A Study On The Financial Performance, Policy And Strategy Of China Three State-owned Holding Banks

Banking is one of the lifelines of the national economy,which is always the focus of the society thanks to her great devotion to the development of economy and society in China.Recently,with the major progress in the financial reform in China, there are historic changes in this field.It is one of the important symbols of the reform of banking sector that the state-owned commercial banks have made a breakthrough in being reorganized according to the modern corporate system so that they get listed on the stock market.This article mainly deals with the listed state-owned commercial banks.With the financial ratio analytics,it states the existing financial policy of these three state-owned holding banks based on the financial performance analysis.Then it discusses and comments on the financial strategy of these three banks by applying financial strategy matrix analysis.The essay involves six chapters:Chapter One and Chapter Two firstly introduce the theme and significance of the study in the article,how to select the methods and set up the framework for researching.Secondly,the current development status and the macro-environment of banking sector in China are analyzed.Moreover,the general situation of the three state-owned holding banks is described briefly.Borrowing the financial analysis system of western banks,also according to the financial analysis system and financial analysis method of Chinese banks,Chapter Three sets up the financial index analysis system suitable for the subject.With the said system,it processes the financial data of the three state-owned holding banks from 2005 to the first half of 2008,and compares lengthways,transversely and structurally, and analyzes the factors of those financial indexes.Consequently it summarizes the individual financial characteristics.Based on the above financial analysis,Chapter Four applies the relative theories of financial policy for analyzing the financial policy of the three state-owned holding banks,such as capital structure,dividend,working capital management and investment.Chapter Five expatiates upon the connotation,characteristic and types of financial strategy,then discusses and advises the financial strategy of the three state-owned holding banks with financial strategy matrix,one of the financial strategy models.Finally,Chapter Six concludes the analysis of the three state-owned holding banks,provides the conclusion and recommendations.After comparing and analyzing the financial performances,the financial policies and the financial strategies of these three listed state-owned holding banks,the author finds that their whole financial situations turns a positive growth.Based on the three characteristics principle,the profit ability of China Construction Bank is the best,and Bank of China is good at the security and liquidity;on the financial strategy part,the dividend policy should be adjusted in the three state-owned holding banks.It is worth of learning from the capital structure and the working capital management policy of China Construction Bank.But China Construction Bank doesn't own her advantanges in intermediary business.Meanwhile,the author suggests the three state-owned holding banks should adjust their financial strategies in time in conformity with the whole environment and pay attention to intermediary business development.The article makes the author more deeply understand how the bank's business orientation affects its development strategically;and,in a sense,offer the reference for investors and bank operators.However owing to the restriction of release of information and the author's ability,there is no further research into impaction and influence in future on the three state-owned holding banks by the subprime lending crisis in USA,which is the shortcoming and the pity of the article.