A Research On The International Entrepreneurship Model Of Foreign Banks In China

Since the 1980s, with the wave of financial globalization, the internationalization of the banking spread rapidly to the world, a large number of multinational banks emerge , compose a global financial network. Since 1979, China approved the first foreign bank - Bank of Tokyo, Japan, to set up a representative office in Beijing, the foreign banks has experienced three decades of development in China. Especially China has joined the WTO officially on December 11, 2001 , and cancelled most of the restrictions on foreign banks at the end of 2006 according to the WTO agreements , foreign banks will obtain more develop space in China financial market,and develop faster. Although, foreign banks entered China banking industry on a large scale have brought many development opportunities.We should also clearly recognize that foreign banks in operation and management, asset quality, human resources, and product innovation are dominant.Therefore, foreign banks bring the challenges and the impact to China's banking industry is obvious.In this case,it is necessary to do a research on the foreign banks.In multinational banks expanding overseas, uses what kind of organization form to enter the host country is the first issue have to face. Different forms of organization determined the different responsibilities on the regulatory body of the motherland and the host country, and the the debt structure between parent banks and their branches.On the basis of a large number of literature review ,this paper analyzes the motives of foreign banks enter China, make a brief review of the course of foreign banks to enter the Chinese market, then the model of foreign banks' enter is divided into Greenfield investment (offices, branches and wholly-owned banks) and M&A to discuss. During the five - year transitional period, China's financial market was gradually opening up ,and acquisitions with low-cost, circumvent the control, and many other advantages, so the form of equity participation became hot. Therefore this paper make more detailed discussion about the organizational form taken by foreign banks in this process, especially merger. Because of different understanding and receptivity to the the advantages and disadvantages of Greenfield Investment and M&A of foreign banks ,China has adopted a series of regulatory strategy ,which become a key factor in the form of choice on foreign banks to enter China, and ownership advantages, the own business strategies of multinational banks have also play an important role.In this paper, the content is divided into six chapters: Chapter 1, Introduction: introduce the research background, significance, content ,framework and research methods, and State of the Field at home and abroad; Chapter 2,Theory:The concept of international entrepreneurship, internationalization theory, theory of the internationalization of the banking system were summed up, divide internationalization theory into traditional theory of international theory and new theory of international theory two parts , the theory of the internationalization of the banking system is divided into internal theory, Ownership Internalizatiol Location theory, the three classification theory, the pursuit of utility theory, laid a solid theoretical foundation for the study of the third, fourth, five chapters; Chapter 3,the entrepreneurship history of foreign banks in China. The second chapter analyzes the motives of the foreign banks to enter China and Chinese government's foreign policy evolution of banking supervision, and then on this basis the period of foreign banks to enter China was divided into five stages, which reveal the internal and external environmental characteristics which developed in China, and the development course ;Chapter 4 is the focus of this article, first describe Greenfield investment and M&A and compared, the Greenfield investment is divided into three forms -- representative office, branches and wholly-owned bank ,followed by an analysis of the impact factors on select different modes , then analysis of trends of the different modes , pointed out the advantages and disadvantages of M & A mode. at last, this chapter summarizes the general international entrepreneurship mode model which the foreign banks chosen in China; Chapter 5 select Citibank as a case ,which demonstrate the the analysis and model in chapter 4.This chapter gives a specific analysis on the trend , causes and effects of its Greenfield investment and M&A. Particularly in the M&A mode selecte Shanghai Pudong Development Bank and Guangdong Development Bank, the two cases are analyzed in detail, finally summarize its strategic objective and the driving forces ;Chapter 6, Conclusions and outlook:this part summarize the full text of the analysis and give conclusions and recommendations, then pointed out the lack of the research in this article.Under the background of the early period of china totally open its banking industry,this paper analyzes the international entrepreneurship model of foreign banks in China,which objectively help us to further understand the development trend and the impact of the foreign banks in China,also provide reference to China's banking industry cope with the challenge from foreign banks.In short ,to discuss the choice of organizational form chosen by the multinational banks has its practical significance no matter to deal with the impact of the foreign banks enter into China or the transnational business of the China banks.