Analysis Of Development Strategy Of Foreign Banks In China

With China's reform and open for more than 20 years, the banking industry has seen significant changes, as its overall strength and competitive capability continuously improving and the role it played in national economy becoming increasingly important. However, as compared with its counterparty of developed countries, the comprehensive competitiveness of China's banking industry is still weak and full of problems. At the same time, foreign banks'growth in China has demonstrated a growing trend. Especially after China's entry into WTO, they have speeded up their access to the market, showing relatively strong competitive capability, which are worth of learning for Chinese banks. At present, researches on foreign banks'development strategy in China are limited. This paper tries to find out a feasible way for Chinese banks to enhance their competitive capability by studying foreign banks'development strategies in china.The paper firstly presents fundamental ideas and theories on strategy analysis and construes the market environment of China's banking sector and competitive capability of foreign banks. Consequently, a detailed analysis is made on foreign banks'development strategy from various angles such as market entry, customer acquisition and business competition, combined with current operation of foreign banks. Furthermore, the paper covers on specific characteristics of business growth of foreign banks from different countries and determines the major potential competitors for Chinese banks. At last, on the basis of the analysis of specific case, the paper has demonstrate the key factors of effective implement of commercial banks strategy, and puts forwards corresponding strategies for Chinese banks by learning valued experience from foreign banks about business operation and management.The paper absorbs theories on economy, strategic management and commercial bank business operation and management, and makes a practical analysis in forms of comparison between Chinese and foreign banks as well as across-comparison among foreign banks. The research on foreign banks'development strategy is quite comprehensive, and the corresponding strategic suggestions are very pertinent. The author hopes that China's banking industry would take opportunities to deepen reforms and improve core competitiveness under the increasingly open market environment.