The Motives And Effects Of Foreign Ownership On The China's Commercial Bank

In recent years, China's economic grows rapidly and China continues to open its banking industry. Foreign investors begin to speed up its pace to invest in Chinese commercial bank. The introduction of foreign ownership and to strengthen cooperation with the international financial institutions has become an important part of China's commercial bank reform. It is also an important strategic choice for China's commercial bank. After China becomes WTO's member, China begins open its banking industry. In these short years, there are a number of international financial institutions invest in Chinese commercial bank, including three state-owned commercial banks. Now, we need to conduct in-depth discussion and investigation of the topic that foreign investors invest in China's commercial banks. So we can guide the China's commercial banks how correctly attract foreign investors.This paper studies how foreign investors invest in China's commercial bank, and analyze the motives, methods and the effect of foreign investors. In all, it concludes which points that China's commercial banks should concern and give some suggestions.First, we introduce the motives of foreign investors through international and domestic background, how foreign investors invest in China's commercial banks, and pointing out the difficulties foreign investors face. Second, we analyze the methods that foreign investors come in and sum up the characteristics of them and pointing out how the foreign investors choose their targets. Third, we analyze the effect of this matter by business performance, internal management, innovation and international quartet. We also point out the negative impact of foreign ownership on China's commercial banks. Finally, we conclude the analysis and give some suggestions.