The Entry Motives And The Foreign Capital Flow-in Effect Of Foreign-fund Bank In China

Since the end of the Second World War, the relations between international trade and finance developed quickly in international economy, which greatly improved finance business's internationalization. As the main part of finance business, banking also internationalized day by day. At the same time, foreign-funded banks not only have closed relations with each other, but also have closed relations with each country's economy and finance business. The development of foreign-funded bank business improved the development of international economy in a large degree. And People pay much attention to the importance of foreign-funded bank in international economy. In 1979, Japanese EIP established first representative office in Beijing, the prologue of the foreign-funded bank entering China pulling up in light of this. Many foreign-funded banks all over the world grasped the chance and got into Chinese market one by one. They had enormously development in institutions and operation business. With the《Regulation of the People's Republic of China on the Administration of Foreign-funded Banks》coming out on Dec.11, 2006, Chinese financial market was opened completely. Foreign-funded bank can be developed in a wide space.The entry of foreign-funded bank and the extension of business scale have closed relations with the introducing of foreign capital and the growth of economy. The economy growth drives financial requirement and business growth. And the extension of business in foreign-funded bank strengthened the aftereffect of economic growth. The main composing in the foreign-funded bank property is loan, which has an important promoting function to the capital formation: the short-term capital can make up the shortage of the trade financing and operation capital, borrowing short-term circulating fund, enterprises can take their own saving funds to a long-term investment area, which will promote the extension of production scale; the medium or long-term loan can improve the formation of the capital directly, which have a fundamental promotion to the whole economy growth. As to present research about foreign-fund bank in our country, people had thorough discussions in foreign-fund bank's creation and development, capital and risk, financial investing and loan, management environment and international supervise etc. However , the demonstration study of our economy effect which is caused by the foreign-fund bank's entry is few. The research not only contributes to open policy of Chinese banking, but also to the coordination and cooperation between macro-micro policies. Therefore, this dissertation does a related research in our economy effect which is caused by the foreign-fund bank's entry.The first part of this dissertation introduces present condition of foreign-fund bank according to various charts. And it found that an increasing number of foreign-fund banks have come to China. The second part comprehensively analyses theories reasons of bank's multinational management. Basing on these reasons, foreign-fund bank vie with each other to the Chinese market, which brings a great influence to our economy. The third part analyses from positive and negative aspects. It emphasized on our country's foreign capital introducing effect of foreign-fund bank's entry. From two sides of direct effect and indirectly effect with qualitative analysis and quantitative analysis: From the direct effect, qualitatively analyses the main business in the foreign-fund bank which bring in foreign capital, and quantitatively analyses balance sheet etc. in the foreign-fund bank which narrate the inflow of foreign capital; From the indirect effect, qualitatively analyses foreign direct investment effect which is caused by foreign-fund bank with Herfindahl-Hirschman Index ( HHI) .Then this dissertation use EVIEWS to demonstrate data of total capital in foreign-fund bank and foreign direct investment in our country from 2004 to 2006. Found that foreign-fund bank's entry show great influence in our country's foreign capital introducing. Later on, put forward suggestions and counter plans, hope promote the positive effect and supervise its negative effect. The Fourth part is a case analysis of the Standard & Chartered Bank. With the introduction of various financings in Standard & Chartered Bank, demonstratively analyses the positive capital introducing effect which is brought by foreign-fund bank.