Research On Law Regulation Of The Foreign M&A Of Chinese Commercial Banks

As the ending of the interim of finance industry after China's WTO accession, the foreign merger and acquisition(M&A) has become extraodinarily popular in China. Just in a few years, 21 Chinese commercial banks were been more or less involved in by foreign capitals, including three state-owned banks.The foreign M&A of commercial banks is determined by its nature of pursuing benefits. The reason why China chose this reform pattern is that we can change our banks'share structure by the foreign capital's intervention. Whereafter, we can solve some problems of those banks, such as the high rates of bad assets management styles and concepts that have been behind the times.But we find that the intervention of foreign capitals is not the solution to those problems. On the contrary, the foreign M&A of commercial banks is endangering our financial safety and financial domination. So, we have to ponder over the internal and external causes and the possible benefits and risks. Based on these, we still have to provide effective supervision on commercial banks that have experienced M&A. Accordingly, the reformation can go ahead as expected.However, China still does not have enough experience on legislation at the present time. In a macroscopical way, the legislation system is full of confusion, reiteration and confliction, which caused serious affection on the authority and implementation of law. There are also some obvious shortages in some concrete systems, such as the limitation of foreign capital proportion, the time restriction of holding shares, the qualification examining on sharehold candidates and the examination of anti- monopolization. Compared with the characters and legislations of the banking M&A in the United States, EU and Korea, this dissertation indicates that the supervision of banking M&A and the system design should both concentrate on its development. Concretely, a system that can prevent foreign capitals from a speculative M&A can be established. Other than this, the anti-monopolization system, deposit insurance system and information disclosure system are also able to protect the progress of Chinese banking reform.