation of China’s commercial banks, empirically analyzes the factors affecting thedistribution of internationalized location and draws regularity conclusions. On thatbasis, the chapter analyzes the motivation on the distribution of internationalizedlocation of China’s commercial banks.Chapter5particularly examines the strategies adopted by China’s commercialbanks in distribution of internationalized location. Through case analysis andempirical analysis, the chapter expounds the principles to be followed in thedistribution of internationalized location and decisive factors for region selection, putsforward regional expansion strategy, selection of organization form and route ofdistribution of internationalized location and supporting measures.Chapter6sets out the supporting measures and policy suggestions onimprovement of the distribution of internationalized location from the perspective ofmacro policy, including acceleration of financial marketization reform, cultivation ofsound legal and policy environment, enhancement of supervision and regulation ofoverseas institutions and strengthening of national policy guidance and coordination.Chapter7summarizes basic theories of this paper, limitations of research and in-depthresearch outlook.Based on the analysis and research, the paper draws the conclusion: it has beenan inevitable trend for China’s commercial banks to promote the distribution ofinternationalized location and quicken the pace of cross-border operation. Thedistribution of internationalized location of China’s commercial banks should coincidewith the globalized distribution of China’s economy and industry, and pursue thecoordination and unification of width, depth and validity of globalized distribution.Aiming at serving Chinese enterprises going global and global customers, thedistribution of internationalized location of China’s commercial banks should complywith regulatory requirements and their own cross-border business developmentstrategies. China’s commercial banks should treat Hong Kong and Macao as the bases and windows for their distribution of overseas institutions and Asian countries andregions as key regions, strategically establish outlets in European and Americaninternational financial centers, and selectively enter such emerging markets as Africaand Latin America. In the distribution of internationalized location, China’scommercial banks should choose differentiated organization forms in consideration oflocal conditions, including establishment of outlets, cross-border acquisition and othermeans, and meanwhile should improve supporting measures for distribution ofinternationalized location. These banks should also be given national macro policysupport in terms of distribution of internationalized location.