Research On State-owned Commercial Banks' Financial Service To Multinational Corporations In China

China attracts more and more multinational corporations with the substantial improvement of the investment environment and the rapid economic development. Multinational corporations enlarge investment scale in China and their requirements on financial service show new traits. After China's entry into WTO, foreign-funded banks take the advantage of their international network to occupy business shares of multinational corporations in China through their strategic relationship with the headquarters of the multinational corporations. Meanwhile, Chinese commercial banks take multinational corporations in China as excellent customers for marketing focus. The competition between domestic banks and foreign-funded banks to attract more multinational-corporation-clients becomes fierce. In order to win in the competition, the state-owned commercial banks should find good answers to the following questions: how to improve financial service for the multinational corporations; how to expand market share; and how to prevent risk while offering service. Unless the disturbing problems are solved, the state-owned commercial banks can not change passive position in competition with foreign banks. This article, bases on the needs of financial service of transnational corporations, compares difference of state-owned commercial banks and foreign-funded banks in providing service to multinational corporations, so as to discuss methods and solutions of the improvement on the service ability and level of the state-owned commercial banks.This article is in six parts. Introduction part describes the purpose, structure and research method of the thesis. Chapter one begins with the definition of multinational corporations, then briefly reviews the theory of multinational corporation to explain the motivation, conditions and characteristics of multinational corporation's investment abroad. On the basis of the multinational corporation theory, Chapter two studies the management characters of multinational corporations according to the operation practice and introduce the features of their financial service requirements. Chapter three is an analysis of current financial service supply to the multinational corporations and a comparison of difference between the state-owned commercial banks and the foreign-funded banks in providing financial services. Foreign-funded banks' service offers a reference for the state-owned commercial banks to improve services. Chapter four is the core part of the article. Taking the experience of foreign-funded banks as reference and considering the resources distribution and operation mechanism of the state-owned commercial banks, this part suggests the methods and solutions towards state-owned commercial banks on improving financial services to multinational corporation. Chapter five focuses on the analysis of the risks during offering financial service and studies the way for risk prevention.