Foreign Banks' Development Strategy In China

Foreign banks' strategies in China is closely linked with the development of China's reformation. As China's economic and political environment changes constantly, foreign banks have been kept exploring the strategy of development in China. December 11, 2006, China honoured its commitments to the WTO, the financial market was fully opened to foreign banks. In such a situation, what market environment the foreign banks will confront? And how do foreign banks make their proper strategies? The answer for above questions is the research purpose of this paper.The paper mainly based on the theory of strategic management, and the main analytical tool used in the article is SWOT matrix. In the paper, the writer does much analysis and research from the angle of foreign banks for what strategies the foreign banks may adopt after the China's financial market fully opened.The writer reviewed the development history and the strategy characters of foreign banks in China at first, and then described the external environment and internal conditions for foreign banks. After analysed the competitive advantages and disadvantages the foreign banks owned, and the development opportunities & threats generated by the external environment, the writer got four strategy portfolios (including SO, WO, ST, WT) via SWOT matrix. According to the analysis of the four strategy portfolios, the writer raised some strategies for selection. Different foreign banks may have different conditions and different adaptability. In this paper, the writer recommended different strategies according to the different types of foreign banks. In the end, the writer studied some specific cases of the implementation for strategies, and verified the rationality and feasibility of the implementation of those strategies.