Strategy Analysis And Implementation Of Joint-equity Commercial Banks

The joint-equity commercial banks are an important constitution of bank industry in China, which are the product of economic and financial system reform. Since the start of the first joint equity commercial bank in 1996, the communication bank, Chinese joint-equity banks have been one of the most important economic entities. Their asset amount, market share and influence are growing fast. Besides, their birth is based on to destroy the position of traditional state-owned banks and to improve performance in banking, so joint-equity commercial banks have natural advantages, for example, they do not afford too many political burdens, which makes them can perform much more freely and adjust itself to market better. This is a market-oriented organization and suited to socialism market economic system. Furthermore, joint-equity commercial banks enforce stockholding system at first, which is considered as the most advanced organization. Their decision show more democracy. In addition, some banks draw foreign banks as their strategic investors, as it could improve the corporation management construction and offer more advanced experiences. The joint-equity banks also have a batch of well-educated talent, obviously, which can contribute to the future development for banks.However, as China joined WTO, financial industry now is open utterly. Foreign banks begin to enter Chinese market omni-directionally. Although the net point and assets amount are less than the counterpart in domestic, their advanced banking management level, high technology skills and abundant client resources will make a large shock in future. Besides, domestic regional banks are growing up now, seizing the market share of traditional banks ceaselessly. So, all these challenges demand the jointed-equity banks to utilize all positive opportunities around, to avoid threats, combining with its own situation, to foster strengths and circumvent weaknesses. Only by this can joint-equity commercial banks maintain its core competition.This paper contains five parts. Part one is introduction, it introduces the background of this paper, the whole construction and the methods that used. Part two introduces strategy theories, including the concept, the constituents and the procedure of strategy,. Part three is the core part in this paper, it analyzes the macro-economic and industry environment, and the interior factors in joint-equity banks, then it concludes a SWOT matrix. The forth part is about how to choose and implement strategies that referred before, including general, competitive and functional strategies. The last part is the conclusion. This paper will be meaningful to the future development of joint-equity commercial banks.