| The state-owned commercial bank (the SOCB) is the core of Chinese bank. The steps and results of the reform of the SOCB involve directly with strengthening China' s commercial banking, and influence the objective of the reform of China' s socialist market economy realization successfully. The reform of SOCB has been in progress for over 20 years, there have been some results, but its strength is very weak and many problems have not been solved. Along with the international integration of China's economy and finance, it's becoming inevitable for the SOCB to participate in international competition, looking for opportunities from all over the world to expand business and increase profits. As our promise for WTO, China's financial market will be open to the world after 2006. Along with this day, the competition must become more and more intense. The market share of city commercial bank and joint-stock commercial bank will be greater and greater, and the oversea banks will be treated as the national banks. It is the reality of SOCB that how to achieve the control of property rights and improve corporate person management level, risk management, and how to blaze new trails. The problems can not be solved by ourselves in near future, and must depend on external help.As a beginning, this paper review the situation about introduction of strategic investor. With the case of Bank of Construction, it is expressed that there is a positive effect on the reformation of Chinese banks. Though the introduction into the strategic investor is a important breakthrough in the reform of property right, we need to pay attention to another two questions which are the state-owned asset is sold cheaper than its value and our finance safety is threatened by the strategic investor. The essence of these questions are whether we should introduce the strategic investor. So, we need to analyze the importance of introduction into the strategic investor.Though the introduction into the strategic investor, we can enhance the ratio of capital adequacy. Now Chinese banks almost can't satisfied with the international standard about the ratio of capital adequacy, through the introduction into the strategic investor, we can get the capital directly, and by improving corporate governance structure, we can further raise their ratios of capital adequacy. Secondly, the introduction of foreign strategic investors in China's banking industry to improve corporate governance structure. The fundamental crux of all problems lies in not having a good corporate governance structure. Bringing into the foreign strategic investor is to introduce a pair of eyes to focus on bank assets. It can make the bank's organizational structure to be truly radical improvement. Finally, it can raise the competitiveness of the banks and innovation capability. As the bank's products and technologies have a very strong externality, it is very difficult to imitate other people's advantages. So Chinese banking industry can not completely depend on there own to improve the competitiveness and innovation. It needs to introduce advanced technologies and experience.However, foreign strategic investors doesn't take us advantage alone, there are many risks needs to be guard. It can cause the weakening of the control of the state-owned share. Overseas strategic investors invest the commercial banks in China is not for short-term interests, it is said, they need to participate in the banking business's decision-making and management. They hope that they can get more share, but it is conflict with our aim that keep the bank in the control of the state-owned share.Through the compare of the advantage and shortcoming, we not only use the advantage, but also control the risks. Introduction into the strategic investor is a key issue in the banking industry's reformation. In this context , this topic will help us to deepen the current understanding of the reformation of the financial system. |
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