Study On Chinese Commercial Banks' Oversea M&A Strategy

Under the context of the internationalization of competition, Chinese commercial banks are turning their attention to overseas markets, practicing overseas acquisitions to enhance their overall competitiveness. However, "What I want to buy?" rather than "What you want to sell?" is an important issue in overseas M&A process. As to commercial banks themselves, the choice of overseas M&A strategies should be clear, and the design of mechanism should be reliable. Therefore, the choice of overseas M&A strategy should be suitable to our country's specific conditions, which is an important issue to be considered when Chinese commercial banks implement their overseas M&A strategies.On the basis of M&A theories, the history of Chinese commercial banks'overseas M&A is reviewed, the characteristics of Chinese commercial banks'overseas M&A is revealed, and hidden problems are mentioned. Through systematic analysis of Chinese commercial banks'oversea M&A practice, we advise that Chinese commercial banks need overseas M&A strategies that can achieve economies of scale , and enhance their competitiveness. Then, this paper focuses on Chinese commercial banks'overseas M&A strategies that realize economies of scale. Banking industry is far beyond a perfect competitive industry, and economies of scale are existed. So the pursuits of economies of scale become Chinese commercial banks'intrinsic motivation. This paper focuses on aspects such as horizontal M&A, promotion of the mixed operation and the pits for overseas M&A. M&A strategies that achieve economies of scale are analyzed. In the last part this paper winds up the risk that Chinese commercial banks'overseas M&A may face and their possible countermeasures.